How outsourcing to India has affected the arranged marriage system outright and how its protectionist streak could make India a victim of US style "right sourcing", says the CISI's Simon Culhane
The Indian outsourcing and offshoring industry, in addition to generating local employment and upskilling opportunities, has also resulted in an unexpected social change arising from these large scale operations, according to Simon Culhane, Chartered FCSI and Chief Executive of the Chartered Institute for Securities & Investment (CISI).
In the latest edition of the CISI member magazine, Securities & Investment Review, Mr Culhane said: "These processing centres, with large numbers of young men and women, have proved fertile grounds for relationships to flourish, particularly as there are no chaperones at work, so individuals who will be regularly working 10-12 hours a day have the opportunity to interact and mix with colleagues, often resulting in individuals choosing their own life partners, bypassing the traditional route of an arranged marriage."
The change is now attracting comment in Indian media and has started a public debate, which includes discussions about the merits of taking a position with a foreign BPO (Business Process Outsourcing firm), which has sharpened recently as India demonstrates its natural protectionist streak in publicly wrestling with the dilemma of allowing foreign supermarkets Tesco and Walmart to set up operations in India.
But, says Mr Culhane, India should not wrestle too hard or it may find itself a victim of "right sourcing". This latest terminology from the US sits alongside offshoring and outsourcing. It means having the right people in the right time zone with the right culture - but moving to a lower cost environment.
"In practice, it means keeping American jobs in America, but moving them from the Eastern seaboard to the centre, such as Salt Lake City, which is what RBS is doing. So, who knows, Britons might soon find themselves speaking to an American operator rather than an Indian; what does that say about how the world's superpowers are changing?" said Mr Culhane.
The CISI has had an office in India since 2006, from which Mr Culhane has just returned having signed an MoU regarding a partnership with the Institute of Costs and Works Accountants of India.
The Indian BPO market employs around 1.5 million people and is expected to grow at 20% a year. Over the years, the Institute has noticed a change in how firms in the Indian BPO market, in their search for savings, are now making virtually any post, previously considered as core, transferable. This means that highly skilled jobs too are moving East.
The result is physical consolidation as banks concentrate their operations into giant, lower cost, global factories, strategically placed around the world. Each of these centres typically employs over 2,500 people and the challenge for the centres is to rapidly teach and embed the necessary skills into the large (and mobile) workforce, the majority of whom will have been hired without any prior financial knowledge or experience.
"We have noticed a significant increased demand for international certification as firms seek a global benchmark for initial competence and organisations are starting to be as equally concerned about ongoing training and continuous learning.
"This is precisely what CISI membership offers and delivers, especially as the Institute expands its e-offerings such as with CISI TV (available for streaming from January), our CPD App and 40 professional refresher modules," said Mr Culhane.
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