Outsourcing IT Jobs to India no longer Attractive

These customer organisations have for years looked upon India as a low-cost outsourcing option and Indian companies have gained a lot of profit from this.

Earlier the companies abroad just wanted to get their work done in India at a low cost. But they are now increasingly looking at client-satisfaction and the fast changing needs of the clients, which may not be satisfied in a low-cost set-up.

 

India’s information technology sector struggles against one of the slowest years of growth in the history of the industry. To coincide with this, some of their largest clients feel that the cheap labour advantage is less important for them as compared to the need of the large Indian outsourcing companies in India to adapt faster to the fast changing business world.

They feel that they should not get into business with the Indian IT sector for advantages of saving money in terms of salary by outsourcing jobs, as it’s not a good idea for their own citizens.

These customer organisations have for years looked upon India as a low-cost outsourcing option and Indian companies have gained a lot of profit from this.

Earlier the companies abroad just wanted to get their work done in India at a low cost. But they are now increasingly looking at client-satisfaction and the fast changing needs of the clients, which may not be satisfied in a low-cost set-up.

Besides, inflation is rising in India, which has increased costs of outsourcing in India. This makes the Indian IT outsourcing sector less viable for the Western world.

Moreover, pressurised by their countries to provide jobs to their own people, they are increasingly looking at how they can shift their businesses back inshore rather than getting it done off shore. Besides, they are facing rivalry from large companies such as Google and Facebook. They feel they can get their business done faster in their own countries rather than getting it done from a distant location.

Besides, Indian IT companies are expected to do more with lesser money, which is not viable for the Indian IT sector. Hence, now only the smaller players are looking at India as an outsourcing destination.

A lot has been written in the Western media about why their companies should not outsource jobs to India and China and how it harms their own economy. Hence, these companies are now under tremendous pressure to retain jobs in their own countries.

The need for the Indian IT ndustry is to recognize this and emerge as truly IT inventors in their own right rather than acting as middle men to the Western companies’ labour needs. No country becomes a powerful economy by just providing cheap labour to other countries. In order to become a powerful negotiator on the global economic platform, it is essential for India to emerge as an inventor of technology, not just provide cheap labour to other nations of the world.

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