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Can you elaborate on the NeoIT report titled
Services Globalization Trends
2007?
In this year's report, we talk about service globalization as a whole, and try
to understand the right demand and supply opportunities, and long-term
competitive advantages. The report highlights what could be the changes from the
client as well as supply side. On the client end, we see a fundamental shift in
their approach toward the emerging global locations, and talent. They also would
bring in significant changes in their approach in terms of structuring and
managing their engagements or deals in the overall global sourcing scenario.
There are new segments in terms of getting into new area of services.
Which are the new geographies gaining importance with regard to outsourcing?
Four years back, we had IT companies moving to India, and call center
companies moving to the Philippines. Nobody is interested in off-shoring
anymore. Most companies are talking about leveraging globalization with right
talent, skill, price, and capability. Some new locations that we see are the
East European bloc, which is a good location for back-office kind of work for
the entire Europe with good availability of language skills, finance, and HR
capabilities. Brazil is fast emerging as one of the strong players in
infrastructure management front, while Russia is emerging in R&D front. Low cost
locations Vietnam, and Thailand are becoming second level support after India,
and Philippines. Other emerging countries are South Africa, Botswana, and
Jamaica.
Is China a serious competitor to India?
China was a curious location more than a year back. However, it was being
seen as more of a third choice after India, and Philippines, and that too for
setting up DR sites only, because, China always faced with the challenges of
language, and management capabilities. But, in the next 5-10 years, China can
offer a great backup location for India. Some of the Indian companies who have
setup their facilities in China are faced with cultural challenges.
Sudesh Prasad
sudeshp@cybermedia.co.in
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