The economic downturn may be lingering here in the United States, but in India, the financial situation is quickly becoming rosy. According to an article published today on MSNBC.com, India-based outsourcers such as Wipro, Infosys and Tata experienced a surge in U.S. contracts during the last quarter and are responding by hiring more workers and lifting salary freezes.

IT will gain a new nickname, the “No-Help Desk.” Employee morale will suffer.

That’s great news for the Indian workforce, but bad for U.S. companies. While the short-term cost savings from offshore outsourcing may appear to make it an attractive solution, here’s what all-in-one outfits like Wipro and others will deliver in the long-term:

• Poor customer service: The “help desk” becomes a place where, instead of help, your customers — er, employees — get only frustration. That equals longer hold times, increased abandonment rates, and more.
• Degradation of the help desk reputation: IT will gain a new nickname, the “No-Help Desk.” Employee morale will suffer.
• Increased shadow and underground support: Instead of waiting on hold for a half-hour or more, your employees will search self-serve help outlets, which are proven time-wasters, or they will ask the office software “expert,” and end up wasting the time of two workers. The lost productivity costs with this one are staggering.

Back in May, I wrote a rant on this subject that deserves repeating: Read more…

Jenny Sweeney Outsourcing India, Infosys, msnbc.com, offshore outsourcing, recession, Tata, Wipro