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The outsourcing compass: Decoding strategies of today

The outsourcing compass: Decoding strategies of today

The Future of Outsourcing in India with Evolving Strategies and Expanding Opportunities

India’s outsourcing journey has been shaped by efficiency and resilience, but global businesses now seek partners who align with their business strategy and operating model as well as leverage AI, machine learning, and innovation while optimizing costs. This shift moves from headcount-based models to value-driven approaches.

Our survey captures insights from over 170 business and functional leaders in India, across 11 industries. It is supplemented by in-depth interviews with senior stakeholders across industries and provides a comprehensive analysis of the key trends reshaping India’s outsourcing landscape and examines the evolving outsourcing models.

Inside the report

Outsourcing as a cornerstone of organisational operating models

Outsourcing has become an essential part of the operating model for global organisations

Outsourcing and GBS achieving equilibrium in organisational strategies

Outsourcing and GBS have established distinct yet complementary roles

Outsourcing delivers on the promise of cost savings

Optimised supplier strategies have enabled organisations to achieve significant cost reductions

Outsourcing as a gateway to next-generation technologies

Outsourcing has become a critical enabler for organisations to adopt and scale next-generation technologies

Vendor Management Organisations (VMOs) driving transformation & innovation in outsourcing relationships

VMOs have demonstrated value by effectively managing vendor ecosystems

Outsourcing growth amidst evolving risks and strategic priorities

Outsourcing is set to grow as organisations balance growth opportunities

Here are some excerpts from leaders discussing their reasons for a positive outlook on outsourcing

India is on track to become the world’s third-largest economy by 2027, further solidifying its position as a global outsourcing hub and a leader in next-generation technology capabilities. Industry leaders highlight that India's appeal extends beyond cost advantages, with its rapid growth across manufacturing and services sectors offering strategic benefits. This balanced expansion strengthens India’s role as a comprehensive outsourcing destination for global enterprises. As organizations continue to invest in India’s capabilities, the country is set to play an even more critical role in global business strategies. With its strong economic growth, evolving outsourcing landscape, skilled workforce, and geopolitical resilience, India is firmly positioned as a key pillar of the global outsourcing industry.