It is highly likely that India will be challanged even more for cost efficiency and higher valued services. Here are some observations and predictions from Gartner, Bernstein Research and Forrester Research; with my interpretation for implications.
| Evolving From | Evolving To | Implications |
| Offshore labor primarily in India | Labor in multiple geographies | India will have competition; also as market size increases, India will have opportunity to rise in value chain |
| Off shoring provides cheap labor | Off shoring provides efficient access to large talent pool and great technologies | All offshore work will have to be higher in value |
| Many tactical out-sourcing vendors | Few strategic out-sourcing vendors | Customers will weave out-sourcing as part of business strategy instead of just focusing on cost efficiency |
| More focus on maintenance | More focus on design, test and maintenance | Out sourcing vendors will have to do both creative and labor oriented work |
| More focus on code | More focus on consulting, SOA, infrastructure and code | Simply put, out sourcing vendor will be key to success of customers’ IT success both in cost and value terms |
| Out sourcing is special | Out sourcing is standard | Out sourcing business will still keep growing |
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