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Evolution of IT Outsourcing in India


The challenges in managing IT infrastructure coupled with the need to reduce operating expenses triggered the market leaders to entrust support and maintenance functions to the third party. Initially what started with the outsourcing of support and maintenance functions in India has over the decade transformed into a need for specialized services. With Indian IT firms offering access to new skills and technology, the business advantage of the outsourcing model no longer remained the luxury of market leaders. The emergence of small and medium sized enterprises with domain specific business, the IT outsourcing vendors evolved in terms of service offerings and business models.


It has been more than a decade for the Indian outsourcing industry and it has reached a stage where the fittest one would survive in the market. With the outsourcing mechanism undergoing paradigm shift as a result of upheavals in the western economy, the larger IT outsourced deals have been replaced by smaller ones with simplified SLAs. As for the services are concerned, the outsourcing partners have more or less adopted the ‘Plug and play’ mechanism triggered by cloud computing.


With the passage of time, IT outsourced service providers will gradually add the core competency of building infrastructure competencies to its already existing lineup of application development and support services. With constant flux in the economy, the IT service providers will have to re-invent the wheel in terms of tailoring innovative engagement models such as joint ventures. Furthermore with growing concerns over the security of the data, IT outsourcing companies in India will scout for innovative ways of safeguarding the client’s data.


The latest trend in the IT Outsourcing market is towards mobile application development. Over the last couple of years, mobile application development has completely changed the scope of the software application development industry. Spanning across analytics and file retrieval, organizations will look forward to hosting high end business oriented applications on the mobile. In this era of cut throat competition, the need for a greater uptime, greater accessibility and continued connectivity has created a soaring need for skilled professionals who not only understand the business dynamics but understand the pulse of the end user.