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Growth of India's Outsourcing Market to Slow Down

by: Karen Cayamanda

Tuesday, April 21, 2009 | Outsourcing News |

According to Gartner, a research firm, the offshore outsourcing industry of India will likely to experience slow growth due to the emergence of other ideal outsourcing locations and the looming US policy against shipping work offshore.

Challenges to India's outsourcing market

As the leading offshore destination, India is on top of the list of most clients who want to outsource their non-core business operations as a cost-cutting approach. However, countries like the Philippines, Brazil, Mexico, and Vietnam are emerging as ideal BPO alternative locations.

Another factor that will pose a challenge to India's outsourcing market is the US policy against outsourcing jobs. The current global economic downturn resulted in an increase in the unemployment rate of the US, and outsourcing in India will not help the nation in its effort to bring the economy back on track.


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