Tuesday, June 22, 2004

There has been a huge lapse in time between this post and my last one and much has happened in the outsourcing world and in India since then. Elections in this country are always exciting and this time around proved to be no less. With a complete reversal of what was believed to be popular sentiment the Congress led coalition came to power. Along with their rise to power came several reservations and doubts about whether India would still be investor friendly. However, there is no reason for this fear because the new government, though highlighting it's focus on rural development, is not taking away from India's services industry which caters to foreign customers who outsource to India.

Infact there has been renewed interest and efforts in continuing to evolve and move up the value chain. As the outsourcing industry has grown new expectations and fears have arisen and in order to continue to dominate the outsourcing industry Indians are realizing that slashing prices is not going to help stay on top. Cutting costs will lead to a compromise on quality and the latter is the keyword nowadays. Quality and security concerns are the new buzzwords and in India there are efforts being made to ensure that cost effectiveness is no longer the only reason to outsource. Indian companies provide great quality work and are educating themselves on security norms which will assure clients that their information is in safe hands.

NASSCOM is working towards establishing an industry certification body to ensure security measures are in place and to work with the government for new measures to bring Indian data protection laws up to European and American standards. This will apply to security concerns in several areas such as data and information transfer, money and intellectual property transactions, and also in the area of back up and disaster recovery centers in case of networks crashing. There are already some data security laws which exist in India and they will be tightened up in order to comply with international standards.

There are several companies that are making the effort to make themselves more competitive. For example, vCustomer Services India, which mainly provides technical help desk support is moving up the value chain by offering complete problem resolutions. The president of vCustomer had something quite interesting to say about why the quantity of high value work being outsourced is still comparitively lower than routine back office work. The former kind of work is coming in, but mainly to captive units since these are inhouse extensions and do not raise as many security concerns.

Customer is working on quality, security and upgrading of skills, in order to grow and stay competitive. For example, they have one quality supervisor per 16 agents as compared to 1 supervisor for 35 agents which is the industry norm.

To counter security concerns the office ahs been made paperless and agents are not allowed to carry pen and paper to their work place and not hang around areas where other clients' work is being carried out. All data is stored in the US and is accessed from India for processing.

So there are definite efforts being made at the level of individual companies as well as larger bodies like NASSCOM to ensure that India continues to provide world class service and is seen as a "trust worthy" destination.

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