Death to outsourcing! Outsourcing didn't pay off for Conseco "Insurance firm may be at forefront of trend by bringing jobs moved to India back to U.S."
Three years ago, when Conseco moved 800 jobs to India, its chief executive was clear that his pioneering outsourcing move was more than just cost-cutting.
These days, the insurer also may be a pioneer because it brought most of those jobs back to Indiana.
In 2001
CEO Gary Wendt says that buying India-based ExlServices will save Conseco up to $60 million a year and reduce turnover to less than 10 percent a year.
CEO Gary Wendt says that buying India-based ExlServices will save Conseco up to $60 million a year and reduce turnover to less than 10 percent a year.
In 2002
With turnover in India at 200 percent and cost savings falling short, Wendt's successor, William J. Shea, sells ExlServices at a $20 million loss.
With turnover in India at 200 percent and cost savings falling short, Wendt's successor, William J. Shea, sells ExlServices at a $20 million loss.
Don't get me wrong. I've even outsourced a project to Russia with success but also with a quick learning about the negative sides. I look forward to my industry (software) maintaining its quality of work and employee salaries by keeping jobs here in the states.
