Indian Companies Among Top Ten IT Infrastructure Outsourcers

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Indian outsourcing companies figure among the top ten worldwide in IT infrastructure services, reflecting the growing appeal of offshore delivery of these services, according to outsourcing consultancy Technology Partners International (TPI).

Indian outsourcers figured in the top ten by value of contracts closed in the first half of this year, not only in their traditionally strong area of application development and maintenance (ADM), but also in infrastructure services, Siddharth Pai, a partner at TPI, said on Thursday.

That Indian companies such as HCL Technologies and Wipro have made it to the top ten in infrastructure services, a relatively new area in IT services for Indian outsourcers, suggests that customers are now considering seriously the option of remote delivery of these services from offshore locations like India, Pai said.

Indian companies figured in the top ten last year in ADM but not in infrastructure services, according to TPI data.

TPI released its index this week covering the global commercial outsourcing market in the second quarter and the first half of this year.

The market for outsourcing has shrunk to US$40.2 billion in contracts in the first half of this year from $51.5 billion in the first half of last year. TPI monitors contracts of a value of $25 million and above.

It is unlikely that the outsourcing market this year will grow to last year's level of $93.1 billion, and is more likely to end this year with total contracts of less than $80 billion, Pai said.

Top Indian outsourcers have reported flat or declining revenue in the quarter ended June 30. Infosys, India's second largest outsourcer, has forecast that revenue for its fiscal year ending March 31, 2010 will decline by 3.1 to 4.6 percent over revenue in the previous year.

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