India’s IT giants shift to hybrid onshore-offshore model
MAHARASHTRA, INDIA — India’s IT industry, once the backbone of global outsourcing, is now leading the charge in onshoring.
Rising costs, policy shifts, and AI-driven efficiencies are pushing firms like Tata Consultancy Services (TCS) and Infosys to adopt hybrid models, blending offshore expertise with local presence.
Decline of pure outsourcing and rise of hybrid models
Daniel Merlerati, Chief Regional Officer APAC, Baltics, Benelux at GI Group Holding, notes in his article that the traditional outsourcing model that defined India’s IT boom has matured and challenges have arisen that called for a shift.
Salaries have risen, shrinking cost advantages, while protectionist policies in the United States and Europe have tightened visa rules, forcing firms to hire locally. Automation and AI have further reduced reliance on large offshore teams for routine tasks.
Resiliently enough, Merlearati notes how Indian IT giants are able to adapt by building hybrid delivery models. TCS and Infosys now operate development centers in North America and Europe, blending offshore efficiency with onshore agility.
This shift ensures compliance with local regulations while maintaining cost competitiveness, a necessary evolution in a changing global market.
Domestic growth complements global expansion
The increasing domestic demand in India combines with its expansion into foreign markets for the IT industry.
India’s IT sector secures its place as the world and domestic leader with AI, cybersecurity and cloud computing growth which ensures digital economy longevity. The country’s IT evolution, from outsourcing hub to a hybrid, resilient ecosystem, reflects its adaptability.
By fusing offshoring, onshoring and domestic innovation, the sector is securing its place in the next era of global tech.
