Second offshoring wave to benefit tier II cos

CHENNAI: The second time offshoring trend has been proving beneficial to tier II IT/ITeS companies.

According to iGate Global Solutions CEO Phaneesh Murthy, "Companies, which have already had a first time offshoring experience, are now looking at offshoring from a more strategic point of view. And iGate, during last six months, has won many key projects through these second time offshore vendors."

iGate Global Solutions is an integrated technology and operations company with a global services delivery model. "Many tier II companies are expected to win huge deals worth $20 million -$50 million over the next three years, which narrows down to a minimum of $7 million -$10 million deal every year," Murthy observed. "Besides, many US companies have started looking at India as a major investment hub to start the IT operations, beyond US," he added.

"The Total IT budget of fortune 1000/global 2000 companies is around $ 250 billion -$300 billion, annually. Currently, the global clients are spending around 6-7 percent ($18 billion -$22 billion) of the total IT budget in India and are expected to increase this by 15-20 percent($ 50 billion -$60 billion) soon," he added.

iGate, which employs more than 4000 employees globally with 2900 of them in India, intends to increase its headcount by 800-1000 in its three India centers in Bangalore, Hyderabad and Chennai by March 2006. Focusing on the North American market, iGate generates 70 percent of its revenues from the US market and the rest 30 percent from UK, German and Japanese markets.