According to a report by Canadian-based ICT research and advisory body XMG Global, India will capture 42.5% (US$61.5 billion), followed by China with 31.5% (US$45.7 billion), and the Philippines securing the third spot with 7.4% (US$10.7 billion) for the US$464 billion global outsourcing revenue.
XMG Global Chief Analyst Lauro Vives said, “The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6%, slowing down from last year’s 2.9%.”
Providers from India and the Philippines that cater to the US market are greatly affected by the devaluation of the US dollar, where providers from China are less affected because their clients are mostly based in East Asia.
Seventy-five percent of China’s outsourcing earnings come from the domestic market, and are used as leverage in competing globally. This is probably the reason Indian providers such as Tata, Infosys, Wipro and Satyam, which are known to avoid the said market, seem to be heading towards the trend to expand the market. The Philippines, on the other hand, saw an opportunity in the non-English speaking market.