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Indian firms to grab $4 Billion offshoring deals
By siliconindia
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Monday, 12 January 2009, 23:31 IST |
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Bangalore: The current year will bring $4 billion worth outsourcing deals to Indian IT bellwethers. Australian phone firm, Telstra's $250 million outsourcing contract is among the top deals, which is expected to be finalized by the end of the month.
Among the other companies, there are the top outsourcers like British Telecom (BT), Citi, General Electronics (GE) and Bank of America, who will award deals worth between $50 million and $100 million. "These new contracts shall also include long-term application maintenance," Outsourcing Expert, Sabyasachi S Sathyaparasad of Mindplex Consulting told The Economic Times.
Citibank pinpoints the fact that amidst recession, where firms are deliberately counting on cost-cuts there will be greater demand for moving more work to offshore locations like India. For instance, Telstra plans to reduce the number of vendors, have one supplier for each domain across product lines and thus bring down the cost of managing IT systems. "The company wants to move more than half of this contract to an offshore location such as India, and that's why pure Indian offshore vendors including Infosys, Satyam and EDS-Mphasis are being seriously considered," said a senior executive at one of the top tech firms bidding for the Telstra contract. However, even as these customers seek to award new projects by renewing existing contracts, Indian vendors could lose over $300 million because of lower billing rates.