India Shifts Away from Pro-Outsourcing Stance

リンク: India Shifts Away from Pro-Outsourcing Stance.

The Indian Banks Association are considering implementing norms that will regulate the outsourcing of banks activities. The banks are expressing concern over the security concerns of outsourcing, a move that is particularly ironic in light of the country's encouragement of western banks to transition their work to India. The Indian Banks Association is arguing that because of security and risk management concerns, banks should not be allowed to outsourcing core financial services whereas they would remain able to outsource less important call centre and data processing work.

As India as a whole climbs the value-added ladder and begins to transition from solely an outsourcing destination country to a country with assets and labor costs that become worthwhile to outsource, the attitude towards outsourcing is beginning to shift. A few years ago only pro-outsourcing commentary was heard, whereas now industry heads are beginning to make the transition into a more balanced if not protectionist mentality. This may have long-term ramifications on the future of the outsourcing practice as currently Indian Government lobbyist are playing a key role in ensuring further opening of western economies. The Hindu reports:

Though the central bank is not against outsourcing per se, it is concerned over the third party risk involved in it.

Read More: IBA panel to discuss outsourcing norms next week