<b>US downturn slows outsourcing stars</b>

January 01, 1999

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Headline: US downturn slows outsourcing stars Source: Euromoney Date: May 2001 Author: Kala Rao India has built an innovative, fast-growing export industry in IT services, software and equipment thanks to a highly skilled, low-cost workforce. However, the US slowdown has hit share prices of Indian IT companies hard and executives fear it could damage their revenues. Others are more sanguine, pointing out that a newly chastened, cost-conscious IT industry in the US will find India’s value-for-money outsourcing proposition even more attractive.         Ramadorai The internationally acclaimed management expert Sumantra Ghoshal told a rapt audience in a posh Mumbai hotel in early February that India had come a long way. In the decade after the dismantling of the licence raj – the maze of controls and licences that governed industry – a transformation had taken place. A straggly bunch of inward-looking, family-oriented Indian businessmen, who thrived on favour and protection, had given way to new capitalists from the information technology sector, offering globally-competitive services. These new entrepreneurs, Ghoshal said, had successfully marketed “Indian human capital as a key strategic resource, not just a factor of production”.

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