Current challenges for IT outsourcing companies in India

Outsourcing has come a full circle in the past 10 years. Starting all the way back with software development outsourcing at the time of the Y2K bug, then the 2001 technology bubble bust and then again a boom, a deep global recession, the outsourcing world has seen it all. And today the picture of outsourcing that has emerged is very different.

The hunger for technology remains the highest in the US, but so is the hunger for jobs. So it did not take long for the government to figure that there is probably no tearing hurry to outsource jobs to India when people remain unemployed at home. This has caused the US government to revert some of its outsourcing friendly policies.

From an IT company perspective, a deep recession followed by clamp down on outsourcing incentives is exactly the best news for business. But as the survival instinct takes shape, IT companies are looking at new opportunities in the rest of the world. IT companies are actively courting the Indian market and trying the awake Indian corporate to the opportunities that IT and innovation can bring forth. Innovative techniques are being designed and implemented to ensure that countries continue to outsource software development to India.

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