New York, Nov 01: Umang Gupta, chief executive of Keynote Systems, says he has no plans to join the popular trend of shifting operations to his native India to save money.
Even though most other US technology companies are eyeing low-cost offshore centres as a way to boost profits, he said the problems presented by the south Asian country are not worth the benefits -- given his company's large computer networks. "Data centre involves sophisticated work and needs a reliable network," he said. "The infrastructure in India is not good enough; it has constant power outages." Many large technology companies are not as cautious. Oracle this week set up a second research centre in China. Computer maker Dell has transferred call centres to India. Bank of America along with other financial services giants, has been steadily moving technology functions abroad.
But experts warn that outsourcing could do more harm than good. "There is an opportunity to create a lot of value," said Rudy Puryear, a vice president with Bains & Co. "But outsourcing could also destroy a lot of value." Bureau Report