Information technology and IT-enabled services will employ 4 mln people in 2008 and account for 7% of GDP and 33% of India’s foreign-exchange inflows, according to Nasscom.
Everest Research Institute found that the addressable market for Indian BPO outsourcers will be $220 bln to $280 bln by 2012. Today, the report says, the total offshore BPO market is about $28 bln, with the Indian-sourced portion of that at $10.2 bln.
The value of outsourcing deals signed in Europe in 2007 was $40.9 bln, compared with $26.6 bln in the Americas, according to TPI.
India’s IT services market is forecast to grow to $10.73 bln by 2011, at a 5-year CAGR of 23.2%, according to Gartner.
The global outsourcing market continues to grow at a steady pace, with a forecast growth rate of 8.1% in 2008. Publicly reported IT outsourcing (ITO) and business process outsourcing (BPO) contract values decreased overall by 50% in 2007, Gartner reports. Indian providers are growing approximately 40% annually in the US and 60% annually in Europe.
Employees in the software development and IT sector saw their salaries raised at an average of 18.7% in 2006 in India, IDC reports.
The total value of new (as opposed to renewed or restructured) outsourcing contracts to Asia-Pacific in the $25 mln plus bracket – where most significant outsourcing activity occurs – is $5.4B, an increase of 100% on the first half of 2006. Eight BPO contracts, in the $25 mln or greater category, with a total contract value of $700 mln were signed in Asia-Pacific in the first half of 2007, representing growth of 33% by volume and 133% by value compared to the first half of 2006, TPI says.
In 2006, HR services spending started to level off and grew 8% worldwide over 2005, according to IDC. The worldwide market for HR services in 2006 showed an increase of 8% over 2005. In the United States, HR services grew 8.7%.
The majority of SMBs that outsource (54%) spend less than 5% of annual revenues on maintaining and upgrading IT infrastructure, while 64% of non-hosting companies spend more than 10% of revenues on IT. Companies that outsource (68%) are much more aggressive about using IT assets to engage in e-commerce than companies that manage technology infrastructures internally (29%). By more than 85%, outsourcers report that their IT organizations play an important role in remaining competitive in their respective industries than those that do not outsource, ThePlanet reports.
87% of companies interviewed by KPMG mentioned they planned to keep outsourcing level the same or increase it. 42% of the organizations believe that their sourcing contract has definitely improved their financial performance, and 27% said that sourcing has definitely improved their competitiveness.