Adding revenue as a global IT outsourcing partner

According to The Financial Times, the COVID-19 pandemic is expected to have a negative impact on the $180 billion IT outsourcing industry in India, with projected revenue decreases of 2-7%. This industry heavily relies on western economies, with the US accounting for 62% of the revenue, followed by the UK at 17% and the EU at 11%.

The pandemic has also led to a growing hesitance among these economies to rely solely on Indian IT firms for their outsourcing requirements. For instance, Virgin Media announced in March 2020 that it would hire 500 new call-center staff from the UK to handle the effects of the coronavirus, even in offshore locations like India and the Philippines. Other British telecom companies are expected to follow Virgin Media's lead.

Even prior to the pandemic, there was a rising preference for Eastern European providers from countries like Belarus, Latvia, Poland, and Ukraine. These near-shore alternatives had already presented strong competition to outsourcing giants such as India and China.

In the post-pandemic world, the trend of favoring near-shore outsourcing options is expected to continue. To thrive in this evolving landscape, Indian IT firms need to demonstrate their value, differentiate their service offerings, and ensure revenue generation for their customers. They must adapt to changing market demands and embrace new strategies to remain competitive on a global scale.

Establishing strategic partnerships with global outsourcing partners can be a crucial step for Indian IT firms to navigate this shifting landscape. Collaborating with trusted international outsourcing partners can provide access to diverse skill sets, regional expertise, and cultural alignment, while also mitigating risks associated with overdependence on a single outsourcing destination. Peer-to-peer (P2P) outsourcing collaborations can enable Indian IT firms to leverage the strengths and capabilities of their global partners, offering a more comprehensive and agile solution to meet the evolving outsourcing demands of western economies.

By embracing this approach and fostering strong outsourcing partnerships internationally, Indian IT firms can not only address the challenges posed by the pandemic but also position themselves as reliable and agile IT outsourcing partners in the global market. They can demonstrate their ability to deliver value-added services, ensure data security, and provide cost-effective solutions that meet the evolving needs of their customers worldwide.