India has long been the dominant country when it comes to Business Process Outsourcing (BPO), however, times have changed.  The National Outsourcing Association (NOA) published a report titled “Best Practice Outsourcing and Offshoring” which pointed the issue Indian offshore providers face –increasing operational costs forcing some providers to relocate their centers to cheaper areas in India in order to compete more effectively, although this move has not hindered a recent surge in emerging outsourcing destinations. “Despite recent optimistic predictions from the NASSCOM conference, India is experiencing the effects of a global slowdown and a reduction in IT spending.  Costs for Indian vendors are also on the up.” –NOA report. Indian BPO providers may not be the only ones experiencing increasing operational costs, other offshore providers experience this as well but at a lesser extent as countries such as the Philippines receive strong government support.

Outsourcing has come through a lot of changes since its inception. Its evolution depends on a number of factors like how the market reacts, government intervention, partnerships, and geographical positioning to name a few. The industry adapts to changes in the business environment which is crucial to its survival.