The Outsourcee's Outsourcing

Filed in archive Outsourcing News on June 13, 2007

What goes around comes around.

This saying, otherwise known as karma is very popular philosophy, but does it apply to outsourcing?

Personally, I would have to say yes. The reason why I am saying yes is because of the increasing trend in India wherein the number one outsourcing destination is not only doing outsourcing jobs but they are also outsourcing some of the functions to other outsourcing destinations. Ironic isn't it?

According to this article, here are the reasons behind this sudden shift:

a. Firms still benefitting from being close to the markets to which they cater, utilizing local knowledge and working in the same time zones as their clients.

b. The effect of India's rising wages for skilled labor and the increasing value of the rupee against the dollar.

Do you agree with these reasons? Personally, I also believe that these factors are really behind this sudden shift in the outsourcing trend. If this trend would have a negative effect in India's outsourcing standing, that is yet to be determined in the future.