For plenty of years, India has undoubtedly been a loved destination for IT outsourcing. With the growing interest of countries in outsourcing their IT services to India, the country soon turned into a huge offshore software development hub. This center has been catering to a large variety of requirements which are linked to app development, software development, web development services, etc.
However, India has been facing tough competition from various other parts of the world as well. But, the country has topped the list every time and came out as the most preferred destination for software application outsourcing due to the presence of several world-class companies. The main reason why Indian companies are chosen over others is the high-quality software deliverables at reasonable prices. And, one of the biggest markets for Indian IT companies is the United States of America.
Now, this is bad news for the country, but at the same time, even various Indian IT companies that are offering software services to the USA are also bothered.
Is this probable slump in the US economy scary for the Indian IT Field?
The US is one of the largest markets for Indian software companies. Therefore, any disturbance in the USA economy does pose a threat to Indian IT. Considering India’s $167 billion IT outsourcing industry, even the smallest of risks can have big repercussions. A weak US economy does have some chances of derailing the immense growth of the IT outsourcing industry. However, there haven’t been any concrete reports that suggest a possible setback. It is just that considering the magnitude of IT outsourcing business with the US, a slowdown in its economy is surely expected to affect the Indian outsourcing company. However, we are yet to see the impact.
Though the news of an economic slowdown in the USA has stunned the Indian IT industry, and many companies like TCS, Wipro, etc. have already transformed their business strategies to manage the repercussions if any. At the same time, these companies are trying to strengthen value via productivity as this will help them to sway away from the customary cost-arbitrage plan.
A probable slowdown in the USA economy isn’t going to hinder the growth of the Indian IT Industry
Indian IT companies are trying to set up their services in such a way that the technology can get through, even if there is a slight dip in business or requirements from the US. You would be amazed to know that, when the recession struck the US earlier, many Indian IT companies got more business. Simply, because the US started outsourcing more work considering the low cost and high quality. Also, many US companies even set up several captives unites in India. This is something which is happening now as well.
When it comes to the international expenditure in software companies in India, it was expected to be something like $5.75 billion. The biggest power of Indian IT companies is flexibility. They know how and when to revamp their business models to cater to the changing demands of the world. This helps both the Indian outsourcing company to get more work, and the companies in the USA to find out what they need at the most cost-effective options.
The resilience that the Indian IT companies have shown earlier is applauding worthy. Their business is mostly not hampered as they are always ready with flexible business plans. The quality services that Indian IT companies offering and the kind of experience that they hold will always handy when it comes to riding through the tough times.