‘Sourcing’ concerns of the BPO gamut

MUMBAI: "By 2007, Indian ESPs must evolve strong capabilities along three axes, sustained by consistent vision, focus and execution". This was stated here at Nasscom 2004 by Rita Terdiman, VP, Research Director, Gartner .

Speaking on 'Global Sourcing Scenario', she emphasized on the fact that 'Sourcing' is still an irreversible long term mega trend but, there are obstacles along the way in the form of backlash, geopolitical concerns, security, privacy and IP. Dynamic labor arbitrage, aggressive global ESPs, country competition, regulatory burden and government restrictions are also important issues to be dealt with.

She maintained that the offshore 'Arms Race' is in full force as new line of businesses like BPO are coming up in big way. Speaking about the trend in this segment she said that small and mid size companies are now joining the bandwagon with focus on higher value added services. "Also in the coming days we see more captives opening their centers in India", she added.

Also, since deals are getting larger, there is a possibility of staff acquisition also in this segment. But backlash would continue to be a major concern in countries like India. In the coming years, global ‘sourcing’ will evolve in the form of BPO combined with ITO, resulting in business solution outsourcing. She also stressed the fact that if India wants to retain its leadership position, it will have to focus on three factors which include global ESP, relationship management and the domain knowledge of industry and processes.