Outsourcing - another report

I recently wrote about the Global Outsourcing Report and how the global environment for outsourcing will have changed by 2015.

Gartner now confirms the finding with the statement that it is very unlikely that India as the global market leader in outsourcing, or offshoring, will be toppled any time soon. "Its position at the top of the offshoring ladder is supported by English language skills; a well-established legal system; low labour costs; and a large pool of offshoring specialists with representation in client markets such as the US and Australia."

Nevertheless, competition is getting tougher, since they face their own usual problem - rising labour costs and lack of skilled employees. This provides other countries the chance to nibble away at the lower end of the market. Be also sure that more countries enter the market to get a share of a pie. The market is growing rapidly and global market size is expected to reach US$65 billion by 2007.

But I always wonder - countries see a chance in the "new normal". Now, finally, they have the chance to enter a market because the global landscape is just that : globalised. Through the advancements in ICT every country can play an active part in the economic development. It seems as if there are no limits to growth anymore for any country that enters the market for outsourcing.

My question is: What will happen if the market saturates? When the first fallout comes? Why do companies and countries have to follow what others do, over and over again? Any chance for leapfrogging?

(By Asia Business Consulting)