Indian IT sector analysis: An overview of shifting trends in outsourcing

Indian IT Sector

In the Indian outsourcing scenario, the IT sector has been witnessing a wave of change across its vast domain. The Indian BPO industry has been through a phase of evolution with the complexity of its tasks amplifying to higher levels. An IT sector analysis shows that Indian IT companies have moved on from carrying out basic IT work in the outsourcing field to multifaceted and complicated functions. This has been an outcome of the rising demand for these requirements from the West as they try to cut down costs and grapple with the sluggish economy back home.

In addition, outsourcing projects from the US have decreased while more European firms have started knocking on India’s doors. While job opportunities for IT aspirants have come down, there are also positive notes emerging from the outsourcing sector. New acquisitions have brought about diverse opportunities for this historical nation. An IT sector analysis highlights the deals that have been brokered in the IT industry. Tata Consultancy Services (TCS) has recently bought an IT company Alti, based in France, a deal priced at €75 million (Dh357.8m). In 2012, the IT company based in Bangalore Infosys had acquired Lodestone, a Swiss company, for S$350m.

IT sector analysis signals a swing to new environments

In the United States, a steady opposition has been building up against outsourcing jobs. At the same time, the immigration bill introduced in the US Senate had attempted to meet the demands from the American IT sector for bringing in a greater number of high-skilled workers from other countries. There has been apparently a shortage of American candidates for IT jobs. However, some legislations have raised concerns in the IT sector of the Indian outsourcing industry. Increase in visa fees, higher wages, and alteration in business models to adapt to changing rules will significantly affect Indian outsourcing operations according to the IT sector analysis.

Hence, the shift to Europe is significant for the Indian IT outsourcing sector. However, new systems have to be set in place for adapting to the new environment. Due to cultural and language differences, Indian firms have largely shied away from investing in European projects. Then again, perceptions have changed as new avenues are being explored in this direction. Besides, the economic downturn has also forced more companies in Europe to consider outsourcing models for sustainability and survival. This has brought in a whiff of fresh air into the outsourcing scenario as can be seen from an IT sector analysis.

New grounds for exploration will provide an impetus to the further development of the IT outsourcing sector in India. A new culture of work that adds innovation as the key element is expected to emerge in this industry.

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