Indian companies have been successful to date in several areas of the outsourcing market, without having to try particularly hard. The wage differential between Indian staff and staff in the G7 nations has historically been so large that the cost savings were a "no-brainer". However....
....the global situation is changing rapidly, with many other nations entering the low-cost staff battle.
What this means, I believe, is that the successful companies of the future will be those who offer more than just a room full of comparatively inexpensive staff, perhaps much more.
A good example is that of Godrej Global Services, who I had the pleasure of visiting last year. They are developing deep expertise in the area of Sarbanes-Oxley compliance work, which is a very major issue right now for lots of American companies. If they are successful, the likelihood is that they will win a lot of work, because they will actually be far more expert in dealing with the issues than the American companies themselves, who are currently struggling to comprehend and deal with the legislation.
I believe this is where future success lies - in anticipating the next set of problems that IT managers will face, and then solving them more quickly than the managers themselves...... which leads to the next question....
.....does anybody think they know where the next set of opportunities will arise?
The term onshore and offshore outsourcing is rapidly being replaced by "Global Delivery".
The client does not really care where the work streams are being performed as long as the work is efficent, effective, and transparent!
Yes, I agree that outsourcers need to bring more to the table than just low-cost application developers. Outsourcers need to bring industry domain expertise and strong governance methodology that can drive client revenues and profits (true partnership).
As you can see the IBM, Accenture, as well as Kanbay are rapidly implementing their end to end capability with a global delivery model.
Regards,
Rob