Indian suppliers open up European centers

[Adams47]

After decades of euphoria and heartbreak, outsourcing industry is on a path of maturity all around the world. There is a constant yet unexpected emergence of new offshore destination every year.

As the European outsource market mature we see the emergence of a new global delivery model where the offshore Indian suppliers either open up European centers or acquire European IT services companies.

That will allow the Indian companies to compete for onshore contracts in the UK and Europe by developing a model that will split the services they offer between 60 per cent offshore and 40 per cent onshore.

European businesses have started offshore outsourcing in a more focused manner choosing particular locations for particular functions creating effective outsourcing solutions.

Indian IT service provider companies have been consistently outperforming and at times replacing traditional big players such as Accenture and IBM. This is indeed refreshing, but the acceleration needs to be maintained by consistent performance.

The potential and the skill necessary are in abundance in India though complacence can set in anywhere. It is up to the industry leaders to ensure that this does not happen. India is riding a high wave. It is unrealistic to imagine the wave will hold indefinitely. However, it is up to the industry leaders to ensure that the wave does not crash but lands smoothly and at the same time gear up for the next swell wave.

Cultural and geographical familiarity and proximity can lead Eurpopean businesses to outsource to India, provided India succeeds in proving its ability to ride the wave with maturity.