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Recession and Indian IT services industry


Mark (name changed) wanted to outsource some of his development work. A typical outsourcing process starts with bidding, where companies from different cheaper countries including India would bid for projects. He asks one of his manager (An Indian abroad), to take a look at the different bids and choose the cheapest one. After looking at the bids, our Desi manager goes speechless! The bids received from Indian companies are almost equal to hiring a team abroad and getting the work done! getting the similar work done from countries like Brazil and Mexico is so cheap that they are quite comparable to an amount a typical Indian would spend during casual shopping or when they go out for a party with friends! The reasons for this are quite simple.

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Software outsourcing comes a full circle!

Global Economy

Outsource to countries where the work can be done at cheaper cost than India. And Indian companies are doing exactly that - opening offices before their clients approach these countries by themselves. The advantage Indian companies have is, they have mastered the outsourcing game over last few years. So before countries like Vietnam rise in outsourcing space, they setup shop and capture the market share.

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Verdict on Indian Software Industry: Best in Quality and price !

India leads the pack in a big way in Global outsourcing game. And it is not due to cheap labor. It is due to High quality that Indian software companies produce. With Indian software wages sky-rocketing, India is no more cheapest. However, quality produced by Indians is still the compelling reasons for companies globally to turn to India to do their work.

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Top 200 list of H1B employers in the world !

Unsurprisingly, the Indian outsourcing dominate the list- In a Big Way ! Out of the top 5 companies, 4 of them from India. The only exception being Microsoft Corporation. The other significant US companies are IBM and Oracle who come 8th and 9th on the list. Interestingly, 10 Indian firms alone account for more than 20000 H1B visas- that is nearly 1/3rd of the all H1B visas issued.

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