SME Times is powered by   
Search News
Just in:   • DPIIT to examine pension funds investment in startups  • US stocks close higher on upbeat jobs report  • DPIIT to set up panels to sort out startups  • Axis Bank's CFO Jairam Sridharan steps down  • 'UK-US trade talks document leak linked to Russia' 
Last updated: 20 Nov, 2019  

BPO call center generic THMB High geopolitical risks may benefit Indian outsourcing industry: Report

BPO.9.jpg
   Top Stories
» DPIIT to set up panels to sort out startups
» Sitharaman invites suggestions on GST
» Naidu calls for making 'Fit India' a mass movement
» Auto component sector's turnover falls over 10 pc
» Several schemes to push women entrepreneurship: Minister
SME Times News Bureau | 20 Nov, 2019

With global geopolitical risks rising, the Indian outsourcing industry may benefit due to its stability, said a new report on Wednesday.

Fears of geopolitical instability may impact the global offshore services market, as sourcing, procurement and vendor management executives review their options to mitigate risk, according to Gartner.

"The Indian outsourcing companies can benefit from these risks but are likely to do so via delivering services from smaller scale near shore countries such as Philippines and Vietnam as well as some Eastern European and Latin American offshore countries," Jim Longwood, Research Vice President at Gartner, told IANS.

Indian outsourcing firms generated more than $45 billion in global services in 2018.

The offshore outsourcing market has been relatively stable in recent years, with organizations using a mix of onshore, nearshore and offshore resources with relatively stable demand and supply patterns.

However, recent events like the Sri Lankan terrorist attacks, the U.S.-China trade dispute and political tensions in Hong Kong are raising fears of delivery disruptions.

"Political and economic stability is an important factor in offshore outsourcing arrangements," said Longwood.

Gartner estimates that China exports around $10 billion of IT application and business process services, primarily to North America, Western Europe, Asia/Pacific and Japan.

"How the trade talks progress may hinder China's ability to deliver IT services," Longwood added.

Concerns include potential disruption to or cessation of services, increased tax added to export labor rates and reduced quality of service due to 'patriotic' backlashes by local staff.

"However, instability is not limited to the US/China situation. All organizations should review their offshoring and nearshoring arrangements," he said.

Gartner predicts that by 2023, 65 per cent of larger enterprises using captive offshore or nearshore service delivery centers will have adopted a multi-country sourcing strategy for these services.

The report recommended that organizations should build a roadmap to split risks across multiple countries and/or onshore low-cost centers, including automation of service delivery.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 09 Dec, 2019
  Daily Poll
Ease of doing business improved in last one year
 Yes
 No
 Can't say
  Commented Stories
» MRF to set up a new plant in Gujarat(2)
» Starting an import export business: Basic guide for beginners(1)
» India software market grew 12.4% in H1 2019: IDC(1)
» "Govt's mantra Sabka Saath, Sabka Vikas, Sabka Vishwas"(1)
» Forex reserves rise by $2.48 bn to over $451 bn(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter