IT Outsourcing India

Indian outsourcing companies figure among the top ten worldwide in IT infrastructure services, reflecting the growing appeal of offshore delivery of these services, according to outsourcing consultancy Technology Partners International (TPI).

Indian outsourcers figured in the top ten by value of contracts closed in the first half of this year, not only in their traditionally strong area of application development and maintenance (ADM), but also in infrastructure services, Siddharth Pai, a partner at TPI, said on Thursday.

That Indian companies such as HCL Technologies and Wipro have made it to the top ten in infrastructure services, a relatively new area in IT services for Indian outsourcers, suggests that customers are now considering seriously the option of remote delivery of these services from offshore locations like India, Pai said.

Indian companies figured in the top ten last year in ADM but not in infrastructure services, according to TPI data.

TPI released its index this week covering the global commercial outsourcing market in the second quarter and the first half of this year.

The market for outsourcing has shrunk to US$40.2 billion in contracts in the first half of this year from $51.5 billion in the first half of last year. TPI monitors contracts of a value of $25 million and above.

It is unlikely that the outsourcing market this year will grow to last year’s level of $93.1 billion, and is more likely to end this year with total contracts of less than $80 billion, Pai said.

Top Indian outsourcers have reported flat or declining revenue in the quarter ended June 30. Infosys, India’s second largest outsourcer, has forecast that revenue for its fiscal year ending March 31, 2010 will decline by 3.1 to 4.6 percent over revenue in the previous year.

Source: http://www.pcworld.com/

Pharmaceutical companies and contract research organisations (CROs) can cut their costs by anything between 50% and 75% through outsourcing their clinical trials to India, a new report claims.

India is one of the most economical destinations for outsourcing global trials, says the report by local market research and information analysis company RNCOS, Booming Clinical Trials Market in India.

For example, it notes, the salary of a local clinical research associate (CRA) is 13% of the equivalent in the US, or 17% and 19% of CRA salaries in the UK and Germany respectively. Similarly, the cost of a biostatistician in India is 15%, 18% and 17% of the levels in the US, the UK and Germany respectively.

Companies can also make considerable savings on utilities and land when setting up operations in India, RNCOS adds. This is at a time when the estimated cost of developing a new drug is close to US$1,200 million, with almost half of that sum going on Phase I to IV clinical trials, it points out.

India also has a much better track record of trial completion and patient recruitment than many other outsourcing destinations, the report contends – a key consideration given the exorbitant cost of slipping just one day over schedule. By choosing India, RNCOS says, sponsors can cut the completion time for various phases of clinical development by 30-40%.

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• Buys 60 pct of InfoVision for 13.3 mln pounds
• Plans move into public services market through deal
• To acquire remaining 40 pct over next two years
• Sees 30-50 pct annual revenue growth in Indian business
• Stock unchanged at 426.5 pence

LONDON, Dec 11 (Reuters) - British government services firm Serco Group Plc (SRP.L: Quote, Profile, Research, Stock Buzz) entered the Indian business services contracting market on Thursday by buying 60 percent of India’s InfoVision Group for 13.3 million pounds ($20 million) in cash.

Serco, which runs railways in London and northern England and is involved in sectors including defence, nuclear and education, said it expected the acquisition to give it a platform to move into India’s public services market.

The group’s chief executive, Christopher Hyman, said InfoVision was cash-generative and had annual turnover of about 23-24 million pounds. The company believed it could achieve revenue growth in the Indian business of between 30-50 percent per year in the longer term.

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SemanticSpace Technologies, an Indian IT outsourcing company, announced the acquisition of Prolifics, a USbased software consulting firm specializing in IBM technologies, for USD 40 million in a cash deal. The company will make an initial cash payment of USD 26 million, the remaining amount will be paid in the form of earn out over the next two years.

In addition, the company acquired the assets of Prolifics Arsin, a subsidiary of Prolifics and a testing solutions company, for over USD 1.5 million. The convergence of our companies marks an acceleration in the globalization of the software industry, giving enterprises a new blended shore choice in technology partnership that can scale to meet any need., said Satya Bolli, CEO of SemanticSpace Technologies.

Postacquisition, Prolifics, SemanticSpace Technologies, and Arsin will jointly operate as SemanticSpace Group. The organization will employ over 1,500 professionals, with approximately USD 100 million in revenue on a proforma basis. Prolifics IBM technologiesfocused highvalue services complement services offered by SemanticSpace.

The merged entity will have a strong presence across the US, Europe, and Asia Pacific. Prolifics will continue to be operated by the same management team. Founded in 1997, SemanticSpace Technologies is a global software solutions conglomerate with a track record of providing enterprise project services, quality assurance services, and software products to Global 2000 companies. SemanticSpace Technologies is privately held, with more than 1200 employees worldwide, including a major development facility in Hyderabad, India.

Source : http://www.offshoringtimes.com/