The other day, I stumbled upon this alarming piece of news. In it, the Canadian site raises serious doubts about the safety of “generic drugs” that are being sourced from countries with “few standards and low accountability.”
Businesses of all sizes need to ensure that accounting is paid due attention, accounting is at the core of any business process. In recent times more and more small and medium size businesses are considering accounting outsourcing. The decision to outsource accounting and bookkeeping allows a company to concentrate in their area of specialization and not worry about the accounting aspect of the business. Accounting outsourcing has several advantages and these include the following Read more
You have been reading a lot about Satyam accounting scandal, various news about questioning Indian capitalism, trust and integrity and accounting practices of other Indian companies. Yes, Satyam accounting fraud creates moral and ethical issues for other Indian companies but you cannot compare Satyam with other Indian outsource vendors. Satyam accounting scandal is well planned and executed by a single company and it is not unique to emerging economy like India. You can blame Satyam for undermining international trust on the Indian outsource industry and it definitively increases scrutinization of all other outsource relationships with other Indian outsource vendors. To understand the long-term impacts on Indian outsource industry you need to ask following three questions and find answers for it.
An American and a Chinese were once visiting a cemetery where their friends where buried. The American carried a beautiful bunch of flowers, whereas, the Chinese bore a bowl of cooked rice. The American found it ridiculous that any one would think of leaving food at a graveside. “Do you really think,” he asked his Chinese friend, “that your dead friend would come and eat the rice that you are leaving here?”
When recession occurred in US after dot-com bust Indian outsource companies thrived and got many outsource projects from US companies. During that time Indian outsource companies were relatively small and they responded well to get outsource projects from US businesses by marketing “Cost Reduction” as the main selling point. But this recession is completely different, started in subprime mortgages, moved to financial institutions, and widened to all business segments in US. Obviously US businesses have cut-down their payroll expenses by layoffs and reduced other expenses to fight the recession. The recession started in US now widened to the entire world impacted Indian outsource companies significantly and they are struggling to maintain their reduced growth targets for this year.
Although the industry still projects 2.5 % growth for offshore BPOs, fierce competition and price pressure have begun to spoil the party for third party vendors. This calls for major shifts in engagement, price and delivery models in order to retain the same bunch of clients and acquire new ones.