• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

News » Investors wary of the slowdown in India’s IT outsourcing sector

Investors wary of the slowdown in India’s IT outsourcing sector

Investors wary of the slowdown in India’s IT outsourcing sector

Investors and industry watchers are worried about the predicted slowdown of India’s IT outsourcing industry due to the predicted global recession and the country’s high levels of employee churn.

According to financial services company Nomura, a slowdown in growth for Indian IT services was “likely sooner than expected”, forecasting that “tough days are ahead for tech spending”. 

Investment banking company JPMorgan, meanwhile, deemed the industry’s “peak sector growth behind [it]”.

However, N Ganapathy Subramaniam, COO of the country’s second-biggest company Tata Consultancy Services (TCS), waved away any concerns adding that the “world needs technology talent and it is in short supply today. And India has the largest pool of technology skills anywhere in the world.”

India’s high employee churn has led to higher salary costs for employers. Subramaniam insisted these were only “an aberration”.

“It’ll taper down, that’s what our feeling is, but in the foreseeable future, at least [for] about two or three quarters . . . if I’m going to hire somebody I’ll have to pay 30% more [than] I’m paying,” he explained.

The TCS exec also believes that employee churn in the country has reached its peak, easing concerns about the availability of talents in the IT-BPM industry.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image