Outsourcing both to Eastern Europe and offshore to India has not grown as a result
A preference by companies in Western Europe for contract IT staff is cutting into the business of outsourcing companies in these countries, according to a report by Forrester Research.
Protectionism may affect outsourcing revenue, says Nasscom
India's leading software trade body said on Tuesday that protectionism in key markets could affect the growth prospects of the country's outsourcing industry.
Exports are expected to grow by 13 to 15 percent in the next fiscal year, a trade body said
India's revenue from exports of IT and BPO (business process outsourcing) services is likely to grow 5.5 percent to US$49.7 billion in the Indian fiscal year to March 31, 2010, according to estimates released Thursday by the country's National Association of Software and Service Companies (Nasscom).
Other top Indian outsourcers have also reported revenue and profit growth
Wipro achieved revenue growth in its IT services business in the quarter ended Dec. 31, indicating that demand for outsourced services is picking up but is not yet at levels seen before the recession, it said Wednesday.
The company is hiring more staff in India and abroad
India's largest outsourcer, Tata Consultancy Services (TCS), reported Friday an increase in revenue and profit in U.S. dollar terms for the quarter ended Dec. 31, reflecting a turnaround in the offshore outsourcing market.
They will have to build new expertise and expand globally, say analysts
The market for Indian outsourcers is on the mend, but these companies will have to build expertise in new technology areas, and set up operations in multiple locations to take advantage of market conditions, according to analysts.
The company posts significant revenue growth, but profits stay flat
Infosys Technologies, India's second largest outsourcer, reported on Tuesday revenue of US$1.2 billion for the quarter ended Dec. 31, up 5.2 percent over the same quarter in the previous year.
The center in Malaysia will help deliver services to the Asia Pacific market
Indian outsourcer Satyam Computer Services has moved to a larger facility in Cyberjaya in Malaysia, with plans to make it the company's largest development and services delivery facility outside India, it said in a filing on Tuesday to the Bombay Stock Exchange.
An earlier center in Shanghai was focused only on the local market
Indian outsourcer Wipro has set up a global services delivery center in Chengdu in southwest China, targeting customers in the U.S., Europe, and other markets outside the country.
The expansion is good business strategy, and also politically correct, say analysts
Wipro, India's third largest outsourcer, is expanding its development center in Atlanta from 350 to 1,000 staff, reflecting a growing trend for Indian outsourcers to expand and hire locally in the U.S. market.
The acquisition of McCamish Systems brings to Infosys key clients in insurance and financial services
Infosys BPO, the business process outsourcing (BPO) subsidiary of Infosys Technologies, said on Thursday that it has signed a definitive agreement to acquire all of the outstanding interests of McCamish Systems, a small BPO company in Atlanta, Georgia, focused on the insurance and financial services market.
The move may reflect a rebound in outsourcing to India
Accenture said on Monday that it plans to add 8,000 staff in India, indicating that outsourcing to India may be on the rebound.
The center in Bangalore will focus on business analytics consultancy for customers worldwide
IBM has set up a center in Bangalore that will focus on offering high-end expertise to the business analytics market worldwide.
The company says the business environment is however improving
Wipro, India's third-largest outsourcer, said Tuesday that its IT services revenue in U.S. dollar terms had declined by 4 percent to US$1.1 billion in the quarter ended Sept. 30 against the same quarter last year.
The company forecasts further drop in revenue
Infosys Technologies, India's second largest outsourcer, reported a decline in revenue and profit in U.S. dollar terms for the quarter ended September 30, as clients continued to hold back IT spending, and negotiated lower prices.
