The Outsourcing market is very lucrative in India but it looks like the slices on the cake is getting smaller and companies like Wipro Technologies better start looking at alternatives to cut costs down and keep their staff intact. Once their staff start requesting salaries in USD instead of Indian rupees, they are in deep trouble.
Indian outsourcer Wipro Technologies, which recently won a contract to help support General Motors' worldwide operations, recorded sizeable increases in profits and revenue in its most recent fiscal year and fourth quarter, the company said Wednesday. However, there were also signs that growth at the company--one of the Indian juggernauts that's been living high amid the offshoring boom--is beginning to slow.
While the gains are impressive--especially compared to growth-challenged U.S. IT services vendors like IBM and EDS--there are indications that the so-called law of large numbers, which holds that it's easier to grow a small business than a large one, is beginning to catch up with the company. Wipro's annual revenue growth declined 23% compared to the gains it posted in its previous fiscal year, while its gains in net income were less than half of what they were in fiscal 2004-2005.
Outsourcing Growth for Indian Companies Cooling Down source
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