India-based outsourcers captured 23% of top 100 deals in 2014

India-based outsourcers such as Wipro accounted for a large chunk of the global outsourcing contracts with 23% share of the total contract value (TCV) of top 100 deals in 2014, research firm IDC.

India-based firms have grown their share from 8% in 2013 and 7% in 2012, IDC said.

However, the global TCV of the top 100 deals declined by 10% to $45 billion in 2014 from $50 billion in 2013.

India-based outsourcers are making significant inroads into the global top 100 outsourcing deals, IDC vice president, outsourcing and offshore services, David Tapper said in the IDC Top 100 Worldwide Outsourcing Deals of 2012-2014 report.

“The combination of effectively leveraging the offshore business model and incorporating new methods of service delivery such as hosting and cloud has enabled the India-based outsourcers to effectively compete with well-established competitors in the outsourcing industry for the largest of large-scale outsourcing deals,” he added.

Also, India-based outsourcers are investing in more transformative capabilities in areas such as analytics, social media, and mobility and enhancing strategic local capabilities and resources, which has helped them, he said.

The top five global vendors in 2014 captured more than 50% of the TCV of top 100 outsourcing deals in 2014, up from 43% in 2013.

This includes IBM with $13.8 billion, CGI with $2.8 billion, Cognizant with $2.7 billion, Capgemini with $2.6 billion and Wipro with $2.3 billion.

However, the average deal size continued to shrink along with fewer mega-deals (TCV of $1 billion or more), IDC said.

While the average deal size for the top 100 worldwide outsourcing deals has been declining 4.3% annually over the past 10 years, the number of megadeals was at the lowest level in more than a decade at nine in 2014.

This is significantly lower from the highs of 2003 (24 deals) and 2006 (25 deals).

Also, the share of IT outsourcing deal value worldwide has increased to 78% of worldwide TCV in 2014, up from 51% in 2013 and 60% in 2012, IDC said.

On the other hand, the share of global TCV from BPO deals has declined to 22% in 2014 from 49% in 2013 and 40% in 2012.

IDC said there has been a significant shift from public sector deals to commercial/private sector deals from 2013 to 2014, with government capturing just 12% of deal value in 2014, down from 48% in 2013.

Source: indiatimes-India-based outsourcers captured 23% of top 100 deals in 2014

India-based outsourcers captured 23% of top 100 deals in 2014

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s