Niyamath Parveez

There has been a suggestion that the Indian outsourcing fad is coming to an end. With so many other nations realizing the financial and economic benefits that have came to India through outsourcing, it has been harder for India to compete effectively. Much like India was able to undercut and out-compete the larger nations with regards to labor costs, smaller developing nations have managed to do to India. This is very much in line with cyclical nature of economics and would not have come as a complete surprise to industry experts. The successful firms will find a way to keep on top or be attractive to other firms and the smaller and weaker firms will fall away.

However, the stories about the death of Indian outsourcing would appear to be greatly exaggerated. There have been enough positive news stories in recent weeks to indicate that India will remain at the forefront of outsourcing services around the world. As stated, the firms who are able to provide quality services to other companies will remain in high demand. This is due to the fact that many firms are realizing that low labor cost is not the only thing worth pursuing, there are other aspects which are desirable too.

One of the ways that India is managing to stay at the top of the outsourcing tree is because there are still firms around the world looking to move into outsourcing. For companies who are unsure of what to do or where to go, it makes sense to look for the market leader. By and large, choosing the companies widely recognized as being market experts will provide customers with a level of confidence that they are making the right decision. This is of great benefit to the new customer and a great reward for being recognized as a market leader.

Some of the companies who have moved into outsourcing recently and therefore very late in the game compared to some companies include Renault, Volkswagen and Harley Davidson. These are all huge brands which further add to their need to associate with large firms who can handle high pressurized orders. They are all interested in the engineering industries and this should ensure that this industry in India will reap the benefits for years to come. There will always be a shakedown to lower levels, which means that emerging companies will be able to find a niche but when it comes to top level companies, India remains the top choice.

In fact, this continued reliance on Indian engineering outsourcing is said to achieve a sum in the region of $55bn by the year 2020. This is just over 10 years away, so it is not so far away in the future that it cannot be imagined. The past ten years have moved rapidly and the next ten years are likely to be the same. The top outsourcing firms will be the ones who have the income to invest in new technology and this should help them stay at the very top end of the market.