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Thousands of telecom jobs to move to India
Agencies | March 27, 2004 07:30 IST
It's not just infotech jobs that are heading towards India.
A Deloitte Touche survey of 42 global telecommunications operators shows that over 275,000 telecom jobs may move to India, China and other low-wage nations by the year 2008, reported Telecomweb.com.
According to Deloitte, telecom firms are using the offshoring more and more to cut operational costs and enhance services.
Global telecom giants will move about 5 per cent of the communications industry's 5.5 million-member workforce -- or 275,000 positions -- to low-cost countries.
Telecomweb.com said that India is the destination of choice for offshoring, but Estonia and Argentina too are coming online as offshoring sites.
Although the telecommunications industry is way behind the IT and financial services sectors in terms of outsourcing, it is quickly catching up in following the business trends, said Telecomweb.com.
Of the operators surveyed who are either offshoring or have definite plans to offshore, benefits cited included:
Cost reduction of 20- 30 per cent by 2008; enhanced quality of staff supporting more technically advanced broadband and wireless data services; and accelerated time-to-market for advanced data services and applications, said Telecomweb.com.
"Offshoring can be one of an operator's most complex business decisions. For most companies, it's not a question of whether to offshore, but what functions to offshore, and how. Additionally, operators with more experience are reviewing what operations they should offshore next," Telecomweb.com quoted Phil Asmundson, deputy managing director of Deloitte & Touche's technology, media and telecommunications in the US, as saying.
Telecomweb.com the benefits of outsourcing include:
The report also identified several risks to consider:
The seven rules of thumb
The Deloitte & Touche survey identified seven 'rules of thumb' for operators to consider as they choose their offshoring strategy:
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