Outsourcing costs hit India
BPO Business Intelligence
look to other low-cost destinations like the Philippines when
offshoring technology and BPO work.
Research from KPMG has found that while 53 per cent of Australian
respondents outsourced to India and 38 per cent to China, rising labour
costs might change that.
"While Indian IT service providers and call centres have the added
advantage of speaking English and having a proven track record, the
rise in outsourcing throughout Asia and particularly India will
inevitably mean labour costs will rise," said KPMG partner Edge
Zarrella. "New outsourcing players are emerging including the
Philippines, which may persuade Australian companies to rethink their
outsourcing options."
Mr Zarella said a second wave of outsourcing would see finance, human
resources and accounting functions taken over by third parties.
"Outsourcing is gaining steam and companies with no plans to outsource
may soon find themselves at a competitive disadvantage," said Mr
Zarella.
Source: australianit.news.com.au 05/12/2006