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Offshoring comes onshore

With European bases, Indian outsourcers will be better placed to offer customers a choice of offshore and onshore services, predicts the National Outsourcing Association (NOA).

With European bases, Indian outsourcers will be better placed to offer customers a choice of offshore and onshore services, predicts the National Outsourcing Association (NOA).

“Indian outsourcing providers are starting to think about the UK market from a western perspective. Companies are no longer in the solely onshore or offshore mindset – they are more open to using a blend of sourcing options,” suggests NOA chairman Martyn Hart.

NOA also forecasts a move towards outsourcing higher-level business processes in 2006 and a rejection of outsourcing in favour of captive operations in the financial sector.

HSBC is already following both predictions. It has 11 captive service operations worldwide and is offshoring more complex business processes.

“We have grown in confidence and will now offshore to do high-level analytics abroad and business sector research,’ says Rob Muth, head of global resourcing at HSBC.

From 2004 to 2005, the company created more than 300 new offshore jobs in these high-value areas.

The NOA also points to Africa as the next outsourcing hotspot and an emerging low-cost competitor to India and China.

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