Tuesday, December 30

Nasscom : Outsourcing Facts

Here on the said page you would a good summarize report of what does outsourcing do for America and India. What are the benefits for both of them. This is specially for all those who think that these contracted nations are just scavengers and having a party exploiting rich nations.

NASSCOM - Outsourcing: "The perceived notions about outsourcing need to be addressed placing the facts and figures in perspective - to ensure that this healthy trend grows and flourishes
Outsourcing a part of the main business to outside vendors has been an acceptable and popular business strategy of global corporations for years. The trend has recently caught the attention of the worldwide community and become the latest buzzword doing the rounds of US media, industry and political circles due to the depressed economies world over. Recent studies on the benefits of IT outsourcing by business intelligence organizations such as McKinsey & Co. and other leading research companies have indicated the following:
The ITES/BPO market is likely to touch US$142 billion in 2009, against the current cost of US$532 billion for these services. The difference of US$ 390 billion represents the net saving the US economy can expect from offshoring
Such savings have a huge economic impact on dollar savings, leading to value creation for shareholders and the common man
US banks, financial services and insurance companies have saved US$6-8 billion in the past four years owing to IT outsourcing to India
Helped by these savings, companies have prevented layoffs and instead added 125,000 more jobs
Offshoring to India has resulted in quality and productivity gains of the order of 15-20 percent
US BFSI sector has managed to register customer satisfaction of almost 85% due to Offshoring to India vis-a-vis their European competitors "..............................................