Wednesday, June 04, 2008


Reasons to NOT outsource to India

Figured I would provide a perspective on why enterprises shouldn't outsource to India and should consider countries such as Brazil and Trinidad...

a) High attrition rate: Since there are multiple career opportunities for person working in IT/BPO companies, attrition is likely to prevail. This is also because of stiff competition.

b) No formal education by universities / colleges for working in outsourcing sector. Everything is dependent on training given by the companies.

c) Concentration of software professional is in some of the states of India like Karnataka (This is state in which Bangalore is situated). Otherwise, there is less leverage of a population than the media will publicly discuss.

d) Reluctance in relocation by employees (generally speaking, of course there are exceptions to any declaration)

e) Engaging in software industry is considered as a temporary career option by the masses in India. This is because of unpopularity of use of IT in other sectors.

f) No major laws for data theft, copyright, piracy. All is governed by the general contract Act. Newly introduced Information Technology Act, 2000 has many grey areas and Indian court and judges have less knowledge about common phrases and practices in IT sector.

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