Russia Could Pose a Challenge to India in Outsourcing Market
India would continue to lead the IT supplier market in 2007 although the battle for supremacy in the outsourcing space could witness a change with Russia emerging as a strong contender during the year, with an expected growth of 40-45% in 2007.
Jan 09, 2007
Currently, Russia is the third largest IT outsourcing supply market, behind India and China. Russian IT companies specialise in high-end software and embedded software product development, which acts as a differentiator from lower-priced Indian offerings.
According to neoIT’s latest report, the global IT services initiatives are expected to accelerate in 2007. "Business transformation through services globalisation is one of the most important levers that global companies can no longer afford to ignore," said neoIT’s CEO Atul Vashistha.
NeoIT said that business transformation would be the key trend to watch out for in 2007. Global companies would leverage it to improve time-to-market, gain new business, standardise processes and significantly lower costs.
On the supplier side, the report noted that competitive forces were leading to increased supplier sophistication. "The year 2007 will see an increased focus among service providers on developing industry-specific domain expertise through acquisitions.
In fact, acquisitions will be a continuing trend in 2007. Eastern companies will acquire western outfits to gain a global footprint and venture into services that demand a significant onshore presence.
Companies based in the West will take a keen interest in setups in the East to stay competitive as well as explore eastern markets, which are not only cost effective delivery locations, but also rapidly emerging markets by themselves," it said.
According to neoIT’s latest report, the global IT services initiatives are expected to accelerate in 2007. "Business transformation through services globalisation is one of the most important levers that global companies can no longer afford to ignore," said neoIT’s CEO Atul Vashistha.
NeoIT said that business transformation would be the key trend to watch out for in 2007. Global companies would leverage it to improve time-to-market, gain new business, standardise processes and significantly lower costs.
On the supplier side, the report noted that competitive forces were leading to increased supplier sophistication. "The year 2007 will see an increased focus among service providers on developing industry-specific domain expertise through acquisitions.
In fact, acquisitions will be a continuing trend in 2007. Eastern companies will acquire western outfits to gain a global footprint and venture into services that demand a significant onshore presence.
Companies based in the West will take a keen interest in setups in the East to stay competitive as well as explore eastern markets, which are not only cost effective delivery locations, but also rapidly emerging markets by themselves," it said.