IT Outsourcing India

NEW YORK: At a time when the Obama administration is coming down heavily on companies shipping jobs overseas, a survey shows that one-third of the CEOs worldwide believe outsourcing offers less economic value than five years ago.

Moreover, the chiefs at American firms find outsourcing less attractive than their counterparts in non-US-based entities.

"One-third of CEOs believe outsourcing offers less economic value than five years ago," the survey conducted by leading bourse NYSE Euronext.

The ‘CEO Report 2010′ showed that chiefs of non-based companies find outsourcing more attractive than those of US businesses.

Spread across 23 industries and 24 countries, a total of 284 CEOs participated in the survey.

Regarding the economic value of outsourcing, 45 per cent of the respondents felt that it remains the same as compared to earlier whereas only 22 per cent believed that such a move is economically more attractive.

Interestingly, the percentage of outsourcing has little changed in the last two years, the report said.

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Westpac and Commonwealth Bank responding to political pressure to keep jobs at home

Top Australian banks Westpac and Commonwealth Bank plan to curb offshoring of back office and IT projects to India in an attempt to address local sentiments over a shrinking economy and rising joblessness . The banks are likely to demand that more projects be delivered onsite.

Westpac, which is Australia’s biggest bank by market value, is evaluating outsourcing vendors for a contract estimated to be anywhere between $200 & 300 million, and is demanding that more work be delivered from Australia instead of shifting jobs to an offshore delivery centre in India or elsewhere.

"Westpac is in discussions with TCS, EDS, IBM, Infosys and Wipro," said a person familiar with the bank’s outsourcing decisions. "Westpac chief executive Gail Kelly said few days ago that her bank would stop offshoring of IT jobs until the economic situation improves," he added.

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