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Impact of recession in Europe/USA on Outsourcing Industry
The world economy saw the most gruelling time this year since World War II and Europe and USA bore the brunt of it. The first quarter saw a 0.2% dip in UK while USA never fully recovered from the recession in 2009. Consequently, this has had a positive impact on our Indian economy since US and Europe are the largest customers of the Indian outsourcing industry and account for 60 percent and 31 percent, respectively, of IT and BPO exports.
India has been the preferred outsourcing destination for most IT companies in UK and USA, mostly because of its affordable labour, English speaking workforce and stable infrastructure. European countries such as Austria, Denmark and Finland have derived benefits from India’s workforce in fields such as mobile computing, digital media and offshore software development. In fact, latest figures on the Information Services Group’s (ISG) TPI index showed that Europe spent as much as 27 per cent more on IT and BPO outsourcing in 2011 than in 2010, and outsourcing contracts crossed €44bn, out of which BPO and IT contracts alone were estimated to be above €20m.
http://www.bsl-i.com/impact-of-recession-in-europeusa-on-outsourcing-industry/
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