Financial Daily from THE HINDU group of publications
Monday, Nov 11, 2002
Financial Daily from THE HINDU group of publications Monday, Nov 11, 2002 |
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Info-Tech
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IT-enabled Services IT services spend to grow at 12.4 pc Our Bureau
BANGALORE: Market research company, IDC, says it is time to "prepare for an upturn" as it predicts a strong growth in IT services spend till 2006 at a CAGR of 12.4 per cent. The market is expected to go beyond $625 billion by 2006. Spending on offshore outsourcing would grow faster than overall IT Services, IDC said in a report. "Offshore outsourcing started with the basic objective of reducing cost, but is evolving as an option for organisations of all sizes to harness cutting edge skill sets from anywhere in the globe for low as well as high-end development work," the report said. The market has shifted from the decision based primarily on cost basis to being one for more strategic considerations and over the next few years, offshore outsourcing would be driven by shortage of skilled manpower, need for strategic partners, predictability of costs and broadening of infrastructure and operational reach, it said. So far, only India has met all the parameters required for a successful offshore outsourcing country, with fluency in English, vast pool of IT talent, solid infrastructure, and experience doing business with Western companies. Indian services exports of $9.5 billion in 2002 have been predicted. Of this, ITES is expected to grow at CAGR of 56 per cent from 2001 till 2006 and software services are likely to grow at 29 per cent during the same period.
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