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For Sourcing & Vendor Management Professionals

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January 16, 2008

How To Benefit From The New Offshore Reality

Sourcing Professionals Can Change Contracts To Get More From Indian Providers

by Sudin Apte

with Christine Ferrusi Ross, Allison Thresher

Average:
(2 ratings)

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Executive Summary

India's advantage as an offshore location is fast eroding — its attractiveness takes a hit with each passing day. Apart from the fallout of known challenges like staffing costs, attrition, and infrastructure, a host of new issues — the falling dollar, unrealistic staff expectations and aspirations, project scalability, expected tax revisions, and real estate costs — are threatening the offshore story of low-cost and high-quality resources. But while many clients are disillusioned with the state of affairs in India, the lack of a scalable offshore alternative is keeping the Indian offshore business going, and even growing. To meet the challenges of this new dynamic, sourcing professionals need to reset expectations and make their internal buyers aware of related risks.

This is an excerpt

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