Given the continuous growth of the outsourcing demand, emerging locations like Ireland, Mexico, and Malaysia are gearing up to replicate the India story. These countries are working on meeting the clients' demands for contextual, linguistic, and domain knowledge, a 24/7 global delivery solutions and the flexibility to move work between locations or regions.

'Ireland, Mexico, and Malaysia, along with more established industry players like the Philippines and India, should observe market trends to be able to plan their business strategy,' Neo IT managing director Romeo Aquino said.

One trend in the industry is that smaller business deals are replacing mega deals. While the deals are smaller, their numbers are increasing, especially in Europe and in Asia. In the Philippines particularly, there will be around 10 major deals in 2007 as compared to 25 in 2004.