India may lose 45% BPO biz: Gartner

Monday, 30 August 2004, 07:00 Hrs
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WASHINGTON: Indian outsourcers stand to lose more than 45 per cent of their business "because they cannot stay ahead in the competition," claims a new report by consulting firm Gartner.

"India has more than 80 per cent of the global market and it stands to lose more than 45 per cent of that," the firm said in the report entitled 'Indian Outsourcing Pie Being Eaten', published in the Enquirer magazine.

The problem, according to Gartner, was that the Indian government and industry had "suffered from the erroneous belief" that the sector could match the booming growth of its software and other mainstream IT activities without devising a long-term plan.

"The US has flocked to India because of its vast English-educated work force and lower labour costs. But what India has failed to realise is that the sort of outsourcing it provides can be done by any graduate without the technical skills needed for information technology and many emerging countries have English-speaking graduates," it said.

"Unlike other emerging nations such as Thailand, Malaysia, Fiji, Mauritius, the Czech Republic, Bulgaria, Poland and South Africa, India has failed to draft a long-term plan to train workers for the industry," the report said.

"As a result, India will find these jobs replaced by cheaper workers in the Far East for the "more mindless" development work, and companies in Eastern and Central Europe for the tougher stuff," it added.

The advantage of using near-sources in the former Communist bloc was that they were a lot closer for companies to keep tabs on, were well-trained, still a little cheaper and took orders more easily, Gartner said.

Source: IANS
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