Covid-19 may trigger third wave of outsourcing for Indian IT industry

Much like the Y2K problem and global financial crisis in 2008, Covid-19 too is expected to result in an increasing number of technology roles globally finding their way to India as ‘work from anywhere’ becomes the new accepted norm.

According to a recent report by Goldman Sachs, in the past also, major crisis have led to a sharp increase in outsourcing and even offshoring particularly to India. This is primarily on the back of lower wages for technology developers as compared to developed economies, and an increasing annual base of engineering graduates. During FY17-FY19, the base of digitally skilled IT employees in India grew at a compounded annual growth rate (CAGR) of 37 per cent to over 600,000, making India the hub and even the largest beneficiary under the ‘work from anywhere’ norm.