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The financial results of the country’s top three software exporters had already provided signs of recovery earlier this month. India’s software exports industry derives more than half of its revenues from the US.

“The IT industry has seen a better Q2 and given positive guidance for rest of the fiscal. The GDP data reinforces the optimism,” said S Gopalakrishnan, CEO of Infosys Technologies.

Meanwhile, Indian companies seeking to grow their revenues from European markets in order to offset the US slump may find the going tougher. “Europe is the second biggest market for Indian IT companies, and the UK-the biggest European market-is coming out of recession in a very sluggish manner,” said Mr Bartels.

Read more in infotech.indiatimes.com

Yesterday, IBM  signed a 10-year information technology (IT) outsourcing agreement with Innovation Auto Risk, an established leader in
the Indian market providing claims management services and other related solutions to insurers & fleet management companies.

As part of the agreement, IBM will deploy server, storage, networking and security IT infrastructure to be hosted at a data center in Delhi. IBM will provide 24×7 onsite infrastructure monitoring services from an onsite command centre.

Outsourcing Software Development involves shifting of software development activities by a company to third party service vendors or software firms that may be located in offshore destinations

Advantages by Outsourcing your Software Development:
• Access to specialized labor at low rates
• Cutting human resource costs
• Cutting operational costs
• Reducing software project expenditure
• Ensuring proper project management
• Software research at lower rates
• Reducing training costs

Read more in pitchengine.com

India and China continue as top offshoring destinations; but Central/Eastern Europe falls while Southeast Asia and Middle East countries rise

While India, China and Malaysia retain the top three spots they’ve occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.
The GSLI analyzes and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support.There are 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.

Established Central European countries including Poland, the Czech Republic, Hungary and Slovakia, once among the premier offshoring destinations for Western Europe companies, have fallen significantly due to a rapid increase in costs driven by both wage inflation and currency appreciation against the dollar. Meanwhile, low-cost countries in Southeast Asia and the Middle East made significant gains this year as the quality and availability of their labor forces improved. Egypt, Jordan and Vietnam ranked in the GSLI’s top 10 for the first time ever.

Read the Highlights from this year’s GSLI and the Global Services Location Index 2009 here

A recent study from research and advisory firm Computer Economics Inc. shows that more companies plan to increase rather than decrease their data center outsourcing and most are pleased by the results.

The percentage of companies that entrust some part of their data center operations to third-party providers has hovered around 33% in recent years, according to Computer Economics survey data. The most aggressive outsourcers are small organizations, with more than half relying on third parties for at least 50% of their data center operations. Large organizations are nearly as eager (45%) to let third parties do half of their processing.

In addition, the heaviest users of data center outsourcing also have the most complex and heterogeneous computing environments. Outsourcing may be their strategy for bringing data center costs in line with industry norms. Outsourcing the data center at a lower cost than managing it oneself may free up IT budget dollars that go to keeping the lights on (70% is the norm) for more strategic projects.

Read more about this study in searchcio-midmarket.techtarget.com