Outsourcing Times

Bangalore Struck By Strike

Civil unrest recently shut down Bangalore's tech industry. IBM, Infosys, Wipro, and hundreds more outsourcing and technology companies didn't open their Bangalore facilities Monday due to a labor strike over a court decision on water distribution from a nearby river. Informationweek.com reports:

Bangalore is often compared with the U.S.'s Silicon Valley. The recent spate of civil unrest and business closures, however, are a reminder that the region's tech industry isn't exempt from the turmoil and complex socioeconomic issues facing the rapidly developing country.

Read more: Strike Shuts Down Outsourcing In India

Why You Need To ‘Know’ India

By Priya Jestin, Staff Writer

Since India is still the flavor of the season, let’s look at the reasons why you should be careful while outsourcing to the country. One of the first things you realize is that the demographics and structure of the country are very different from that of other western countries. It is very important for all levels of management to understand the differences in workforce demographics, diversity categories, and legal frameworks relating to diversity, employment discrimination and equal employment opportunity.

For instance, the workforce in India is largely young. Rapid economic expansion over the past decade has led to a rapid influx of professionals into the already burgeoning workforce.

Meanwhile in America and European countries like England, the average age of the workforce is older. This workforce however represents a much larger and varied section of society than the one in India.

Another problem with India is the lack of enough trained, qualified talent to fill up the jobs coming its way. The much touted education system also does nothing to bridge this gap. In such a scenario, employers in India are finding it increasingly difficult to hold and cultivate the skilled employees they need.

Then there is the issue of legal framework. In western countries, anti-discrimination laws, compliance laws, and mechanisms for redress of violations are taken for granted, India is still way behind. Though the country’s legal eagles are trying hard to catch up with the rest of the world, fact is the legal safeguards, redress mechanisms and monitoring mechanism in India still leaves much to be desired.

These instances just touch the tip of the iceberg and yet they are sufficient to illustrate one point. You just cannot apply generic diversity management and global multicultural team principles to every issue. You have to understand and learn to work around the differences in the country you outsource to. Or you may end up facing unintended negative consequences.

Accenture Is Now An Indian Firm

Come August and Accenture Ltd will, for all practical purposes, become an Indian company. That is, the company will have more employees there than in the U.S. The company will increase its workforce in India to 35,000 people by Aug. 31, the end of its fiscal year. The increase in staff in India means Accenture will have more employees there than in the U.S., where it will have just over 30,000, the company's chairman and CEO, William D. Green, recently announced.

Most of the staff in India will work in Accenture's Global Delivery Network, which will have a total of about 65,000 people worldwide by August. The company offers IT and BPO services from India, and it's planning to train its staff there in business consulting and other areas. It has established a business consulting analytics center in Delhi. Computerworld.com reports:

Accenture is expanding in other locations outside of India, including China, where it has deployed four Indian managers at an operation with 3,700 employees. "There will not be another phenomenon like India," said Green, adding that no other country will overtake India in terms of number of employees for at least 10 years,” Green said.

Read more: India will be biggest country for Accenture by August

Is The Indian Tiger On Its Last Roar?

By Priya Jestin, Staff Writer

Yes, 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.

The Story Of A Tech Upstart

This is the story of Steve Hamm who was sent to India by Business Week, USA to study the story of Wipro, one of the big three that spawned the phenomenon of outsourcing of computer-based services over the past two decades. In his book How Indian Tech Upstart Wipro is Rewriting the Rules of Global Competition, Hamm tells the story of how Wipro rose from its humble origins of a vegetable oil processing and wholesaling company called Western India Vegetable Products.

Azim Premji, the man behind the vision managed to convert Wipro into a software giant with a current turnover of $ 2340 million and a profit of over $400 million. One of the main reasons for Wipro’s success is the importance given to serving the customer at all costs, building relationships and maintaining the highest standards of integrity. Hindu.com reports:

Though software is seemingly a technology business, the fact is that success has far more to do with personal relationships and sustaining customer confidence and comfort levels. In Wipro, this has been repeatedly shown not only by Premji, but also others like Ashok Soota, and Vivek Paul who contributed significantly to the development of the organization. At the root of the successful growth, according to the author, is also a managerial style, to an extraordinary extent based on open debate, participative action and strong work ethic.

Read more: How Indian Tech Upstart Wipro is Rewriting the Rules of Global Competition

HSBC On An Indian Romp

HSBC is expanding its offshore outsourcing operations in India with a new BPO facility in Kolkata (Calcutta) and a software development center in Hyderabad. The bank already has one wholly owned BPO subsidiary - HSBC Electronic Data Centre - in Kolkata, which has 2,000 employees working on back-office operations, and is now planning to set up another center in the same city. Silicon.com reports:

Last year HSBC said it plans to double the size of its offshore operations to 25,000 employees within three years to help reach a target of cutting costs by $1bn by the end of 2007. HSBC CIO Ken Harvey recently revealed that almost half (42 per cent) of the bank's IT development work is now done in low-cost offshore centers.

Read more: HSBC ramps up Indian outsourcing presence

Quality Test For Outsourcing Personnel

--By Priya Jestin, Staff Writer

Finally, you may get to hear some decent service. (Not that it was all that bad but well, it wasn’t too good either.) Recently, the main trade body representing software services companies in India announced that it would hold entry-level tests. These tests will help them gauge the capability of people seeking jobs outsourced by U.S. and other overseas companies.

This new move means two things. First that the Indian outsourcing industry is finally coming of age and secondly, that it has learnt to master the fast pace of growth. This recent move will help the industry tap new talent and cut the time and expense of recruiting new hires. This will help keep the industry churning and the economy growing at its present level. And it will help us consumers as well.

Admit it, outsourcing is here to stay. And we cannot always bang our heads in frustration when we realize that the guy at the other end hasn’t understood us or mistaken our request. We should welcome this new move because the industry finally understands the fact that there is a need to satisfy the consumer.

Candidates who pass this test will be regarded as having the basic skills to work in the outsourcing industry. However, this doesn’t guarantee employment. The test, to begin Nov. 18, is based on the Test of English as a Foreign Language (TOEFL) and the U.S. Graduate Record Examinations (GRE). The latter measures verbal reasoning, quantitative reasoning, critical thinking and analytical writing skills. The scores will also help recruiting companies screen candidates and determine their training needs.

The main purpose of this initiative is to counter a potential shortage of talent over the next decade. The test will help them tap new talent pools in relatively remote parts of the country as well.

IBM chosen to develop a centralized Indian Web Portal

By Priya Venkatesh, Staff Writer

Do you know the latest initiative taken by India, to keep its huge population connected over the Internet?  With growing competition in outsourcing, do you know that India has taken measures that could supersede the performance of its competitors very soon? Go ahead & read to know the details!

The software giant, IBM has bagged a project to develop a national web portal for India, which is expected to connect every nook and corner of the nation. This portal is expected to give information on innumerous services like permits to start business, tax tips and more! The portal is expected to use the middleware from IBM to get linked to the state and central government sites.

IBM on the other hand expects to yield maximum profits through such projects, which has given rise to reverse subcontracting processes within the nation!

Read one of my previous post on 'IBM Calcutta increases employee strength' to know the extent of establishment of IBM in India.

Profits recorded point to continuing IT boom!

By Priya Venkatesh, Staff Writer

Do you know the details of the continuing IT boom in India?  Are you aware of the profit data that the pioneers in outsourcing have recorded this year? Read on to know the details!

Infosys, one of the pioneering IT giant in India has recorded a profit of 42.4% amounting to a total income of $746 Million. As per the reports from informationweek, 7700 employees have been added to the payrolls of Company this quarter. Wipro, another outsourcing giant has recorded a profit of $589 million which accounts to 46% growth in this quarter that ended on September 30 2006. The results of the last 2 quarters of the outsourcing pioneers clearly indicate an ongoing boom in the field of IT!

Read more on 'Indian IT stocks creep incredible heights amidst tight competition' in one of my previous post to know the consequences of this growth in Indian IT stocks!

Profits recorded point to continuing IT boom!

By Priya Venkatesh, Staff Writer

Do you know the details of the continuing IT boom in India?  Are you aware of the profit data that the pioneers in outsourcing have recorded this year? Read on to know the details!

Infosys, one of the pioneering IT giant in India has recorded a profit of 42.4% amounting to a total income of $746 Million. As per the reports from informationweek, 7700 employees have been added to the payrolls of Company this quarter. Wipro, another outsourcing giant has recorded a profit of $589 million which accounts to 46% growth in this quarter that ended on September 30 2006. The results of the last 2 quarters of the outsourcing pioneers clearly indicate an ongoing boom in the field of IT!

Read more on 'Indian IT stocks creep incredible heights amidst tight competition' in one of my previous post to know the consequences of this growth in Indian IT stocks!

IBM Calcutta increases employee strength

By Priya Venkatesh, Staff Writer

Are you into IT? Do you know the employee strength of IBM in India? As an individual one is seldom aware of the fact that IBM has 14 offices across India with over 43000 employees.

IBM has promulgated the addition of 3000 more software developers at its Calcutta development center shortly.

With the enormous increase in the employment rate in the field of IT, informationweek reports that NASSCOM expects to have 25% more growth of IT in the wake of the year 2007.

Read more on 'IBM Daksh - Marching Ahead' in one of our previous post to know how IBM has expanded its operations in India via Daksh.

Indian IT stocks creep incredible heights amidst tight competition!

-- By Priya Venkatesh, Staff Writer

Do you get involved in the stock market? Did you have a look at the results of the third quarter? Here are the details of outperforming stocks of the stock market as on date!

Share prices of the IT vendors, Wipro, Satyam, Infosys & TCS have crept incredible heights very recently! While the European and American counterparts struggle hard to sustain the high value of their stock prices & are at 100.4 & 98.3, Indian IT companies have gone up to 117 recently.

Sourcingmag.com accounts this to the gain that the companies have incurred in bagging larger contracts from overseas. Shares of CTS seem to outperform its Indian peers since the share value of the company has crept up by 50% this year.

Read one of our previous post on 'Build infrastructure to sharpen outsourcing edge, says the Indian P.M' to know more about the initiatives taken by the Indian government to encourage outsourcing!

Build infrastructure to sharpen outsourcing edge, says the Indian P.M.

If you reflect on the recent statements emerging from the government echelons in India, you will be convinced that outsourcing ranks pretty high on the agenda for the government.

Look at the recent statement of Prime Minister Manmohan Singh, for instance. Speaking at a conference on ''Building Infrastructure'', the Prime Minister said that the government is willing to pitch in to overcome the infrastructure deficit in India. He said that the government is finalizing a policy that will put the framework in place for a massive infrastructure improvement drive.

Quite rightly, Manmohan Singh identified the power sector as the major pitfall, and stressed the need to overcome the power crisis that is reigning in several parts of the country. India Daily quotes the P.M:

The bane of power sector seems to be the high transmission and distribution losses which account for almost 40 per cent of the electricity produced. No civilised society nor a functional commercial entity can sustain losses on such a scale.

Indian state government does the outsourcing act

The relatively recently born state of Jharkhand in eastern India favors the outsourcing path in core infrastructure sectors such as roadways and town planning. The steady growth in population has all but stagnated life in the many towns in this state, and the government has finally woken up to the necessity of improving the civic amenities and building efficient road networks.

The government is looking for investors from across India to step in and take the outsourcing bait, and thereby to help improve life in Jharkhand. Outsourcing could help the state tide over the increasing population pressure, and also ensure that the non-planned and planned expenditure of the state is put to tangible use.

The Times of India has more on the development.

Dell plans to embark upon India!

Are you into outsourcing? Do you involve yourself with IT enabled services? Have you got ideas about the major subcontracting destinations across the globe? Have you heard about the next outsourcing move from Dell? Read on to know the expansion plans of Dell in detail. Dell, the pioneer in computer manufacture has set up new plans of expanding its computer monitor manufacture operation in Tamilnadu, India.

As per the reports from crmbuyer, a proposal to this effect has been ratified between the Management of Dell and the state government of Tamilnadu, India. The operations are expected to commence in the wake of the year 2007 at Sriperumbudur in Chennai, Tamilnadu, India.

Read my previous post on 'How India is able to circumvent the security issues in Outsourcing' to know why the wave of outsourcing is moving towards the Indian subcontinent.

Circumventing the security issues in Outsourcing!

