"Reverse Outsourcing" is the new buzz word in today's IT industry in India. IT projects being outsourced to India use to be the norm but now-a-days Indian IT companies are outsourcing some of their bigger projects to the US. Indian IT giants such as Wipro and Infosys, whose majority of clients are US based, are expanding to the US for the following reasons:
1. Reduce overall infrastructure and overhead costs:
Since the majority of the clients of these companies are US based, they spend a lot on traveling to interact with the clients and also it would cost them dearly from time delays in getting feedback on the on-going projects.
2. Expanding their market:
Firms can get contracts with US healthcare clients, government agencies etc that don't allow their data to go beyond the US border. Also creating American jobs is pretty useful for Indian IT companies since majority of their clients are within the US, it will also lead to a lot of political benefits.
The "Reverse Outsourcing" model looks to play a major role in the expansion of the Indian IT industry in the US.
This is actually pretty crazy, but makes perfect sense. From the two companies mentioned above, it would and will be much more cost efficient to implement their companies in the US. By not only saving the time and money from constant travel, expanding their companies with companies that are not leaving the country, will probably be the biggest revenue generator. I also won’t complain about this either. A lot of people are frustrated because we are losing jobs in the US because of this outsourcing, but we are going to continue to outsource our jobs and the outsourced companies move here, we are in great shape for job opportunities.
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