Outsourcers Go Global

I lost one of my favorite jobs because of the outsourcing craze several years ago, when companies began to outsource their tech support to outside of the US. I found this article on Time, Outsourcers Go Global to be an interesting one since they are now trying to beyond the US in part due to the economy.

This shift is being driven by a global economy in which the U.S. is no longer the undisputed engine of growth. India's IT powers, among them companies like TCS, Infosys Technologies and Wipro, rose to prominence largely on the decisions made by American executives, who were quick to capitalize on the cost savings to be gained by outsourcing noncore operations, such as systems programming and call centers, to specialists overseas. Focusing on the U.S. produced some spectacular results. Revenues in India's IT sector surged from $4 billion in 1998 to $59 billion in the country's fiscal year ended March 31. But recession has caused a dramatic deceleration as companies in the U.S. and Europe scale back technology spending. NASSCOM forecasts that the growth rate of India's exports of IT and other business services will drop to at most 7% in the current fiscal year, down from 16% last year and 29% in 2007-08.