Are you one of the lots who outsource work to Indian firms? Do you have fear and anxiety regarding the privacy and security of the data being outsourced? Are you ambiguous as to whether India can be accounted as a trustworthy subcontracting destination? If yes, go ahead to read the measures Indian firms have taken up to resolve these issues.

From the perspective of the Indian government, it is working with NASSCOM to bring in stringent laws on par with US for continued privacy/security issues. Indian IT firms do understand that privacy issues will not only tarnish their image amidst competitors but will also tarnish the established brand name of India as an efficient outsourcing destination. Mid cap and large cap companies in India have come up with innumerous ways of handling the concerns related to data privacy and security.

• Palm readers are being used to restrict access to work places at IT Firms.
  Internet and Intranet access has been removed from machines that are into the domain of the client.
• USB Port access has been taken out at the work place to avoid the data security breaches across the organizations.
• Visitors are not allowed to enter the workplaces in the IT Firms.
• Telephonic conversations are being recorded for security reasons.
• Surveillance cameras inspect and take care security breaches at the work place.

Click here to get an insight on Outsourcing to India.

IT heavyweights discuss the outsourcing flight path

As we have seen in an older post titled "Western European IT outsourcing bounds ahead through mega deals", it is least surprising that IT continues to be the one industry that is making rapid strides, attracting many offshore mega deals. India is very much a part of this world phenomenon. 

This was reflected at the IT conclave organized by the Industrial Interaction Committee of the MBA program at IIT Kanpur, where several of the top IT heavyweights traced the development of outsourcing in India from its days of infancy to its present mature state.

Mr. Ramakanth Desai, Senior Vice President, Business Strategy and Innovation at Wipro, reflected on the initial phase when cost arbitrage was the key attraction that Indian IT players had, and looked at the status today when big deals are being struck by service providers in India. The BPO industry obviously continues to play a major role in the paradigm shift, with a growth rate of about 50% per annum.

Other speakers focused on issues such as the global mindset of Indian managers for a vibrant outsourcing industry, project management as a key to the success of the IT industry, the utilization of IT as a strategic tool for increasing business competitiveness, and the rather sordid tale of corruption in the IT industry.

For more details on each of these subjects, click here.

Rationale behind the IT Outsourcing to India

Outsourcing work to developing countries like India is becoming the order of the day.

Apprehensions apart, as individuals have we analysed the factors that add fuel to this fire of outsourcing to India, lets get a deeper into this and analyse the situation.

As per the reports from itoutsourcingindia, the factors that re-iterate the essentiality of outsourcing to india can be summarized as follows:

• Abundance of human resources with the required technical expertise and excellent communication skills.
• Economic factors are another add-on.
• Highly reliable communication lines provided by VoIP service providers pave way to uninterrupted communication between countries.
• The time zone provides a helping hand for getting our things done at India during our late night hours.
• Adherence of Indian IT firms to global quality standards like SEI CMM, PCMM and Six Sigma Practices
• Tax deduction offered by Indian government to pioneering ventures in the field of Information Technology.

And lots more......

Click here to know more on IT outsourcing to India.

Government must pitch in to boost EPO

The engineering industry is an important part of India's manufacturing sector, and is poised to attain new heights in the foreseeable future. According to a report, the Engineering Process Outsourcing (EPO) market in India can potentially rise to US$ 40 billion by 2020, which will more than double India's market share in this category.

However, this is all mere target practice. To get the actuals up there, the government needs to come forward with heavy investments in the EPO sector. EEPC Chairperson Rakesh Sharma has struck the right cord by stating that the government needs to address industry deterrents such as taxation issues, so that the Indian EPO sector can sharpen its competitive edge.

For more information, click here.

Sluggish mood could cost India its outsourcing advantage

The sooner Indian outsourcing vendors emerge from their complacency, the better for the market. Having carved out a sizeable portion of the global outsourcing market, Indian vendors seem to be sitting back on their success, making little or no effort to cover fresh territory. Take the field of HR outsourcing, for example. Out of an estimated $80 billion global HR outsourcing market, India accounts for a miniscule part of the pie.

The biggest fear of HR outsourcing companies in the West is data privacy and data security. However, the security aspect doesn't seem to figure high enough on the priority list of India's outsourcing service providers. As Business Standard reports, the lack of data privacy concerns has kept most of the HR outsourcing bigwigs away from India:

The biggest problem—and this is why the HR outsourcing industry in India is on the back foot—is the government’s and the industry’s failure to tackle issues like data security and data privacy. Most foreign companies insist that their outsourcing agreements contain detailed and precise contractual specifications regarding data privacy and protection. This is where Indian HR outsourcing companies face a major handicap.

Then, there is the other aspect of human resources—Indian salaries are rising at 14% per annum, and this could even out the positive incline that Indian vendors are enjoying at the moment. India's cost advantage might disappear in a few years' time.

Before that happens, Indian companies need to pull up their socks and tighten other business processes, such as the security concerns, so that they stay afloat—and swim—in the global outsourcing market.

The Aussie jobs are coming!

Talk about outsourcing in India, and it is quite natural that the first country that comes to your mind is the US. True, most of the outsourcing business for India comes from US-based companies, but quite a few outsourcing agreements are signed between Indian outsourcing vendors and outsourcers from non-US countries, primarily the UK.

But now the Aussies are coming—well, almost. BT Financial Group, a leading Australian investment company, is trying to tap the outsourcing potential in India by offshoring 70 jobs to India to improve customer service.

Owned by Australia's well-known bank Westpac, BT is trying hard to justify the outsourcing move as a genuine effort to improve customer service rather than as a mere cost-cutting adventure. As a clear move to appease sentiments among Australia's workers’ unions, a spokesperson for the company said that the move is based on a redeployment program and is not targeted as a retrenchment exercise. As Rediff News reports:

BT spokeswoman Karen Barrett said the company wanted to redeploy some workers within the company, and also to its parent company, Westpac.

Judging from the reaction of Finance Sector Union spokesperson Paul Schroder, the explanation offered by BT is unlikely to wash with the public.

The south shines in outsourcing armour

First, it was the turn of the southern Indian city of Bangalore to be promoted as the tech-city in India, housing numerous outsourcing "merchants,” as it were. Now, it is Chennai, just a few hundred kilometers to the east of Bangalore that is being catapulted into the status of an outsourcing hub. Throw in the third southern city of Hyderabad, and you have a city-trio that has the potential to outshine north and west India as the business epicenter in India.

