The Indian Outsourcing Industry May Be Down, but It’s Not Out
There is interesting news about the current dynamics of the Indian outsourcing industry in The Economic Times newspaper, published in India, in its 7 August 2009 issue.
The report studies the performance of the Indian IT and BPO industries. It says that in financial year 2010, these industries are expected to grow in the high single digits or early teens range.
This might look impressive to Western readers, but the fact is for more than for almost a decade, growth has clocked in at 30%! Of course there’s no reason for surprise here; as one large company’s CFO is quoted as saying wryly, “if your clients are going bankrupt, it is naturally going to affect you.” But this is not a reason for the concerned Indian companies to be phased; they are still doing a lot better than their contemporaries in other countries, whose growth in the same sector is likely to be in the low single digits.
One factor for the higher growth of Indian outsourcing companies is the very large domestic market. According to the report, NASSCOM, the industry governing body, says that this market is likely to grow at 15 to 18%, almost two times the rate at which it grew last year.
It is also mentioned that even though there will be growth, a lot of smaller companies will be starving and dying out, while there will be a lot of mergers and acquisitions happening amongst the survivors.
When all is said and done, the Indian outsourcing industry will continue to survive, most importantly since it’s provides excellent value for money to its overseas customers. Interestingly, TMG has been experiencing all of the trends mentioned in the said report. And that includes providing very good value for money!
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