Outsourcers Wrestle With a Rebound
India’s technology-outsourcing companies, the poster children of the country’s services boom in the last decade, are bouncing back from their first serious slump.
The largest Indian tech firms, including Tata Consultancy Services Ltd. (TCS.NS), Infosys Technologies Ltd. (INFY) and Wipro Ltd. (WIT), all reported strong financial results in recent weeks, benefiting from a global uptick in spending on technology services by businesses such as banks and insurance companies and renewed interest in outsourcing as a cost-cutting measure.
The turn of events marks a reversal from a year ago, when Indian firms were reeling from a steep drop in orders for software services. But the tech-services sector differs now from the Indian firms’ boom years of 2003 to 2007, and new hurdles have arisen.
