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IT Outsourcing in India: Scaling New Heights

Aparna Dutt Sharma, Chief Executive Officer, IBEF

Dec 17, 2012 16:27

India is often called the outsourcing hub of the world. Clearly, the availability of cost-efficient skills and huge potential for growth has transformed India as a preferred destination for outsourcing. Driven by increased focus on cost efficiencies, customer centricity and a supportive ecosystem, India’s market share in the IT outsourcing industry has moved up from 55 per cent in 2010 to 58 per cent in 2011. As per market estimates, the total global and domestic outsourcing market opportunity for India is expected to grow three-folds from US$ 500 billion in 2008 to US$ 1.5 trillion by 2020. In fact, by the end of this decade, the Brazil, Russia, India and China (BRIC) countries are expected to build a collective domestic outsourcing market of US$ 380 billion to US$ 420 billion.

At a time when the IT outsourcing companies from India are a dominating force in the markets abroad, Indian IT and software giants are launching a renewed push to win outsourced government contracts. The government and defence contracts are expected to create a global market worth about US$ 100 billion for technology and business services providers and hence, the strategic stance of Indian IT companies towards this segment. In fact, the rise of India as the hub for IT outsourcing has played a vital role in taking the Indian IT companies onto the global landscape and the industry can only be expected to grow.