India is not only the most matured offshore hub but it also has one of the fastest growing domestic market for services too. As Mark Mayo, Partner President of TPI, said during the National Association of Software and Services Companies’ (Nasscom) annual event, “Despite the concerns of a slowing U.S. economy, strong appreciation of Indian rupee against the U.S. dollar, and other financial sector crisis in the U.S.— the biggest buyer of Indian outsourcing services followed by the U.K., Continental Europe, APAC and rest of the world — India has not only been able to survive, but has also been able to grow up better. However, this growth has been one of the slowest in the last few years.”
Interestingly, many industry gurus see these new concerns throwing up numerous new opportunities for India. They are still ready to bet on India by arguing that China has a potential to give India almost the same, or even maybe a bigger chunk of business than the U.S.
And, the most exciting news from this part of the world is that Indian domestic market itself is a robust business. This market is expected to reach $23.2 billion by end of this year, according to Nasscom). The report also stated that the outsourcing sector in India is about to hire 375,000 more employees in the coming 12 months. This will scroll up the industry’s total headcount to 2 million in 2008.
With 28 percent growth rate, the overall outsourcing business in India is expected to cross $64 billion mark in year 2008, of which $40 billion will come from offshoring. (See Chart.) And, the function-wise split shows that IT services in India will remain the dominant activity.
