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Europeans weary of offshoring to India – but India teaches the world the mantra of exporting deflation and making Indian economy boom
Interestingly India is giving back the Western nations all the hurdles it received from them in the last three hundred years in terms of captivity and disgusting dishonor. While Western regulators are spreading world of risk in India offshoring, India is going ahead teaching a lesson to the whole world.
India is actually exporting its under employment and deflation making its economy boom and gaining extremely heavy well paid employment.
The financial regulator has warned that offshoring operations to India carry potential risks because it is difficult for management to achieve sufficient oversight and controls from the UK. The Financial Services Authority, which visited 10 operations in Mumbai and Bangalore providing services for UK banks and insurers, concluded offshoring "can contribute a material risk" to the FSA's objectives of maintaining market confidence and consumer protection.
The FSA also raised questions about the high level of staff turnover at Indian companies, which, it said, were less likely to have contingency sites in the event of a serious problem. However, the FSA concluded that there was "no evidence" to suggest consumer data are at greater risk in India than in the UK.
Companies including Prudential, HSBC, Lloyds TSB and Aviva have outsourced work to centres in India. The FSA said it had observed a "high level of security" in India and most companies had swipe entry clearances to their premises - one had an airport-style detector.
It concluded that despite the risks, companies offshoring work to India were aware of the potential risks and were taking measures to mitigate them. While cost advantages were the initial impetus for offshoring, many financial services firms say they will, due to other benefits, continue offshoring to India almost regardless of the economic environment. They state that, with most of the staff graduates, the quality of work is extremely high.
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