Indian Outsourcing Comes Home

Last week on May 18th I co-chaired a summit on E-Work. The participants of the summit posed several questions one of which was could work at home be a source for economic development in Phoenix or, for that matter, any market in the US? As we sift through the notes and results that came out of the summit I believe that the answer to that question will become more clear. However, this weekend, an article in the Washington Post may present some clues to the answer the economic development question.

The article entitled “As Indian Companies Grow Outsourcing Comes Home” focused on responses of several Indian companies to rising wages in India and the desire of the customer to have the service they’re provided to come from folks close to home. Wages in India are increasing by 10% per year. A staggering increase especially compared to the relatively flat wage increases occurring here in the US. Also turnover is increasing in India as employees are more increasingly jumping ship to take on more lucrative opportunities with other organizations.

What wasn’t addressed in the article was how the Indian companies are addressing the high cost of establishing their operations here in the US. Aegis, an Indian based outsourcer, paid $2.5 million to obtain the assets of bankrupt Telequestion, a 500 seat operation in Texas. Since then they now have 5000 seats in the US as they continue to purchase the assets of other contact center operations. I have to ask the question if it would be more cost-effective and profitable for these companies to look at an E-work or work at home solution rather than take on the assets and expense of other organizations.

Thousands of jobs will be entering the US over the next several years as this trend continues. Where will these jobs go? What market will win the highly competitive competition of attracting these jobs to their cities and towns? What could Phoenix do to enhance its ability to win these jobs? These are the questions that are on my mind and I’m hoping that our summit can begin to answer.

For my part I believe cable companies like Cox are uniquely positioned to help provide the stable, reliable network solutions required by contact centers. As far as I know only an MSO could extend the LAN to the home guaranteeing end users the kind of work experience they require to stay productive. ( click here to find out more. )

You can read the entire Washington Post article by clicking on the link below. As always I hope you enjoy the reading and look forward to any feedback.

Click here to read the Washington Post Article

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