India's Outsourcing Faces Challenges

According to The Straits Times Infosys CEO predicts that India's offshore outsouring industry could face problems due to high attrition, poor infrastructure and lack of data protection laws.

"Mr Nandan Nilekani, chief executive officer of Infosys Technologies, India's second-biggest software exporter, said business process outsourcing was based on reputation and urged the industry to deliver quality work."

"Analysts say outsourcing attrition rates vary between 20 and 40 per cent in some companies while averaging at least 15 per cent at top firms.

Nasscom said in a recent report that the outsourcing industry was expected to face a shortage of 262,000 professionals by 2012."

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