Outsourcing is loosing it steam lately, GigaOm posted a pretty interesting post about the Indian outsourcing industry. I agree with him totally, and I’d like chip in my own thoughts as well. I’ve talked with several people working for/with outsourcing companies on both sides of the fence. The common problem that I’ve always heard is fierce competition, stressful jobs, and bad remuneration (lately).
Be it the bigwigs from outsourcing industry or the local companies in the west, they are finding it increasingly hard and tough to compete and win the bids successfully. The only option they have is to cut down the pricing – which in-turn is going to affect the work force. Keeping in mind that the industry started at substantially optimal pricing that paid off for both the Company that’s seeking outsourcing as well as the provider, but later on the prices increased and people saw an opportunity to cash out and we saw multiple outsourcing companies sprout across India offering services at cheap prices. This led to the fall out of quality as there were no stringent laws governing the quality, even though there are; it is very hard to implement in India.
Outsourcing has definitely proved to be a boon for the common “Graduate” in India, some have put up their own consultancies, some have become entreprenuers, while some have made money through holding the stock! I think it is very natural that every thing goes through a natural evolution and corrects itself; So, I think it’s time to realize that this is the farthest you can go and clean up themselves to gain back the traction. But for sure outsourcing has changed the face of industry forever and will continue.
It is also interesting to note that the R & D sector, has been on a rise and this might prove to be the next important phase for Outsourcing companies.