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Looking Back at Some 2010 India Outsourcing Highlights

By David Sims, TMCnet Contributing Editor

Outsourcing “has gained wider acceptance” over the past year, and “is currently poised for massive growth.”

Accordingto Seeking Alpha’s Jamee C. in a recap of 2010 focusing on Indian outsourcing, there are “many areas encompassed in the outsourcing industry that have growth potential” in the coming year and beyond -- “including IT, recruitment process outsourcing (RPO), knowledge process outsourcing (KPO), and contact center outsourcing.”

Jamee notes that back in January 2010, the National Outsourcing Association predicted that business process outsourcing would become even stronger as the recession weakens: “This was deduced from the notion that companies will need to rebuild their businesses, and to find an alternative that will cost less and will reduce efforts at hiring full-time staff -- leading to the outsourcing of their processes to a service provider.”

Industry experts “also predicted that small and medium enterprises will be venturing into outsourcing, which will make the industry no longer limited to medium and large companies,” Jamee said, adding that as for countries that will emerge in the outsourcing arena, “the National Outsourcing Association predicted that China will see a growth in call-center outsourcing and will continue to develop its capabilities in other fields.”

He notes that also in 2010, IBM announced a 10-year contract deal with Bharti Airtel (News - Alert) worth $80 million. “IBM was on a roll throughout this year in terms of expansions and deals, as it opened two new offices in the Philippines, one in Cebu early this year and another in the National Capital Region.”

In the first quarter of the year, Wipro Technologies, aiming for a global diversification, opened a new delivery center in Curitiba, Brazil. Tata Consultancy (News - Alert) Services “opted to open new centers in the Philippines for its business process outsourcing needs,” Jamee said. “Just recently, Philippines has attracted a lot of attention, after it was reported that it surpassed its Indian competitors in the contact-center field.”