Indian Outsourcing Business sees more revenues

Global recession has come as a blessing for Indian IT companies as now mid size US IT companies have started turning towards India for their work. Describing this as a golden opportunity for Indian IT companies, Ashish Bahuguna of Bitscape IT Solutions Company said that now Indian companies had opportunity to get the best of their talent in terms of quantity and rate for their work. Bitscape is an Indian Multinational IT company which has made its global presence in a short span of seven years. The company with a large bouquet of IT services has its own subsidiary in the Silicon Valley and has a noticeable presence in Europe through its UK based director. The Bitscape is Gujarat based 100 percent Export Oriented Unit with CMMi level 3.

Elaborating his point Bahuguna said that earlier only small US companies used to outsource work to India. However, recession has hit mid size and big companies very badly. In outsourcing to India these companies find the most viable strategy to beat the heat of the recession. What many have not yet realized is the fact that this has opened channel for quality work for India, obviously at much higher rate that what Indian companies used to get.

The US remains the biggest market for Indian software and service exports, which are forecast by the industry lobby group National Association of Software and Service Companies NASSCOM to hit 60 billion dollars by 2010. The business environment for IT stocks has become slightly favorable than at the beginning of the year, said Bhavin Shah of J P Morgan.

Last year software firms such as TCS, Infosys and Wipro were roiled by the rupees steepest appreciation against the dollar in three decades, surging wages and property prices. Mathematically speaking, Infosys could increase their full year earnings guidance by 67 percent, Bhavin said. There is renewed optimism after better than expected third quarter earnings from US based Accenture.

The global consulting and outsourcing firm said it has not seen any cancellation or big delays in its business due to a weaker US economy and the financial sector. New bookings for Accenture, a key indicator of future revenues, rose by five percent at 6.77 billion dollars in the third quarter.

Giving the example of his own company, he said that opening of sole subsidiary in the Silicon Valley last year has improved the revenue model of the company substantially. He said that the Bitscape has its director Kartik Shah based in the Silicon Valley and as part of the company’s commitment to transparency, the company was telling US companies that it was offering better services at competitive rates because it was getting the work done in its 100 per cent EOU unit in India.

The company was set in July 2002 with a staff of four and it has a round the clock working with a staff of 100. With US business pouring in to companies in India, he said, the Bitscape expected quantum jump in its outsourced business. SharePoint Development is one of the areas in which company is focusing. It already has many projects in the pipeline, he said.