Indian IT outsourcing industry: Future threats and challenges – A reassessment

Abstract A recent paper has argued that the future of the Indian IT outsourcing industry is uncertain. This uncertainty emanates from paucity of quality manpower, inability of the industry to move up the value-chain, underdeveloped state of the domestic market and unpreparedness of the industry for disruptive technologies. These factors may erode the competitive advantage of the industry and inhibit the growth momentum. This paper is an attempt to reassess the findings considering a longer time horizon, encapsulating a broader set of information and supporting evidences from literature. Our findings suggest that the exponential growth the industry has exhibited over the years has not shown any significant reversals in recent times. Further, reassessment of the concerns outlined earlier makes it a bit difficult to believe that the industry is likely to face any serious threats and challenges in the foreseeable future. Instead, our findings suggest that the future of the Indian IT outsourcing industry is not that uncertain, and in all probability the industry would retain its competitive standing in the global market and make promising strides ahead.