OPDS market foreseen at $4.1-b by 2011

DEDHAM (USA): The worldwide market for Offshore Product Design Services (PDS) is expected to grow at a compounded annual growth rate of 28 per cent over the next five years, says an ARC Advisory Group study.

The study - `Offshore Product Design Services Worldwide Outlook’ predicts the market to be over $4.1 billion in 2011. In 2006 the size was $1.2 billion.

“When you have forecasted growth of over 25% for a market that is already larger than a billion dollars, you are looking at an extraordinary market. One explanation for this is the power of the Global Service Delivery (GSD) business model,’’ says Steve Banker, director, ARC Advisory Group.

The study observes that the top five suppliers of offshore PDS are large Indian IT companies providing BPO and IT services. Each has revenues in excess of $100 million in the offshore PDS market and account for more than 60 per cent of the market.

The companies have developed strong processes and systems to manage offshore projects across their diverse service areas and each have extremely robust processes for hiring new personnel and training them.

The study founds that a large amount of offshore PDS is focused on less risky, lower value projects. There is considerable work surrounding 3D to 2D conversions, using Product Data Management systems to create documentation.

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