I can try counting the number of multinational outsourcing companies based in these three southern cities, but I know it will be a hopeless task. Any attempt to draw a list of the who's-who in the outsourcing industry is doomed to become obsolete in a few days time, so rapidly are the outsourcing vendors spreading their roots in this region.

However, let's talk about Chennai. Global software solutions and integration services provider Mastek has recently bought a 17-acre plot in the city, and this could turn out to be the most well managed outsourcing delivery center in India. The stakes are high, but so are the credentials of Mastek, as My Iris reports:

Mastek is a USD 156 million, publicly held company, with more than 2,800 employees and 7,200 man-years of experience. The company has implemented more than 1,000 projects worldwide.   

In a couple of years at the most, we'll know if the Mastek dream comes true in Chennai.

India marches on with its offshore cost advantage

If you have been following the outsourcing trend in India, you would have definitely felt the gathering storms over India's potency as the leading outsourcing destination. These storm clouds mainly stemmed from the fact that the mushrooming of outsourcing vendors in India directly contributed to major wage inflation in the country, and there was also a perception emerging that the pool of skilled resources in India was drying up.

However, US-based research firm Everest has conclusively dispelled all these storm clouds. In its "2006 Global Sourcing Market Update", Everest clarifies that the concerns related to wage inflation and skill shortages were grossly exaggerated, and India continues to enjoy its offshore advantages.

Maneuvering firmly on its tracks, the Indian BPO industry accounts for half of the global business in this arena, and Nasscom has predicted that the industry will chart a growth rate of 40% over the next fiscal year:

The Indian BPO sector is expected to maintain the current export momentum and grow by 35-40 per cent in this fiscal (FY 07) to achieve $8-8.5 billion as against $6.3 billion in the previous fiscal (2005-06).

Industry analysts feel that India will hold its offshore advantages and continue to rake in the outsourcing bucks for the next thirty years. It's certainly "Advantage India"!

Investor Ideas has more information on the current scenario and the future directions that the market could take.

Legal Process Outsourcing: A $25 billion business waiting to happen

In an older post, I had mentioned a Forrester report, which prophesied that India would absorb 79,000 legal jobs by 2015. This theory is now gaining potency because, by all accounts, legal outsourcing is catching up in a big way and becoming a sizeable part of the total outsourcing business in India.

According to CRISIL Research, Legal process outsourcing is a high-potential value-added service area, and India's vantage position is particularly suited to this business module. There is no dearth of law graduates in the country, and infrastructure facilities also lend positively to legal process outsourcing. India is capable of providing the required legal expertise and infrastructure at a cost far lower than would be required in the US scenario. This has attracted several large to medium-sized law firms and corporates in the US to shift business processes to India.

According to Sudhir Nair who heads CRISIL:

The combined revenues from the private law firms and the corporations are estimated at around $4.7 billion. As the industry matures, we expect a substantial increase in the Indian LPOs targeting US corporations.

The Indian LPOs must now realize that it is possible to capture anything up to $2 billion of the global LPO market, provided the industry is able to ramp up its total lawyer strength.

Click here to read more.

Outsource vendors turn journalists!

How often in the past have you struggled over the composition of a press release to highlight your company profile? How often have you amassed a lot of paper research and didn't know where to turn for fine tuning it? And, how often have you thought of launching fancy newsletter for your organization but kept it in abeyance because of a lack of time and know-how?

Well, thank heavens for outsourcing, you can complete all these tasks through a third-party. Outsourcing is no longer confined to the twin pillars of call centers and IT; there are professional service providers who will write, edit, fine-tune, and produce any literature you require—be it something as simple as a company profile, or as complicated as a book on world religion.

This market segment is still in its infancy, but it is certainly gathering momentum and set to sweep across America, Australia, and Britain into India. Yes, India is likely to be at the center of this media outsourcing stage, as it has been for other outsourcing market areas. Rosemary George, of Bangalore-based Flatworldsolutions notes:

Most of the work we are doing is for American and British clients and which deals with press release writing, making newsletters and article submissions. There is no dearth of skilled manpower in this area. India has a large pool of writers and the work today is being taken both by freelancers and specialised media companies.

As The Hindu reports, marketing of Indian entrepreneurs in this arena is going to be critical in taking this outsourcing business to the next level.

Indian BPOs Are on The Prowl to Acquire Overseas Companies

Indian IT and BPO companies have been indulging in acquisition talks that might bring huge revenues to the country. Not surprisingly, they are all set to acquire overseas companies with lucrative bids. To begin with, Indian dealers have chosen some companies that spend over $500 million. Experts believe that the valuations for companies abroad are attractive. They average less than 1.5 times the revenue multiples. There is no doubt that the acquisition helps acquire clients and domain expertise in selective areas.

Indian IT giant, Wipro Technologies has acquired four companies and is evaluating a few more. Recently, Bangalore-based Subex Systems made the biggest acquisition by buying UK-based Azure Solutions. Other companies that are eying overseas acquisition are BPO leaders Genpact and Transworks. The current trend suggests that Indian IT and BPO companies have realized the potential of overseas acquisition.

Outsourcing of Check Clearing System Ruled Out

The Indian government finally allayed the fear expressed by Reserve Bank of India (RBI) employees over outsourcing of check clearing work. Recently, there has been uproar over this issue and RBI employees have threatened to go on a long strike if the government outsources the check clearing work to other companies. The government assured the Parliament that there is no proposal to outsource or transfer the work of national clearing cell activities.

The government sources said that the National Payments Corporation of India (NPCI) would be set up by a group of public and private sector banks under the aegis of Indian Bank's Association. The NPCI will have a strong and viable mechanism of payment. Even after setting up of NPCI, the final settlement of transactions would remain with the RBI.

Outsourcing: The double-edge winner!

Outsourcing has led to sharp, and often hysterical, reactions from the West: Governments talk about it, the U.S. President talks about it, people talk about it, and we have even heard reports of people committing suicide against the outsourcing trend. But let's get away from such drastic reports, and turn to the main players in the business—the outsourcers and the vendors.

