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Indian firms to speed IT outsourcing in next 2 yrs: Study

Last Updated: Thursday, July 30, 2009 - 18:10

New Delhi: A majority of Indian companies expect an increase in their IT outsourcing investment over the next two years as they are looking at reducing operational costs and improving business performance, a study has said.

According to a study titled `Inside the End- User`s Mind –India IT Services Demand Side Analysis` by IT market research and advisory firm Springboard Research, about 65 per cent of IT decision makers in Indian firms expect an increase in IT outsourcing investment by their company in the next two years.
About 29 per cent of the respondents expected investment
to remain constant during the same period, it added.

The study said that enterprise demands for reducing
operational costs was the primary reason for this investment
in IT outsourcing, it added.

About 84 per cent of the Indian enterprises expect a
significant impact on their IT budgets due to the current
economic downturn, with budgetary pressure being a core driver
for this acceleration of investments in IT outsourcing.

Furthermore, highlighting these budgetary concerns, over
a third of all respondents have reported withholding or
delaying IT-related investments and report increased
cautiousness with IT investments.

The findings are based on a survey of 107 chief
information officers (CIOs) of large enterprises (employing
more than 1,000 people) in India.

"For CIOs, the economic slowdown is clearly an
opportunity to manage their costs and they have shown an
open-minded approach towards IT outsourcing, further
accelerated by an emerging emphasis on improving business
performance," Springboard Research Senior Research Analyst (IT
Services) Sudip Saha said.

According to the report, IBM, Wipro and TCS are perceived
as leaders by the end-users across all services categories,
while CMS and HCL Comnet achieved the highest engagement
satisfaction ratings.

Bureau Report

First Published: Thursday, July 30, 2009 - 18:10
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