Expectations were high for the end of quarter results of India’s number two outsourcer, Infosys (NASDAQ:INFY). As the first of its peers to release quarterly results, the outsourcing company is responsible for setting the tone for India’s outsourcing sector. It was therefore a big disappointment when Infosys announced a 2.6% drop in profit for the period of April to June 2010.

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.

Genpact, GE Money, HCL, Accenture, Citigroup Global Services, Wells Fargo, Avaya, and AmEx have established a new Indian association called Other Service Providers Association of India (OSPAI). India now has two associations, with NASSCOM being the most well-known and well-regarded offshore industry association.  Does this mean these large and respected outsourcing companies are unhappy with Nasscom, will others follow and try to form other competing association?