Outsourcing Solutions

India’s biggest outsourcing firms Infosys, Tata Consultancy Services, and Wipro are all experiencing poor growth in revenue or income as seen in their just-announced quarterly results for the period that ended June 30, reported ZDNet.

The largest player, Tata Consultancy Services added just 35 clients this quarter, which is its lowest in four quarters. Tata's profit was up just two per cent to US$296 million.

Its rival Infosys, which otherwise saw a rise in client additions, could not hold on to its top client British Telecom. Infosys warned the next quarter may continue to be difficult as companies postpone decisions on outsourcing. Infosys reported revenue of US$1.16 billion, up 24.5 per cent over the same period last year.

Wipro experienced a rise in profits of 15 per cent over the same period last year, growing to US$187.5 million. However, like TCS, Wipro also posted lowest client additions over last four quarters while Satyam just about managed to maintain status quo.

Meanwhile, outsourcing adviser TPI’s index found that companies signed $25.6 billion worth of outsourcing contracts in the second quarter of 2008--the third quarter in a row to break the $20 billion mark and the best recorded performance of three consecutive quarters. TPI says this year is on track to see the highest total contract value for outsourcing deals on record.

“Companies across industry segments are expressing their concerns regarding the uncertain business conditions by taking steps to reduce operational costs, and the outsourcing industry is benefiting,” Peter Allen, partner and managing director of TPI, said in a statement.

Source from Web20.telecomtv.com