What's behind the shift is that more businesses are getting comfortable with the idea of moving key processes to India or other low-cost countries. That, in turn, is forcing domestic service providers like IBM and Accenture to lower their prices to stay competitive with Indian vendors. In the end, the customer is the winner. The money saved on routine IT and BPO work can be reinvested into higher-value areas like research and development.
All of this portends an increase in offshoring, as companies become better at managing the process. "Offshore outsourcing will experience accelerated growth in the coming 18 months, particularly among client companies with three or more years experience under their belts," predicts Paul Schmidt, a partner at TPI. In other words, there's no stopping this train.