Business Daily from THE HINDU group of publications
Wednesday, Jan 07, 2009
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Business Daily from THE HINDU group of publications Wednesday, Jan 07, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Terrorism Info-Tech - Outsourcing Government - Security Security fears may deter new outsourcing customers
Vishwanath Kulkarni Bangalore, Jan. 6 Faced with sluggish business volumes, Indian IT services firms could find it even more difficult to convince new customers to offshore to India in the wake of recent successive terror strikes across the country. Industry analysts said offshoring by newer customers could get impacted by the recent developments even as the terror threats continue to persist. Last week six major IT firms in Bangalore such as Infosys, Wipro, Accenture and Cranes Software received a terror mail threatening to blow up their campuses in the city. “Older customers will not be perturbed. However, the new clients will require a lot more assurance before they can offshore work to India,” said Mr Vinu S. Kartha, partner at Tholons Inc, an offshore advisory firm. Big deterrentTerrorist threats could make travel more difficult and may disrupt the vendor’s ability to provide services to their clients or could delay, postpone or cancel clients’ decisions to use their services. “It (terror attack) is a big deterrent for new clients’ proposed off-shoring initiatives,” said Mr S. Sabyasachi, founder of MindPlex Consulting, an offshore advisory firm. However, IT firms feel that the India would continue to be a dominant offshoring destination considering the scale of resources and the quality of services offered. High standards“It is a matter of great concern for the customers, but people including new customers won’t run away. Our security standards are quite high,” said Mr Som Mittal, president of Nasscom, the apex body of software and services companies. Stating that the customers were fairly mature and knew that terror strikes were not particular or new to India, Mr Mittal said “both physical and data security systems of Indian IT firms are pretty robust.” The Indian companies do mission critical work for customers and have strong disaster recovery and business continuity plans in place and have set up delivery centres in near shore locations such as Eastern Europe, Mexico and Canada. IT firms continue to enhance security after the recent terror threats. Companies such as Infosys and Wipro have sought CISF cover. Besides, post 9/11 incident, most large companies have already included terrorism risk in their corporate insurance policies, which also includes loss of profits in the event of an attack. “Clients are not overtly concerned. However, there is a lot more scrutiny on the security arrangements the Indian vendors have in place,” said Mr Krishnakumar Natarjan, CEO, MindTree Ltd. Responding to terrorism ‘Indian cos do better on security’ Terror attacks: Corporate houses to rethink on security More Stories on : Terrorism | Outsourcing | Security
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