2015: The Demise of the Indian Call Center?

One of the great debates in the call center industry is ‘nearshore’ vs. ‘offshore’ outsourcing. There are numerous benefits to both sides, but one clear advantage overseas centers have is access to a cheaper labor pool.

The biggest offshore outsourcing country is India, and according to a new article at financial website Forbes.com, salaries in the country ‘rose 15.1% in 2007, up from 14.4% the previous year. The 2008 forecast: 15.2%.’ Amazingly enough this will be the fifth straight year that salaries have increased by an average of at least 10%.

If this trend continues, it is argued that the cost advantage of outsourcing to India will disappear completely by 2015! Being someone who works for a North American center, this gives me great confidence in the long term feasibility of the nearshore business model.

Comments

[Manoj Kumar]

Although the post is become one month old from today onwards but the issue raised by the Sr. Exe; is somehow the new-sprung reason for worry to India in respect to luring the new outsourcing projects to country and the title of being mentor in outsourcing industry since so long.

But NASSCOM (The National Association of Software and Services Companies) report shows some positive result as "Industry optimistic of achieving its aspired target for FY2010 of USD 60 billion in software and services exports and USD 73-75 billion in overall software and services revenues."