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Clients Predicted to Spend More in IT next Year

by: Sarah Joson

Tuesday, December 4, 2012 | Outsourcing News |

A study done by Offshore Insights, an advisory and research firm, indicated that IT spending could grow in 2013 after the information technology (IT) activity slowdown in American and European markets. Half of the 270 respondents who are decision-makers in IT companies from North America and Europe said they will increase their IT spending by 10 percent next year.

The study denoted that the IT offshoring market for India could increase 15-18 percent due to the growing IT activity in North America, although the European market will remain at a standstill for one more year. Moreover, Chief Executive and Research Director at Offshore Insights Sudin Apte found that international buyers are planning to spend more, but not quite as much compared to two years ago.

Meanwhile, 36 percent of the survey participants stated that they predict a more challenging business environment next year, whereas 32 percent said it would be a positive one. The report also noted that executives from North America were more optimistic than those in Europe. Furthermore, 60 percent of India’s $70-billion IT services industry serve the North American market.

IT segments such as apps integration, enterprise applications, and innovation would post the highest growth.

On the other hand, more and more clients said they are unhappy with the services of IT outsourcing vendors, as well as their stringent position when it comes to pricing models. Also, global IT outsourcing firms were observed to be on the fast track on besting Indian IT firms in cost savings, software processes, and quality.


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