Indian outsourcing Industry
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Outsourcing industry in India has been responsible for boosting the country’s economic growth.
India’s outsourcing industry is estimated to be worth about $52 billion. India continues to dominate global outsourcing market. Banking and financial services contribute nearly 40 percent to India’s outsourcing industry.
Outsourcing destinations in India
In 2008, a joint study conducted by Global Services, media platform for global BPO/IT outsourcing industry, and Tholons, global investment advisory firm, listed 6 Indian cities among world’s top 10 outsourcing destinations. Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune were listed as top outsourcing destinations in India.
Software and BPO industry in India
Software and BPO industry in India has provided a major boost to the country’s economy. It provides employment to millions of Indians. BPO industry in India is worth $11 billion. During 2007-08, Indian information technology industry experienced a slow down and revenue growth rate has been brought down to 21 percent from previous year figure of 41 percent. But it’s still predicted that Indian BPO and IT industry will grow to become a $132 billion entity by 2012.
Banking and financial crisis
About 40 percent of India’s outsourcing business comes from banking and financial services. With many of the big names in banking and financial industry being affected by US subprime crisis, there are apprehensions about how outsourcing industry will shape-up in near future. However, some IT and BPO companies in India express optimism about maintaining India’s success story in outsourcing.
Competitors
China has proved to be a major threat for Indian outsourcing industry. Chinese cities like Beijing, Shanghai, Shenzen, and Dalian are regarded as top destinations for outsourcing business to. Chinese outsourcing industry is worth about $15.2 billion.
Philippines and Malaysia have also taken to outsourcing in a big way. Philippines has a pool of quality talent that can compete and even excel in rivalry against Indian outsourcing professionals. India offers a cost advantage that is not easy to beat. But, rising wage bill of IT professionals and global financial meltdown is challenging India’s position as a preferred destination for outsourcing business processes.
