Indian outsourcing sector focuses on efficiency and productivity

Indian outsourcing sector is faced with the biggest challenge ever. The rising Rupee against dollar makes it impossible to compete with cheap labor. The wages are rising fast in India. The dollar is getting cheaper even faster than that against Indian Rupee.

The outsourcing industry in India is fighting back tooth and nail. They are focusing on getting the same work done with less number of people. Productivity and efficiency have to chip in here, says some of Indian outsourcing managers.

Infosys chief mentor N R Narayana Murthy on Friday said rupee appreciation was a macro- economic issue and called upon corporates to become more efficient, productive and reduce costs.

"I am not worried about factors which are out of my control..it is a macro-economic issue," he told reporters on the sidelines of the launch of the Abdul Latif Jamal Poverty Action Lab (J-Pal) here.

"We have to become more efficient, productive and reduce costs," he said.

The only issue the Government of India has to worry about is that it can result is massive layoffs and very high unemployment among the people employed in the outsourcing sector.