India Outsourcing Grows Up

Business Week writes:

Like almost everyone, Indian operators dislike dealing with abusive customers frustrated by shoddy service. But more important, India’s leading outsourcing shops say their U.S. corporate clients continually try to ratchet down prices, which inevitably drives down the quality of service they can provide. So lately, Indian outsourcers have begun turning down call center contracts, preferring better-paying deals for processing mortgages, handling insurance claims, overseeing payrolls, and more.

Call centers are becoming a less important feature of the Indian business landscape. In 2000, they represented 85% of the total back-office business; now they’re about 35%, according to Nasscom, India’s outsourcing industry trade association. And while call centers are still growing in India, the business is expanding at about 30% annually, compared with 60% growth for nonvoice back-office work, Nasscom says. “The intellectual value of India is not at this low end, but with taking large and complex processes and improving them,” says T.K. Kurien, chief executive of Wipro BPO.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.