January 04, 2007
Is The Indian Tiger On Its Last Roar?
By Priya Jestin, Staff WriterYes, India is THE place today. But for how long? Lured by the bench strength of India's technology shops, financial firms such as Goldman Sachs, ING and Fidelity are eyeing new areas of interest in offshoring.
The industry’s value is expected to hit $64 billion by 2012. All this sounds like extremely positive news. But there is one area that India needs to improve without delay – its infrastructure. I know what you are probably thinking. Why do international clients need to know how India’s sweat shops run as long as they deliver results?
Well, the quality of the output depends to a great deal on how the work gets done. Crumbling electrical, water and transportation infrastructures, uneven quality of roads, poor communication links and erratic electricity supplies – is India really prepared to accommodate the next wave of outsourcing? Poor infrastructure may well be a limiting factor for the growth of outsourcing in India.
And then there is the more important issue of personnel checks. Background checks of personnel are almost non-existent. Since the country doesn’t really have a central criminal database, background checks must be done in person – something that may not be possible with every employee.
So the issue of security becomes an all-important one. Yet, it will not be fair to say that India is down in the dumps. Of course it is not because if it were, there wouldn’t be more and more companies queuing up to get their work outsourced to India.
Private organizations in India like NASSCOM are reacting to anc trying to change the way things work. For instance, NASSCOM is spinning off a self-regulatory organization, independent of the trade group, to police firms in the IT and BPO industries.
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