Security fears may deter new outsourcing customers

[OhioChick]

Wednesday, Jan 07, 2009

Bangalore, Jan. 6 Faced with sluggish business volumes, Indian IT services firms could find it even more difficult to convince new customers to offshore to India in the wake of recent successive terror strikes across the country.

Industry analysts said offshoring by newer customers could get impacted by the recent developments even as the terror threats continue to persist. Last week six major IT firms in Bangalore such as Infosys, Wipro, Accenture and Cranes Software received a terror mail threatening to blow up their campuses in the city.

“Older customers will not be perturbed. However, the new clients will require a lot more assurance before they can offshore work to India,” said Mr Vinu S. Kartha, partner at Tholons Inc, an offshore advisory firm.

Big deterrent


Terrorist threats could make travel more difficult and may disrupt the vendor’s ability to provide services to their clients or could delay, postpone or cancel clients’ decisions to use their services.

“It (terror attack) is a big deterrent for new clients’ proposed off-shoring initiatives,” said Mr S. Sabyasachi, founder of MindPlex Consulting, an offshore advisory firm.

However, IT firms feel that the India would continue to be a dominant offshoring destination considering the scale of resources and the quality of services offered.

http://www.thehindubusinessline.com/2009/01/07/stories/2009010751140400.htm

[Azlady]

1. "Quality of services offered"... ... who are they kidding!

[Skittles]

2. good