London: Faced with crippling debt expected to cross a trillion pounds next year, the government has ordered a cut on public sector spending. The cuts are expected to rise to 81 billion pounds a year in four years. But as the public sector looks to cut costs, high quality and low cost Indian services for outsourcing could stand to gain.
Adam Marshall, Director of Policy and External Affairs, British Chambers of Commerce said, "I think because of the scale of cuts the UK is seeing in certain government departments of up to 25 per cent or even 30 per cent we will see a search for innovative solutions. This could mean outsourcing overseas or it could also mean outsourcing to domestic companies".
Many Indian companies already in Britain may also look to compete as domestic companies, though they will face stiff competition from other British private sector companies. But whoever gets such contracts, they can succeed only if the economy itself revives as a result of these measures.
Peter Kellner, President of YouGov (polling agency) said, "The British government has in the last few days taken a very big gamble. It's gambling that if it takes out the spending in the public sector, the private sector will take up the slack, especially with low interest rates, and that banks will start lending more money to individuals and smaller sized medium businesses. It's a gamble that if it pays off will make this government looking very pretty in two or three years time. If it fails it will be in trouble."
In the end the opportunities for Indian businesses will be only as good at best as the economy can become. But the short term at least looks promising for Indian companies anchored in Britain.