Is India losing its business process outsourcing edge to newer rivals? Telecom expert Sam Pitroda seems to think so. Even though India continues to be the hottest outsourcing destination, growing challenge from China, Mexico and the Philippines are slowing eating into the offshoring pie.

"The outsourcing trend will continue. But India will have competition from China, the Philippines and Mexico on this. India had it too good for a long time, as it was the first country to carry out successful offshore projects. But don't expect the same momentum to continue. Others also a want a pie in that," Pitroda, CEO, World Tel and member, National Advisory Council, said on the sidelines of Confederation of Indian Industry Leadership Summit in New Delhi on Wednesday.

Outsourcing and India: Complete Coverage

Describing outsourcing a part of globalisation, he said, US, contrary to popular view makes more money through outsourcing "than losing anything for this," adding, "It is a larger profitable picture than the 300,000 job loss being talked of."

Pointing to Europe and the US where the opposition to outsourcing is maximum, Pitroda said, "They should not worry about it.. It is in their interest to outsource to India."

The developed countries might be facing saturation now after growing at strong growth rates in the last few decades.

"Allow and let the developing countries grow now", he said.

Earlier addressing the Leadership Summit, he said the desired leadership in the 21st century was different from that of the past as it was based on the basic premise of globalisation.

"Global approach is going to be the need of the leaders", Pitroda said.

Pitroda said India has foreign exchange reserves of $120 billion, which could be used in providing housing and water and in construction.

"India needs 30-40 million houses and there is no stress on housing in India at all. Construction has not got its due focus."

He said there is growth today in India but at the same time, there is no fulfillment of basic needs, leading to a situation of conflicting demands.