Despite the fact that, (as discussed before in this blog, and in the NASSCOM blog), Indian wage inflation continues to rise and competitive pressures from other global locations continue to rise, India is still The Place for outsourcing.
By 2010, India will be earning some $60bn from IT exports - a staggering number. The interesting shift in the market dynamics is that now the growth is predicted to be even greater as a result of the "unbundling" of large IT outsourcing deals. In other words the letting of streams of activity such as applications development, separate to infrastructure, desktops and so on.
As Kiran Karnik, President of NASSCOM says: "Factors like evolution of the global delivery model, unbundling of large IT outsourcing deals [resulting in a larger share for India], and the large contract values due for renewal over the next two years are some of the positive indicators for the sector."
The interest in India that our clients show is clear testimony to this - whilst they might look into other locations, both near shore (eg Europe) and far shore (eg Far East), India remains the best option for most of them.