There is definitely an impact of the global economic scenario on Indian information technology and indian outsourcing companies, however, most of them have long term contracts with their regular clients which were signed at extremely competitive Price, sector experts said.
According to HR consultancy Hay Group's Managing Consultant (Mumbai india Operations and Rewards Practice Leader) Mr.SridharGanesan, "Post 2008, business planning with high focus on risks and mitigation has been critical for Indian Information technology outsourcing companies. The precedence of 2008 in terms of outlook and forecasts is therefore much more realistic." Echoing the sentiment, executive search company Global Hunt Director Mr.SunilGoel said, "The Information technology and outsourcing
companies have re-aligned their businesses in india, and have a very balanced approach. Though there would be a slow down, there may not be a complete downfall or a shut down in hiring activity (in business)." Mr.PrateekSrivastava, manager (IT Practice), Elixir Consulting company, a recruitment process outsourcing, said: "The impact of a global slow down or crisis would be marginally low than the last time. Early reports already indicate Indian Information technology outsourcing are picking up more talent than last year from top level business school." Besides, Business process outsourcing Indian companies in their evolution of business from basic Information technology related services to more complex Information technology related services have also realised that clients are looking at the portfolio of operations for giving business.
"It is not just pure offshoring anymore. The model has to be a mix of onshore, near shore and offshore," Hay Group's Mr.SridharGanesan said, adding that Indian outsourcing companies like Aegis and Wipro among others are not looking at only India but a portfolio of locations that will help them win client business based on this model in india. Central European countries are getting a lot of the knowledge process outsourcing (KPO) business as the cost is competitive, it is near the main company headquarter and also technical institutions there are providing very good talent. "There has been an accelerated number of companies that have decided to move to places like Australia, Latin America and Philippines, primarily because of cheaper wages coupled with high literacy rates.
Countries like Philippines, a former US colony that retains many American (US) cultural values, ensure better cost arbitrage," Mr.PrateekSrivastava said. India, which was earlier preferred for its low cost advantage in business, has lost that tag as salaries have gone up in the last decade, infrastructure cost has increased and support system cost has also jumped after 2008. Information technology outsourcing companies Companies are now looking for newer avenues where they can align their costs.
Source: The Times of India