Deutsche Bank does not stick to one country for outsourcing and it deploys the services of various countries for its outsourcing work. It has been outsourcing work to a number of sites around the world in order to gain from competitive advantage. This bank is now moving more towards Russia for outsourcing as compared to India since this country has a number of financial and psychological overheads. Commuting to India is tough and even the hotel prices have shot up. On the other hand traveling to Russia is easier and it is offering competitive pricing along with good command over English.
Does this mean that India is losing prominence in the outsourcing arena? Not as of now but soon it may lose its crown since since the old perception about Russia is changing. Earlier Russia was thought of as a dangerous and difficult place to do business but now the perception seems to be changing and India might face some problems. First it was just China but now even Russia seems to be rising in this arena and now warning bells have surely started ringing for India.
Via businessweek
