Saturday, May 28, 2011

The Future of outsourcing in India

 Business Process Outsourcing (BPO) expenditure is likely to grow worldwide. India has established itself as a major outsourcing hub. India is the world’s favorite outsourcing destination. India's share of the global offshore outsourcing market for software and back-office services is more than  
45 %. Outsourcing in traditional areas like customer care, financial services, manufacturing, IT, ITES is growing.

Large multinational companies are investing in captive BPO units in supplier countries in multiple locations, to reduce risk and control quality. Outsourcing is becoming more sophisticated. Customers are looking for business process excellence, speed to market, improvement in quality, benchmarking to world-class standards. CEOs are involved to ensure the long-term success of strategic off shoring decisions. On their part, suppliers understand that they must compete globally and that outsourcing will play a more transformational and strategic role for the client. For the past two decades, China has been growing at an astounding rate of 9.5% a year and India by 6%. They are impacting the global economy and leading the outsourcing revolution

Political backlash over outsourcing is likely to lessen over time as economies strengthen and companies continue to reap the benefits of off shoring. Technological power will shift from the West to the East as India and China emerge as big players in the global outsourcing market. The two countries have the size and weight to transform the 21st global economy. By 2015 China might become No.1, and India No:2 in the global top five outsourcing destinations. India can collaborate with other countries to leverage local knowledge of the business environment and language skills while providing its domain knowledge and technological expertise for successful outsourcing. For example, TCS has a Latin American arm based in Mumbai, India which serves an insurance client in Chile with a center in Uruguay as a near-shore location. Outsource2india has collaboration with a company in NE India that leverages the unique talents of the people of this region.

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