Gartner: India could lose hold on outsourcing market
Despite news of India’s moves to expand their outsourcing empire even beyond their shores, a Gartner Inc. news report has predicted as much as a 45% fall in India’s market share by 2007. That would be a long way down from its current 85% reign in the BPO market. Reasons cited for this downward trend are skyrocketing wages and an ongoing current labor crunch.
Gartner also points out that a slew of countries up and coming in the outsourcing market just could take away its competitive edge – if not each on their own, taken as a rival whole. It cited the Philippines, Malaysia, Vietnam and Eastern European countries as the threats to watch out for.
Despite India’s edge as the premier outsourcing services host because of its abundant supply of skilled English-speaking graduates, it cannot afford to lower its guard lest the BPO clients look elsewhere, nearby for more attractive service packages. Gartner points out the need to draw up a long-term plan to improve infrastructure and constantly develop the workforce. It emphasizes, "Although India's infrastructure is improving, it is not keeping pace with the rapid growth of the industry."
related stories, by category:
