Asian IT outsourcing demand on the rise

Demand for IT outsourcing services is growing apace in the Asian market, according to new research.

European and North American firms have typically been the main users of IT support offerings, with outsourcing services often being provided by Asian firms.

However, new figures from the outsourcing advisory outfit, TPI, show that Asia outsourced $2.6 billion in technology contracts last year, with Australia, Japan and India the largest consumers in the Asia Pacific region, at 32, 27 and 25 per cent of the market share, respectively.

Further research from IDC India suggests that India's IT spend will increase by 21.5 per cent this year, or $17 billion, with investment in system integration projects expected to account for $8.7 billion.

"India is a significant market to watch. There is larger demand in India-around four times more-than China," Siddharth Pai, the managing director of TPI Advisory Services India, told Ciol.

"Future growth for service providers in Asia would be from Australia and India."

The question remains whether IT outsourcing providers in Asia, and specifically India, can match the demand for their services over the coming year.


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