In the recent TPI Apac call, it was indicated that India is one of the three biggest outsourcing markets, behind Australia and Japan (Graphic Attached from the TPI Presentation), given this background, this article has great relevance to Indian IT Services companies. Excerpts from the same:

Big domestic IT outsourcing contracts such as the Bharti-IBM, Dabur-Accenture and the Bank of India-Hewlett Packard (HP) deals could be warning signs that Indian IT majors are losing out to their multinational counterparts in local markets, research firm Gartner said. The findings are based on a recent survey on the top challenges being faced by chief information officers of Indian enterprises

Gartner India research vice-president Partha Iyengar said. "Most Indian IT services companies are primarily focused on outsourcing deals from foreign markets while global IT services companies operating in India focus on large deals from Indian companies," according to the Gartner report.

The report also observes that with multinationals such as IBM, Accenture and HP concentrating on large domestic deals and Indian IT players focussed on overseas markets, small and medium businesses (SMBs) in India are finding it tough to get the right IT vendor. "Finding the right IT vendor to partner with is posing a major challenge for Indian SMBs," the report said.

Source: 1, 2

Prashanth Rai