The Hindu : India to remain key centre for outsourcing

Online edition of India's National Newspaper
Friday, Mar 19, 2004

Business

Business

India to remain key centre for outsourcing

HOUSTON, MARCH 18 . Despite political backlash in the U.S., outsourcing of information technology jobs will continue and one out of every four high-technology jobs in developed nations today may be outsourced to emerging markets such as India by 2010, research firm Gartner Inc. has said.

"In terms of offshore centres, India remains the undisputed leader, with China and Russia emerging as strong contenders,'' information technology consultancy firm, Gartner, said in its report released yesterday.

The prediction comes as the U.S.-based group presented its analysis of outsourcing trends and other current IT issues at its annual Spring Symposium in Barcelona, Spain.

Gartner identifies the growth in offshore outsourcing to India and other developing countries as one of the most significant shifts in IT in the near term.

"Global sourcing is becoming a mainstream delivery model,'' said Ian Marriott, Vice President, Gartner, at the symposium. "The potential cost advantages are so persuasive that companies that do not consider it seriously risk doing their shareholders a disservice.

"Businesses will also be put at risk due to loss of competitive advantage and inability to focus on growth through innovation,'' he said.

Outsourcing has been a growing phenomenon in the U.S. and is catching on now in Europe as well, with 2003 a turning point. - PTI

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