What will be the future of India in Outsourcing
The Outsourcing industry is growing rapidly. But the big question is what might be the future of it after 10 years. Currently India is one of the most preferred destination of many foreign firms wanting to procure their business, research, legal and related high end processes. But the scenario will definitely change since “change” is the inevitable aspect of everything that exists and Outsourcing industry is no exception to that. It will be interesting to know where the industry will stand after 10 or 20 years from now.
Buyers will definitely look for more applicable solutions from their outsourcing dealings. The result oriented performances are going to be counted above the cost factors. For this reason the pricing framework would be stabilized to some extent. Many small companies throughout the world are already started to focus more on enhanced operational capabilities, effective quality control along with the reduced costs associated with back office.
The trends are already visible in the area of outsourcing. Sharing crucial business and all types of IT services has been quite evidently proven to cut costs, reduce the mistakes and improve the entire field of productivity. Industry scholars strongly predict that Latin America and even Europe will be the upcoming outsourcing destinations undoubtedly in the coming years.
Both Brazil and Russia will definitely make their presence felt in the world outsourcing market and arguably China will continue to travel ahead.
Role of India in Outsourcing
India still holds its position as major hub for the outsourcing business because very clearly it has been able to considerably evolve with the changing requirements. NASSCOM, apex frame work of India’s main IT software (IT & BPO) firms, revealed that India’s share in the world outsourcing sphere rose from approximately 51% in 2009 and to 55% in 2011.
India still stands out for its customer based service and outstanding efficiency, so future is looking bright. In the modern world, customers not only prefer cost-effective solutions associated with outsourced business but also consider skilled staff with enhanced productivity and quality services etc.
The incredible growth of Indian outsourcing business has been quite phenomenal. The emergence of KPO (Knowledge Process Outsourcing) in India is undoubtedly the good result of the success of the BPO sector in the country. Knowledge Process based Outsourcing is going to become the biggest revenue grosser for India in coming years. Skilled manpower of India will ultimately strengthen its stand in the knowledge service sphere.
The outsourcing industry is going through an evolution, and would continue to be pushed by the changes in demand. The entire outsourcing industry is changing, as new providers are arising while existing providers are eagerly expanding into new growing arenas. India has made some remarkable achievements and created a strong reputation through hard work in the outsourcing industry.
The social and economical infrastructures have to be modified to meet the needs of the hour by keeping the competitions and challenges in mind. The rising living costs of the metro cities can lead the service providers to change their locations to moderate towns. The work atmosphere also should be designed in a way that it should help to produce maximum output. The mental and physical healths of the employees play an important role in this field.
Though India in outsourcing and related activities continues to be the world leader in all aspects of the business, it would definitely face tougher and complex challenges in the near future, from South East-Asian countries like Malaysia, Indonesia, Singapore, Thailand and Vietnam. These countries are consistently improving their position by continuous growth in relevant sectors. It would definitely lead to fierce completion from other parts of the world too and this will be the ultimate challenge to India in the IT business.
India’s excellent competitiveness is being strongly challenged by these countries who are relatively new to this sort of business, which provide cheaper labor in IT and business process skills, but at the same time India is really experiencing enhanced labor costs and high rate of attrition, which are big and key concerns, and have to be properly addressed.
The strong belief is that India has the potential to face all the difficulties and challenges in Outsourcing to stabilize its unquestionable place in this sphere.