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from India Insight:

Indian IT finds promise in Europe as continent looks at offshoring

(Any opinions expressed here are those of the author and not necessarily of Reuters)

Europe's reluctance to send information technology and other business processing work to India might be changing, based on recent financial results from companies that specialize in handling "IT and business process outsourcing" work. It looks like this is a trend that will last more than a quarter.

Many European companies have shied away from sending work overseas, unlike American firms that jumped in feet first, seeking to cut IT costs by as much as 70 percent despite the barrier between two kinds of English. Add to that countries such as Germany and France, where the divide is between two languages altogether, and outsourcing faces a larger challenge.

Big companies that deal with IT and business process work have found that establishing a beachhead near the client seems to make a difference. By hiring small numbers of local consultants, they can send most of their work to Indian offices while presenting familiar images and voices.

from The Great Debate:

Creating an upscale service economy

The American economy is irrevocably shifting from manufacturing to services. Our workforce has gone from 28 percent factory workers and 72 percent service workers in 1978 to 14 percent factory workers and 86 percent service workers today.

But the service sector encompasses tens of millions of “bad” jobs that are unstable and offer low pay with few benefits – routine clerical work, for example, or retail sales, fast food or low-end human services such as nurse’s aides – alongside a relatively small number of well-compensated professional positions, including doctors, lawyers and scientists, as well as astronomically rich investors and plutocrats in the financial sector.

from The Great Debate UK:

Offshoring remains, it is just less visible

Today we are all used to an international trade in services. When you call up the bank, a contact centre agent in India probably answers the call. When you crash your car and file a claim, the claim form you painstakingly complete is scanned and sent thousands of kilometres away for processing. When you call to find out the next train to Cardiff, it’s not someone in Wales giving you the information you need.

This change in how services are delivered has become a part of everyday life. For many companies – such as banks – it went too far in the past decade. Many banks found that their customers were uncomfortable dealing with an agent in a far-flung location and it soon became a source of competitive advantage to answer calls locally. But those same banks advertising that ‘we answer your calls in the UK’ are all sending their IT systems offshore. The ‘offshoring’ continues, it is just less visible.

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