The fourth quarter of 2006 was one of the worst for the outsourcing industry when compared to last five years in terms of value of outsourcing contracts. The value of the contracts was worth $78 billion. What caused this poor performance were shorter contracts of small value. This is not expected to cause a slowdown for the Indian outsourcing market since the Indian companies have made a name for itself in the outsourcing arena and with the size of the deals getting smaller Indian companies have been able to create value for themselves due to the availability of skill sets.
A number of Indian companies such as TCS, Infosys and Wipro have been gaining from single process and specialist deals and therefore have been eating into the market share of traditional service companies. As compared to 2002 India has garnered 7% of the market share which is quite good.
India is expected to emerge stronger over the next three to five years but competition is hotting from other Asian countries and Europe too therefore it needs to prepare itself for it well in advance.
Via financialexpress
