Still, more companies plan to decrease their use of Indian IT outsourcing services in 2009 than increase it, a reversal from our survey last year. And there's this: 56% of respondents believe less in Indian outsourcers' value proposition than they did two years ago.
The survey, conducted last week with the news of Satyam's fraud still fresh, reveals that 38% of respondents plan to decrease their involvement with Indian firms this year. On the flip side, 31% say they'll do more work with them.
The biggest problems that customers have had with Indian outsourcers are consistent with last year's survey: communications, underqualified staff, and turnover of key personnel. The No. 1 shortcoming? Fifty-five percent of respondents say their Indian service providers fell short of expectations in delivering projects quickly.
Cost savings are the most frequently mentioned advantage of outsourcing to India, cited by 72% of respondents. Other benefits include access to technical skills (cited by 33% of respondents) and the long-term partnerships (26%).
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