An Insight into New Dimensions for Indian IT Outsourcing Industry

Background: Over three decades, Indian IT industry has become a $150 billion industry built on outsourced works of rich-country companies with over 3 million employees. Banks and insurance companies, the biggest customers, have not been financially sound in past years. India seems to be losing out to countries like the Philippines and Malaysia which have staff trained in non-voice analytics and accounting work. With rise in the spirit of economic nationalism, more work being transitioned to onshore delivery centers, than off-shore. Objective: To predict the upcoming trend in the Indian IT outsourcing industry in the context of changing business structure and process due to advanced technologies. Methodology: Secondary data study focussed on Department of Industrial Policy and Promotion (DIPP) statistics, NASSCOM reports, CRISIL Research papers with systematic review of literatures and empirical articles. Findings: Call Centres are being replaced by Contact Centres because a Virtual agent can handle more volume work associated with various clients at the same time. Robotic process automation (RPA) ensures increased productivity at reduced costs through a quality process execution, using software robots to replace humans for repetitive tasks. Cloud technology enables outsourcing companies to tackle big data needs for increased agility& efficiency of business processes. But outsourcing has exponentially increased the cost of handling contracting projects. Too many brands face cost overruns due to poor cost projections and fail to maintain a lean infrastructure for their vendors. They are now shifting from outsourcing multiple vendors to single dedicated partner. There is centralization of IT systems for standardization, increase in productivity, cost reduction, higher quality and better efficiency.