outsourcingindia.co.uk

MUMBAI:

Indian IT companies have found a silver lining in the midst of the global economic turmoil. The number of clients that are outsourcing their technological requirements has increased in the last few months. This comes on the back of the companies’ need to curb costs and yet remain competitive with their global peers.

These companies, which earlier preferred only local IT vendors, are now shifting their IT needs to Indian players like Wipro, Cognizant, Mindtree, Syntel and WNS.

These companies mainly outsource maintenance work and a little bit of application development with these contracts being of a 3-5 year duration.

Due to their competitive pricing, mid-sized IT and ITeS companies tend to be major beneficiaries. Mumbai-based BPO WNS recently bagged a fiveyear finance and accounting deal from a large entertainment company in the US. In the last two quarters, WNS has got at least four contracts from first time outsourcers in the BPO space.

Mid-sized IT firm Mindtree too has seen more deals coming from first time outsourcers in the US and Europe despite a financial turmoil in these regions. It has signed four such deals in the banking, manufacturing, travel and transport and telecom segments.

The KPO relationships are longer (5-7 years) with contract values varying based on the number of processes and transaction volumes. A few years ago, most firms adopted a cautious approach by offshoring the low-risk parts of their businesses. Today, however, clients are pursuing offshoring more aggressively.

Read more in economictimes.indiatimes.com