India-based technology outsourcers were awarded nearly a quarter of the top 100 outsourcing deals in 2014, according to IDC’s analysis of worldwide deals during 2012-2014.
The top five vendors in 2014 captured more than 50 per cent of the total contract value (TCV) of top 100 outsourcing deals, up from 43 per cent in 2013. The clear leader among the top five was IBM with US$13.8 billion, ahead of CGI with US$2.8 billion, Cognizant with US$2.7 billion, Capgemini with US$2.6 billion, and Wipro with US$2.3 billion.
IDC’s analysis also showed that the average deal size continued to shrink, with fewer mega-deals with a TCV of US$1 billion or more. Other shifts observed are fewer providers competing for the largest deals, as well as a move from public sector to commercial/private sector deals in 2014.
“India-based outsourcers are making significant inroads into the global top 100 outsourcing deals,” said David Tapper, vice president, Outsourcing and Offshore Services.
“The combination of effectively leveraging the offshore business model; incorporating new methods of service delivery such as hosting and cloud; investing in more transformative capabilities in areas such as analytics, social media, and mobility; and enhancing strategic local capabilities and resources 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.”
The results were included in IDC’s Top 100 Worldwide Outsourcing Deals of 2012-2014.
