Indian IT services companies cornered nearly a quarter of the top 100 outsourcing deals in 2014. According to the International Data Corporation’s (IDC) analysis of worldwide outsourcing deals during 2012-2014, India-based outsourcers are making an impact due to new methods of service delivery and offshore business model.

“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 leveraging the offshore business model, incorporating new methods of service delivery such as hosting and cloud, investing in more transformative capabilities such as analytics, social media, and mobility, as well as enhancing strategic local capabilities and resources, have all enabled Indian firms to compete with the well-established competitors.”

The analysis also shows that the top five global vendors in 2014 captured more than 50 per cent of the total contract value (TCV) of top 100 outsourcing deals. 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 along with fewer mega-deals (TCV of $1 billion or more).

IDC’s research shows that there was a shift from public sector deals to commercial/private sector deals in 2014. An additional shift – towards fewer providers winning and potentially competing for the largest outsourcing deals – is also occurring.

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