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India still a key destination for outsourcing
New Delhi: Despite all the international criticism it is facing over it being a destination for outsourcing of work, India continues to be targeted as the key and attractive place for this activity, says an international company in its report. According to McKinsey and Company, India has an overall cost advantage to other countries. For instance, its report claims that multinational pharmaceutical companies can save close to 200 million dollars in development costs of a new drug by outsourcing that work to India. But these companies are slow in taking up this opportunity, as there is still a lack of real cost pressure on them, which they are trying to address it by new technologies and better processes. "India offers large patient populations, highly educated talent and lower cost of operations but it must address concerns of multinational drug companies before it can take advantage of this outsourcing opportunity," says Dr. Peter Pfeiffer of McKinsey. What concerns these pharmaceutical companies is India's position as a generics powerhouse and its' prevailing intellectual property protectionist environment. There is also still some skepticism over the relative cost advantages, opportunities and quality of existing infrastructure for research and development in India.
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