Outsource Software
New British Law Might Soften Offshore Outsourcing Demand
A law established in Britain last week to defend the rights of workforce laid off by overseas services could not only possibly leave Indian BPO service providers with enormous liabilities but could also assist in protectionism capturing root in a country that was so far believed open to Offshore Outsourcing services. The modified Transfer of Undertakings Regulations made operative in the U.K. on April 6 consents that a company transferring portion of its business to another firm must also transfer the deals of services of the employees concerned to the new company. Such rule may hurt the IT Outsourcing Industry very badly.
According to experts, this slaps overseas contractors with legal and financial accountability for the British employees, and could effect in serious adverse economic impact for Indian service providers accepting overseas service contracts from British companies and organizations. According to this regulation Indian BPO service providers could now be compulsorily to negotiate a protection against legal challenges by British employees who lost their livelihood when services were transferred to the overseas locations. This might direct to millions of pounds in problems for many of the services providers. This law could also blow up such overseas service costs for British companies.
