India Outsourcing Situation

India is winning thousands of jobs away from American communities. As the economic developer for your area, you should be well-versed in outsourcing trends and how they impact your business and industry base.

Here are some key facts you should know about outsourcing in India:

-At NASSCOM2004, leaders unanimously agreed that the Indian market has reached the next level of maturity and is set to grow.

-By 2008, McKinsey & Company forecasts IT services and back-office work in India will swell fivefold, to a $57 billion annual export industry employing 4 million people and accounting for 7% of India's gross domestic product.

-More than half of the Fortune 500 companies are already outsourcing work to India.
-The research firm Gartner on the other hand claims 1 in 10 US technology jobs will go overseas by the end of 2004.

-According to Forrester Research, in the next 15 years, more than 3 million US white-collar jobs, representing $136 billion in wages, will depart to places like India, with the IT industry leading the migration.

-Additionally the telecom bubble has burst and growth has been sluggish. Telecom majors like Lucent and Nortel are cutting costs and trying to recover heavy investments. They are therefore looking at Indian software companies to provide offshore solutions to manage their network operations, support systems, billing software, OS integration and business process re-engineering.

Interested in knowing how outsourcing is impacting industries in your area? Contact ED Futures for a study price estimate: dtia@don-iannone.com or call us atL 440.449.0753.