Friday, July 9, 2010

GE looks to cut the percentage of IT work it sends to India

GE is looking to significantly cut the percentage of IT work it sends to India. Said a GE India spokeswoman: “While India continues to be the main delivery location, there is an increased focus on multi-location/country delivery centres, both from a business continuity and an in-country support perspective.”
According to experts tracking the sector and officials at vendors serving GE, India’s share in the company’s offshoring pie could fall from around 70% currently to about 50% over the next few years.

GE’s decision to diversify geographically seems to be dictated as much by business considerations as by realpolitik. “For GE, the priority is about markets and countries where it can sell more. And above all, it’s about creating jobs in the US,” says a US-based outsourcing expert who had advised GE on offshoring to newer locations around a year ago.
The world’s largest manufacturer of aircraft engines, lighting and other appliances is looking to shed its image of an American firm shipping the maximum number of jobs to India. As a result, it is taking a hard look at its India-centric offshoring model and developing alternate offshoring hubs. GE has already started working with new IT firms in Brazil, Mexico, Morocco and China. It is piloting projects with Brazil-based CPM Braxis, and is the top customer for Chinese IT vendor HiSoft.
Source: The Economic Times
Full article: http://www.gsmlaborcouncil.org/node/5573

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