India Offshore: Growth slowing

"India's revenue from offshore outsourcing will likely have single-digit growth in the fiscal year to March 31, 2010..." PC World "India's Outsourcing Industry Heads to Single-digit Growth"

This should not come as a big surprise. We have seen decision making in offshore outsourcing take longer and come through for less dollars. The need for development outsourcing continues to exist, especially in the Rich Mobile (iPhone, Blackberry...) and in SaaS (Software as a Service).

For Business Processing (BPO), transactions are lower (ie less airline tickets to process), however as the economy returns - BPO should experience growth.

"The BPO industry saw revenue growth decrease because the volume of transactions declined as some industries saw their business flagging... If people buy less, then there are fewer credit-card transactions, and fewer airline tickets to process. Once business picks up in the U.S. and other countries, the BPO industry is likely to see higher growth..."

However, will India experience the same level of offshore outsourcing prosperity that it once enjoyed, with competition coming from all corners of the world? Stay tuned.