A survey conducted by recruitment provision specialists Elixier Solutions shows outsourcing business in India is growing at an annual rate of 40 per cent.
Meanwhile, nearest rival China's business is augmenting at a more conservative - but still impressive - rate of 25 per cent.
The study suggests that the ability of Indian firms to deliver impressive turnaround time (TAT) is crucial in attracting business as it gives customers more confidence in the service they provide.
Despite this, Elixier Web Solutions associate partner Jacob Samuel believes demand for outsourcing is still being curtailed because firms consider it a "luxury" rather than an efficient business practice.
"Certain companies restrain from outsourcing their practices thinking it to be a luxury practice which only organisations having deep pockets can afford," he told the Economic Times.
Even so, the outsourcing industry is tipped to grow to $1.43 trillion by the end of 2009 from the current $1 trillion level.
Hemendra Aran, CEO, Aranca said, “There are very good reasons why India continues be world’s leading services outsourcing destination. In terms of skilled and highly educated talent pool, scalability a mature industry that understands outsourcing, cost advantage, English language skills and so on, very few other destinations even come closer to India.â€
India is likely to come under increased pressure from China though, especially in the wake of escalating wage levels and a staff shortage
Madhusudan Rajagopalan, Director, Aranca India Operations said, “It is true that talent is getting scarce even though India churns out hundreds of thousands of engineers, post graduates with professional education and graduates. However, the rate of churn especially in the process-driven BPO kind of setups combined with growing opportunities have driven the compensations through the roof. That, to my mind, is not sustainable in the long run.â€
Further analysis into the outsourcing industry could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
You are permitted to print or download extracts from these pages for your personal non-commercial use only. You may not (whether directly or through the use of any software program) create a database in electronic or structured manual form by regularly or systematically downloading and storing all or any part of the pages from these pages and/or Aranca's site. No part of these articles and features listed herein, may be reproduced or transmitted to or stored in any other web site, nor may any of its pages or part thereof be disseminated in any electronic or non-electronic form, nor included in any public or private electronic retrieval system or service without prior written permission.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/
Aranca Syndication Service at syndicate@aranca.com.
Tel: +91.22.4005 2219 / +91.22.6725 8115
