Financial Daily from THE HINDU group of publications
Friday, Mar 26, 2004
Financial Daily from THE HINDU group of publications Friday, Mar 26, 2004 |
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Info-Tech
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Off-shore Development Telecom offshoring Competition hot on India's heels: Deloitte Our Bureau
New Delhi , March 25 ALTHOUGH India is currently the default choice as offshore supplier for the communications industry, many other countries are fast emerging as challengers, according to a new survey by Deloitte Research. The second-tier challengers include Canada, China, the Czech Republic, Hungary, Ireland, Israel, Mexico, Northern Ireland, the Philippines, Poland, Russia, and South Africa. In addition, many countries in the third and fourth tiers are aggressively vying for offshore business. India's tensions with Pakistan remain an ongoing concern - despite recent positive developments and a broadening dialogue between the two governments. India's problems create an opportunity for other countries wanting to get in on the action, the study has stated The survey of 42 global telecommunications operators representing all three major industry segments - fixed, mobile and cable - found that global telecommunications operators are increasingly using offshoring as a strategy to decrease operational costs and enhance services and by the year 2008, 5 per cent of the industry's 5.5-million labour force, or 2,75,000 positions, will be offshored in the communications industry. "The industry lags other sectors such as high technology and financial services, but the practice is fast becoming one of the industry's most significant business trends.," the survey has noted. The study found the benefits from offshoring across all operators are expected to range between 20 per cent and 30 per cent, with additional savings expected. The industry's move toward advanced data-oriented services will fuel the offshoring trend by increasing the need for affordable support staff with strong technical skills. There will be enhanced competitiveness, as multiple time zones allow teams to work around the clock to reduce time-to-market for application development. The report also identified several risks to consider. Operational complexity and loss of control means that companies must develop new business processes for ensuring the quality and control of development and customer support activities. "Language barriers, cultural differences and the protection of intellectual property can increase the risk of miscommunication, including legal commitments, leading to inefficiencies or misunderstandings that impede progress", the study has noted.
More Stories on : Off-shore Development | Telecommunications
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