Infosys’s client satisfaction plummets

[OhioChick]

Customers slam Indian IT services provider as 'disappointingly elitist' in new report. Plus, ‘reverse outsourcing’ gathers pace

Tuesday, 24th June 2008

IT outsourcer Infosys’s clients are increasingly dissatisfied with the company’s service, according to a respected report into the IT outsourcing industry. The 2008 Black Book of Outsourcing State of the Industry Report ranked Infosys 56th for client satisfaction after polling customers. The previous year it was in the top 10.

“ clients reported a noticeable shift from customer service to corporate revenue generation, and a corporate culture that has become disappointingly elitist,” the report found.

Infosys is emblematic of the Indian IT industry as it struggles to withstand changing macro-economic forces and graduate beyond simply being a service provider to become a strategic partner to its clients.

The company’s approach to that challenge is examined in a profile in the new issue of Information Age magazine. The findings of this new report suggest that in its quest to become a strategic partner, the company may have sacrificed simple customer service.

Reverse outsourcing

The report also pinpointed what its authors consider to be an important trend in the industry, namely ‘reverse outsourcing’. This phrase describes Indian companies buying facilities and hiring staff in the US to serve local clients.

“Indian outsourcing providers are striving for an optimal mix of onshore and offshore operations that pleases clients and drives more business to them,” the report’s authors write. “As wages continue to rise in India and the US dollar’s value decreases against the rupee, it becomes expensive for Indian companies to maintain operations solely in India.”

The report identified Satyam, TCS and Wipro as three Indian companies that are having some success with this strategy but noted that it is too early for it to have significantly affected their revenues.

http://www.information-age.com/home/information-age-today/444651/infosyss-client-satisfaction-plummets.thtml

[ihavenobias]

1. Reverse Outsourcing...

Funny and sad.

[OhioChick]

2. It doesn't always work the way it's presented:

Nielsen layoffs, tax breaks anger Oldsmar officials (TATA)

Published Tuesday, April 15, 2008 11:39 PM

OLDSMAR — City Council members expressed outrage Tuesday over the Nielsen Co.'s plans to eliminate 110 positions at their Oldsmar operation after accepting government money to create jobs.

"To think they have the gall to take taxpayers' money and then lay people off!" said council member Suzanne Vale. "I am so upset."

"It's just incomprehensible to me," agreed council member Janice Miller.

They were responding to news that Nielsen is outsourcing work to India-based Tata Consultancy Services after receiving at least $3.1-million in state and local subsidies mainly to create jobs in Oldsmar.

Tata, one of the world's largest providers of consulting and outsourcing services, has brought in its own workers from India.

And Nielsen, formerly known as Nielsen Media Research, says they have plans to restructure further.

The topic was raised by City Council members at the end of their regular Tuesday meeting.

Some members urged their colleagues to stay calm. Mayor Jim Ronecker reminded the council that outsourcing is a national trend.

"We can't tell them how to run their business," he said.

"No, but we can call a thief a thief when they take the taxpayers' money," said council member Greg Rublee.

http://www.tampabay.com/news/business/article458509.ece

[DCKit]

3. Great Catch OhioChick! K&R