Global corporations which offshore IT and BPO work to countries like India not just looking at short-term gains, but on how outsourcing gives returns over a 10-year period, an IT industry official said.
"Customers are looking at offshoring for not just quality of the service or cost benefits and core competence, but their survival and their future," NeoIT Managing Director Pradeep Mukherjee said in his talk on 'BPO Leaders: The Road Ahead.'
NeoIT, an advisory firm that helps companies offshore sourcing from India and other nations, conducted business management of about $1.5 billion in 2003.
"More and more clients are 'futurizing' on what we should do today; execute a business model and ensure that the decisions we take give us returns 10 years down the line," Mukherjee said.
Besides looking at vendors who have financial strength, productivity and capabilities to scale, most multinational clients who engage offshoring look at technology and process, besides compliance of legal laws and data protection, he said.
"Compliance and security are being major drivers in the choice of the IT and BPO vendor, besides the geography (where they offshore)," Mukherjee said, adding that India should 'buck up its act' on bringing out the Data Protection Act soon.
"Companies with easier regulatory climates will benefit and there is an increased concern over security and data protection," he added.
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