Dubai, April 13. (PTI): Dubai is seeking to attract Business Process Outsourcing (BPO) trade in the region in direct competition from India, but higher cost in setting up these centres is acting as a dampener.

Although the World Economic Forum, which has adjudged UAE economy as the most competitive Arab economy praising the region's strong entrepreneurial skills, has also noted its lack of educational reforms and reliance on migrant workers.

Of late higher costs from rising rents and spiraling inflation has proved to be a setback for businesses in the UAE, especially in Dubai.

But officials of the Dubai Outsourcing Zone (DOZ), launched in 2004 has been targeting major corporates to reposition their call centres to the DOZ, and some major players like the Emirates Group have begun building call centres at the DOZ.

DOZ Director Ismail Al Naqi says, the free zone's focus on hosting higher-end outsourcing services has given it an edge over less expensive options in India.

"India is cheaper for low-end outsourcing, but at Dubai Outsource Zone, we've targeted higher-end operations," Al Naqi was quoted as saying in Gulf News.

Analysts believe, India still has an edge over Dubai in attracting call centres, that require basic communication skills of individuals - available at a cheaper price. India's expertise in information technology and expertise in BPO business makes it a natural hub for call centres.

Especially, when high inflation, soaring house rents are forcing employers to raise their operational budgets - the cheaper alternatives. However, Dubai has the geographical advantage of standing in the middle of East and South Europe, South Asia, Africa, Central Asia - serving a population of more than two billion.

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