The Other Side of Off-shoring

Added: (Tue Oct 30 2007)

Pressbox (Press Release) - It is widely accepted that in our present era globalisation of trade and business has dramatically escalated economic development. The developing world is leaping forward towards economic prosperity at a pace not imaged a few years ago. Growth in the developing countries is taking place at a rate that is about double the rate being achieved in the developed world. A Golden Age for the developing world has arrived on the back of globalisation and technological innovation. Outsourcing or offshoring has become an integral part of current globalisation trends.

Differences in legal systems and the integration in world business of business transactions and business functions makes it imperative to monitor international legal developments, including changing taxation laws and tax rates in various countries.

However, in recent years, the major Indian IT consultancies including Tata, Infosys and Wipro have instituted big ticket North American employee training and development programs in a bid to capture more U.S. market share.

The reasons for this reverse offshoring trend include the economic the rupees declining exchange rate versus the dollar, the political a decline in H1B visa availability and concerns about immigration laws and the cultural to be closer both in a literal and figurative sense to their U.S. customer base.

Another factor comes out to be the IT labor shortage that these firms are facing in their home country of India. the rising demand of the technical professionals has increased the pressure on wages but rising the job turnover. All of these factors are hurting Indian IT companies, or at least those that remain in India.

Companies are being more realistic about the amount of people and the skills they need to retain to be able to properly manage their newly outsourced environment, he says. While retaining more people hits the initial ROI, it probably improves companies ability to capture benefits and improve the overall ROI.

Interestingly, some U.S. companies are finding the answers to their business process outsourcing BPO questions just south of the border, as Mexico hopes its investments in IT education and infrastructure pay off in U.S. market share.