The Indian outsourcing industry is facing a double whammy in the form of a global economic recession and the Satyam controversy. As the industry is facing tough days, it is going to be very difficult to repeat past performances.

While the global slowdown has caught the burgeoning Indian IT industry in a dark cloud, The Satyam Computers episode comes as particularly discouraging to the Indian Business Processing Outsourcing (BPO) sector. Outsourcing business is wholly dependent on the mercy and integrity of the supplier. Even before Satyam's blow-up, there were already concerns on the part of clients building up in the sector. Without any doubt, Satyam's accounting scandal could be a hammer blow for the Indian outsourcing sector. With the increasing concerns of global slowdown, growth in the Indian IT industry is expected to dip by about half compared to the 25% growth it witnessed in 2008. The total Indian IT market was worth Rs. 78,002.5 cr for the year ending December 2008. However, outsourcing helps decrease overhead costs, increase productivity, and improve systems agility. During economic recession, outsourcing is even more important. This is the reason why market watchers cannot agree on the direction that outsourcing will take against the current economic uncertainty. There are chances that some businesses may kill existing outsourcing arrangements to cut or at least freeze costs. But industry experts say economic downturn will result in a net gain for outsourcing players.

MBA Review Magazine, Outsourcing Industry, Global Economic Recession, Indian IT Industry, Business Processing Outsourcing Sector, BPO, Indian Outsourcing Sector, Global Financial Services Sector, Global Corporations, Global Economy, Job Market, Legal Process Outsourcing, LPO Sector.