Posted by Global Sourcing Forum on Mon, Jun 21, 2010
By Chandan Das, BPOvoice
The hostile response to outsourcing to India notwithstanding, India continues to be the most preferred global destination for businesses keen on offshoring their non-core information technology and back-office operations. The fact unveiled during a survey is not surprising keeping in view that India still holds on to its low-cost benefits alongside additional alternatives. In addition, India also possesses a high-tech business atmosphere together with an advanced talent pool proficient in English speaking skills and a flourishing economy.
While outsourcing to India has been successful in maintaining its pristine position status, other outsourcing countries continue to reel under the backlash against outsourcing jobs from overseas, especially the United States. A recent study says that during the number of outsourcing locations worldwide has decreased notably. In fact, as per the Global Services Location Index, India, the Philippines and China have secured the top three preferred outsourcing locations worldwide.
The prevailing economic crisis as well as the currency crash have put the European nations far behind in the race for securing berths among the top outsourcing countries globally. Industry experts are of the view that had the misfortunes not affected the European nations, the developed economies in Western Europe would have enhanced their position with the help of jobs outsourced by the Eastern and Central European countries. In fact, while Poland, Hungary and the Czech Republic missed out on opportunities, they were secured by their rivals in the Middle East. While the Middle East nations like the UAE, Morocco and Tunisia scored heavily, several new nations, including Egypt, Jordan and Vietnam have secured their places among the top 10 most favored outsourcing destinations in the Global Services Location Index.
While the fact remains that India and the Philippines together comprise half of the global BPO market and the Philippines is regarded as a strong Indian rival, the fact is that India still remains miles ahead of the Asia-Pacific nation. The study points out that since the industry in the Philippines in basically call center motivated, it cannot be considered as a genuine competitor to India. Similar is the case with the other emerging markets, such as China, Vietnam, Sri Lanka and other Asian nations. India not only has a high-tech business atmosphere, a large pool of talented workforce and an experience of over two decades, but its booming economy too is assisting the BPO sector by eradicating the effects of the recent global economic recession sooner.
On the other hand, India, thus far known as the traditional contender to the United States as software developers, is now the architect of unrestrained business growth. Since the last few years, Indian software development firms have been establishing their marks in the global markets providing inexpensive facilities to clients regardless of their dimension and vertical. Most importantly, after the global economic slum, India has emerged as the redeemer of such organizations worldwide and this single aspect has contributed to India's numero uno position in the IT and ITeS industry globally.