In my previous post, I wrote about American companies’ growing disinterest in outsourcing operations to India. Interestingly, American companies may be losing their interest but companies of United Kingdom are getting interested. Tesco, a major UK based retailer, entered the US market in November last year.
The USA retail market is very competitive where retail giant like Walmart is controlling majority of the market. In order to survive the stiff competition, the retailer established its office at Bangalore in India in 2004. Since then, with its valuable service, Tesco Hindustan Service Center established itself as a major organization helping Tesco to achieve its goal. Business Standard reports:
Tesco Hindustan developed a solution for the store ordering system which reduced major incidents, ensuring the replenishment system worked absolutely fine.
Re-designed the business process and IT landscape for the £5 billion UK fuel retailing business, filling missing links and automating processes
The commercial invoice processing team is switching suppliers to sending invoices electronically and, while making reports, providing value-added analysis around them
Tesco in India has played a major role in Tesco in the US. “There, for the first time, Tesco has deployed an operating model which has been planned, installed and is being supported out of India,” according to Meena Ganesh, CEO of Tesco Hindustan.
This model integrates functions such as finance, payroll and personnel, on top of which sits the information technology layer.
3200 retail stores situated in 13 countries around the world, with $80 billion annual turnover, Tesco is the third largest retailer in the world. Tesco Hindustan Service Center started out as an IT support center three and a half years ago. Gradually, the center’s operation expanded into Tesco’s finance and business operations in the UK, USA and Ireland. Currently, Tesco Hindustan Service Center employs 30,000 people including 1600 IT professionals, 500 finance and 500 in other areas.
No matter what they say? Finding an alternative to India for out sourcing IT related jobs is going to be very tough for the foreign companies at present. India’s popularity and top position also reveals the rising demand of outsourcing in developed countries as well. There are other countries in the South Asian region such as, Bangladesh, Pakistan, Sri Lanka, Nepal with large number of people that can take advantage of this demand. If these countries can properly train their people then they could also earn significant amount of foreign currency through outsourcing. The main challenge is that to make people skilled in computing is a very long and tedious process and producing highly skilled worker is more challenging. Hence, government of these countries should do a lot of research before they draw plans to train the people.
Related article:
Business Standard
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