Sunday, August 28, 2005

India Outsourcing

Is India's outsourcing honeymoon over?

Gartner estimates that India's current 85 percent ownership of the BPO market share could dwindle to about 45 percent by 2007.

In dollar terms, that would be a significant blow to India, Chohan said. In 2004 India raked in more than $2 billion of an estimated $3 billion global offshore BPO [Business Process Outsourcing] market with more than 250,000 workers.

He estimates that the worldwide offshore BPO market will grow to about $24 billion by 2007 of which India will earn about $13.8 billion.

So India is going to see its absolute dollar value of outsourcing grow from $2 billion to $13.8 billion in 3 years and that is a significant blow to India. I'm not sure what I am missing but that seems like an amazingly good thing to me for India. Other parts of the article make some sense but what am I missing in the above quote????

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