Posted by: in Regions on May 06, 2011
The economic recession and following global, economic crisis hit the outsourcing sector hard and still continues to have an effect on the global market. Having a look to South Asia, we can find a good example how the recovery process can be on the fast track. This blog entry presents latest outsourcing research findings that demonstrate, on a global scale, how Indian IT companies grew significantly faster than their global peers in 2010.
According to the latest Gartner research study, outsourcing players such as Infosys and Tata, could achieve to grow 6 times faster than their global competitors in 2010. The total sum of Indian IT enterprises increased their global outsourcing market share to 5.5% in 2010 from 4.8% in 2009.The growth of all Indian outsourcing companies in 2010 amounted to 18.9% accounting for US $ 43.6 billion.
However, revenues from outsourcing to India still account for just a tiny piece of the entire outsourcing pie and in the top 5, none of the Indian players could be located. Nevertheless, market analysts highlight the growth figures as highly positive and underline that Indian IT service provider continuously gain global market share.
The world’s largest outsourcer of IT services, IBM, could only report a growth rate of 2.6% in 2010, in comparison to the average growth of its competitors from 20% up to even 40%. Nonetheless, IBM with yearly revenues of US $ 56.4 billion remains to be the top player in the Indian outsourcing market. Second in the top list is HP having generated revenues of US $ 35.3 billion.
Regarding the IT outsourcing services, software support has been the solution most strongly demanded by outsourcing clients followed by process management and hardware support, both service areas that grew slower than expected.
In conclusion, Gartner summarize their findings by pointing at the aftermath of the global financial and economic crisis that still affects the global sourcing industry.