| According to published reports, bidding for outsourcing | | | | other analysts feel that India is soon to be replaced by |
| contracts are more competitive in the wake of a | | | | China's entry into outsourcing. Incidentally, several Indian |
| recession. Hence, a consolidation in the sector is | | | | outsourcing firms like Wipro are investing heavily in |
| expected. In fact, rumors abound that outsourcing | | | | China in an attempt to gain an andvantage in the |
| giants Capgemini and Infoys are in merger talks. The | | | | Chinese and Japanese markets. |
| Managing Director of Business Advisory firm TPI, | | | | A study done by an advisory firm said that Chines |
| Duncan Altchison, said even if the merger between | | | | firms are likely to race past Indian outsourcing firms as |
| Capgemini and Infosys does not materilaze, it is still a | | | | the favored locations for global offshoring by the year |
| reflection of the current market momentum. Meahwhile, | | | | 2011. Others disagree that the skills offered by Chinese |
| other analysts are speculating a heightened activity in | | | | outsourcing firms are not as good as those offered by |
| the mergers and acquisition sector in the next one or | | | | their Indian counterparts. |
| two years. | | | | Nonetheless, globalisation is making more countries |
| Globalization is another buzzword in the outsourcing | | | | eager to cash in on the outsourcing boom as a |
| industry. There is some amount of angst about India | | | | recovery in in sight in the U.S. in 2010. Apart from BRIC |
| losing its competitive edge in the sector. There is also | | | | nations - Brazil, India, China - Mexico, Poland and Egypt |
| some talk of an impending skills crisi in India. However, | | | | are also making their entry into the near shore market. |