Future of outsourcing optimistic amid global economic slowdown

A slowdown in global business spending, devaluation of the rupee and the changing face of business isnít affecting the outsourcing industry as badly as predicted.

With spending slowing dramatically, the prospect of stagflation on the horizon and companies bracing for hard times, the outsourcing industry remains buoyant with growth predicted in the next 18 months.

This defiant trend is largely due to many western companies facing increasing pressure from stakeholders to offshore their business in order to cut costs and remain profitable. Yet, many services which arenít being outsourced to India are still occurring internationally and business process outsourcing in this sector is latent, particularly in product development work.

Hardeep Garewal, President of Strategic Accounts at UK-based Indian outsourcing company ITC Infotech, believes that although there has been a sizeable shift in the industry, outsourcingís biggest growth is yet to come.

ìOutsourcing is growing fast, but this will change and the market will get significantly larger with more companies looking at alternatives to reduce costs and boost the bottom line,î Garewal said.

ìThe percentage of companies who have stated they outsource to India is relatively low compared to the whole market that is available- thereís a lot more hype than actual numbers,î he said.

Shockwaves of the global slowdown in spending and how companies are changing the way they do business in Europe is having a profound effect on outsourcing, however ITC Infotech is still investing and growing in key sectors despite current market conditions.

ITC Infotech are part of the $18 billion ITC Group, Indiaís third biggest company listed on the SENSEX. ITC is one of just a handful of companies in the world that are carbon positive, which it has achieved through large-scale tree plantations. It is also water positive by increasing water conservation and rainwater harvesting efforts so it produces more water than it consumes. ITC says it is also making strides toward its goal of producing net zero solid waste.