InvestorQ : How is the COVID-19 impacting the back office jobs in India? I am told that global companies are increasingly moving to in-sourcing?
Niti Shenoi made post

How is the COVID-19 impacting the back office jobs in India? I am told that global companies are increasingly moving to in-sourcing?

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Archita Jajjoo answered.
1 year ago
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There are two trends that are visible in the outsourcing and back office segment in India. Firstly, most countries are looking to re-shore their call centres and outsourcing centres in their own countries.

Secondly, they are also looking to use a bigger degree of artificial intelligence (AI) to reduce costs in the process by relying more on technology. Restrictions on normal activity in these countries and others have created a logistical nightmare for the managers of call centres and other back-office operations for foreign corporations.

Most economies like India and Philippines do not have the infrastructure for WFH models. Also, WFH is practically difficult because of rules governing the handling of sensitive material such as financial transactions for bank customers in the Western world. Workers in India and the Philippines live in crowded housing with poor-quality broadband.

Desperate to stay operational, some firms have resorted to having staff live at their place of work, however that is not a sustainable scenario.

The fear in countries like India and the Philippines is that on-shoring of jobs and increased use of AI will have a big impact on a business model that benefitted from taking on the back-office operations of multinationals.



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