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2005 has been a landmark of sorts for the Indian IT industry. The
Indian IT industry finally came of age, bagging multimillion dollar
contracts that were, until recently monopolized, by the big six. TCS
and Infosys won outsourcing contracts, worth $260 million and $140
million, from Netherlands-based ABN Amro. TCS also bagged a
12-year, $847 million outsourcing contract with Britain's Pearl
Group.
Historically, Indian companies have never been the preferred choice
for large outsourcing contracts. Of late, however, Indian
companies seem have made that perceptual transition of being
competent to handle even large deals. According to the outsourcing
advisory firm TPI, of the 293- outsourcing contracts in 2005, close
to 70% were small to medium contracts in the $50 to $200 million
range. Indian companies bid for 30% of these contracts
and 70% of the same. Buyers too are moving towards derisking
their outsourcing initiatives by splitting demands across a
consortium of suppliers. For instance, small to medium contracts in
the $50 to $200 million range accounted for 70% of the total
contracts signed in 2005 as opposed to 65% of the total contracts
signed in 2004. Another point of view is that splitting deals
into specific areas of expertise enables access to expertise in different areas as opposed to
awarding a bundled contract to any single supplier.
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