1. Trends & Benefits of Outsourcing IT Services to India

2. NASSCOM, the Indian IT-BPO industry body, recently released its ‘Quarterly Industry Review June 2014’ which offers a snapshot of the current state of the IT services industry in India and the new offerings that are delivering benefits for clients around the world.

3. Some key highlights of the report are:
Revised global IT spending growth for 2014:
Gartner increased their estimate to 3.2% (as of April 2014) from the earlier January estimate of 3.1%
IDC reduced its forecast of total IT spending growth for the year to 4.1% (as of April 2014), from the earlier January estimate of 4.6%
The macroeconomic fluctuations in the world, driven in part by political crises in Ukraine and Iraq, and the economy slowdown in China, are making IT spending volatile as well. However, it is believed that a more positive capital spending cycle will emerge in the second half of 2014.

4. In the last quarter of FY 2014, geographic revenue growth of Indian IT service companies from North America saw a Q-o-Q increase of 0.6% and a Y-o-Y increase of 11.3%.
From Europe, Q-o-Q growth for Indian IT service companies was 2.4% and Y-o-Y growth was 12%.
From the rest of the world, Q-o-Q growth for Indian IT service companies was 2.5% and Y-o-Y growth was 4%.
The traditional verticals of BFSI and telecom were key growth drivers for IT service companies. Emerging sectors, such as retail, utilities and healthcare, also contributed to growth.

5. IT Services Industry Projections for 2014
IT services exports will reach ~ USD 52 billion in FY 2014
IT services exports will be driven by the development and maintenance of custom applications for solutions, including for SMAC (Social, Mobile, Analytics, Cloud) and vertical-specific apps. This segment will see a ~ 13.4% growth rate from last year.
Information Systems (IS) outsourcing is the fastest growing segment, with growth rate exceeding 18%. The IS sector now includes hardware vendors and telecom or hosting service providers.
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6. IT Services Industry Projections for 2014
In IT consulting, which will grow at more than 14% from last year, demand for services will be for SMAC, vertical-specific knowledge and transformation of the data center.
Software testing, which will grow at 18% this year, will focus on mobility and cloud-based testing. Testing-as-a-Service, which is an on-demand, pay-per-use pricing model, is growing as well.
Analytics exports could cross USD 1 billion in 2015.
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7. The Growing Value of SMAC for Clients
In an increasingly digital world, SMAC offers the following advantages for businesses:
Flexibility of operations, particularly with regard to BYOD practices
Re-defining turnaround times
Gaining actionable insights to give customers what they want
Enhanced business intelligence
Improved decision making
Empowering stakeholders
Garnering business efficiencies

8. Why Companies Prefer Outsourcing IT services to India

9. Cost effectiveness leading to considerable efficiencies.
High quality of human capital and expertise across domains.
Maturity of industry is enabling innovation and devising of cutting-edge products and solutions.
A choice of business models, ranging from the traditional on-shore, off-shore and near-shore, to emerging models such as those that are based on license fee, usage and outcome.
Offerings that are growing with client requirements, such as collaboration, business intelligence and analytics.

10. Outsourcing IT services and solutions requirements to India will continue to give strategic value to companies around the world. By finding the right partner for their needs, organizations can drive growth and gain an advantage in their chosen markets.

11. Invensis Technologies (P) Ltd.
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