Monday, February 20, 2006

Outsourcing in India Pays Off


By  Stan Gibson
News Analysis: Customers are beginning to look to Indian technology services firms to help cut costs and unify business processes

MUMBAI, India—Outsourcing to India has delivered rich rewards for a number of companies, freeing up scarce funds to fuel strategic investments and, in some cases, corporate turnarounds. Next up: enlisting Indian partners to revamp business processes.

And those partners are willing. Indian providers are increasingly moving beyond a reliance on labor arbitrage to create intellectual property they can sell to customers. Several large customers told their experiences here at the Nasscom conference.

"We're aiming for 35 percent productivity improvement next year. Working with Indian suppliers will be a key part of that," said Paul Coby, CIO of British Airways, of Harmondsworth, England.

He said BA has already taken great strides, reducing IT costs by 40 percent and cutting $2 billion from the cost of running the airline. BA has 10 IT partners, two of which, Tata Consultancy Services and NIIT, are in India, said Coby.

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