Business transformation will intensify technology
outsourcing in 2007 and India will continue to be the prime destination
for IT Services, according to a new research report. The services
globalisation industry is predicted to continue its growth at a
brisk rate of 25-30% in the coming year, according to NeoIT, a
California-based consulting firm.
This is due to the fact that companies
will increasingly keep ramping up their services globalisation
transformation through services globalisation is one of the most
important levers that global companies can no longer afford to
ignore,” NeoIT CEO Atul Vashistha said. Though, buyers
will look for cities of excellence in other countries as well,
where they can leverage employee skills, India will continue
to be the top destination for IT services.
M&A activity is predicted to increase
this year, with outsourcing services companies buying consulting
firms or those firms that
have local knowledge in the countries where their customers reside.
Among the 2007 trends predicted by the consulting firms was that
firms in countries like India, the Philippines and Russia, would
be acquired by companies from developed countries, to gain access
to lower-cost talent.