TPI sees slowdown in outsourcing

While numerous studies have been pointing to a possible softness in IT budgets next year, the closely watched TPI Index of global contracts shows a definite slowdown in outsourcing. The Houston, Texas based TPI, the worlds largest sourcing data and advisory firm, released the quarterly numbers of global outsourcing deals on Thursday. About 128 outsourcing contracts worth only USD14.4 billion in TCV total contract value were signed in July September, the third quarter of calendar 2008.

Compared to the previous quarter, contracts dropped 22 per cent, and both TCV and ACV dropped 50 per cent quarter on quarter.

Though the third quarter is typically the weakest quarter of the year, this year it was lower than the historical average by almost 20 per cent, TPI said.

What is more disconcerting is that, according to the TPI numbers, there was only one mega deal valued at just over USD1 billion compared to the reported deals of more than USD9 billion in value in each of the past three consecutive quarters. The last time the industry had one or fewer mega deals in a quarter was in 1996. The softness in outsourcing in the financial services industry continued in Q3.

The silver lining is that despite the softness in the Q3 numbers, the full year for 2008 looks to be on course for a strong overall result as transactions involving the transfer of certain backoffice operations as part of an outsourcing arrangement are expected to increase in the coming quarters.

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Extentia extends offshoring services to Europe

Extentia Information Technology, a global software development company, today announced the formalization of a strategic development relationship with CoSMIT GmbH, Germany, to provide software development and consulting services to their European clients.Extentia Information Technology is a software development and consulting organization primarily servicing North America and Europe. With strong technical skills both on Microsoft and Java platforms, Extentia is committed to delivering high quality, information technology solutions. The company focuses on providing global solutions, and addresses the needs of corporations and software development companies requiring Internet, webbased and clientserver solutions based on industry standards and emerging technologies.

With their consulting services and software solutions in the business intelligence space, CoSMIT have enjoyed rapid growth and success and can look back on numerous profitable years of business. CoSMITs product and service range covers Actuate Consulting, BIRT, Portal and Dashboard development, Databases, Training and custom tools for Business Intelligence.

With the increasing importance of open source software, BIRT solutions have become more attractive for organizations of all sizes. And with the increasing demand for BIRT based skills, CoSMIT, as an established integration service provider, is well positioned to further drive business and focus on customer needs in Europe.

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Offshoring IT Services To India To Expand

Indian offshoring is expected to grow from current USD 1.4 billion to USD 4.2 billion before year end 2010. Zinnov, a management consultancy outfit, forecasts Infrastructure Management Services IMS to be the next big growth Indian offshoring. The banking, financial services and insurance industries are the biggest users of IMS services and will constitute approximately 43 percent of the market. High tech telecom, manufacturing and retail industries will constitute approximately 12 percent each and will be second biggest consumers of offshored IMS services.

Management consulting firm, Zinnov, today released the results of its study regarding the offshoring of Infrastructure Management Services IMS to India. Zinnov forecasts offshoring of IMS to India to grow from USD1.4 billion today to USD4.2 billion before yearend 2010, with hardware support services accounting for the majority of those revenues. According to the report, the banking, financial and insurance segment BFSI represents by far and away the largest market for such services, at 43 percent. The high tech telecom, manufacturing and retail industries are the next biggest consumers of offshored IMS services at approximately 12 percent each.

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