Infosys BPO says clients turning to India in recession

Indian outsourcer Infosys Technologies says that the economic downturn is driving organisations consider offshoring.

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Indian outsourcer Infosys Technologies says that the economic downturn is driving organisations consider offshoring.

"Companies are under pressure to cut costs, and are more receptive to new ideas that can help them do it," Ritesh Idnani, vice president and head of global sales and marketing at the firm's business process outsourcing (BPO) subsidiary, said.

Mohit Joshi, Infosys global head of sales for banking and capital markets, in a separate interview also predicted increased offshoring as financial services companies refocus their organisations to deal with the new economic realities. Infosys has set itself aggressive targets in the UK and Europe, he said.

There will definitely be an increase in offshore outsourcing, said Siddharth Pai, a partner at outsourcing consultancy firm, Technology Partners International Inc (TPI). "I am not sure it has started already," he added.

Some existing clients have increased the number of processes that they outsource to Infosys, and the subsidiary has also signed up new clients, according to Idnani.

A number of the company's recent wins have been in the media and entertainment segment, for example, where the revenue model is under pressure as advertising and circulation revenues are down, and there is severe cost pressure, he added.

Overall demand for outsourcing however continues to be challenging as many customers face declining revenues, and contraction in their business, Idnani said.

Joshi said the scandal at Satyam has shocked user s of outsourcing services and other Indian outsourcers, but added that there would be a flight to quality suppliers, from now on.