Outsourcing in India: the future remains bright
Ever since India’s former finance minister Dr Manmohan Singh ushered in globalization in the country through the economic liberalization plan, outsourcing to India has been one of the most important sectors. popular and economically powerful of the Indian economy. In two decades since then, India’s outsourcing industry has experienced phenomenal growth due to the country’s large labor pool, government support and low costs. “Today, however, just like the rest of the outsourcing industry, outsourcing in India is evolving. The country is in an enviable position to maintain its global leadership as an outsourcing powerhouse due to some key factors, ”said Ralf Ellspermann, CEO of PITON-Global, an award-winning call center and back-office outsourcing provider.
India pioneered the offshore IT and Business Process Outsourcing (BPO) industry in the mid-1980s. To this day, the country is still the largest and leading IT destination and Offshore BPO to the world. This is indisputable, and it is one of the reasons why the future of outsourcing to India looks so bright. The country has retained the largest market share and the largest number of people employed in the industry. India also has a clear advantage over other offshore outsourcing destinations in IT services and most non-voice BPO and KPO services especially the more complex ones. The country’s established dominance in this specific segment of the outsourcing industry makes it ideally positioned to take advantage of future outsourcing trends by capitalizing on its strengths.
The second advantage that India has to offer for companies in need of outsourcing services is the availability of a large, highly skilled and educated workforce. Combined with its fluency in English and the number of cities it is available in, this workforce makes the Indian workforce an unrivaled asset. The country’s productive and talented labor pool places India above other countries like China and Malaysia. The growth of cloud computing and e-commerce, for example, has also helped accelerate the development of India’s ITES and BPO industries, as the country has the largest and most talented labor pool to meet this demand. request. India is the world’s largest offshore outsourcing destination for IT services, a testament to its talented labor pool. “Especially in the IT field, India’s workforce is one of the most educated and advanced in the world. In addition, India is currently home to the third highest number of engineering and technology graduates in the world, and this number is only expected to increase.The emphasis on high value-added IT work is another very important factor for the future of outsourcing to India, ”says Ellspermann.
Another factor contributing to India’s future as an outsourcing powerhouse is the move towards higher value-added services. Simple, highly repetitive outsourcing services are gradually being replaced by more complex, knowledge-intensive services known as Knowledge Process Outsourcing (KPO). The KPO industry in India is growing rapidly as the country has both the human capital and the IT knowledge to support this growth, which is expected to continue aggressively. Industries including Automotive, BFSI, Healthcare and Manufacturing among others are driving the development of this sector, and India’s dominance in ITES and BPO sectors positions it perfectly to take advantage of this KPO trend. . These factors will help India to maintain a leading role in outsourcing in the future, but the country should also understand that the outsourcing industry is becoming extremely competitive. New players have advanced in the global outsourcing market, such as Ukraine.
The Philippines has also catapulted itself into a leading position as the preferred outsourcing destination for US-based companies. In fact, for voice-related outsourcing services, the Philippines has been the world leader for over a decade now. According to Ellspermann, “The success of the country rests in large part on its cultural affinity with the United States and on high rates of proficiency in American English. for voice-related outsourcing services. ”Understanding the competition of outsourcing will be important in the future, but with its well-established position, outsourcing to India is expected to continue to be the popular choice for many. many companies around the world.