The melting global economy has hit businesses across the globe and the Indian outsourcing industry is no exception. As a result of the economic climate, the industry has been hit badly by recession. What was considered as one of the best paying industry has now not only come down to shrink salaries but laying off employees altogether.

However, the good news is that industry experts predict that India would continue to remain the favorite outsourcing destination for offshore activities. And there are many facts that prove this claim. Let us look at some prime factors:

Price Advantage
Because of the unfavorable economic cloud, foreign companies are looking for cheaper alternatives to carry out their business proceedings. And there is no better way to cut costs at investment levels than to outsource business processes to offshore countries like India. India offers a great price advantage over other outsourcing destinations like China, the Philippines, Mexico, Malaysia, Brazil, Czech Republic and Chile and processes the tasks at very cost effective prices.

Rationalizing cost figures have become a necessity for most foreign firms, especially so in the current economic situation. Therefore India would continue to make business out of the fact.

Global Status
Over the time, Indian outsourcing companies have evolved into global companies, courtesy their experience of working with several foreign partners. They offer world class services at much competitive rates. This has led many foreign players to shed their inhibitions about offshore outsourcing and fearlessly export their business tasks to offshore boundaries.

Excellent Expertise
The Indian outsourcing companies have highly skilled staff and industry experts, thus guaranteeing excellent quality of deliverables. Foreign companies often lack the skill set required to complete certain parts of their projects efficiently. Hence, they outsource the work to countries that have talented manpower to work on the same. And since India with its ever-increasing pool of technical graduates has been producing expert specialists, it is the favorite destination of foreign outsourcing companies. Moreover, it has the largest pool of English-speaking graduates, including engineers and management graduates.

Salary Figures
The Indian ITes industry records the lowest salary costs and wages amongst the fray of developing countries that offer outsourcing services. Outsourcing companies in the Indian subcontinent boats of salaries as low as $7,500-8,500 when the same job entitles salaries of above $9000 in other countries.

Impact of the Economic Meltdown
Though American and European markets, important client base of the Indian outsourcing industry would slow down and have implications on the Indian market, the results will be there to stay only for sometime. The Indian outsourcing industry thrives on exports and projects from the U.S. constitute about 60 per cent of the business. Therefore present implications would obviously shake the business situations of the current times. However, once the economy picks up and stabilizes, the situation is going to normalize.

Since more and more destinations within India are evolving into outsourcing hubs, there is plenty of manpower and services available. The present situation is just a wake up call to work strategically. In the coming years India is sure to grab a big chunk of the world outsourcing industry.

Maneet Puri is the managing director of LeXolution IT Services, a reputed Offshore Outsourcing firm that provides a variety of web solutions and KPO services like internet market research, web mining, data conversion etc. For more information, visit www.lexolutionkpo.com