Higher wages for Indian IT workers is the
single greatest threat to global outsourcing, according to a poll
of 325 Fortune 1000 IT executives.
Business process outsourcing (BPO) firm Syntel carried out the
online poll which asked respondents to select one of five threats
to the proliferation of the
outsourcing trend.
The five options were:
wage inflation, quality concerns, possible outsourcing
legislation, perceived security risks and middle management
resistance.
According to the report wages in Indian outsourcing operations
are growing at 15% a year and 33% of respondents cited this as the
single biggest threat.
But Syntel claimed that these fears are unjustified. “These
inflationary rates are very manageable levels. In addition, client
corporations understand that to attract and retain top talent for
their projects through outsourced vendor partners, they need to
share some of the burden of wage inflation through pricing
increases.”
Other results showed
quality concerns as the number one threat for 27% of
respondents, possible outsourcing legislation 21%, perceived
security risk 10% and middle management resistance 9%.
Syntel's view on
the results >>
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