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Outsourcing
Controversy over outsourcing benefits India
The pace of outsourcing work to India is picking up, in part because the controversy in the United States over the trend has publicized India’s low costs and expertise, according to a report in The Wall Street Journal.
Officials at the Software Technology Parks of India were quoted as saying that two to three Western companies areng operations every week in the high-technology hub of Bangalore. More companies are turning to India to do everything from software development to back-office work, the report said.
Revenues for call-center businesses grew by 46 percent to nearly $4 billion during the year ended March 31. And the number of workers in India’s technology sector is projected to have jumped by 23 percent to more than 800,000 in the period, according to the National Association of Software and Service Companies, or Nasscom, the Indian technology industry’s trade body. Nasscom expects India’s exports of software and services to jump more than 30 percent to $16 billion in the current year ending next March, about the same growth rate as last year.
Many Indian and American executives were quoted as saying that the U.S. criticism of outsourcing is generating important buzz for Indian technology companies, highlighting their low costs and expertise. “During the last six to nine months, we’ve received hundreds of millions of dollars of free advertising,” Vikram Talwar, chief executive officer of Exiservice Inc., a New York company that processes financial claims for U.S. banks and insurance companies in India, told the Journal.
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