Top Ten questions for the outsourcing industry: Outsourcing Survey 2009

This was an interesting read. As per outsourcing survey 2009 done by bpovoice.com (a network for the BPO Professionals) these are the ten questions for the outsourcing industry along with details of what most of the concerned professionals think about it.

Q1: Would the Present Scenario of global recession drive in more business to India ?

68% said yes though 38 % out of those who said yes were skeptical and felt that India would find it difficult to remain as a first choice as compared to other outsourcing destinations.

Q2: Is Satyam Fiasco just a one off incident, which won't affect any further?

82 % of surveyed showed confidence in Indian Inc., however 55% of those who said yes also accepted that there seems to be a spot in the expected glory for the Indian outsourcing business.

Q3: If with recession, the problem of attrition and high payouts got solved on its own?

62 % said no or were not sure about it. An interesting observation was “75% of these respondents were from higher management i.e. Senior Manager and above which implies that they have experienced this themselves in their businesses and are expecting the same trend in such times.”

Q4 : Is Indian BPO sector capable of surviving the current slump in the market?

74 % of surveyed showed a great level of confidence in the market in favor of Indian outsourcing business. Another interesting observation “62 % of surveyed believed that India would still survive in such conditions primarily because of its low cost high quality image worldwide”

Q5: Are internal security and corporate governance the new threats?

The respondents were a divided lot on this. While 58 % said no or not sure, 42 % said yes. It was interesting to note that many people were of the opinion that such issues were there even before the satyam scandal and Mumbai 26/11 happened !

Q6 : If Salary Cuts and raised performance bars are better options to layoffs?

53 % said yes, however 38 % said no, reason being “Salary is one of the most important motivation factor for the employees to give their best performance without looking for any options.” They believed that an employee's performance and efficiency would reduce as the salary cuts are done and performance bars are raised suddenly.

Q7: Will the Clients increase the geographical diversity to de-risk the delivery model?

70% said yes and 40% of those who said yes added that would happen with limited footprint. 30 % of those respondents who supported the above statement also said they believed that the cost of operations would average out with time and thus clients would not have second thoughts while increasing their geographic diversity.

Q8: Will the Pricing pressures result in reduced rates and high accountability?

“62 % of surveyed were a worried lot because of the competition from other outsourcing destinations and emerging centers. They were of opinion that this might put more pressure on Indian companies and thus they would follow this practice to stay competitive”

Q9 : Would the Obama’s proposal to cut tax incentives impact the Indian outsourcing industry.

“49 % of the respondents believed it to be true and feel that this surely will impact Indian outsourcing industry.

As many as 32 % of surveyed were confident that Indian outsourcing industry will have no or less impact post, “Obama's new policy” even after their tax benefits are taken off as American work force would still be an expensive proposition for lot of companies in the present scenario

19 % of the respondents chose , not to comment probably because they were not sure about the nature of the policy that will come into place and how much it might impact the present India BPO scenario. They preferred a wait and watch approach.”

Q10: When would the market bounce back ?

Majority agreed to an average of 12 -1 8 months

You can read the complete report here http://www.bpovoice.com/profiles/blogs/survey-report-outsourcing