With competition heating up in the global outsourcing industry Infosys which is regarded as the king in outsourcing business in India will have to decide its future despite having been into the business since the last twenty five years. Now the company which started in a cramped apartment and faced government restrictions defied all odds to become a $2 billion corporate which now has more than fifty thousand employees and a stock market value of $22 billion.



Companies such as Infosys are now facing stiff competition from U.S. based companies such as EDS, IBM, Accenture and Computer Sciences Corp. These companies are spreading their giant wings and expanding their outsource business worldwide and hiring a number of employees worldwide. Two years earlier India had around 80% of the world’s offshoring contracts but now the share has dropped down to 60%. As the competition intensifies merger mania is gonna grip this industry and in order to compete with these giants Indian firms would have to buy smaller businesses. There also chances that companies such as Infosys might be the target of takeovers.



Mr. Narayan Murthy, Chairman. Infosys is still cool as a cucumber. This is what he had to say on the threats ahead:

When U.S. computer makers and automakers charged into India years ago, it only made Indian companies stronger and created millions of new jobs. We are still the employer of choice, the best learning company in India. We welcome competition. Competition only makes us better.