As compared to China, Philippines, other Asian countries, and Eastern Europe, India has always been way ahead in the outsourcing business. Indian companies are also modifying their strategies in order to stay one step ahead. Several factors are taken into consideration when it comes to choosing an outsourcing destination. Apart from the obvious reason i.e. cost factors, others include the availability of skilled manpower, government regulations and support, and the competitive nature of outsourcing service providers. The current system of education, infrastructure, and intellectual property protection are major considerations that also determine whether the country is geared towards providing outsourcing services.
Being an early entrant into the outsourcing business, India has scored high on many of these factors. The availability of skilled labor in the IT industry backed by a strong educational system has further strengthened its dominance. An ever-growing English speaking population coupled with huge government sops in support of outsourcing and telecom costs has also contributed towards its success. This is evident from the thousands of service providers that have entered the outsourcing sector, lending solid support to the Indian economy. Moreover, GDP growth rates are high and a soaring capital market has further attracted foreign investments in the country.
Although infrastructure is a major drawback, the participation of foreign investors in infrastructure development has brought in a huge foreign direct investment inflow to the outsourcing sector. In the face of strong competition among emerging Asian, East European, and Latin American markets, India will have to remain dedicated to the development of all these factors that influence the outsourcing business.
