Indian Economy News

Indian IT captured quarter of top 100 outsourcing deals in 2014

Pune: India-based outsourcers captured nearly a quarter of the top-100 outsourcing deals in 2014, said International Data Corporation's (IDC) analysis of worldwide outsourcing deals during 2012-2014.

The analysis shows the top-five vendors in 2014 captured over 50 per cent of the total contract value (TCV) of top-100 outsourcing deals in 2014. This is up from 43 per cent by the top-five vendors in 2013, which included IBM with $13.8 billion, CGI with $2.8 billion, Cognizant with $2.7 billion, Capgemini with $2.6 billion, and Wipro with $2.3 billion. However, the average deal size continues to shrink with fewer mega-deals (TCV of $1 billion or more).

Research shows that there has been a shift from public to private sector deals in 2014.

An additional shift to fewer providers winning and potentially competing for the largest outsourcing deals is also occurring. "India-based outsourcers are making significant inroads into the global top-100 outsourcing deals," said David Tapper, vice-president, outsourcing and offshore services.

"The combination of effectively leveraging the offshore business model; incorporating new methods of service delivery such as hosting and cloud; investing in more transformative capabilities in areas such as analytics, social media, and mobility; and enhancing strategic local capabilities and resources has enabled the India-based outsourcers to effectively compete with well-established competitors in the outsourcing industry for the largest of large-scale outsourcing deals."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.