Indian trade group forecasts outsourcing services recovery
India's outsourcing services business likely grow by 12% to 14% to $84 billion to $87 billion next year
IDG News Service - India's provision of outsourcing services to other countries will grow by 12% to 14% in the fiscal year starting April 1, a trade body predicted Tuesday.
Demand for outsourcing services has been slowly picking up, according to analysts. Top Indian outsourcing companies including Tata Consultancy Services and Infosys reported better revenue and profit growth in the fourth calendar quarter of last year.
The National Association of Software and Services Companies (Nasscom) now forecasts that India's exports of software and services will be between $84 billion to $87 billion in the Indian fiscal year from April 2013 to March 2014.
Exports are expected to reach $75.8 billion in the current fiscal year, a year-on-year growth rate of 10.2 per cent, Nasscom said.
Analysts have forecast an improvement in India's outsourcing industry, which was hit for many quarters by shrinking budgets and a slowdown in decision making by customers in the U.S. and Europe.
The offshore market for outsourced services is expected to grow by 12% to 15% this year, as more customers are expected to increase IT spending, according to research firm Offshore Insights.
But to bag the new business, companies will have to move from a revenue model that is largely dependent on the number of people working on a project to one that is based on intellectual property and replicable processes, outsourcing executives said.
Customers also prefer that their suppliers are located close to their operations in key markets in the U.S. and Europe, which will require larger expenditure on setting up facilities and local hires in these countries, said Ashok Vemuri, head of Americas at Infosys, during a recent interview.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- What Datapipe customers need to know about the new PCI DSS 3.0 compliance standard This handy quick reference outlines what PCI DSS 3.0 is, who needs to be compliant and how Alert Logic solutions address the new...
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Defense Throughout the Vulnerability Life Cycle This whitepaper provides insight into how to leverage threat and log management technologies to protect your IT assets throughout their vulnerability life cycle.
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All IT Outsourcing White Papers | Webcasts