Gartner projects outsourcing to be the fastest growing segment in IT industry

The offshore IT services in India would increase by 29 percent CAGR from 2002 to 2007. Offshore BPO on the other hand is projected to grow by 68 percent during the same period. These figures were announced in a curtain raiser preview of Gartner Summit India 2003 in Mumbai. 

Gartner labeled Global outsourcing as an "irreversible mega trend", claiming to remove all fears and apprehensions in the line. The main verticals for BPO growth were predicted to be Govt. Services, BFSI, Telecom segment and the Manufacturing Industry.

Commenting on the global services landscape, Gartner VP & Research Director- Offshore Sourcing Rita Terdiman said, "Vendors worldwide have begun to leverage the cost arbitrage and new vendors are now appearing on the customer's Request for Proposal (RFP) list. Going forward what will emerge is a set of 'global players' rather than the notion of the US or Indian vendors."

Gartner further projected a trend wherein large global players would acquire smaller companies with knowledge of local resource pools, culture and business practices. More discussions took place about near-shore and offshore centers for outsourcing convenience. Possibilities were thrown light on, for having Indian professionals working in near-shore service centers for better QoS. The current priorities for near-shore centers are in places like Canada, whereas the long-term prospects are places like Mexico, Caribbean and Chile. 

Cyber News Service

Mumbai