Indian outsourcing firms are cutting salaries and have stopped hiring as they struggle with the global economic crisis and renewed competition from rival countries like the Philippines.
In such an uncertain climate, "many companies are becoming cautious," said Amneet Singh, an outsourcing expert at Delhi-based consultancy Everest Group. In particular, according to research by HSBC, the two big names in the sector, Tata Consultancy Services and Infosys, have begun to reduce quarterly bonuses. Yogesh Aggarwal, the bank's outsourcing expert, says the cuts are linked to a slowdown in turnover, rising costs and the tendency of some foreign companies to relocate call centers back home.
Many Western groups also believe they can get better service from call centers that employ staff with a better understanding of the British or American language and culture. For this reason, the Philippines, a country with historical ties to the United States, is now emerging as the new global player.
http://www.theaustralian.com.au/business/world/indias-outsourcing-miracle-feels-the-chill-winds-of-competition/story-e6frg90o-1226131923369
