For most Indian IT professionals, the U.S. has always been the destination of choice. Professionals who left the country, never came back citing lack of opportunities in the software services sector.

With global companies zeroing in on India as the destination for low-cost, high quality work and with most Indian companies operating in other, high-end verticals, the scenario has changed. Professionals, who had migrated to the U.S. for better opportunities and lifestyle, are packing their bags to head home.

This is new India. Once a supplier of manpower for the world’s technology companies, India is luring them back. This is the start of a new business model for the $17 billion strong Indian IT industry. As software services and BPO jobs move to India, the growth has been stupendous over the last few years, returnees find solace in India’s growth and can fill the existing gap in the higher echelons of software services industry.

“One of the important aspects that I was evaluating to come back, was the outsourcing and entire BPO scope of the service industry per se, which in my opinion is where the business is going, “ says, Murthi Nyayapati, who heads the BSG group within the horizontal competency unit of SAP at Satyam, India’s fourth largest IT services company.

In the decade long history of the Indian software services industry, Indian companies mastered a few services vertical like Banking Financial Services and Insurance (BFSI), among others, but that has changed. Today Indian companies cater to a whole range of new verticals like automobile and aviation, energy and utilities, life sciences, consultation, healthcare, manufacturing, retail, telecom, transportation and semiconductor. And here the returnees contribute with their experience of working abroad in similar verticals.

But Indian companies cannot rest on their past laurels. Companies are heavily investing in developing other competencies as they mature into the world of competitive services where global giants like IBM, Accenture and others are fighting for a piece of the pie. Who makes it big is still a wait and watch policy, but one thing is clear - Indian companies have arrived to take on the biggies of the services industry. “Our investments in developing competencies has differentiated us from other players and has enhanced our domain expertise,” said S.D. Shibulal, Member of Board, Infosys, India’s second largest software services company.

Looming large for its programming prowess, four Indian companies have breached the billion-dollar mark. More companies are in the pipeline. Investments have grown and so have the clientele ranging from not only the traditional banking-finance or insurance but also a whole lot of new customers looking for software gears.

“Our strategy has been to pursue high quality prospects among global 500 companies that will give us large, growing revenue streams for many years, ” says Basab Pradhan, worldwide sales head at Infosys. “This quarter we started relationship with nine global 500 companies in diverse industries like pharma, super-markets, equipment manufacturing, automotive, utilities, insurance and banking in the U.S. as well as Europe.”

“Strong international demand for its core IT and consultancy services business helped TCS make a strong start to the current financial year with significant growth in all its core service segments across all geographies.

Significant deals were closed in application management, package implementation services as well as assurance and performance enhancement services as demand grew across geographies,” says S.Ramadorai, CEO and Managing Director Tata Consultancy Services.

So when global customers seek new work, they expect service at global standards and the returnees play an important role here. Having been exposed to verticals and having domain knowledge, returnees are a much sought after group in India. They find jobs in top rungs of IT companies.

“Top positions in the Indian services sector are definitely the kind of roles returnees are looking. With companies moving most of their jobs here, returnees can add value,” says Ravindra Bhagwat of Patni Computer Systems, a Mumbai based software Services Company. As Indian software services companies perfect their art of business by expanding services, they require global experience, which is not readily available in India.

On the other hand there are certain concerns like losing control, quality of jobs, finding domain expertise, and infrastructure issues like facilities, network and hardware. Though returnees add value, they do find certain constraints. “Despite growing demands, there has been shortage of qualified staff. Even with returnees, India cannot fulfill its ambition of being a major software powerhouse,” says Bhagwat. Murali Krishna Mankhala, project manager, Symphony Services says, “Since returnees leave the safe haven of expert companies and work in India all over again, they kind of lose their career path but that is not an issue any longer as Indian companies are picking up very fast in all verticals they operate.” Nyayapati is quick to add that, “As most of the returnees left India when the services sector just opened up, they may not be sure what works and what does not in India.”

Since the software industry in India is relatively new, software companies lack value addition as most of them are under exposed, lack talent and returnees can add value and fill the gap.

With their experience and exposure, returnees can choose from consulting, capability role, service delivery management, client and business relations, mobilization of accounts, program analyst, architecture with designing, vertical delivery management, service delivery for single or multiple engagements. With added advantage of working in the U.S. with different verticals, specializing and utilizing the same in India, they bring in additional value. Companies hiring returnees benefit from their experience and negotiation skills. “A foreign returned software professional can contribute to global roles being based in India and that’s the good thing about coming back to India,” says Kishore P. Durg, Senior Manager at Accenture India.

Whether playing global roles, developing or moving software or BPO jobs to India, Indian companies are growing and expanding into newer verticals. Audacious plans carry risks but Indian software companies keep pushing, growing and woo returnees. Having matured, graduating to high-end software designing, India is the new place for returnees. A new challenge. Welcome to India.