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Stories by Sandy Kendall

Outsourcing in a nuclear hot zone

For the moment, tensions between India and Pakistan are subsiding, but the recent threat of war has forced many companies to reassess the risks of outsourcing work to India. The country's National Association of Software and Services Companies estimated the value of India's IT-enabled services industry at approximately US$13.5 billion during 2000. That translates into many companies maintaining investment in a country that has been teetering on the brink of war. Two-thirds of those companies are based in the United States.
Stephanie Moore, vice president and research leader for Giga Information Group Inc. based in Norwalk, Conn., predicts that more companies will diversify their outsourcing, especially to Canada, China, Mexico, Russia and the Ukraine. "There is a new level of risk in India right now," she says. "The only thing people can do is have valid contingency plans that are actionable and immediately usable. Besides developing backup resources nearby or in another location, a lot are considering cross-training in-house staff so they at least know where documentation is. That's a big step given the climate of cost containment we're in now."

Written by Sandy Kendall01 Oct. 02 22:00