Outsourcing

The Indian outsourcing industry, now clearly a driver of economic growth from among the services sector, got a shot in the arm after the November elections in the US.

The Indian outsourcing industry, now clearly a driver of economic growth from among the services sector, got a shot in the arm after the November elections in the US that brought President George Bush back at the helm. Negative voices from the US, which accounts for almost 70 per cent of India's software exports and is a major outsourcing beneficiary, were subdued to a large extent.

Internally, the industry may be grappling with rising attrition, but on the global front, it is competing and maintaining its pole position due to the presence of a skilled and educated workforce, strong infrastructure and work ethics and considerable safeguards to protect both data and client confidentiality. The year saw some of the biggest deals in Indian outsourcing sector, some prominent ones being IBM's acquisition of the third largest BPO outfit Daksh and the recent acquisition of General Electric's Gurgaon-based BPO arm by global private equity firms General Atlantic Partners and Oak Hill Capital Partners for $500 million in cash.

Also, with global majors from all sectors like Bank of America to Reuters announcing setting up of outsourcing subsidiaries, the new year promises to establish India more prominently on the world BPO map.

- Girish Chadha