Recession is impacting the outsourcing industry and the magnitude of impact can be measured by falling rates in the freelancers world and how other countries have dropped their rates and in turn, are heating up the market place.
Take a look at the falling rates of Indian freelancers (courtesy: oDesk’s oConomy).
Tough Competition Ahead
The toughest competition for freelancers comes from Philippines (look at their rates) – their rates have dropped drastically and this is an early sign of where outsourcing industry is headed to – especially when cost rules the offering.
This is an alarming sign for Indian IT Industry too – as they need to wake up to new reality of surviving the cost game (read this article on The Choking of Innovation: India’s much-vaunted IT Industry has to dramatically change if it to maintain its leadership role in the next 10 years.).
Most of Indian IT companies’ high-end consulting initiative hasn’t reaped major benefits and unless they figure out a way to increase the value offered, expect a ‘competitive rate’ game.
What’s your opinion?