Offshoring could achieve cost savings of at least 40% from the second year, says ICICI OneSource.
Matthew Vallance, European president of ICICI OneSource, says: “Managed well, offshoring should achieve ongoing cost savings of around 40% from year two, and equivalent or better operational quality than is available from the home country. This is due to the high quality workforce available in India and continued improvements through the rigorous application of processes such as Six Sigma and COPC, a customer services centre standard.
“Experience shows that savings and process improvements are often easier to achieve with an outsourced provider, rather than in a captive facility where processes are managed by an in-house operation located offshore.
Vallance adds: “Strategic offshoring is about far more than just cost savings and increased operational quality.
“The UK could be short of 714,000 workers by 2010, with a potential loss in output of 113bn. Offshoring allows organisations to address this labour shortage and enables them to scale rapidly to meet business growth.
“Several large UK companies have offshored to India as they would not have been able to employ enough skilled people at home to meet growth demands.
“The first wave of business process offshoring was based around call centre services. The trend now is to offshore non-customer facing back-office data transactions such as mortgage applications and insurance claims. The knowledge process outsourcing market is also growing with the offshoring of high value data analysis to India.”