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Major IT Services Firms Step Up Sourcing
Four of the top ten IT services organizations have made acquisitions designed to quickly build up their offshore resources in India during the last couple of years.
Capgemini's $1.3 billion takeover bid for Kanbay International and EDS' continued rebalancing of its international workforce have put the spotlight on the increasingly aggressive global sourcing strategies of the world's largest IT services organizations, reports Computer Business Review Online.
Six of the top ten vendors now have more than 20 percent of their workforce based in low-cost delivery locations, with Capgemini, Accenture and IBM Global Services the most aggressive. There are no signs that they are going to rest at these levels, with many being open about their expansion plans. EDS plans to grow its offshore workforce from 30,000 employees to 45,000 by the end of 2008, and IBM has committed to tripling its group investment in India to $6 billion over the next three years.
These companies are being forced to deliver more projects from low-cost locations in order to meet the challenge of India's major software services firms, which have expanded at such a rate that they are now able to compete for large, billion-dollar projects against the established Western players.
The number of Western vendors acquiring offshore delivery operations has increased significantly in 2006, with …
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