Call it the Satyam effect or just precautionary measures, global customers are busy adding newer clauses to outsourcing contracts given to Indian providers to ensure business continuity.
There is wide spread recognition that there is no substitute to India as an outsourcing destination, but global customers are keen to introduce additional security clauses in work contracts to ensure safety in case of any crisis at the vendor level.
Some customers are even thinking of adding a "project portability clause'' wherein they would be able to move projects entirely to other providers, to ensure safety and work continuity. Some are insisting that vendors maintain "buffer providers'' so that work does not suffer in case of any untoward incident.
Stephanie Moore, former vice president at Forrester Research and currently chief marketing officer of UST Global, says: "There's a lot of caution in the minds of customers today. They want to have a thorough look at vendors prior to entering into any work commitment. Today they are concerned about providers' corporate governance, infrastructure, actual financial status, audit processes, HR policies, etc.''
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