Financial Daily from THE HINDU group of publications
Monday, Dec 26, 2005
Financial Daily from THE HINDU group of publications Monday, Dec 26, 2005 |
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Research & Development Info-Tech - Outsourcing Global cos keen on outsourcing more R&D jobs to India: Survey About 14% plan to outsource entire business process Anil Sasi
New Delhi , Dec. 25 THE Indian dominance over the outsourcing business is likely to continue. Global firms have comprehensively voted in favour of offshoring assignments to India over other emerging destinations such as Eastern Europe and China during the next three years. Going forward, the Indian offshoring pie is also slated to extend beyond the traditional IT and call-centre business to include newer areas. The new areas include research and development (R&D), along with process off-shoring such as human resources, engineering and accounting functions, according to A T Kearney's FDI Confidence Index survey that researched executives from the world's largest companies. The Indian offshoring business, dominated so far by contact centres and IT services assignments, is likely to see more business in research and development and engineering, along with business process assignments. About 14 per cent of the global firms responding to A T Kearney said they plan to outsource the entire business process, including human resource and finance assignments. Around 10 per cent said they planned to outsource R&D and engineering functions to India. R&D outsourcing is expected to go up in India, with India and China being ranked as the most preferred countries for future R&D investments, according to the study. Slightly more than 40 per cent of the CEOs indicated that they would be likely make such investments in these markets over the next three years. In the case of China, manufacturing functions are expected to dominate with 48 per cent of the respondents planning to outsource manufacturing assignments to the country during the period. While security and efficiency concerns have dominated the outsourcing scene over the last year, an overwhelming percentage of the global firms interviewed expressed satisfaction with their outsourcing experience so far. Among the firms that are already off-shoring business functions, an overwhelming 51 per cent said the work was up to their expectation, while 9 per cent said it exceeded performance. Only 17 per cent said that their outsourcing experience was below expectation.
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