A study by Ernst & Young claimed that the Indian outsourcing industry grew 50% to $3.6bn in the 12 months to the end of March 2004, and that a similar rate of growth would continue this year. In a more cautionary tone, the report warned that future growth could be held back by the problem of increased staff attrition and absenteeism which has led to employers having to hire surplus staff.
Another study by US-based consulting firm Cutting Edge Information also stated that the high growth in demand for outsourcing would continue. The report claimed that financial services firms in the US plan to transfer 500,000 jobs offshore over the next five years, which works out at 8% of those currently employed in the whole industry.
This article is based on material originally published by ComputerWire
