SAP says outsourcing to India is expensive!

SAP AG has announced their plans to expand their BPO operations in countries like Eastern Europe and China. The reason behind this switch is that the company has claimed that outsourcing work to India is proving to be pretty expensive!

Interestingly, India has emerged as the top destination for outsourcing purposes due to its skilled IT labor and economical costs. However, SAP thinks otherwise. These plans were revealed by the company’s chief executive Henning Kagermann.

Kagermann said in a statement: “India is slowly getting expensive. We have decided to hire a certain number there, and then start looking at other locations”. Now the company would be aiming at hiring more workers in China and Eastern European countries.

Kagermann further added: “The reason that we don’t have so many developers in China naturally has to do with the fact that copyright protection there is not the same as in other countries. But that isn’t going to stop us from doing more in China”.

SAP has plans to add in around 3,500 workers this year.