Outsourcing to India to be Divvied Up

There are piles of outsourcing contracts to be renewed in India between now and 2008.

Of those contracts 72% of them belong to the Big Six service providers:

1. Accenture Ltd.

2. Affiliated Computer Services Inc.

3. Computer Services Corp.

4. Electronic Data Systems Corp.

5. Hewlett-Packard Co.

and

6. IBM Corp.

However, monsoon winds come and go and with them comes change.

The buyers’ trend now is to award contracts to multiple service providers (not all of their eggs-in-one-basket type thing) and base the contracts on competency.

What a novel idea! Giving the job to the company who can do it the best.

Indian service providers have begun winning some of the smaller deals that they bid on and now they are aiming at the larger contracts

In 2005 an Indian provider won its first $200+ million contract as well. The big $1+ billion contracts still belong to the big guys though.

Give the Indians time. They’ll catch up, I think.

What do you think?

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