Saturday, 9 July 2011

India loses the charm of cheap labour


The recent move by UK- based telecom outsourcer New Call Telecom to move its call centre from Mumbai to the UK is another sign of India's advantage of cheap labour losing its allure.
New Call Telecom, which started the call centre in Mumbai three years ago, said that it chose to shift base to Lancashire as it feels that labour is cheaper in that country than in India. The shift will create around 25 jobs in the UK with the figure rising to about 100 in a couple of years.
The move by New Call Telecom, which provides broadband and telecom services, is not the first such. Two years ago, British Telecom shifted 2,000 call centre jobs from India back to the UK. This is a far cry from the days when companies from countries such as the UK and the US outsourced jobs to offshore locations in India as they had to pay staff less here. However, with salaries in India rising fast, some companies are finding it difficult to maintain profit margins.
Salaries in India Inc are set to rise by 12.9 per cent on average in 2011, according to a report by global human resource firm Aon Hewitt.

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