When it comes to software development outsourcing services, there’s no doubt that India will be at the top. As the leading provider of business process outsourcing (BPO), India is at the forefront in providing a variety of services, ranging from billing inquiries to IT support. And with the number of qualified Indians graduating every year looking for work, there is certainly no shortage of talent and manpower.

Of course, this current status may soon change. With other countries increasingly becoming more and more globalized, with more and more infrastructure and people trained to provide globalized services, India might have a run for its money. Ireland, Canada and Israel are close at its heel when in comes to providing similar products. Even a country as small as the Philippines is also competing with India in terms of service quality.

And due to fears of an Indian take-over of the software industry at home, protectionist policies have been created by the US government, particularly by the IRS. These measures has made it harder for US firms to obtain software development outsourcing services from India. Despite the increase in restrictions, they still do not outright forbid research outsourcing. Many Western companies like Eli Lilly, Procter and Gamble, and Novartis has teamed up with Indian scientists, using the web as a legal forum for their interaction. Indian universities also use this method in gaining research and development contracts, with the results patented by their sponsors.

As the years go by, and with more and more players entering the outsourcing industry, India will no longer remain as the major player. Niche markets are being discovered, and taken advantage of. The Philippines, for example, is has become a favorite of major US companies like Teleflora, T-Mobile, and others because it’s communication skills, cultural affinity, and sunny disposition of employees when dealing with customers. There are a lot more to be found, but if India does not pay close attention to it, it might just find itself trailing far behind.