Feeds

Lehman moves help desk out of India

Offshore backlash grows

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

The partial backlash against offshore IT outsourcing has gained another convert: Lehman Brothers has stopped outsourcing its IT helpdesk to Indian services giant Wipro, due to poor quality of service. The trend towards offshore outsourcing is still in full flow, but companies may start to be more skeptical of the assurances made by offshore vendors.

Lehman spokesperson Kerrie Cohen confirmed that the New York-based financial services firm has brought the helpdesk function back in-house. Lehman's top IT executives disclosed some details of the change last month after analyst Louis Miscioscia, wrote in a research report that, "in terms of helpdesk, Indian firms could not provide the level of quality and services Lehman needs."

The IT helpdesk was part of an estimated $70m-$100 million contract that Lehman signed with Wipro and its local rival Tata in November 2002. The bank uses about 450 workers at the two vendors, and claims to have generated savings of between 40 per cent and 50 per cent. Lehman continues to outsource other IT functions, including software application development, applications support, and some IT infrastructure support, to the two companies.

Earlier this month, stories emerged that Dell had stopped routing calls from corporate customers to its call center in India after receiving complaints about the quality of service. According to some reports, the calls are now being taken by customer service centers in Idaho and Tennessee.

Dell dismissed the reports, however, and affirmed its commitment to India. "We're not shifting the work. [Dell] is committed to India and is growing," a spokesperson for the Bangalore-headquartered Dell India operations said.

Some outsourcing decisions are reversed for reasons unconnected with quality. In November, Indiana's state government canceled a $15 million IT contract with Tata after a political row over domestic jobs. Politicians in other states have proposed bans on awarding contracts to firms that use foreign workers.

Given the volumes of money involved, these cancellations will represent a significant dent in the Indian offshore vendors' pockets. It is certainly not enough to turn the tide against the rush to offshore in India, but it may make clients more cautious about swallowing the promises of offshore vendors.

Source: Computerwire/Datamonitor

Related Research
Indian Contact Center Outsourcing: Surviving the Shakeout

Intelligent flash storage arrays

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.