Allegations of data security lapses in Indian call centres, combined with a shortage of Indian graduates, are set to negatively influence UK companies’ decision to outsource to India, says research from the National Outsourcing Association.
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Research among 250 delegates who attended the NOA's Summit this month, showed that 60% agreed that the widely reported "Indian brain drain" will push up offshoring costs and ultimately affect UK companies' decision to offshore there.
More than a third of respondents also believe that allegations of data security lapses in Indian call centres will prohibit UK financial institutions from considering offshoring to India in the short and medium term.
Other key findings were that 76% of respondents cited China as the destination that is most likely to challenge India’s dominance over the next five years, largely due to cost and capacity.
And 52% believed that the knowledge transfer that occurs, when client organisations outsource an internal process, is likely to put the client at risk, unless best practice steps are followed.
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