Mega Deals: $1 billion outsourcing contracts may come to India

[OhioChick]

23 Feb 2010, 0059 hrs IST, Pramugdha Mamgain, ET Bureau

NEW DELHI: Large outsourcing contracts worth up to $1 billion look set for a comeback this year, as companies from segments like retail, banking, telecom and utilities, apart from government bodies, seek to cope with renewed demand for their services and also lower their operational expenses.

Outsourcing experts and industry officials told ET last week that auto customers too are looking to award large contracts for managing their business and IT systems this year. British Petroleum’s IT contract worth $1.5 billion awarded to Indian vendors TCS, Infosys and Wipro early this year was one such mega deal.

There are several such projects lined up in the country’s power sector as well, said Everest Group country head Gaurav Gupta. “Governments in the US and other western markets tend to account for a big chunk of mega deals, but Indian companies are not strong contenders,” he said, adding that large deals for Indian companies are typically in the range of $50-100 million, though some Indian IT services vendors currently have some mega outsourcing contracts in the pipeline.

Meanwhile, the US has seen its share of total contracts awarded steadily decline over the past five years. Europe is seen as the big gainer as the UK, France, Netherlands and Switzerland have brought the overall European tally to reasonable levels. Experts say the resurgence of mega deals may throw open more job opportunities in the sector. “Deal pipeline has picked up and 2010 is certainly a strong year compared with 2009,” said Sid Pai, managing director, global sourcing advisory firm TPI.

The latest TPI Index shows that almost $25 billion worth outsourcing contracts were awarded in the fourth quarter of 2009, up 47% over the third quarter. Each of these three large industry verticals, including financial services, manufacturing and telecom, saw sequential growth of 33%, 76% and 24%, respectively, in the second half of the previous year. In 2009, almost 70% of all broader market contracts were valued at under $100 million in total contract value worldwide.

More: http://economictimes.indiatimes.com/infotech/ites/Mega-Deals-1-billion-outsourcing-contracts-may-come-to-India/articleshow/5605000.cms

[Skittles]

1. disgusting

well, they get what they pay for

hey Chick - get this - the offshore folk "forget" to do an IPL (boot), even though there are a dozen maintenance tickets from various groups with stuff going IN with the IPL. :rofl:

[avaistheone1]

2. Any contract going to India that is being paid by American taxpayer dollars should be

pulled immediately and given to American workers. This shit is outrageous.

Why are our tax stimulus dollars being used to create jobs on one hand in the U.S, and on the OTHER hand the U.S. government off-shoring jobs to India. WTF?!!!

:grr:

[1776Forever]

6. WTF is right! Check out what happen to IBM stimulus money:

Friday, March 27, 2009
IBM Using Tax Dollars To Move Jobs Overseas

http://rightdemocrat.blogspot.com/2009/03/ibm-using-tax-dollars-to-move-jobs.html

....Ron Hira , an assistant professor of public policy at the Rochester Institute of Technology and author of Outsourcing America, said IBM has spelled out a plan to shift jobs to India and "they are executing on it: Jettison high-cost workers in the U.S. and substitute them for workers in low-cost countries like India."

IBM's offshoring could also raise questions about projects funded under the government's massive stimulus plan. "If policymakers want to create jobs with taxpayer dollars, then they ought to ensure this creates jobs in the U.S. and not in India or other countries," said Hira. "IBM is clearly trying to hide the fact that stimulus dollars it receives will actually create jobs overseas rather than here in America."

[OhioChick]

7. Nice....

Our tax dollars at work. :mad:

[barb162]

9. Damned right. This shot has to stop. No offshoring with US tax dollars.

[BeatleBoot]

3. The Race to the Bottom Continues

The little guy continues to see falling wages and they keep outsourcing to lower cost countries.

Until we're all making $3.00 per hour.

[ChromeFoundry]

4. In a word...

Pitchforks.

[benld74]

5. I.E. BOEING in another post I just read

[Enthusiast]

8. Thank you for calling our attention

to this, OhioChick.

[fatbuckel]

10. Mega Deals: $1 billion outsourcing contracts may come to India

We need a list of all companies taking stimulus monies and outsourcing jobs.

[OhioChick]

11. You're absolutely right.

Welcome to DU! :hi:

[johnroshan]

12. Indian here.

As an Indian citizen, I'm kinda pleased with the development. However, I can see how Americans must be pissed at this mega outsourcing. However, this is the doing of America itself. Advancing globalization and free market is bound to create such problems. I don't think this problem is going to go away. Restricting offshore services because you have an American citizen providing the same service is similar to restricting imported products just because you have a local business that is making the same product. It doesn't go along with free market principles. Wait, what is the democratic party's official stand on the free market?

[HeresyLives]

13. Beats me, they seem to be all over the map

on this one.

You'll also find they don't want to discuss it.

[Name removed]

16. Deleted message

Message removed by moderator. Click here to review the message board rules.

[ihavenobias]

17. You'd be surprised who notices. n/t

[RedRoses323]

14. Very informative OhioChick!

:evilfrown: :wtf: :nuke:

[amborin]

15. K&R and also this:

http://www.noslaves.com/content/new-study-confirms-h-1b-and-l-1-just-cheap-laboroffshore-outsourcing-conduit-not-about-immig?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NoSlaves+%28NoSlaves.com+%29