Indian outsourcing biz to face tough competition in 2008

January 9th, 2008 - 2:45 pm ICT by admin  

Melbourne, Jan 9 (ANI): India is likely to face tough competition as a low-cost outsourcing destination, following staff attrition and rising salaries in that country, according to a research.
“Global companies continue to accelerate their demands for a presence in countries other than India, and providers are seeking to expand their geographic footprint of delivery centres accordingly,” the Australian IT quoted Gartner research vice president Ian Marriott, as saying.
Marriott, however, added that despite of all this Indias offshore revenue would continue to grow.
“Although India’s offshore revenue will continue to grow, the country’s share of total offshore spending will decline slightly in 2008,” he said.
Commenting on skills shortages, Gartner research vice president Jim Longwood said: “Staff shortages for internal and outsourced projects are a growing problem in Australia and in most other countries in the Asia Pacific region including India, New Zealand, Thailand and even China for some specialised skills and experienced staff.”
Gartner also hinted at a shakeout in multi-sourcing practices during 2008 with early adopters of the strategy expected to cull the number of suppliers they work with while maintaining a diverse stable. (ANI)

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