Indian outsourcing market is set to suffer due to high increase of labor cost. Skills shortage and rising labor cost of India’s talents is driving away most of the big IT players towards East European countries and china to find out cost reduction. India is no longer able to give cost cut to these big IT players.
Many companies who were opened their offshore center in last few years here in India are planning to move somewhere else or in process of moving out because high cost of Indian Labor Market.
Emerging nations like Morocco, Hungry and other SE nations will eat major chunk of Indian IT outsourcing market share if we still not sit down, do some brain stormy thinking and make workable long term strategy to keep this industry at par.
We desperately need that our government should sit down with outsourcing and off shoring corporate leaders to identify specific skills required for the industry, current market trend and how we can reduce the cost of products and solution without hurting the cost of labor market and in future how we can control labor rising cost. Government should also try to find out the way to decrease taxes to keep this industry growth for at least next decade.
Outsourcing industry gives India billions of Dollars every year; this is the main factor that our economy is growing so fast. If we don’t do major brain stormy session now and don’t come up with some long term strategy for this industry then be prepared for sorry state.
We are heading to lose our greatest strength – low-cost labor – Act Now or for sure be ready for sorry state !!
India no longer top outsourcing destination?
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