Outsourcing to India: US Government Cuts as Booster of the Industry
The US government announces plans on cutting more than $61 billion from its general budget. Sounds like bad news, but one man’s meat is often another man’s poison. Offshore development companies in India are looking forward to the austerity measures that might bring an increasing number of outsourcing contracts to the Asian nation.
US government outsourcing activities already encompass around $100 billion. In line with the projected cuts, market experts expect the US to increase outsourcing to India as service development offshore is a valuable saving strategy.
Market analysts project the biggest growth in the sector of IT health care outsourcing. TCS and Wipro already have outsourcing contracts worth $407 million over nine years with the US state Missouri. The two organizations and other offshore development companies, providing similar services might accelerate their revenues by closing new deals.
Government outsourcing contracts are especially valuable as they usually encompass large project scopes and grant full responsibility to the service providers when it comes to developing, delivering and hosting the required solutions.
Besides the optimism, experts warn not make hasty forecasts on industry growth. Outsourcing to India is a controversial topic in the US, especially in current times when the unemployment rate shows record highs. That is why the government is challenged find a balance between cutting costs by outsourcing to India and saving jobs by developing services onshore.
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