Changing scenario in the outsourcing arena

Question

The practice of outsourcing business, long popular in the United States and Britain, is gaining in acceptance in continental Europe and is diversifying rapidly from technology services to other business processes. European businesses have now farmed out so much work that they account for almost half of the global outsourcing business.

Indian companies have become leaders at outsourcing in part because they have easy access to workers with a sound technical education and cost efficiency. However, other countries are fast catching up. Now, Indian companies no longer depend solely on their language skills or low cost effectiveness. They are primarily concentrating on achieving innovative methods to provide complete outsourcing solutions in specific areas of specialization.

Indian software and services companies are able to capture a giant’s share of the exacting global outsource market. In marketing terms, India has created its own positive brand in IT-enabled support. Many competing countries including China lack experience in software project management and in issues related to software intellectual property. However, India’s hard-earned decades of outsourcing experiences stands to good at this juncture.

Responding to the changing scenario in the outsourcing arena, Indian outsource providers have shifted their attention from mere cost control to better quality control. Stringent frameworks are adopted to ensure the quality assured is delivered. The new innovative delivery models are most suited to the current market requirements. However, cost cutting was still the overriding imperative. Even now, ninety percent of companies won't even contemplate outsourcing unless there's a cost saving. In spite to recent wage hikes India continues to be cost effective outsource destination and will probably continue to be so in the coming two decades. Outsourcing to India is far from being outmoded.