Decline and Growth in Outsourcing

Filed in archive Outsourcing News on June 20, 2007

Based from my observation in outsourcing, the relationship between growth and decline in this industry is something which is inevitable in this business. Take for instance this news article entitled Global Outsourcing Arena Heats Up.

According to this article, the number of high level IT graduates in the UK are declining hence the need for low level IT work to be outsourced in India. This only means one thing, less work in UK and more work in India which just validates my observation. Though that is the case, there might also be problems concerning the workforce of outsourcing employees in this outsourcing destination.

One problem which should be acknowledged in India is the possible shortage of quality workers in India. Though there are a lot of college graduates in India, not all of them possess the skills to be part of the outsourcing environment. A lot of them still needs training in different aspects and training also equates to more spending. Aside from that, the threat from other outsourcing destinations is looming which might possibly have a direct affect in India.