Obviously, the outsourcers have considerably gained from outsourcing, and the rising graph of outsourcing vouches for that. More and more companies are taking a ride along the outsourcing path, and several are renewing their outsourcing contracts, much like a child at a game show: "I want that ride again!"

The outsourcing vendors in India are also merrily tagging along the path, and busy in ramping up their resources and infrastructure. From one "tech-city" in Bangalore, we hear of outsource service providers diversifying to other metros and even smaller towns, contributing to the infrastructure in those cities. Chennai in southern India is the "happening place,” as I discovered during a recent visit.

Let’s take an example. British insurance major Aviva, the world's fifth largest insurer, has declared an operating profit of £1.699 billion for the first half of 2006. As DNA India reports:

Total Indian sales increased strongly to 173 million pounds from 50 million pounds (Rs 443.47 crore) in 2005, Aviva said in its interim result for six months ended June 30.

In India, Aviva Life Insurance is a 74:26 joint venture with India's Dabur Group. Early in 2006, Aviva went into a partnership with Centurion Bank of Punjab, and now the partners have 22 distribution agreements between them.

Outsourcing in India has many other such success stories, where both the outsourcer and the vendor emerge clear winners.    

Coal Ministry in India Rapped for Outsourcing in CIL

A recent government decision on outsourcing has raised serious controversy in many quarters. Recently, the Indian Coal Ministry has allowed Coal India Ltd (CIL) to outsource certain activities of production. Now a parliamentary committee has questioned the Coal Ministry's rationale in the whole matter. It rejected the ministry's contention that CIL would maximize its profits through the outsourcing of staff and infrastructure.

The committee also expressed its dissatisfaction over the acquisition of land for setting up the outsourcing center. Don't you think that foreign investment and outsourcing activities in India are being halted in India because of political differences? I am sure that the whole issue has become controversial, as political parties in India are into the habit of opposing each other's decision.

India’s Outsourcing Revenue Is Growing

In the past few weeks, there have been rumors and speculations about the outsourcing business in India. Many people went to the extent of saying that outsourcing boom was over. However, the latest report suggests that India's outsourcing revenue rose 32 percent to reach US$6.6 billion in the second quarter of 2006. There is no doubt that India remains the most preferred destination for Western companies to shift their back-office work. This report will definitely boost the confidence of Indian outsourcing industry.

"Engineered in India": India waiting to cash in on global engineering outsourcing

India, already spearheading the IT outsourcing market, is now set to expand services in engineering services. Globally, the highest spend in the engineering industry comes from powerhouses such as the US, Germany, and Japan.

According to Nasscom, the offshoring activities from these and other countries is likely to soar up to $150-225 billion by 2020, and India is well-positioned to grab 25% of this figure:

Engineering services offshoring could help create 150,000 to 200,000 additional jobs, up to 1,000,000 with multiplier effect. India needs to invest now to yield the required number of engineers by 2020, the report said.

The engineering market is a fragmented one with high-tech/telecom occupying 30% of this space, followed by automotive (19%), aerospace (8%) and utilities (3%). India is targeting the high-tech/telecom and automotive sectors, where outsource vendors find themselves on a strong footing in terms of both infrastructure and expertise.

The Financial Express has more details on the Nasscom report.

Weavers in south India: Weaving an outsourcing network

Outsourcing is usually practiced across cross-country borders. However, there is a smaller play alive and kicking within India. Weavers formerly engaged in the production of the famed Mangalagiri sari in south India are facing the crunch of rising production costs and excessive trade unionism, and are now outsourcing production.

Between Srikakulam in the north and Prakasam in the south, a network of weavers produces the Mangalagiri handloom. No longer confined to Mangalagiri, the "Mangalagiri handloom" product has developed as a brand, and this “grassroots-level” outsourcing will continue to thrive so long as the outsourced products maintain the same quality and finesse.

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Banks "strike" out at outsourcing!

In an older post titled Outsourcing opposed by RBI employees in India, I had mentioned the strong reaction by RBI employees against outsourcing. This fire of opposition is now spreading across almost all public sector banks in India.

On July 28, all public sector banks—with the exception of the State Bank of India—went on a flash strike, drawing banking services to a screeching halt across the country. But the buck didn't stop there. The country's politicians painted an even more sinister picture of outsourcing.

Take the statement of the Communist Party of India, which looks at outsourcing as a threat to the political stability of the country. In the midst of this opposition, the government attempted to diffuse the situation with a statement that outsourcing in the RBI was only limited to "non-core activities.”

However, as The Hindu reports, the left parties refused to bite on this statement. While the political tussle goes on, we wait and watch which way outsourcing is going to go in the Indian banking sector.

India: The new-age design board for global players

There was a time when Indians looked to the West, more particularly Paris, for fashion and design. However, India is now riding on the outsourcing wave, and this has more or less reversed the trend. Now, global brands are turning to Indian designers to sketch for their latest product lines.

In fact, global players such as Whirlpool, GE, LG, Philips, and Bosch have already initiated steps to set up design centers in India. Some others, like Reckitt Benckiser, are offshoring their design work to Indian designers. In its India Business report, The Times of India quotes Anuj Prasad, chief designer at Delhi-based Desmania Design:

Outsourcing design jobs to India started in a small way, but is going to be big. This is the latest trend in the world of manufacturing. A product is today conceived in the US, designed in India, manufactured in China and sold in markets across the globe.

Indian designers are now part of the global phenomenon, and are set to cater to diverse fields, including 3D modeling and plant engineering in aerospace, automotive, and industrial design for clients in Europe and America.

Indian Outsourcing Company's Move to Buy Botnia

Here is a great news for the Indian outsourcing companies! Now Indian companies have begun thinking big in terms of business acquisitions. Indian outsourcing company Sasken Communication Technologies Ltd. has finalized a deal to buy Finland-based Botnia Hightech Oy for 35.5 million euros. Saken's move will boost its capabilities in wireless services. With this acquisition, Sasken will set up its first European research development center. The company will also enhance its capabilities as a provider of telecommunication software and related services. This acquisition may set a good precedent for other Indian companies. Do you think that it is time for other Indian companies to make a move?

Chron reports that -

The deal is the latest in a string of overseas acquisitions by top Indian companies, which are trying to increase global visibility after surviving for decades on domestic sales and government protection. Sasken will pay euro35.5 million (US$45 million) for Botnia Hightech in an all-cash deal, the statement said.

