Reverse outsourcing is in, with leading outsourcing companies in India opening offices in the US, according to the Blackbook 2008 State of the Industry Report

Even though the trend is in its initial stages, the idea is taking shape fast as clients go for locally-available client service. Nearly half the income of many of the outsourcing firms in India derives from North America. And with the dollar value falling against the rupee, focusing on operations solely in India becomes expensive, forcing them to look for a blend of on-shore and off-shore operations.

Hewlett Packard, Perot Systems, Computer Sciences Corporation and Unisys have topped the Blackbook survey this year. Satyam, TCS and Wipro are leading in India by focusing on North American operations. Infosys, Hexaware, EXL Service, ICICI Firstsource and Sutherland failed to feature in the list this year due to low client approval ratings. IBM Global also lost its position this year.

Although China has seen remarkable progress this year, client satisfaction levels were very low. According to analysts, it will take China at least another decade to be on a par with India. Latin America and Central and Eastern Europe companies registered the highest growth with high levels of client approval ratings.

While Western Europe generally preferred regional service providers, the US preferred those in the west. These providers could be alternatives to China and India next year, indicating a trend towards “nearshoring”. X