Outsourcing Firms Embrace Six Sigma to Keep Costs Down

As an increasing number of US firms begin to embrace the philosophy that peripheral business interests can be outsourced in an effective and cost cutting fashion, Indian outsourcing firms are standing by to pick up the pieces.  With the increased demand in India for labor capable of supplying increasingly compex services for western communities, it is no surprise that labor costs are increasing rapidly.  This is undermining some of the cost effectiveness that drove western companies to places like India in the first place.  So to maintain their edge, a large number of outsourcing firms are beginning to implement efficiency programs such as Six Sigma.  The Six Sigma program offers outsourcing companies the opportuinty to streamline their services while keeping a lid on increasing labor costs.  Ultimately, this will allow such companies to move up the value food chain while simultaneously remain attractive options to western companies. Business-Standard reports:

Some 3,350 consultants, in quality assurance areas such as Six Sigma, and hundreds more trained in the capability maturity model (a way to find out the complexity of a task that a company can break down into standard steps), can help streamline even a clients’ own product development processes.

Read More: Wipro upbeat on engineering services

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August 12, 2005 in Processes | Permalink

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Posted by: Kashif Razzaqui | Aug 25, 2005 9:42:36 PM

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