Four Major Contracts That May Change The Face of Indian IT


With the shift in outsourcing patterns to shorter engagements, cost savings and operational efficiencies, Indian IT firms are considered more important among big clients. While comparing with MNCs, IT advisory firm ISG’s Outsourcing Index found that the total contract value (TCV) for Indian IT companies went up 13 percent between 2009 and 2012 while it dropped 7 percent for MNCs.

Pankaj Kapoor of Standard Chartered Equity Research says, “Indian IT companies have demonstrated flexibility in structuring their model from effort-linked to outcome based. The stability of the model coupled with strong risk management practices, privacy and pricing flexibility are big pluses over and above the cost arbitrage”.

The equity research in its 2011 report predicted that Indian players would see over $25 billion opportunity within IT and infrastructures outsourcing as a combined contract value of $ 207 billion, which are currently held by non-Indian vendors, are due for renewal in the 2012 – 16 period.

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