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Offshore Outsourcing World: "Mega-trend" means mega-backlash for India
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Tuesday June 22, 2004 at 8:49AM - Offshore Outsourcing World Staff

"Mega-trend" means mega-backlash for India

Industry analysts are acknowledging that outsourcing could well be one of the major business trends of this decade.

According to Gartner, those about to gain the most about the "mega-trend" that is offshore outsorcing are service providers engaged in IT services, not manufacturing or software development.

IT services encompass a wide range of tasks from outsourced maintenance of IT systems to now-familiar services like call centers and BPO.

According to Gartner, IT services racked up $104 billion in revenue last year, even with the backlash against outsourcing which persisted all throughout last year.

Gartner does not see the backlash silencing anytime soon as an entire ecosystem of service providers develop among Asian countries.

Most of the backlash will be directed at India, no doubt, since India has been hogging the headlines eversince it surged as THE model for outsourcing.

But while India remains the "whipping boy", other countries could be quietly gaining on it as Western outsources, presumably, look for other destinations if only to avoid controversy. Interestingly, Gartner says countries like Australia have quietly been handling offshore services for years now.

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