BPO to India - The Cost Savings by Outsourcing
Bob Beauchamp, BMC Software President and CEO talked about the backlash in the US where an economic rebound had not created jobs. Addressing the Product and Embedded Software Summit in Bangalore he said that there may be a backlash, “But as studies have indicated that for every one dollar invested in India, the value derived by the US economy is between $12-14.” He termed outsourcing to India as “irreversible” and said it was a “must have” to improve the Indian and global economy.NASSCOM has tried to address some of the concerns voiced by anti-outsourcing parties especially about the benefits to the American economy.
The study shows that US businesses have witnessed significant cost savings by offshoring to India.
- The US banking, financial services and insurance (BFSI) sector’s costs are 7-10% lower than that of its European counterparts
- American BFSI companies have saved $6 billion in the last four years by offshoring to India.