Trends in Outsourcing to India – An Introduction
September 16, 2008
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One of the prominent sectors that have led to the stupendous growth of the Indian economy is the IT Business Process Outsourcing (BPO) sector. According to NASSCOM, BPO exports have been the fastest-growing segment of the Indian IT sector growing at a compound annual growth rate of around 37 percent over the past few years. This segment has grown from approximately USD 3.1 billion in FY 2004 to an estimated USD 11 billion in FY 2008. The BPO sector currently accounts for around 37 percent of the global business process offshoring pie. North America and the United Kingdom together account for about 87 percent of the sector’s export revenues. North America, primarily the United States, alone accounts for roughly two-thirds of the market.
The major nations contributing to the IT - BPO sector, the UK and the US, are currently facing threats of recession and have been impacted by the credit crunch as is the case with every other nation. This has led to the companies in the region implementing methods to reduce their costs and jump on to the outsourcing bandwagon. One such sector is the newspaper sector that is looking at outsourcing work to other countries in an effort to execute their cost cutting strategies.
According to a recent study conducted by ValueNotes Database on leading vendors in the newspaper industry, advertisement revenue of newspapers in the US and the UK have had a substantial fall due to the remarkable rise in online ads. This in turn has led to huge job cuts and the industry is trying to rationalise with outsourcing options. Further, the burgeoning newsprint prices are also compelling publishers to outsource various jobs. Due to these pressures, Indian gra ...