The Future of Outsourcing in India

aaditeshwar writes "Economist has an article on the current and projected state of outsourcing IT and other business processes to India. The biggest problem seems to be that the talent pool of skilled workers will not able to keep up. Currently there are about 700,000 people working in IT and outsourcing, which is likely to grow up to 2.3 million by 2010, but only 1.05 million new graduates will qualify from local colleges in the next 5 years leading to a shortfall of 500,000 workers! All this despite the fact that almost 2.5 million students graduate in India each year." From the article: "In IT the growth in Indian exports is expected to come both from the software market, and from 'traditional IT outsourcing'--such as the remote management of whole systems, a market now dominated by the big global IT consultancies. This is expected to rise from 8% of Indian sales now to about 30% in 2010, while software-development's share will fall from 55% to 39%. In business-process-offshoring, the big industries will remain banking and insurance. But rapid expansion is also expected in other areas, like legal services."

Comments

Old Boys Bring India into the Club

[Quirk]

The Old Boy network headed up by Britian and the U.S. has officially brought India into the Club (nuclear, economic, military). After the invasions of Afghanistan and Iraq and in the face of China's rush to prosperity, the Old Boys have made it evident that India is their choice to embrace and extend into the East.

"Together at last", reads a headline from the Economist in July of this year. Britain and the U.S. have made it clear of late that India is their boy in the East and, no doubt, trade and military agreements will follow to insure India's economic and military position becomes, as much as possible, preemminent.

The offshoring of IT to India is just a drop in the barrel compared to what will follow in a show of hegemonic, power politics.

Google turned up a few marginal, but interesting sites that suggest an Anglosphere spin on the spate of recent announcements. I don't doubt that India's success as a rising star in the aftermath of the British Empire will serve it well.