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More offshoring to India

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Australia has been slow to openly embrace India as an outsourcing destination but momentum is building and more organisations are saying they have shipped technology and business process work offshore.Not surprisingly, many of the companies that have entered the fray play in the financial services sector, a voracious and aggressive user of information systems and services.

National Australia Bank, St George Bank, AMP Financial Services, Westpac and Westpacs soon to be spun off funds management arm BT are sending work to India through a mix of suppliers that include Accenture, Genpact and Infosys.

Other blue chip companies that have committed to India as an outsourcing destination include Telstra and Qantas.

Qantas has contracts with Satyam and Tata Consultancy Services, while Telstra has outsourced to Satyam and Infosys.

AGL has given Accenture approval to fulfil some of its software development work in India and the Victoria Curriculum Assessment Authority became one of the first Australian government bodies to offshore when it inked a deal with Tata last year.

While some Australian companies have opted to offshore to India through third-party suppliers, others operate their own development centres in the country.

ANZ, Lumley Insurance, IBA Health, Bravura Solutions and Oakton are among the growing number of businesses with their own India based facilities, and numerous organisations including Suncorp and Queensland Rail are working with Indian outsourcers, although it is not known what proportion, if any, of the contracts are being filled overseas.

Most big name US and European outsourcers operate Indian development centres and are likely to be fulfilling Australian work from those facilities.

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