'Move to tier 3 or 4, or move out'

How is the 'offshore outsourcing dynamics' playing out? How are Indian Service providers tackling competition amongst themselves and other countries like China and Philippines?

Between India the competition is quite high. But with other countries like China and Philippines it is still a long way to go. In IT services, China is inching forward but its currency is appreciating whereas India's currency has been depreciating. So our cost advantage is higher.

Chinese companies must be growing fast but the absolute growth is low. Also there are issues relating to intellectual property rights and security concerns are also high. Industries like Banking deal with a lot of sensitive data. A lot of Chinese companies have high government stake, while Indian service providers have no government involvement.

Also another factor that works for India is the high availability of IT skills. In other countries talent availability is still short relatively. Some part of services does go to other offshore countries but that is because businesses require different types of skills and all of these may not be available in India.

 

Read full interview at Globalservicesmedia.com