Outsourcing firms seen gaining from tech turmoil

If you thought India’s outsourcing giants would be the next to slash jobs after the recent mass layoffs at global tech giants and Indian startups, think again.

Despite the contraction in Europe’s top two economies and fears of a US slowdown, demand for outsourcing work remains at an all-time high, according to industry observers.

“What we are seeing is a sort of hesitancy and delay in decision-making. We are seeing early signs of this phenomenon. However, clients are not cutting down on spending on technology. The only difference is they are spending on those areas which give quick returns,” Global IT research firm ISG’s principal analyst Mrinal Rai told DH.