Indian outsourcers bag 23% value of world’s top 100 deals
India-based outsourcers such as Wipro accounted for a large chunk of the global outsourcing contracts with 23 per cent share of the total contract value (TCV) of top 100 deals in 2014, research firm IDC said on Wednesday. India-based firms have grown their share from eight per cent in 2013 and seven per cent in 2012, IDC said. However, the global TCV of the top 100 deals declined by 10 per cent to $45 billion in 2014 from $50 billion in 2013.
India-based outsourcers are making significant inroads into the global top 100 outsourcing deals, IDC Vice President, Outsourcing and Offshore Services, David Tapper said in the IDC Top 100 Worldwide Outsourcing Deals of 2012?2014 report. “The combination of effectively leveraging the offshore business model and incorporating new methods of service delivery such as hosting and cloud has enabled the India-based outsourcers to effectively compete with well-established competitors in the outsourcing industry for the largest of large-scale outsourcing deals,” he added.
Also, India-based outsourcers are investing in more transformative capabilities in areas such as analytics, social media, and mobility and enhancing strategic local capabilities and resources, which has helped them, he said. The top five global vendors in 2014 captured more than 50 <g data-gr-id="64">per cent</g> of the TCV of top 100 outsourcing deals in 2014, up from 43 <g data-gr-id="65">per cent</g> in 2013. This includes IBM with $13.8 billion, CGI with $2.8 billion, Cognizant with $2.7 billion, Capgemini with $2.6 billion and Wipro with $2.3 billion. However, the average deal size continued to shrink along with fewer mega-deals (TCV of $1 billion or more), IDC said. While the average deal size for the top 100 worldwide outsourcing deals has been declining 4.3 <g data-gr-id="66">per cent</g> annually over the past 10 years, the number of megadeals was at the lowest level in more than a decade at nine in 2014.
This is significantly lower from the highs of 2003 (24 deals) and 2006 (25 deals). Also, the share of IT outsourcing deal value worldwide has increased to 78 per cent of worldwide TCV in 2014, up from 51 <g data-gr-id="48">per cent</g> in 2013 and 60 <g data-gr-id="49">per cent</g> in 2012, IDC said.
On the other hand, the share of global TCV from BPO deals has declined to 22 <g data-gr-id="39">per cent</g> in 2014 from 49 <g data-gr-id="40">per cent</g> in 2013 and 40 <g data-gr-id="41">per cent</g> in 2012. IDC said there has been a significant shift from public sector deals to commercial/private sector deals from 2013 to 2014, with government capturing just 12 <g data-gr-id="43">per cent</g> of deal value in 2014, down from 48 <g data-gr-id="44">per cent</g> in 2013. The remaining 88 per cent in 2014 was captured by the commercial sector, compared with 52 <g data-gr-id="31">per cent</g> in 2013.
Big B, Abhi invest in <g data-gr-id="116">Singapore based</g> Ziddu.com
Bollywood megastar Amitabh Bachchan and his son Abhishek Bachchan have jointly invested $250,000 (about Rs 1.6 crore) in Meridian TechPte Limited, a Singapore-based company that runs free cloud storage, e-distribution and micro-payment platform Ziddu.com. Venkata Srinivas Meenavalli, founder and chief executive of Meridian Tech said <g data-gr-id="118">Bachhans</g> are expected to invest some more amount in the company in the coming days.