India continues to lead global offshore market
By siliconindia   |   Friday, 07 August 2009, 21:59 IST   |    1 Comments
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India continues to lead global offshore market
Bangalore: Outsourcing transaction volume increased by 10 percent globally in the second quarter as compared to the first quarter this year, led by contracts signed by financial services and manufacturing firms, according to the Market Vista: Q2 2009 report on global outsourcing and offshoring activity by the Everest Research Institute. Everest Research Institute, the research arm of global consultancy firm Everest Group, serves as a central source of independent, objective strategic intelligence, analysis, and actionable insight for leading corporations, suppliers, technology providers and investors in the global outsourcing and offshoring marketplace. While Asia continued to capture the largest share of offshore centers established in Q2 2009, India maintained its leadership by attracting investments in tier-1 and tier-2 cities such as Coimbatore, Mumbai and Chennai. Global suppliers announced a total of 161 new transactions in Q2 2009 versus 140 in Q1 2009. The share of ITO (Infrastructure Technology Outsourcing) transaction announcements increased in the Q2, while the share of BPO (Business Process Outsourcing) transaction announcements declined marginally. Despite multiple margin pressures, operating margins of Indian IT suppliers remained significantly higher than that of traditional global majors. During the second quarter of current fiscal, out of 30, 13 offshore centres were established in Asia. In the same period, transaction volume in Asia-Pacific, Middle East, Africa and Latin America increased by 25 percent. Nikhil Rajpal, Principal, Global Services, Everest Group said, "There has been significant increase in the market activity as compared to Q1 2009 in terms of transaction signings and captive setups. The offshore suppliers are witnessing some stability in the financial services sector and expect demand to pick up later this year, provided economic conditions do not deteriorate any further."

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