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    Can Indian Outsource biggies survive and thrive in global recession?


    From the US companies, when the recession occurred in the US after dot-com bust Indian outsource companies thrived and got many outsource projects.  During that the time Indian outsource companies were relatively small and they responded well to get outsource projects from the US business by marketing.  The cost reduction as the main selling point, but the recession is completely different started in the subprime mortgages, moved to the financial institution and widened to all the business segments in the US businesses that have cut-down their payroll expenses by the layoffs and reduced other expenses to fight the recession.  The recession started in the US now widened to the entire world impacted Indian outsource companies significantly and they are struggling to maintain their reduced growth targets.

    In the labor arbitrage outsourcing, though US companies want to reduce their expenses, cost cutting alone that can not win customers.  During the dot-com bust, there were less global outsource companies in the market but now as per Gartner more than thirty countries like China, Philippians, Russia, Mexico, Czech Republic are marketing aggressive to get the piece of the outsource pie.  The US outsource companies like IBM, Accenture, HP-EDS all have outsource centers in the India and they can compete aggressively with the Indian outsource companies on the price.

    The Indian outsource providers must move up the business value chain by providing strategic outsource solutions like increase business efficiency and effectiveness, reduce business risk, reduce product development time.  In gaining the market share in the strategic initiatives for several years and have gained significantly business vertical expertise in solving complex business problems.  The companies have a good relationships with the business boards of directors and can target their marketing efforts efficiently.

    This are the following of the ways that Indian outsource companies can compete with US consulting companies, the first is that the Indian outsource providers can buy niche US based consulting companies to gain market share in niche vertical markets.  For less price, with the current depressed assets, cash rich Indian outsource companies can buy smaller companies.  It is simply hiring marketing staff to market that will not help and they need strategic consulting expertise to compete with the big US consulting firms.  Then second, with the current financial melt-down business mergers are started in financial industry and it will accelerate in the coming years.  In the financial industry, due to mergers and acquisition there will be a huge demand for business process changes in front, middle and back offices.  The Indian outsource companies should market their strategic consulting ITO and BPO solutions aggressively to win a new projects in the financial industry.  The third one is similar to financial institution, there will be a mergers and bankruptcies in other industries that will give a huge opportunities in the business agility and technology integration projects. The next one is until now the Indian outsource vendors have been marketing their BPO and Information Technology outsourcing services separately.  Then the software as a service and outsourcing business models are colliding with each other.   In outsourcing there is no impossible, all thin g can be possible because of the things around the world.



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