The Hindu : Offshore outsourcing is fast growing: Gartner

Online edition of India's National Newspaper
Wednesday, Jul 16, 2003

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Business

Offshore outsourcing is fast growing: Gartner

By Our Staff Correspondent

MUMBAI JULY 15. Offshore outsourcing is the fastest growing IT industry segment in the world. The growth is a result of the 29 per cent CAGR (compounded annual growth rate) of the Offshore IT services segment and the 68 per cent CAGR of Offshore BPO, from 2002 through 2007, according to Gartner Inc.

"The significant cost saving typically associated with global sourcing and continuing economic malaise in the U.S. has created extraordinary interest among enterprises for cross-border service delivery options,'' said Bob Hayward, senior vice president, Gartner APAC at a press conference here today on the eve of Gartner Summit India 2003. '' Consequently, this market segment is among the few globally, that is getting venture capital and private equity funding,'' he added.

Commenting on the global services landscape, Rita Terdiman, Vice President and Research Director, Offshore Sourcing, Gartner, said, "The early adopters among North American Enterprise buyers consistently turned to Indian ESPs. However, over the last six months, this has started to change. Vendors worldwide have begun to leverage the cost arbitrage and new vendors are now appearing on the customer's Request for Proposal (RFP) list.

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