Indian outsourcing thrives despite reduced global share
The past years have been profitable for Indian outsourcing vendors. As usual, the outsourcing industry continues to thrive despite controversy and consumer resistance.
India has dominated the market from the industry's birth. With increasing globalization, India’s share of the global outsource market is greatly reduced. In spite of this competition Indian outsource service providers have reported considerable growth over the past years. To combat the global competition, Indian outsourcing companies are themselves opening divisions in emerging outsource countries and countrywide boundaries are becoming less and less meaningful as the industry evolves and matures.
Though China is predicted to be the next India there are serious doubts regarding this. Granted China offers lower wage and fast developing infrastructure. However, China’s technology industry is advancing at a rapid enough speed to raise a challenge to dominant U.S. companies in the near future. It is doubtful whether the American industry or for that matter the common folk will be too pleased for this to become a reality.
The current trend is for businesses outsourcing different technological needs to many different outsourcing companies, instead of bundling all their outsourcing needs into a single deal with a larger company. This leads to fewer high-profile deals in outsourcing, although the industry itself continues to grow.
However, the industry's growth, coming maturity and the cost savings businesses can incur by moving many of their operations offshore appears to be too tempting to resist-despite a number of minor irritants.
Predictions for 2007 suggest that the globalization trend will continue, and that more high-skill jobs will move offshore as the industry grows. There is still plenty of debate among American and U.K. businesses over whether or not outsourcing is a positive trend-but there's no doubt that, positive or negative, it's here to stay. It goes without saying that global outsource to India will continue unabatedly.
