How safe is outsourcing?

29 Nov 2008, 0015 hrs IST, ET Bureau


MUMBAI: A large global firm runs its trading desk out of Mumbai. Bookings for a leading airline are happening out of another office in a
neighbouring city, while the telecom infrastructure of an overseas operator is being remotely monitored from another location in the country.

A terror attack on any of these sites can have significant implications for corporations in the US and other parts of the developed world as India emerges as the world’s back-office.

For instance, if a trade is not squared off on time, the firm will have to carry higher liabilities. Wednesday’s attack raises questions about the vulnerability of these locations to terror threats and the preparedness of firms and authorities to tackle them.

The issue assumes importance as nearly seven out of every 10 outsourced processes come to India, according to industry estimates. While 6-7 years ago, business process outsourcing (BPO) mostly involved basic data entry, a number of mission critical processes such as airline bookings and investment research are now taking place out of offices in Mumbai, Pune and Bangalore.

In its strategic review, Nasscom, the apex industry body, notes, “Indian BPO has undergone significant transformation since its inception over a decade ago... The past few years have seen the scope of these services expand progressively to include more complex processes involving rule-based decision making and research requiring informed judgment and domain knowledge,” the apex industry body notes.

Indian firms also manage infrastructure worth over $3-4 billion remotely for clients. Damage to these locations can bring down desktops and servers, besides crippling entire sections of organisations outside India. “After 9/11, there is a greater appreciation of the risk arising from a terror attack,” admits KPMG executive director Akhilesh Tuteja.

More: http://economictimes.indiatimes.com/Infotech/How_safe_is_outsourcing/articleshow/3770971.cms

:sarcasm:

BTW, in a couple months I'm probably losing my job to a combination of outsourcing and the credit swap caper.

lose all prospect of getting another job. Then lose your house.

I wish I grew up in a civilized country.

and they have an office in Bangalore India.

against hope) that at my age I can, too.

I hope you find something new (and better) soon.

insurance companies are going to have a much harder job outsourcing surgery to India because people are not going to go for cardiac or hip or knee surgery to a country where TERRORISTS kill Americans.

That is great payback for Wellpoint and other insurers who are trying to send patients to India for surgery.

This could be the death knell for medical tourism to India and I hope it is.

die in a terrorist attack in India. It's the bottom line that only matters to the Health Insurance CEO's.

they don't have surgery. Insurance companies save money. That's all they care about. If the patient dies, que sera, sera. Justice is not part of their equation.