Global Services

Outsourcing Growing Like Never Before

By Imrana Khan, July 24, 2008 4:43 AM

Just look at July ’08: It’s the month with maximum good news pouring in from all different directions about multifold growths being registered in every segment and sub-segment of outsourcing.

Gone were the days when companies were scared of outsourcing IT and BPO services to providers sitting several miles away; they are now more open to it. Today, most of the companies have something to source from. Even though few companies are still reluctant to outsource, the fact remains that outsourcing is on the rise.

The happiest moment: TPI index, which was released last week, cited that the global outsourcing industry posted the strongest first halves in more than a decade with 282 contracts valued at nearly $49 billion in Total Contract Value (TCV), and nearly $10 billion in Annualized Contract Value (ACV).

Another feather in the cap: The eyes stuck to the findings of Hampton-headquartered high-tech market research and consulting firm, Technology Business Research. The company’s study found that with a full-time employee base of 20,000 to 30,000, the $1 billion BPO industry in Eastern Europe is expected to grow at a rate of approximately 35 percent or more per annum.

Good news again: The findings of FAO Research has revealed that 2008 will be the strongest year ever for FAO market activity — with an expected 34 percent increase in new contract signings, add ons, and renegotiations of existing engagements.

Want some more good news? Think again. Any good news is normally followed by some REAL concerns … concern here is that the requirement of skilled labor pool will also mount.

If the global outsourcing industry keeps growing at this rate, sooner or later the Indian and Chinese talent will get exhausted. Where will you get the skilled talent then?

You might shift to different geographies where talent could be available, but quantity may not be sufficient. Where will you head from there?

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