India has been the pioneer when it comes to providing outsourcing solutions. Moreover, the country has also been offering a range of services to countries all over the globe. Regardless of the severe banking and financial crisis that has affected the world’s economic growth, most of the BPO, IT and KPO organizations in India have maintained good records of success.
With a big market size, the outsourcing industry in the country still continues to dominate the global market. While there may be competitors in the market such as Malaysia, Philippines, China and others, it is still the major player in the world in providing outsourcing offerings because of its numerous advantageous factors. It is known that multinational firms are known to be sourcing engineering tasks and product development services from their centers in India. Therefore, it is right to say that the country is continuing to leverage its fundamental advantages of cost, talent, quality and early mover advantage and experience to acquire a huge share of the growth of global sourcing of information technology and business process outsourcing.
In the twenty-five years since its well-known information technology services trade group NASSCOM or National Association of Software and Services Companies was formed, the global outsourcing industry of the country has experienced remarkable growth but has its share of ups and downs as well. The global economic turndown has impacted not just the Indian companies but the multinational organizations and captive centers as well. Luckily, the industry realized that it was too valuable a crisis to lose and service providers took is as a chance to change their business models. Vendors became more nimble footed; they changed their way of hiring and altered their structures from tech-driven to a more vertical one.
The sector has matured a lot. Better, cheaper, faster is now a given. Clients are looking beyond the costs. Technology has been consumerized, whether it is about cloud computing, social media, mobility or analytics. All these are now being integrated into IT offerings. Experts in the business claim that cloud computing have increased revenues. Today, Indian vendors are seeing more opportunity in helping small to medium organizations leverage the new cloud technology. Buyers are changing their approach as much as the service providers. Because technology has become so complex, companies find it hard to do it all in-house to they are outsourcing more.
Nowadays, around twenty percent of the work from Indian vendors occurs at the customer’s website, and this is growing. A lot of organizations are setting up development centers in the UK, US, Latin America and elsewhere so that they could be in the time zone of the clients. The US is a large market for India and the present immigration reform bills have many provisions that are positive, including increasing visa limits and green cards. In truth, while jobs were disappearing in construction and manufacturing, they were being added in the technological space. The industry is going through a transition and the services sector has been growing well. In the last two or three years, the industry grew around 12 to 14 percent and Indian service providers expect this to continue in the years to come.