The onset of globalization in the late 90’s marked a revolutionary beginning of outsourcing in India. The traditional concept that started with the sending of unskilled labors from developed countries to developing nations later experienced a tremendous growth just within the span of 10 years. And today, it is needless to question the success of outsourcing as it became one of the most potent growth factors of the Indian economy.
According to recent news from the industry, many businesses from the emerging markets are going to help the Indian flagship IT sector to cope with the budding demands of western nations. It directly indicates an IT boost and growth in these emerging markets. In fact, there are several other ways through which outsourcing companies in India are contributing to the Industry’s growth. Have a look at some of them:
1. Being the fastest growing industry:
According to NASSCOM, every year, the total revenue of India’s IT and outsourcing industry rises with a rate of 15.8 percent. As per the predictions, it will raise up to $225 billion by 2020.
2. Making India a desirable nation:
Indian outsourcing sector has started seeking global attention by attracting new opportunities from newer markets of Latin America, Africa, Russia and China. It is representing India at a global scale.
3. Gaining industrial maturity:
Since the industry has gone through a rapid evolution, it is preparing the nation for a quick boost in the technology sector. Traditionally speaking, India never had a stronghold in technical and skilled knowledge but thanks to outsourcing industry, the situation is changed now.
4. India-the emerging global juggernaut:
The biggest contribution of outsourcing companies is that they have created a big global face of India where it has found recognition and is drawing huge foreign investment. In the last decade, the outsourcing sector in India has extended a contribution of 10 percent of its total FDI.
5. Framing of a service-based economy:
The outsourcing companies of India have led to the transformation of country’s service economy. NASSCOM has reportedly acclaimed that by 2020 this sector will contribute 14 percent of total service sector revenues. Talking from the export front, the sector has the highest impact on the exporting activities and infrastructure. In the coming time, we can estimate 18-20 percent of India’s export coming through outsourcing companies in India.
6. Making India ‘Employable’:
The sector has fairly contributed in improving the employment generation figure of the country by offering direct employment to millions of employees. It is estimated that by the year 2020, the figure will rise up to 10 million (direct employment) and 20 million (indirect employment).
7. Representing Indian Industry through skilled workforce:
The industry has drawn the worldwide attention by its vast English speaking workforce that comes at reasonable labor costs. At the same time, it is playing an influential role in bridging the gap created due to digital divide and gender inequality. NASSCOM has reported that by 2020, millions of women are expected to join the IT-BPO workforce.