PSU Banks in India Planning Outsourcing

Different segments of the industry have acknowledged the benefits of outsourcing their businesses in order to register higher growth as well as reduce costs. Financial companies, Software companies, Legal firms and Pharmaceutical companies are leading the outsourcing business. In a significant development, two public sector banks in India received the green signal from the finance ministry to outsource non-core work like salary payments and recruitment.

According to finance ministry sources, outsourcing of non-core functions could help the nationalized banks in using their workforce for sanctioning loans and recovery of bad debts. The private banks had used direct sales agents for a series of activities ranging from giving loans to issuing credit cards and accepting deposits. However, they had to stop depending on outsourced staff following a directive from the Reserve Bank of India. Outsourcing of core services is not permitted. However, outsourcing of non-core services will definitely open more options before public sector and nationalized banks.

The Times of India reports that -

The issue is going to be discussed by finance minister P Chidambaram when he meets bank chiefs on Friday. But officials said that the government did not want to force any bank to embrace the outsourcing culture and was merely trying to create the environment for those who want to exercise the option.

Going beyond the expected: Infosys net profit scales up to $173 million

Arguably one of the top three software companies in India along with TCS and WIPRO, Infosys is riding high on the wave of outsourcing to bring in the big bucks. Its outsourcing services have seen a 50% rise in demand over the last quarter alone, pushing sales to a new high that is well beyond the projected figure. This has led Infosys to push its targets even higher for the next quarter.

In terms of numbers, the company added 38 clients and 5,700 staff during the previous quarter. The trend has also led to an annual increase of 15% in salaries, and brought in the tough question of holding on to its employees. BBC news reports:

India's National Association of Software and Service Companies (NASSCOM) has estimated that contracts worth a combined $100bn will come up for grabs over the next two years.

Top Indian Companies in Outsourcing Business

Some Indian companies are leading the global outsourcing vendors list. Recently, the Brown-Wilson Group has published a list of "50 Best Managed Global Outsourcing Vendors for 2006". Not surprisingly, Indian companies Satyam, Cognizant and Infosys figure among the top five outsourcing vendors. While Satyam is ranked second, Cognizant is at third position. Infosys has occupied the fifth position in the list. Patni, TCS, HCL and Genpact took sixth, seventh, eighth and ninth positions respectively. The annual survey analyzed over 870 outsourcing vendors in 63 countries to find the factual figures. The survey focused on the key areas such as human capital performance, corporate direction, leadership, customer satisfaction and employee satisfaction.

Outsourcing prayer requests

As life treads a new course in the Western world, marked by a fast pace and a lack of time and inclination for pursuing spiritual needs, India come to the rescue. The number of practicing priests in the US and the UK is diminishing rapidly, and the churches in these countries are not able to meet the demand for fulfilling all prayer requests.

The solution seems to lie in India, and churches in India are being inundated with requests for prayers from the Western countries. India offers over twenty-five priests who manage resource-crunched churches, and the demand for prayers from the West is a welcome relief.
The requests are routed through the Bishop's office to the most suitable priest for a particular request. The prayer is conducted on behalf of the sponsor, and money reaches the priest conducting the prayer. There is an increasing trend to route prayer requests to the most needy of churches, such as those in north India.

A reverse effect is also beginning to emerge; English-speaking priests from India are migrating to Western countries to fill in for the shortfall there. This might, in the long run, make it difficult for Indian churches to continue servicing the offshore prayer requests. However, the factor that works in favor of India is that there are seventeen million Catholics in India. As the Times of India reports:

[This number is] over four times the number of Catholics in Britain, where the sect is a minority, and an impressive one-third of the total number of Catholics in the US. India's youthfulness and English-speaking talents are fetching it attention in the spiritual world too, though it's still not clear what language the lord speaks in. 

India extends "global counsel" role to Canadian lawyers

The US is the most sought after client for Indian outsource vendors, and the typical industries that attract business are the IT and BPO sectors. However, neighboring Canada is also not far behind in outsourcing work to India in the call center, data processing, and accounting sectors. To add to this range, Indian lawyers are offering their services to Canadian lawyers.

The concept is bound to catch on because a lawyer in Canada can save substantially by offshoring work to India, much less than what is paid to a junior lawyer onshore. Indian law practitioners are well equipped to handle requirements from Canada because they are trained in common law, which is practiced in Canada also. No doubt legal outsourcing is still a newborn baby, but it is likely to nurture itself in the coming years, and emerge as a challenge for the Canadian Bar Association. The Hindu reports:

The National , the in-house magazine of the Canadian Bar Association, recently published an article about the "commoditisation" of legal services, and warned that Canadian lawyers may have no choice but to change their business practices to compete in a world where India is offering work at substantially reduced costs.

NDTV ties up with Genpact for media outsourcing services

What is it that attracts outsourcers to India? No, I don't mean the obvious attraction of cutting costs. You just have to look at the range of services that are coming out from this country, and then it will be quite easy to comprehend the logistics of outsourcing to India. India is virtually a one-stop shop for almost any outsourcing requirement, and newer facets are being discovered or added on a regular basis.

Take media outsourcing for instance. Not a talking point so far, you might say. But it soon will be a focal point in the outsourcing industry because leading news broadcaster NDTV has tied up with the BPO biggie Genpact to offer Media outsourcing to the world. The new service is viewed as a workable option because there are several processes in producing a final media product, and many of these processes can be diverted to an outside service provider.

If we are to go by statistics, 70% of media production is digital, and most of this bulk can be outsourced. Among such services, NDTV is looking to provide support for digitizing archives, logging, metatagging, graphics, and set design. NDTV expects to cash in on the top-rung talent available within the country to help reduce time for media outsourcers, and to build its coffers on the way.

United Press International has more on this waiting-to-happen service sector.

Media Outsourcing Services in India

While IT, Banking and Finance companies across the United States and Europe are outsourcing their services to India in quest of quality output at a lower cost, there are some new sectors in India that have shown readiness to provide support to global companies. Media sector is one of those. India's largest television news broadcaster NDTV has announced a joint venture with the country's single largest BPO company, Genpact. Both the companies have agreed to offer content creation and other media services to worldwide customers.

