The Indian outsourcing industry has gone through a very tough time in the last three-four years. Some magazines went on to predict that Indian outsourcing industry will die very soon or not, remain as strong as it was there some time back. Yes, there were many visible hurdles in this business earlier as NASSCOM former president, share in his analysis of the Indian outsourcing industry, and says that “The country has seen worst from the global economic crisis to the Mumbai terrorist attacks to the brighter side of starting of the cloud computing and automation technologies and over the years there are many threats to the country’s traditional outsourcing model”.
Here is how future looks on the various aspects of the Indian outsourcing industry
1. Effect of Indian economy will not hurt Indian outsourcing Industry:
Currently the country is going through a transition phase. The outsourcing services sector has been growing quite well. It’s generally the industrial sector that has impacted the growth. In the past, there are some issues regarding policy paralysis largely in the manufacturing sector because of the political situation which was there six months back in the country. However, when looking last two or three years, IT industry grew at about 12 to 14 percent and same is expected in the coming years.
Some of the problems outsourcing sector was facing related to the tax regime, which is successfully resolved. A lot of U.S. companies were having problems with transfer pricing assessments. But in the last one year a lot of that issues have been resolved, and, things looking brighter in the coming time.
2. Threat of other outsourcing countries:
Some threat of the other outsourcing countries likely to remains in the future. As, the country like china has a required skill and pool of talent people to compete with India, but china is doing their majority of the work they do is for Japan and North Asia. They do some work for the U.S., but it will take lots of years to come closer to match up with Indian outsourcing companies. They do extremely well with manufactured products, as far as but customers tell us it is difficult to do services work with them. They also require working on intellectual property and security issues. So, it is unlike that china will challenge outsourcing Indian firms in the near future
3. The effect of increase use of cloud-based solutions:
Indian Outsourcing industry was 25-years-old therefore it has matured a lot and becomes much better and faster. They are just not only looking for the costs. But implementation of the new technology is equally important like social media, cloud computing, analytic, or mobility. All of these are now getting integrated into outsourcing IT services. The revenue of the industry has increased because of the cloud computing.
4. Initiatives taken by NASSCOM to deal with the issue of talent development and growth in tertiary cities:
The organization formed the IT Sector Skills to make sure graduates coming out of university are more industry-ready. Technology is changing at the rapid speed. Today, most of the outsourcing work has been done in the seven large cities where 90 percent of the work happens. But those centers are staffed by people who came from various cities of the India.
Thus, with this given view we can say that outsourcing industry in India will continue to grow even with faster speed despite the hurdles comes in their way, the help of NASSCOM and many Indian outsourcing firms this industry remain intact even in the nearest decade.