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Indian outsourcing facing difficult times

by: Carlo Abadilla

Tuesday, August 11, 2009 | Outsourcing News |

After consistently posting double-digit growth in recent years, the Indian BPO industry has hit a rough patch with its leaders further predicting difficult years ahead. India's revenues have dropped sharply amid a global economic recession that, according to Richard Gordon, head of global forecasting at Gartner consultancy, has yet to fully take effect: "The full impact of the global recession on the IT services and telecommunications sectors is still emerging."

Top Indian outsourcing body, Nasscom (National Association of Software and Service Companies), has predicted 4 to 7 percent growth far below the initially predicted 16% from last year, and the 30% rise it posted regularly in the past.

"Worldwide information technology spending growth is expected to come down further in 2009 and 2010," said Som Mittal, head of Nasscom.

Noshir Kaka, director and global leader for outsourcing and offshoring practice, McKinsey & Company, cites new business models and focusing on new areas such as healthcare as possible solutions for the slump.


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