Challenges Indian outsourcing companies are likely to face in 2015

India has always retained its position as one of the most favourite outsourcing destinations ever since the concept of sub-contracting gained popularity on a global basis. Outsourcing is obviously a win-win situation as both the parties involved in the deal are benefitted immensely.

As per the latest revelations from reliable sources, new outsourcing Indian companies are emerging with pace and those already existing are venturing into more markets. The process of contracting out has always kept on progressing and many challenges plus adversities were encountered throughout. Those who had a vision to overcome the hindrances only succeeded and many faded over time.

Now what are the challenges which an Indian outsourcing company will be facing in 2015?

Take a look at them;

  • Augmented competition

    Even if Indian companies are reputed as the best subcontracting destinations, many Asian countries including Philippines, Thailand, Singapore, Malaysia and Indonesia etc. are more aggressively focused in this niche. So, it’s quite evident that Indian outsourcing companies will be facing a tougher competition in 2015

  • Infrastructure limitation

    With the subcontracting industry expanding continuously, infrastructure too has to meet the requirements. Many companies have understood this and done proper investments to cope up with this demand.

  • Increased labour costs

    Labour costs have elevated in main Indian cities thus forcing companies to relocate to smaller cities. At the same time, IT labour and business process forces are becoming available at cheaper rates in many other countries. This is really a matter of concern.

  • Probable political crisis.

    For outsourcing companies in India, the major markets are US and UK. So, any issues such as political crisis in the potential market imposing restrictions on outsourcing can be threat

Therefore for a company to stay safe, proper planning and strategy development has to be done. As 2015 is going to knock the door soon, things have to kick-start right now.

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