Cost and value proposition of Indian IT/BPO industry under scrutiny

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Bangalore, Oct 15 (UNI) The cost and value proposition, which had led India becoming the world's off shoring hub, is now under scrutiny as clients were looking for better and innovative offerings, Forrester Research Country Manager Sudhin Apte said today.

Speaking at the NASSCOM Quality Summit-2008 here, he said equation components of innovation and quality in the IT services and BPO industry were changing. Cost and quality, which put India ahead of other countries had now made way for much more business process innovation.

He said the IT industry which was growing at 30 per cent or more was in good shape and the attrition rate dropping to average of seven per cent was also a good sign. The US financial crisis which was bound to affect the industry.

''However, we will have to wait for some months, then I feel there will be reduction of pressure,'' he said.

Managing Director of TPI India, Sid Pai said the BPO industry had not kept up the promise it offered some years ago as it had just not been able to innovate new processes. It was content to offer cost and quality advantages to its clients.

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