India no longer #1 choice for offshoring contracts
India has long been the preferred offshoring location for businesses. However, the inevitable has finally happened, the cost of offshoring to India is increasing. The rupee is much stronger and staff wages have increased. This is generally not good for companies who are bracing themselves for a potential recession!
Of the 21 new facilities opened by the UK’s 20 largest firms, four were set up in China, three in Eastern Europe and three in Morocco. Not even half were set up in India. However, it isn’t surprising that companies are moving away. For example, iTunes are the dominant force in music downloads, not good for the content providers. The same can be said of India. The more businesses rely on them for outsourcing contracts, the more powerful they become and the more they can charge, dictate SLAs and also pick and choose their clients. Not good news for outsourcers.
India’s reign has come to an end and now the outsourcing truly market is open to competition. How will India react to this and more importantly, what impact will this have on the country?
