Outsourcing story keeps getting bigger

Economic Times
Driven by strong demand conditions, new customer additions, big deal wins and employee additions, domestic software companies are set on a high growth path over the remaining three quarters of FY07. Analysts say that a surge in future demand can be gauged from the fact that many big companies, including Merrill Lynch, Lehman Brothers, Fidelity, Wells Fargo and GE are looking at outsourcing significant parts of their software development work to Indian software firms. Already in the first quarter, Indian IT vendors both mid and large sized have had significant customer wins and have added 37% more employees on an average year-on-year to meet this robust demand. In the June ‘06 quarter, TCS, Wipro, Infosys, Cognizant, Satyam and Patni together added 253 new clients. The revenue per active customer increased from Rs 15.3 crore in September ‘05 to Rs 18.6 crore in June ‘06. There has also been a surge in offshoring ERP projects. more...