Chapter 11. Developing Information Systems{0}
Some of the world’s top retailers, including UK’s Tesco and American speciality retailer Home Depot, have been outsourcing projects to Indian third party service providers, including TCS and Infosys, apart from their own captive centers to support their existing IT systems and also develop newer applications. For example, Tesco saves over $60 million every year by outsourcing its IT projects to India.
So far, Wal-Mart which has been depending on its large in-house IT team is now seeking to globalize its IT operations. Especially India is now actively planning to grow its business from emerging markets. With almost $400 billion in annual revenues, the retailer also continues to look at establishing a captive technology center in India.
Wal-Mart already has a sourcing operation in the country. It’s natural for the retailer to explore various ways of leveraging its Indian presence. Meanwhile, Wal-Mart’s outsourcing of IT and back office projects is not expected to impact local US jobs, as the retailer is very sensitive about rising unemployment in the country. In fact, Wal-Mart said earlier this month that it will add around 22,000 new jobs in the US by adding over 150 new stores to its existing network of around 7,900 retail outlets.
http://www.businessweek.com/globalbiz/content/jun2009/gb2009068_435509.htm