The Verdict is out !
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.
Here is a quote from recent NewsWeek article:
The infamous “race to the bottom” may not be over. But increasingly, service industries are moving operations not to nations at the bottom?which is to say, nations like India, where labor is cheapest?but to where the work will be done best. The new race is to find the most-competitive service. And it speaks volumes about the rapid modernization of India that its companies are still out front.
There have been constant talks about China getting closer or even beating India in this game. Not only China, but countries like Poland and Vietnam aggressively positioning themselves in the market. But, none of them have been quite successful.
IDC research predicts that the world market for offshore IT services will grow to $37.8 billion by 2011, more than double last year’s figure. Yet no new rival has derailed India’s rise.
In the past decade, India’s outsourcing revenue has increased tenfold. By some reckonings, Indian companies still capture more than 80 percent of the IT offshoring business. With growth in the Indian industry still running at a healthy double-digit rate, the top companies?Wipro, Tata Consultancy Services and Infosys?are evolving as fast or faster than the outsourcing market itself. Each now has a total stock-market value of more than $20 billion, when none were even listed 10 years ago.
The Indian software companies are now truly becoming multinationals. They are spreading their base by doing aggressive acquisitions globally. In 2007 year alone, Indian software organizations have made more than $2 billion worth of acquisitions, including a recent buyout of Infocrossing by Wipro. Another big deal currently in decision making phase.
As long as Indian Software companies keep churning out quality and think globally, no one can come close to dethroning them !