India faces heavy competition in IT Outsourcing

As per the latest news of Information Technology world, “India is facing heavy competition in IT Outsourcing”. Global market is moving towards more and more Offshore Outsourcing now a day as it contains the cost cutting advantage along with it. As more and more countries are seeking to take the assistance of overseas service providers, new players in terms of service providers are coming into the market place also. Countries other then India & China like Philippines, Russia, South Africa and many more are now also concentrating on providing lower cost services. This is one of the reasons that India is facing more competition in global services for IT Outsourcing.

India itself has many local IT solution provider companies along with it. Moreover most of the internationally demanded IT brand names such as IBM, Apple, Accenture, Microsoft and many other companies have their huge presence in India. These brand names are providing high level of competition in Indian market for local companies. As far as the global market consideration is concern companies are now required to achieve some high level of quality certification to gain good market. Most of the companies are now also trying to gain the certification of ISO 9000, SEMI, CMM level etc.

IT cities of India like Bangalore, Chennai, Pune, Delhi, Ahmedabad and many other are expanding very rapidly. The internal development of these cities are also on the boom to maintain the image if IT Outsourcing India in the global market. Lower cost advantage of India is also facing challenge in the field of Offshore Outsourcing as newly entered players in the market are providing highly cost effective services. Still the main advantage India has is high quality development services at lower cost. India has a pool of highly skilled developers and highly talented programmers to provide higher quality IT Outsourcing services. It is also considered that China is proving as a leading competitor for India, but as India has great fluency over English Language it wins the Race!!!

Countries like U.S. and U.K. are the key target market area for most of the IT Outsourcing services. Lots of development work is crossing the borders from these countries and coming to the ways of India, China and to some other countries as a part of Offshore Outsourcing. Out of this, almost 40 - 50 % of the business comes to India as per the recent survey. China holds the second place for the lower cost IT Outsourcing services. Remaining business goes to the newly entered players. With the increment in the no. of market players globally competition is also increasing.

This small note over the increasing competition in IT Outsourcing indicates that market is flooded with the service providers globally. One must take Quality along with the Cost under consideration at the time of taking some important business decisions to make their decision true in the field of IT Outsourcing.