| Industry analysts have been predicting for | | | | |
| months that India's capacity for taking in | | | | RCG Information Technology is another large |
| American outsourcing work is starting to | | | | IT service provider. They have stated |
| stretch its limits. The government has | | | | clearly that they do not intend to make India |
| always taken steps to restrain continuing | | | | a part of their strategy for the foreseeable |
| growth, but now we're seeing the American | | | | future. Instead they have targeted the Asia |
| companies taking action. They are | | | | Pacific region for further expansion and |
| deliberately moving some of their outsourcing | | | | already have a presence in the Philippines. |
| capacity to the next-step destinations, such | | | | Their analysis revealed that India's prices |
| as the Philippines, China and Vietnam. | | | | are rising, due to the overcrowding of |
| | | | clients there. Employees are jumping from |
| India's government was right to try to | | | | one firm to another to get better pay. This |
| restrict growth, because the resulting rise | | | | is causing overall prices to increase, while |
| in costs is now being realized and passed on | | | | skill levels sink. They have found English |
| to the American companies. | | | | communications skills to be superior in the |
| | | | Philippines. |
| Sykes is a large US-based contract center and | | | | |
| IT support organization with operations in | | | | Hewitt has begun hiring for its new BPO |
| both India and the Philippines. It has | | | | facility in the Philippines. So has HSBC, |
| recently announced it will move much of its | | | | the international banking concern. On the |
| capacity from India to the Philippines. For | | | | flip side it has been reported that Indian |
| a company of this size to make this drastic | | | | nationals working here in the United States |
| of a move means the price differential is | | | | are being wooed to go back to India, where |
| substantial. | | | | demand for their work is high. They are |
| | | | having trouble doing so, however, because |
| GXS is another global business-to-business | | | | their salaries are traditionally so much |
| service provider who is moving operations | | | | lower than in the U.S. This, too, is |
| with strong customer service components to | | | | contributing to India's increasing rates, as |
| the Philippines. They have found better | | | | they start to face the downside of fiscal |
| economics and results there. They're leaving | | | | globalization. |
| their product development operations in | | | | |
| India. Overall, they feel that this | | | | But don't count India out yet. India created |
| arrangement minimizes risks. | | | | the offshore outsourcing model and its |
| | | | continued managerial competency will drive it |
| A recent investment decision is further | | | | forward. It still dominates and enjoys a |
| evidence of the growing interest in the | | | | fine reputation and attractiveness worldwide. |
| Philippines as an outsourcing destination. | | | | Its current growth slow-down does not |
| Ambergins Solutions, a large call center | | | | indicate weakness but, rather, great success. |
| operation, just received an investment of | | | | If places like the Philippines and Vietnam |
| $43.5 million from a Canadian-based global IT | | | | have not been quite as successful, they are |
| solutions provider. A company source said | | | | learning from India how to attract their |
| the Asian Pacific region appeared to be the | | | | share of quality and sizable outsourcing |
| best long-term opportunity of anywhere, | | | | employers. |
| including India. | | | | |