Outsourcing in India may have seen a slow down in the last twelve months due to the recession just like most industries. A lot of the major clients for some of the bigger outsourcing companies in India were based on the financial markets like the banks, mortgage companies and credit card companies. So naturally with so many of these companies collapsing in the last year they have seen a significant decline in outsourcing business in India over the last year.
However there has been some significant growth in other fields of industry that were once thought of as untouchable in terms of outsourcing. There are now clear signs that fields like lawyers, doctors, nurses as well as insurance companies are able to outsource a lot of their work to countries like India.
The latest estimates from some of the major players in the outsourcing industry in India are indicating that the amount of revenue being generated for outsourcing just in India is going to reach over $50 billion in the next year or so. Nasscom and McKinsey which are two of the biggest outsourcing players in India put out an estimate just this past April that by 2020 that total will exceed $175 billion. That is a tremendous amount of growth in just ten years and I would wager a guess that they are being somewhat conservative in their estimates.
Honestly what is really stopping companies especially here in the United States where pretty much all companies are cutting cost. It’s a difficult line to walk on for sure as the politics of the US dictate that companies should be doing what every they can to keep the jobs in the US. On the other hand they can outsource the same work to college educated people in other countries to do the same work at like half the cost. I don’t think there is really much difference per say in terms of actual salaries as compared to what goes into employing people here in the US with all the infrastructure and insurance that is needed and drives up the cost of employing people here in the US.
It really is hard to say how the next decade will play out as economies come out of this recession. With all this globalization of the work force and jobs being spread out across the globe. Obviously the balance of power is in the hands of the politics of the world and who can restructure and reorganize the fastest and gain the advantage for the coming years. Where do you see the balance of power going in terms of outsourcing? Will India continue to be the dominate outsourcing force in the industry?
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