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Majority of Fortune 500 companies outsourcing in India

BANGALORE, INDIA

BANGALORE, INDIA

New York News: According to a study by globalization advisory firm Zinnov at least 50 percent of the Fortune 500 companies will have their inhouse IT/ITeS centres in India by 2015.
The new study finds that India is already home to about 200 wholly owned IT/ITeS centres of MNCs, making it the most preferred offshore destination compared to 120 other offshoring locations across the globe.

The study noted that there has been a resurgence over the last two years, with about 10 new IT/ITeS centres of large MNCs getting established in India in 2011 and 2012. Companies from US continue to lead in this, followed by European majors. Amongst the Indian cities, Bangalore garnered the lion’s share in terms of new centre setups.

The large corporations, traditionally known for outsourcing multi-year, multi-million dollar contracts are also setting up their centres in India. Allstate recently set up its own centre in Bangalore and so did Wal-Mart, British Telecom, FICO, and State Street.

Mr. Sundararaman Viswanathan, manager at Zinnov, said, “Two primary reasons for the uptick in insourcing through the MNC centres are (1) The CIOs are refurbishing their entire IT with modern IT and hence want to do it themselves, (2) The CIOs want to re-imagine some of the legacy business IT systems which they had historically outsourced so that the legacy systems can regain their competitive edge.”
“It is interesting to note that the reason for setting up new centres is far more strategic in nature than the tactical reasons of cost arbitrage and scalability,” he added.
Amani Ambani
New York News
India