Outsourcing company

India has Perfect choice for outsourcing due it its geographical advantage, Very rich educational level, its capability to work very hard and smart and lower cost of operations. Being a co-founder of an IT services company, I am certain that the most critical question for Indian IT and BPO industry would be "Is outsourcing recession proof" I wish had the answer. My belief is that the answer has to be yes, primarily because though it's important to ensure there are jobs available for local people but at the same time in current economic scenario it's important for the companies to stay competitive.

So for companies/ countries that outsource it's a catch 20 situation and a double edge sword. If they decide to create government policies which will ensure that local jobs stay local then the local companies tend to lose the chance of being competitive globally. These companies have huge scale of operation would really find it difficult to sustain. As a result i feel outsourcing is recession proof and in fact i would like to think that outsourcing will see an increase as recession will force companies to cut the fat and become lean and mean to stay competitive.

Economic pressure on companies: The government and general public would try and create policies and procedures to try and protect local jobs. At the same time companies would want to outsource more and more to save cost. It would be interesting to see how these companies will beat this dilemma.