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BPO backlash to subside; India to gain: Gartner

December 03, 2003 19:23 IST

The rising discontent against outsourcing would not have any impact on India in the near-term, while in the long-term developed nations would approve of the country's capabilities in the business process outsourcing arena, Gartner India Research and Advisory Services Pvt Ltd has said.

"The backlash is a temporary phenomenon and the phobia of losing jobs in developed countries will gradually fade and outsourcing will result in improving financials of global economies," Partha Iyengar, vice-president (research), Gartner, told reporters in Mumbai on Wednesday.

Backlash is hotting up, but would cease to be a major issue by the end of 2004 or early 2005, he said, quoting a Gartner study, 'Top ten predictions for Asia Pacific in 2004'.

Through 2004, despite the threat of human resource backlash, 80 per cent of the United States executive boards would have discussed global delivery options, of which a majority of the companies would seriously pursue these options, he said.

The global delivery options would include both nearshore and offshore activities, he said, adding around 80 per cent of the companies would increase their people resources by around 30 per cent.

By 2005, India would be in the driver's seat of global BPO operations with companies like TCS and Wipro Technologies leading the global outsourcing industry, he said.

This would also result in large US and European companies opting for external service providers who would provide a global delivery model, he added.

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