The Real News Behind Outsourcing to India

by Brandi Moore on June 14, 2009

The New York Times on June 8th said “Firms Close Back Office in India to Cut Costs.”

What the content of this article is about is quite the opposite.  Firms are closing their doors in India, and handing the keys over to large Indian firms who want their business.  And their employees who are often well versed in the business. Citigrou and Aviva are some of the firms that engaged in large transaction swaps if you will, offering large contracts to the firm that purchased their centers.

While some are leaving India, most are just starting to shop as they figure out new ways to grow their business.  Amitabh Chaudhry, the chief executive of Infosys BPO, expects his business unit to grow up to 20-40% this year.  While this is far from the growth curve of 2007, the growth pattern continues.

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