Outsourcing, core part of business: KPMG

Kolkata, Apr 24: Outsourcing is viewed as a global activity and has now become a core part of the business strategies of large companies, according to a KPMG and NASSCOM report on "Emerging Destinations for Indian IT/ITES Industry." The report said in addition to the increasing number of back-office services, such as payroll, HR and customer care, companies were now outsourcing their core business processes.

The report also highlighted the opportunities and provided key trends in emerging destinations like Central, Eastern Europe, Latin America, Asia Pacific and North America.

It mentioned that it was important for the India-centric IT/ITES companies to scale-up their delivery capabilities in these regions.

Pradeep Udhas, Partner-in-Charge, Global Sourcing, KPMG said, '' In comparison with strong and balanced presence of foreign companies in the new emerging locations, Indian companies are yet to reach the scale in globalisation. As governments of emerging markets take steps to position their countries to take advantage of the growing IT sector, we are likely to witness the emergence of newer IT destinations. '' He further said, '' Indian companies can follow the hub-spoke model by setting up offshore centres in those regions. '' The outsourcing market was not new for India. And in recent times, some new emerging destinations are also aspiring to become IT destinations, he mentioned.

The report said the region was very attractive and already seeing some significant investments from many Indian companies.

KPMG is the global network of professional services firms of KPMG International. KPMG member firms provide audit, tax and advisory services through industry focused, talented professionals, who deliver value for the benefit of their clients and communities.

UNI