Part 2 of PA Consulting Group’s Alex Blues Nasscom blog.
“The speaker’s lounge is the one place at NASSCOM that is a retreat from the chaos and I have been fortunate to use this as my base during the conference. It is the who’s who of the sourcing industry and it is fascinating to be a fly on the wall and listen to the debate about whether the recession is over and the rumours about the companies likely to merge.
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It is hard to believe how quickly this industry has changed. Only two to three years ago, the talk was about how far costs could be reduced and it was difficult to differentiate between many of the company’s offerings. Now the talk is about added value and outcome-based pricing.
The key messages today are:
1. The recession has forced more end users to increase the percentage of work going offshore
2. The recession has been good for the industry which is now leaner and fitter -the downturn in the US and Europe has required companies to look at new emerging markets
3. The smaller companies are still suffering and we will see an increased number of mergers
4. The appetite of Indian companies for cross border acquisition will return
5. The market will return to double digit growth in 2011
6. The 1990s were dominated by software maintenance and development, 2000s by BPO and the 2010s will be dominated by infrastructure and systems integration
7. European markets will show much more appetite for consuming offshoring services
8. Governments in the West will come to terms with offshoring in the public sector