$ 210 bn. jobs will be outsourced to India in 2005

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http://www.hinduonnet.com/thehindu/holnus/002200410031288.htm

 

 

 

" $ 210 bn. jobs will be outsourced to India in 2005 "

 

New Delhi, Oct. 3. (UNI): Top 100 global financial companies will

offshore jobs worth over $ 200 bn. to India and other countries in

2005, says a new research by Deloitte and Touche.

 

" Financial institutions are moving business functions to India because

they are recognising compelling cost advantages and they are able to

lock in savings and manage risks effectively, " Peter Lowes, US leader

of Deloitte's Outsourcing Practice, said.

 

In 2005, Deloitte expects the top 100 global financial companies to

offshore a total of $ 210 billion of their operating costs, saving on

average $ 700 million.

 

The survey, covering 43 financial services companies around the world,

suggests that the number of firms taking the offshore option increased

by 38 per cent last year.

 

Deloitte also estimated that by 2010, 20 per cent of the operating

costs of global financial institutions would be centred abroad,

reducing costs by about 37 per cent.

 

Analyst Datamonitor also said earlier this year that outsourced,

offshore call centre positions will more than double by 2007 to

241,000, from close to 110,000 at the end of last year.

 

However, the Deloitte survey said most of the companies sending jobs

to India and other countries had concerns about risk management. Half

of those surveyed had contingency plans if the offshore operation went

wrong.

 

" Risks related to government change and policy changes are prompting

companies to have a multiple-country strategy, which makes it easy for

them to migrate services if there is a problem in any operation, "

Lowes said.

 

Apart from India, other countries with high proficiency in English are

emerging as popular destinations, including Malaysia and the

Philippines, the report added.