Indian offshoring going off the mark

NEW DELHI: India’s offshoring success story will need greater onshoring support to sustain it, notes the Black Book of Outsourcing’s 2008 State of the Industry report. The most comprehensive client satisfaction survey in the outsourcing industry saw Infosys fall out of the top 50 this year to rank 59. Three Indian firms, Wipro (6), Satyam (7) and Genpact (8), figure in the top 10.

TCS moved up to rank 15 this year from 27 last year while HCL tumbled from 13 last year to 21. Other Indian firms in the top 50 are WNS Global (25), which fell from rank 3 last year, NIIT Technologies (36) and Patni (45). Cognizant and iGate, both of which have a large majority of their operations in India, were the other India-based service providers in the top 50.

Conducted by the US-based consultancy Brown-Wilson Group, the report is based on client experience responses of nearly 24,000 buyer executives. In what the report said was “indicative of the growing re-appreciation for US-centric firms”, Hewlett-Packard emerged numero uno in the rankings, followed by Perot, CSC, Unisys and EDS.

The report notes the rise of ‘reverse outsourcing’, the phenomenon of Indian companies opening offices in USA and hiring locally. “The reverse outsourcing development is too new for Indian companies to point to actual cost savings yet, but moving front office processes closer to the client is fast attracting buyer interest. Major suppliers are responding to the demand for enhanced, locally delivery customer service,” it said. Attributing the decline of Infosys, which was ranked 10th last year, to ‘rising accounts of client discontent’, the report notes, “over a dozen major customers cited the fact that Infosys has not melded their consulting and service delivery well. US clients cite a lack of American front-office support with an imbalance of too much delivered from offshore.”

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