India would continue to lead the IT supplier market this year despite Russia's emergence as a strong contender in the IT outsourcing market.
The report also states that despite the ongoing debate about Tier-1 vrs Tier-2 cities, Tier-1 cities like Hyderabad will grow at a continued pace in attracting offshore delivery work.
Acceleration of global services initiatives will play a key role in shaping the top trends, according to a recent report by neoIT, a consulting firm.The key trend will be business transformation, which global companies will leverage to improve time-to-market, gain new business, standardise processes and significantly lower costs, said the report which provides a snapshot of buyer, supplier and geographic drivers that will shape the top global services trends of 2007.
The new research brief looks at the factors that contribute to the growth in services globalisation and identifies several trends.
The report takes an in-depth look at the impact that the increasing number of sophisticated buyers, who now have several years of global sourcing experience, will have on the industry. 2007 will see an increased focus among service providers on developing industry-specific subject matter expertise through acquisitions. The report adds that acquisitions will be a continuing trend in 2007.
Companies based in the West will take a keen interest in setups in the East to stay competitive as well as explore eastern markets, which are not only cost effective delivery locations, but are rapidly emerging markets by themselves.
Geographically, new locations are emerging, although India will continue to lead the supplier market, with Europe showing strong growth. The research brief says that billing rates will go up amongst the Tier-1 suppliers by 2-3 per cent due to a growing demand for skilled resources, rise in wages, and increased overheads that are incurred in maintaining quality or ensuring tight security.
The report also states that despite the ongoing debate about Tier-1 vrs Tier-2 cities and concerns of wage inflation, attrition and infrastructure issues, Indian Tier-1 cities (NCR, Bangalore, Chennai, Hyderabad and Mumbai) will grow at a continued pace in attracting offshore delivery work.
Source: PTI, Abridged Version
