India has emerged as a reliable outsourcing partner for many western countries. The primary reasons for outsourcing work to India are: cost, skilled labor, and attractive government policies. Indian companies have been able to handle the influx of software development outsourcing work efficiently but some events in the past years show that the privileges that India has enjoyed so far might not stay for long. Let’s look at some of these events and how experts believe they will affect the Indian outsourcing industry.
Britain is one of the most prominent countries that outsources work to India. The Indian outsourcing industry was taken by a shock in the mid of 2016 when Britain decided to exit from the European Union (EU). The immediate effect was felt when the value of pound hit a low. There were a few more glitches down the way.
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Britain is one of the highest contributor of G20 and its exit from the EU will not impact India alone. Many other countries that are involved in the financial interaction with Britain will be impacted. Six months have passed since Britain exited EU and so far nothing concretely negative has surfaced for India or any other partners.
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This was one of the most talked about event of 2016. The news channels around the world got high TRPs with reports on the two candidates who had a very different thought process. But, one thing that always hit the headlines was Donald Trump’s view on immigration and outsourcing.
Trump has spoken positively about India in one of his speeches but that was a brief mention and nothing substantial can be inferred from that reference to India. That small phrase has already been quoted a lot of time and I don’t want to follow the lot.
The long-term effects of these two political events are yet to be clear. But, one thing that is clear is that either for good or bad, the outsourcing industry will change. There can be a lot of opportunities or there can be limited ones. While the Britain’s exit from the EU looks positive for Indian companies. The experts are in disagreement on how Donald Trump’s policies will affect India. Hopefully, by mid of 2017, there will be some evidence to prove the impact of the two events.
The good news is that Indian outsourcing giants continue to record revenue increase and the bad news is that the competition for India is increasing. Following the footsteps of India, neighboring Asian countries like the Philippines are offering competition. This is just one of the other aspects that Indian outsourcing companies need to watch out for, other than the political and financial happenings around the world.