It is beyond just Outsourcing to India as the business development opportunities galore

Online, June 7, 2010 (Newswire.com) - Forrester Research reports that the growth in global spending on information technology is now at 9.3% (about $1,534 billion) in 2010. This progress encourages the market that is outsourcing to India in the aftermath of the crisis. It is clear that companies are now investing in newer software and hardware and to get high quality solutions at low costs they are coming to Indian shores.

Furthermore, there is good news as well as the consulting for outsourcing to India has picked up as well. A report from the Forrester suggests that there will be an uninhibited surge for consulting, system integration, and hardware implementation of 6.6% in the US alone over the next 5 years. Thus due to the overwhelming needs for IT growth, the companies in the US are very much likely to do more outsourcing to India with an estimation of as much as 5.7% growth according to the Forrester report.

Albeit the fact that the Indian IT companies are readily doing IT consulting, most of them are still heavily dependent on IT services outsourcing, where the price recovery is low despite the increase in volume.

The mentioned growth in the IT outsourcing to India will be a result of majorly the new generation of smart computing technologies. Dynamic business applications, industry-specific devices and unified communications will be in demand, and that's where Indian software companies will now have to work aggressively and build scale. The Indian market will have to be more flexible to adapt to these new technological advancements and keep up pace with the fast worldwide growth where technological obsolescence is the order of the day. This is a tall ask and Indian IT companies will stand up to this challenge.

Not only core IT services and business development, the latest surge in the outsourcing to India includes the new US healthcare Bill that promises to open up a huge opportunity for the Indian companies to grow in the healthcare space too. The demands for cutting edge technology and R&D are high for Indian market to stay ahead of the curve.

Similarly, the global telecom industry too is gaining momentum and hence its consulting will be another big opportunity for Indian IT firms. Acknowledging the newfound opportunities a few Indian firms have already started working with the topnotch global telecom service providers closely in developing their telecom infrastructure.

Outsourcing to India does not remain the most favorable option when it comes to the conventional business processing outsourcing. The increase in employee compensation along a fluctuating Rupee and growing competition from countries like the Philippines, Malaysia and Thailand, India is losing its tag as the cheap destination for software services. There is more than just cheap labor to the outsourcing market, it is quality that matter the most now. The Indian IT companies will now have to innovate and provide more value to their global clients by moving up the IT value chain and providing high-end business and technology consulting services.