Indian outsourcing Industry

India is the outsourcing hub in the globe. It is the world's largest provider of outsourced services, with a market share of over 50%. It is quite visible that, there has been huge reduction of tech jobs that were cut globally to move to India by 2024-25.

India's outsourcing industry is worth over $150 billion, and it employs over 4 million people. The current trend shows that there will be 30-40% of the more than 300,000 technology jobs lost to layoffs globally, resulted the outsourcing work could love to the outsourcing hubs like India in the coming months.

India has a large pool of skilled workers in the IT and tech-related sectors. The most important factor is the support from the government for the outsourcing industry. The Indian government has been supportive of the outsourcing industry, providing tax breaks and other incentives to attract foreign investment.

Over the last year, global technology companies and technology service arms of multinationals such as Google, Microsoft, Meta, Amazon and Salesforce have announced multiple rounds of layoffs. So have large banking and telecom majors.

As per Nasscom, India has more than 2,700 global capability centre (GCC) units, of which more than 65% are of US-headquartered companies . The Indian GCCs cohort added a little over 150,000 employees to grow from 1.45 million in fiscal 2022 to 1.6 million by end fiscal 2023, says expert from a staffing firm Xpheno.

Another data from Xpheno shows that while the India workforce of big tech companies accounts for about 17% of their global staff strength, it has grown by 35% in the last 12 months compared with 12% headcount addition in the rest of the world. The banking, financial services and insurance sector saw the next highest growth in headcount at 21%.

The growth of the Indian outsourcing industry is not just limited to IT and tech-related functions. Other sectors, such as manufacturing, healthcare, and financial services, are also increasingly outsourcing their operations to India.

The growth of the Indian outsourcing industry is a positive sign for the Indian economy. It shows that India is becoming a global hub for technology and innovation. It also provides opportunities for Indian workers to gain valuable skills and experience, which can help them to move up the career ladder.

The growth of the Indian outsourcing industry is a positive sign for the Indian economy. It shows that India is becoming a global hub for technology and innovation. It also provides opportunities for Indian workers to gain valuable skills and experience, which can help them to move up the career ladder.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA