Is it now crazy to offshore IT to China?
China has been developing an IT outsourcing industry aimed at bringing in business from the U.S. and Europe. It has succeeded, but then again it hasn't thrived and now may face more barriers.
China has been developing an IT outsourcing industry aimed at bringing in business from the U.S. and Europe. It has succeeded, but then again it hasn't thrived and now may face more barriers.
Indian outsourcers Tata Consultancy Services (TCS), and HCL Technologies reported this week strong revenue and profit growth for the quarter ended March 31, as outsourcing by clients to offshore locations picked up.
Setting up offshore IT services and business services subsidiaries has once again become a preferred route for multinational companies wanting to tap talent in low-cost locations, analysts said. The subsidiaries are known in the outsourcing industry as "captive centers" because they meet the in-house services requirements of companies.
The proposed acquisition of an IT services company by India’s largest business process outsourcing (BPO) firm, Genpact, has fueled a debate on whether pure-play BPO firms in the country can survive independently.
China's plan to create a competitive outsourcing industry was hit with another blow last month with the release of a report that lay bare, in ways never seen before, the extent of the security risks of working in the country.