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Indias technology companies are looking to Europe and higherend knowledge businesses to retain the countrys position as the worlds backoffice hub in face of a sluggish US economy, spiralling costs and competition.
We need to take more highend work and look at areas outside the US to expand, said Jerry Rao, chairman, Electronic Data Systems Corp Asia Pacific Advisory Board.
Countries like Philipines, Pakistan and Egypt are snapping at Indias heels, ready to offer services at competitive rates. More than 60 per cent of Indias software revenues come from the US Traditional backoffice work, forecast at USD11 billion this fiscal year, is expected to be a prime driver, with more complicated work coming Indias way, Peter BendorSamuel, CEO of Everest group, which offers consulting services, said.
As the industry reels under a 12.3 percent rise in the rupee in 2007 and 15 percent average wage inflation, domestic market businesses are also not feasible because of thin margins, except in real estate and retail.
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