One immediate action in dealing with the present economic challenges for most business enterprises, domestic and multinational is cost-cutting, lowering and re-appropriate the budget.

Even the CEOs, particularly those in India, are taking between 15 to 20 percent salary cuts, the proverbial tightening of the belt.

And not only the salaries are decreasing in India Incorporated.

For the past few weeks TCS, Infosys, Wipro, and HCL– India’s top tech Co.’s are signning new outsourcing deals at 15 to 20 percent lower than the rates last 2008 in negotiations with major clients such as Bank of America and CitiBank in the effort to retain these clients’ businesses  and keep acquiring new projects.

One might say, sweetening the pot of spicy curry.

In light of recent scams and scandals that us dampening the credibilty of companies in Mumbai and Bangalore, clients use today’s financial crisis as the basis for re-evaluating India Inc’s high rates, demanding for better quality services for value.

The pressure is on. India Co.’s have to bend over and get busy or else, go broke and who wants that?

There is hope that rate cuts might not go higher than 20 percent but it is still a long way ahead to 2012 where critical expectations believe global markets could stabilize.

There is also another hope, a more tangible working one. Japanese businesses are pursuing low-cost alternatives to cope with the recession. There is a chance that some companies are turning to outsourcing their IT services, a projected USD 108 billion market up for grabs.

India Inc. looks forward to the numbers and the deals to be inked worth millions and millions of US dollars, however one wonders would Japanese films consider India while there are other, more familiar, more appealing outsourcing destinations in the near-Asia Pacific.

India Inc.’s could still be looking to tightening their belts a few notches more before things do get better for them.

Outsourcing Solutions, Inc. – your outsourcing partner!


  1. Mishra, Pankaj. “IT majors sign new deals at a discount” 6 Mar 2009. Economic Times of India. Accessed  6 Mar 2009. Link here
  2. Monga, Deepshikha & Mishra, Pankaj. “Recession-hit Japan turns to Indian IT cos.” 6 Mar 2009. Economic Times of India. Link here


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