Multinationals establish back-end office space in India

According to press reports, several multinational companies, including Wells Fargo, Standard Chartered and Ingersoll Rand, have established administrative units in India during the third quarter. This is also a sign that recovery may be on the way, as the big names in the outsourcing game are courting Indian outsourcers once again for profit.

During the third quarter alone, eleven new captive stations were established in India. This is the highest in the quarter for any location. Despite efforts by smaller companies to outsource to near-outsourcing facilities in Latin America, India continues to dominate the outsourcing scene in Q3.

In the last year alone, the financial crisis that hit the world economy had put the expansion plans of many companies that outsourced to India on the back burner. . A report by global research and consulting firm Everest Group noted that the ‘cost arbitrage opportunity’ for outsourcing to India has increased, reports the Economic Times.

Amneet Singh, Vice President of Everest Global, commented that the increase in the number of captives settling in India is symbolic of the recovery in the overall outsourcing market. According to Singh, this tilt is supposed to gain momentum in 2010.

The offshore industry in India is gaining ground thanks to increased demand. Also, India has several benefits as an offshore destination. Although India is miles away from the US and Europe, it has staff that can work across all time zones. This has been a distinct advantage for India and its talented pool of skilled employees.