India’s IT Outsourcers Report Increase In Earnings, Indicating Offshoring Demand

May 30, 2011

Despite a lag in the economy, Indian outsourcing service providers are riding a wave of increased revenues according to reports for the latest quarter. The recession brought on a decreased demand for IT outsourcing, particularly as companies decreased discretionary spending.

However, for large companies, outsourcing still remains a viable and risk-free option. In addition, with other more convenient offshoring options like nearshoring to Latin America and Mexico, companies in the U.S. are taking advantage of skilled workers abroad. Brazil is one such country where there is a high degree of English-speaking graduates.

The big three outsourcing heavyweights in India are Tata Consultancy Services, Infosys and Wipro with Wipro being the third biggest provider of IT services in India. The company has announced a 20% hike in revenues, an equivalent of $1.4 billion for the quarter ending in March 31.

According to a report by pcworld, the figures point to a heightened demand for outsourcing services. And this will continue to play out in India’s flagship outsourcing industry.

The IT department at Wipro turned n 76% of total earnings for Wipro for the quarter ending in March 31. This is 18% higher at $1.83 billion in comparison with last year’s revenues. Moreover, Wipro has other interest in the consumer care and lighting segments, but its profits are not divided according to various departments, reports pcworld. In total, the net profit increased a tad bit by 14%, the equivalent of $300 million in year over year figures.

Nonetheless, Wipro’s revenues are behind those of other IT outsourcers like Infosys and TCS. Wipro tagged a $5.2 billion incline in the IT segment, indicative of a 19% increase in year ago figures. The company has made a forecast that its outlook for the nex quarter includes expected revenues of $1.4 billion for the quarter ending in June 30.

Despite a lag in the economy, Indian outsourcing service providers are riding a wave of increased revenues according to reports for the latest quarter. The recession brought on a decreased demand for IT outsourcing, particularly as companies decreased discretionary spending.

However, for large companies, outsourcing still remains a viable and risk-free option. In addition, with other more convenient offshoring options like nearshoring to Latin America and Mexico, companies in the U.S. are taking advantage of skilled workers abroad. Brazil is one such country where there is a high degree of English-speaking graduates.

The big three outsourcing heavyweights in India are Tata Consultancy Services, Infosys and Wipro with Wipro being the third biggest provider of IT services in India. The company has announced a 20% hike in revenues, an equivalent of $1.4 billion for the quarter ending in March 31.

According to a report by pcworld, the figures point to a heightened demand for outsourcing services. And this will continue to play out in India’s flagship outsourcing industry.

The IT department at Wipro turned n 76% of total earnings for Wipro for the quarter ending in March 31. This is 18% higher at $1.83 billion in comparison with last year’s revenues. Moreover, Wipro has other interest in the consumer care and lighting segments, but its profits are not divided according to various departments, reports pcworld. In total, the net profit increased a tad bit by 14%, the equivalent of $300 million in year over year figures.

Nonetheless, Wipro’s revenues are behind those of other IT outsourcers like Infosys and TCS. Wipro tagged a $5.2 billion incline in the IT segment, indicative of a 19% increase in year ago figures. The company has made a forecast that its outlook for the nex quarter includes expected revenues of $1.4 billion for the quarter ending in June 30.


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