This post was written by a guest author to TryBPO.com to provide an alternative look to our readers and to offer the best outsourcing news and information in 2010. Jacob Cherian writes for SourcingLine, a leading source news and directories related to outsourcing.

Most of the outsourcing projects coming to India are likely to be low-end work, say news reports. IT outsourcing will depend largely on cost efficiency, just as it originally started out.

Gartner also said that it sees consolidation in the offing with IT giants in India spending more to get lucrative contracts. Many Indian outsourcing giants like Wipro, Infosys, and TCS, are already expanding to nearshore destinations to tap markets in Latin America, Eastern Europe and elsewhere.

Industry growth will gain momentum due to cost savings, reports the Financial Express. Gartners’ Indian regional Vice President, Partha Iyengar, said in a comment that offshoring will witness a “going back to the future syndrome.”

According to statistics, a given company benefits approximately 80% in cost savings by outsourcing application related work. Over a period of a year, analysts expect low end work to come to India, particularly in the wake of emerging nearshore markets that are sprouting up in Latin America, Russia and Mexico. However, major transformation projects are expected to follow after a year.

The year 2010 will also see its share of M & A action with Indian majors Wipro, Infosys, and TCS all keen to process takeovers in Europe. Europe is seen as a buffer in the post-recession phase to take some of the pressure off from the losses in the North American market, reports the Financial Express.

The IT industry in India is expected to make a rebound in late 2010. Reports say that the recruitment markets will begin to swell, while salary hikes will return to its pre-recession norms. Spike IT spending is definitely something to watch out for towards the close of the calendar year.

Tier II global outsourcing firms that have yet to establish offshore units are likely to seek acquisitions in India. Additionally, Japanese firms are also projected to vie for buyouts in India. The expansion of the Japanese market is inevitable, say analysts, as the need for offshore capability will spur takeovers in Asia.

Incidentally, Indian IT budgets have skyrocketed a whopping 16 percent, the biggest global incline. These budget figures were locked in ahead of the recession. It would not be surprising to see a similar pattern of growth in the outsourcing industry rise in 2010.

Stiff competition in the industry is expected from emerging offshore destinations like Philippines, Malaysia, and New Zealand.