IT offshoring: It's not just for India anymore

13.12.2006

Indian firms are responding to the trend by adding to their ability to deliver services from anywhere in the world. Satyam has had about 150 people working in Malaysia, and its development center will give it access to a labor market that has many skilled engineers with multilingual abilities, said Virender Aggarwal, a senior vice president and director at Satyam.

"We are essentially going because it's time to move on a new global delivery model, which is distributed and delivered from multiple locations," said Aggarwal, who said customers see this as a way to mitigate the risk of being located in one spot. The company has about 35,000 employees.

In September, Infosys Technologies Ltd. said it would double its staff in Czech Republic to 350 to serve its European customers. Tata Consultancy Services Ltd. (TCS) this week said it is creating a new site in Uruguay with 250 workers. The new TCS global delivery center in Uruguay will raise the company's total Latin American workforce to more than 3,500 employees out of a global workforce of 78,000 employees, the majority of which are in India, the company said.

India will remain the dominant location for offshore services, but it has also seen wage spikes and increasing concerns about education quality as the demand for IT employees rises. Even though IT offshore outsourcing work is spreading around the globe, the work that goes to India is still growing because of unyielding overall worldwide growth in IT services outsourcing.

Total IT services growth is expected to grow from $18 billion in 2004 to $52 billion by next year, Gartner estimates.