A new Gartner report1 shows India remains a popular destination for European and US companies looking to offshore operations to a cost-competitive, relatively stable and scalable location. The analyst’s assessment of nine AsiaPac countries reveals India is the clear worldwide leader in revenue terms.
With an average of 19% of planned applications spending for 2014 being directed offshore globally, sourcing managers are taking a keen interest in which offshore locations their services are delivered from. Offshoring business process services to a destination like India can undoubtedly deliver huge returns but companies must consider cultural differences and country-specific threats to reap the promised benefits. Failure to do so means companies run the risk of ‘reshoring’ (or ‘onshoring’). In recent years firms like Apple, British Pot Noodle producer Symingtons and model aircraft manufacturer Hornby have returned to their home manufacturing base with their metaphorical tail between their legs.
A very different risk landscape
The threats facing companies and offshored operations in India are somewhat different to the domestic markets to which European and North American companies are accustomed. Businesses need to thoroughly consider and address India’s unique country-specific risks in addition to the universal threats faced by all organisations today. For example, that old fallback in the event of disaster – ‘working from home’, either using the cloud or a Virtual Private Network (VPN) – is not a viable solution in India due to unreliable connectivity in a domestic setting.
Sungard AS has a thriving operation in India helping the domestic and international business community mitigate these threats. Multinationals, in particular, increasingly expect the same high level of business continuity (BC) provision enjoyed by their operations in Europe or the US for commercial and regulatory reasons. The Business Continuity Institute (BCI), the world’s leading body for BC professionals, recognised Sungard AS India’s market leadership with two awards in 2014 – Business Continuity Provider of the Year for Service (Workplace Services and RaaS) and Product (Software) for the second year running.
“Multinationals increasingly expect the same high level of business continuity provision enjoyed by their operations in Europe or the US”.
Seven of the 15 top technology outsourcing companies are based in India but more than 70% of BPO companies operate from a single location.
Added to this, many Indian companies fail to meet the BC requirements of their parent2. To meet growing demand from India-based operations wanting to meet accepted international BC standards such as ISO 22301, Sungard AS India operates a flourishing BCM automation and consultancy business providing expert guidance and award-winning planning, notification and incident management software solutions.
It also offers over 2,000 seats (360 syndicated with equitable sharing and more than 1,600 dedicated) across three highly resilient work area recovery centres located in Noida, Thane and Chennai with several more planned. These fully equipped alternative workplaces enable offshore operations to enjoy the same protection as sites closer to home and ensure domestic outsourcing companies can deliver the reliable service their international customers expect.
Now, signifying the maturity of the country’s BC provision, Sungard AS has introduced Recovery-as-a- Service (RaaS) offering Indian enterprises SLA-driven recovery timeframes for mission-critical IT business functions on an affordable pay-as-you-go basis.
Under the fully managed service Sungard AS takes responsibility for the entire recovery process with skilled recovery specialists driving solution deployment, performing 24/7 monitoring, troubleshooting and recovery testing to ensure the failover environment is ready in the event of any prolonged outage. Uniquely, Sungard AS also performs a full recovery within contractually committed SLAs.
HERE’S OUR VIEW OF THE COUNTRY’S TOP EIGHT ISSUES – you might find the results suprising.
If you would like practical help and guidance from exploratory experts, or to arrange an exploratory meeting, call +353 (0)1 467 3650 or email infoavail@sungardas.com
1Leading Locations for Offshore Services in Asia Pacific 2014: Still Growing but Facing Increasing Competition
2NASSCOM (National Association of Software and Services Companies) 2010/11