The loss of life in the recent terrorist attack in Mumbai is a tragedy-- the repercussions of which will be keenly felt on a personal and geopolitical level for a significant time to come. But what impact will it have on those companies that buy or provide outsourced services from India?
The simple answer is that, while tragic, this attack was designed to cause fear and panic but will not disrupt business at the macro level. The reasons are many, but first and foremost, the scale of the attack is unlikely to occur again. India readily admitted that
In much the same way, India will react to prevent further occurrences and mitigate the damage should another attack occur. equipajes futbol Certain micro effects of the terrorist attack will no equipajes futbol doubt be felt in the outsourcing industry, such as an increased level of security at operations centers and, in the short term, a possible reduction in travel for meetings that can be held virtually instead. But at the macro level, the terrorist attack, as unconscionable as it was, will not have a significant impact on the viability of purchasing and delivering services from an India-based outsourcing services provider.
Indian outsourcing providers Infosys, TCS and Wipro will continue to provide services from Mumbai, as will U.S. outsourcing providers CSC, HP (including EDS), Accenture and IBM. The Fortune 500 companies that depend on those services have no reason, let alone contractual or operational capability, to take those services back in-house. On top of that, Mumbai is but one of many tier one cities in India in which outsourced services are provided.
No, the recent terrorist attack, in and of itself, will not affect outsourcing to India. Rather, it is the rhetoric and posturing between India and Pakistan that have followed the terrorist attack that pose the legitimate threat. The tension between India and Pakistan spans over five decades and includes three wars. Thus, this latest turn of events could be likened to pouring lighter fluid on an already smoldering fire.
That being said, all-out war between India and Pakistan ? both of which are nuclear-armed countries ? would have such a devastating impact that most experts feel it is unlikely to occur. One Alsbridge executive recalls meetings with the U.S. ambassador to India during the nuclear testing of both countries in the mid-90s. He and many other U.S. executives based in India stressed the importance of their Indian operations and their relationships with Indian companies and how sanctions could greatly harm the interests of U.S. companies. One would expect that those same conversations took place while Secretary of State Condoleezza Rice visited India last week.
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2012年9月18日星期二
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