Outsourcing: Beginning or end?

“Outsourcing” has been the success mantra for many, the last few years! Where is this industry heading? What are the fall outs of this industry? How has it affected the lives of Indians? Most importantly, is this the beginning or the end of this industry? These are the questions that rage in my mind, even though I have been part of this industry for the last 5 years….

The IT industry employs close to 4.5 million people in India. It contributes almost 35% of India’s foreign exchange revenue. The industry pundits predict that this industry is poised to grow further as the years go by. The Indian IT industry has flowered to offer a spectrum of services

But, there is a down side I am afraid! Wages are rising unbelievably and attrition rates are rising correspondingly. The attitude seems to be, it’s now or never! For all the glory, India still remains only a “back-end office” and slowly seems to be losing its competitive advantage. Is it because of the mentality and attitude of the staff of this industry? They are not, by any standards at an international level in terms of attitude, work ethics, time management and values.

Most of the 4 million people that the industry employs have now "arrived." They have breezed through the milestones that their fathers had to toil all their lives to reach. Their immediate ambition seems to be to own a car, a watch, a DVD player, white goods for the home, and yes, their own home! Has working in an outsourcing industry become a means to their end? Have they become too complacent?

Should the outsourcing companies start diversifying their portfolio? Move from plain body-shopping and technology competence? India seems to be losing the edge they once had and if companies don’t think ahead, I feel the death of Indian outsourcing isn’t too far away!
- Suniti Gokhale

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