According to sources, there are many independent processes that go into making a final media product. Often, these products are not made in-house. They can be shipped off to someone else to do the behind-the-scenes work. Now a days, 70 percent of all media work have become digital. Hence, they can be easily outsourced. NDTV is looking to enter the media processing filed that will allow outlets to maintain basic scripting and control.

Digitizing archives, logging, and metatagging -- by which all footage is digitized and transcribed so that it can be searched by key phrases - are some of the services which the company intends to provide. Format changing footage such as creating one minute podcasts from audio recordings, as well as craft editing are also anticipated services.

ASI to outsource monument conservation

The Archaeological Survey of India (ASI), the guardian of historical monuments in India, has come under severe criticism from several quarters because of its lackadaisical approach to the critical task of saving our past. However, being a severely handicapped agency because of a limited work force, ASI has found itself wanting on this count. The situation was becoming unmanageable with several new monuments being added to the existing long list of monuments under ASI protection.

However, the outsourcing boom in India has caught on in a big way, and the ASI has initiated a process of employing outside help to conserve monuments. ASI is treading the outsourcing path cautiously, and is presently considering outsourcing conservation of only relatively modern structures, where the requirement of technical expertise is minimal. The Times of India reports:

Some buildings in the Red Fort complex that are of relatively recent origin, belonging to the 1930s, and portions of the Safdarjung Tomb have been outsourced to private parties.

Medical Outsourcing Wave in India

Analysts believe that another larger outsourcing wave is all set to sweep the Indian BPO industry. A number of hospitals in the US and the UK are outsourcing laboratory and diagnostic tests to India at a lower cost. It costs about 70 to 80 percent less by outsourcing their businesses. Indian labs offer the facility where over 1,500 tests can be conducted under one roof. At the moment, this is generally limited to highly specialized tests. Experts say that outsourcing of laboratory testing and diagnostic services all set to become big business in India.

According to Express India -

According to industry estimates, the Indian diagnostics and pathology laboratory business is around $864 million and is growing at a rate of 20 per cent annually. Some Indian lab companies have secured contracts with a few hospitals from the Middle East.

Truck Makers Outsourcing to India

European and American truck makers see India as an outsourcing hub. They are looking towards India to outsource their business operations. Recently, Volvo Trucks has set up a product development group in India. The main objective of Volvo is to support development activity in North America and Europe. It will outsource components worth 70 million euros this year. Volvo currently has 70 engineers working on chassis and cam development to support R&D centers in North America and Europe.

Another European truck maker, MAN has formed a joint venture partnership with Force Motors. The move will help the company to price its products competitively. The company will use the parts also in its German products. This will help to cut costs since two-thirds of the MAN truck is outsourced. American truck maker, Navistar is also looking to India. It has recently sent requests for quotations for components worth USD 160 million. Many more truck makers are exploring ways to outsource their business to India. They believe that outsourcing may help their business grow further.

Outsourcing of Education in India

In the global arena, India's education sector receives high praise for providing quality education and knowledge to students who excel internationally. However, the ground reality is something different. Although India is ahead of others in providing total number of higher qualified professionals, Indian higher education is still slow in responding to the challenges posed by globalization. Globalization poses numerous challenges for higher education. As the market for talent has become global, most countries face problems in providing better quality of education in a competitive environment.

India's premier institutions do not have incentive and bonus structure to retain good faculty and woo highly experienced professionals. According to a recent government study, premier institutions in India are facing a shortage in faculty. The shortage is up to 40 percent in some institution, which is a matter of concern. Over the years, India has become a net consumer of foreign education with a spending of $3 billion per year to train students abroad. Ironically, the Indian education system is notable to mobilize funds from its students at home. Many of the best students and professors in India prefer to go abroad, which degrades the quality of the Indian Education system.

No to RBI outsourcing plans

The announcement a few days back that RBI is planning to outsource its clearing function has met with sharp criticism from economic analysts. Reacting to the RBI plan, Amiya Bagchi, director of Institute of Development Studies in Kolkata, said that India could emerge as a favorite ground for illegal money laundering because of the outsourcing plans. Addressing a meeting of All-India Reserve Bank Employees Association, Bagchi went on to say:

The RBI could not be a copybook institution of central banks of other countries like the US, UK and other developed countries.

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India is the Best: Report

In contrast to news reports of a lack of trust for a leading Chinese manufacturer by the U.S. government, India has been declared by the Indian National Association of Software and Service Companies (NASSCOM) as the leading outsourcing partner for firms based in the U.S. and the U.K.

India has seen a smooth transition from being a service provider to knowledge-based outsourcing within a relatively short period of time. The outsourcing service providers are able to meet the challenges of KPO, including advanced analytical and skilled knowledge to handle projects. The drive in the KPO market in India has encouraged the government to fashion IT policies that are likely to aid the KPO industry.

Click here for more details on KPO and its market state.

India is Leading Outsourcing Business

According to a recent report, more than three-fourth of the top providers of offshore services to US companies have their operations in India. The report was released by the International Association of Outsourcing Professionals (IAOP). Although China, Philippines and Russia have made steady progress over the years, they are still lagging behind India in outsourcing operations. Most of the top-ranked offshore providers are located in India, thus making it the number one destination for outsourcing.

In the recent years, some regions in Africa and the Philippines have shown growth as outsource destinations. Few companies operating there are ready to step up their operations and expanding their networks worldwide. However, most American companies are still opting for India. Among the leading functions moving from the US to offshore locations are technical support in IT, toll-free call, e-mail responses, transaction processing and financial management. Most tasks are labor intensive and require significant attention. The availability of low-cost labor and efficiency and dedication displayed by the workers play an important role in attracting outsourcing business to India.

IBM Daksh - Marching Ahead

There is no doubt that outsourcing business in India is on a new high. Many companies are now leading the BPO operations in India and IBM is one of them. With the acquisition of Daksh in 2004, IBM started its full-fledged BPO operations in India. Over the last 12 months, IBM-Daksh added over 10,000 employees and expanded its contact centers across India. Now it has become the second largest BPO in India after Genpact. The BPO operations have become one of IBM's key growth drivers in India. Some of its key clients include Amazon, Paypal, Sprint, HP, Yahoo, Citibank and Bharti Televentures.

