Captive centers -- in-house IT and business process delivery arms -- accounted for one quarter of the $150 billion global services market last year, according outsourcing consultancy and research firm Everest Group.
IT organisations big and small are seeing significant benefits from some of their cloud computing contracts. The value of Cloud services deals increased 60 per cent in the last three years and the $UD40 billion global cloud services market is expected to grow 27 per cent annually over the next three years, according to recent research by the Everest Group.
IT outsourcing providers that set up new delivery centers in the first quarter of this year were more likely to do so at an onshore location than in offshore ones, according to a recent report. However, both location options continue to grow in terms of headcount and scope of processes.
China has been developing an IT outsourcing industry aimed at bringing in business from the U.S. and Europe. It has succeeded, but then again it hasn't thrived and now may face more barriers.
More than 20 cities in China offer viable IT service delivery, according to a recent report by outsourcing consulting firm Everest Group, each with its pros and cons.
When it comes to information technology and business process outsourcing, China has been on a tear. Global services exports from China nearly tripled, from $1.2 billion in 2007 to $3.5 billion in 2010, with IT services accounting for 65 percent of the total, according to a report released this month by outsourcing consultancy and analyst firm Everest Group.
Indian outsourcers Tata Consultancy Services (TCS), and HCL Technologies reported this week strong revenue and profit growth for the quarter ended March 31, as outsourcing by clients to offshore locations picked up.
Setting up offshore IT services and business services subsidiaries has once again become a preferred route for multinational companies wanting to tap talent in low-cost locations, analysts said. The subsidiaries are known in the outsourcing industry as "captive centers" because they meet the in-house services requirements of companies.
The proposed acquisition of an IT services company by India’s largest business process outsourcing (BPO) firm, Genpact, has fueled a debate on whether pure-play BPO firms in the country can survive independently.