"UK backlash rumors overstated"

MUMBAI: UK analyst Phil Codling asserted that rumors of a backlash in offshore outsourcing in UK were overstated. Presenting the UK Perspective on Offshore Outsourcing at that the ‘India Leadership Forum’ at Nasscom 2004, Codling, who is an analyst with Ovum Holway, added that UK government is prepared to use offshore capability when it makes sense unlike the US. He felt that the issue was blown out of proportion. He said that UK is Europe's largest BPO market, and presented a sober picture on what it took to break into the market.

The total theoretical BPO market in UK amounts to 165 billion pounds, he said, adding that this presented a huge opportunity. Since this was a cost driven industry, customers would look for history of successful outsourcing, strong local presence and an effective roadmap chalked out by the private sector, he explained. As a case in point, Codling pointed out that IBM and Accenture were ramping up their offshore capabilities. He felt that partnership in the UK market made sense for most offshore BPO players.

Zurich General Insurance, UK offshoring operations director, John Packham presented a case study on Zurich's decision to come to India. India was among the 12 countries identified. According to him, a series of visits revealed that though voice was growing in India, it was of relatively low value work. The cultural differences also presented a major challenge and the attrition rates were also on the rise. He urged the leaders in the BPO industry to address some of these issues.

According to him, any ramp -up would require careful management to match results. While India presented cost savings of 35 percent, the cost of having to be hands-on should not be underestimated, he said.

CyberMedia News Service