IBM-Daksh provides a variety of services to its clients. Its main operations include call handling, email processing and technology support. These services are related to customer care activities. Now IBM-Daksh has decided to focus on CRM, HR and other important operations. Over the past couple of years, employee base of IBM-Daksh has grown by 234%. When IBM acquired Daksh, its employee strength was around 6,000. Now it has 20,000 employees and is expected to add more staff in the coming years.

India: Hot Destination for Outsourcing?

Although India always has been preferred as the major destination for outsourcing, some UK firms were hesitant to outsource their businesses because of infrastructure problems. However, in the recent months, Indian companies have resolved the issues attached with infrastructure problems to a considerable extent. Experts believe that India is in a better position to tackle the infrastructure problems that have discouraged some UK firms from outsourcing IT work to the country.

The bureaucratic tangles in India always had a negative impact on the outsourcing industry. However, increased foreign investment and efforts by the Indian government to streamline bureaucracy have opened the way for completion of infrastructure projects at a faster pace. Infrastructure facilities in the Southern Indian cities including Bangalore and Hyderabad have improved significantly. Companies such as Satyam, TCS, Infosys, Microsoft and Oracle have expanded their operations in these cities and are attracting outsourcing firms.

More Information: Read Here

However, some critics argue that despite these promised improvements, the ever-increasing demand for electricity, roads and other basic infrastructure means the Indian government will struggle to keep pace. As evidence, they point to the rolling blackouts that have occurred in some cities.

Outsourcing opposed by RBI employees in India

Opposition to outsourcing: the scene is a familiar one in the U.S. However, roles are changing, and India also has its share of opposition to outsourcing services. Employees of the Reserve Bank of India are opposing a move by the authorities to form a National Payment's Corporation of India that will take over the check clearing functions from RBI.

The Economic Times quotes K. K. Sharma, Secretary, All India Reserve Bank Employees Association:

We have two main demands -- implementation of the revised pension scheme and no outsourcing of jobs from RBI.

Is India trully reaping the rewards of outsourcing?

The last five years has seen India take giant strides as an outsourcing center. India is now virtually the global back office for outsourcing. External to India, the response has been a mixed one; while some countries feel it has led to greater productivity with a minimum costs, other countries see it as a cause for economic challenges and job cuts. But the mother of all debates at this juncture is: How has outsourcing affected India itself?

One major effect has been the growing job opportunities in the BPO sector, with salaries comparable to the best in the country. According to a Nasscom study, the sector has bred 409,000 direct jobs and another 2 million indirect jobs. The success in India has been attributed to lower production and communication costs and better management capabilities.

However, there is cause to worry. For a start, the BPO growth has been confined to urban India, and if one counts the number of potential job seekers from across India, there could be an impending scarcity of jobs. Then there are negative factors such as high attrition rates, out-of-proportion salary growth, and a possible shortage of work force. Coupled with the increasing competition from other Asian countries such as the Philippines, Pakistan, and China, India could be in for tough times in this sector where the country has reigned supreme for well nigh five years.

Click here for more on the debate

TCS on the hotel management track

TCS, the Indian IT giant, will soon take advantage of outsourcing opportunities being offered by sister companies. For a start, Taj hotels is looking to outsource hospitality services, and this deal is likely to go to TCS. TCS has been a tried and trusted partner for Taj, and is well equipped to handle all back office work for Taj.

TCS is looking to capitalize on similar business opportunities with other hotel chains. NDTV Profit has more:

Taj group is one of the first Indian hotel chains to outsource services such as reservations and loyalty programs. It will now take outsourcing to the next level so that it can focus on core areas.

Legal Outsourcing in India

Customer Support operations have been part of Indian BPO industry for a long period. Now legal outsourcing firms in India are growing significantly. With big clients abroad, these firms are attracting well-experienced corporate lawyers and students from leading law schools. Several legal firms in Mumbai and Bangalore have received outsourcing contracts from the United States and the United Kingdom.

Several lawyers with vast experience and many fresh law graduates from India's leading law schools have already joined the legal outsourcing firms that are paying high salaries. Pangea3, which began operations in Indian in 2005, has now a client base of 50 in the United States. Fifteen of these fifty companies are fortune 500 companies. In legal outsourcing firms, employees work on analysis of patents, drafting contracts, reviewing litigations and corporate issues.

Money Control reports:

Once lawyers learn that the work that we do for clients around the world is sophisticated than what they may see or have seen in law firms, they become quite interested in what we are doing.

Security Measures taken by Indian BPO Industry

There is a lot of hue and cry over the reliability of BPO Industry in India. A section of media and some other organizations have launched a scathing attack on the call centre employees of India, which may prove detrimental for the growth of Indian BPO Industry. The recent sting operations made by the 'Sun' and the Australian Broadcasting Corporation (ABC) can be seen as one of such campaigns against the Indian BPO sector. Now the BPO companies are taking strong security measures to prevent any misuse of the details of the customers and all the employees adhere to the rules.

Most BPO companies have certifications such as BS 7799 and SAS 70 and undergo third-party audits at regular intervals. BS 7799 (British Standards 7799) is set by the British Standards Institute, which is opted by many companies with a large client base in the UK. BS7799 is the most widely recognized security standard in the world.

SAS 70 is also an internationally recognized auditing standard developed by the American Institute of Certified Public Accounts (AICPA). To get the SAS 70 certification, companies go through in-depth audit of their activities, which is crucial from the customers' point of view.

Indian Outsourcing Firm Wipro Acquires Quantech

Wipro, one of India's largest outsourcing companies, has acquired Okemos mechanical engineering and design firm, Quantech Global Services LLC. The deal was finalized recently, although details have not been disclosed yet. The deal will lead to a sharp increase in the number of employees at Quantech's Okemos headquarters. LSJ reports:

Quantech, which has about 500 employees worldwide, provides design and engineering services to automotive, aerospace and consumer goods companies.

Outsourcing goes beyond business operations

Childbearing is being outsourced by infertile couples to Indian women and this phenomenon is driven by a few common reasons as with outsourcing of business operations. A surrogate mother carries the benefits of a substantial income opportunity which is cheap for the Westerners themselves. At the same time, the income that is obtained is much beyond the annual salary levels of many women in India.

The trend is obvious as more and more enquiries are received from such couples. There are two sides to the story as poverty is forcing women to be surrogate mothers on one side and the moral implications of su