For years now organizations have outsourced their work to India in view of harnessing the immense talent and skill pool in India. The Indian outsourcing industry helped organizations across the globe to get rid of high operational and labor cost.
There are various kinds of businesses that are being outsourced in India for several years now. The Indian outsourcing industry saw a boom and was at its highest in the late nineties and early 2000s. With the advent of modern technologies and global connectivity India became the boiling pot of growing opportunities where the world’s leading companies looked up for their business.
However, now things are changing rapidly, and the reality is that the wages of professionals are rising.
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1] No larger cost-saving gap
The major advantage of outsourcing was cost-saving which was around 1:6 however now it has got low to 1:3 thus the big names do not see great advantage in outsourcing.
2] People leave jobs
There is a widespread rotation of workers from organizations and attrition is at an all-time high.
3] Automation works faster
The parity is growing with companies looking at automation, robotics and artificial intelligence to increase the output and faster the turn-around time of the work.
4] Small Jobs are taken over by robotics and automation
The petty jobs like data entry, back-office tasks, and email processing are now being automated and thus there is less need for outsourcing.
5] SaaS is a threat to outsourcing
Software as a Service is the newest buzz in the IT industry and has a major role to play against India. Small IT start Ups are helping customers to deal with business leads and technology to gain profits.
6] The Trump-Effect
Trump administration is against outsourcing and is looking for more opportunities for the American workforce. This has a major impact on India outsourcing.
7] Higher turn-around time
Till now Indian subject matter experts have not been able to pay out for the technical expertise and skilled people as the industry demands today. Indian entrepreneurs cannot do time scaling with ease. The timelines for deliverables are high and thus make an impact on the business.
The Indian outsourcing industry is going to be dead in case it doesn’t keep with the trending fast mode.