Thursday, September 08, 2005

Wipro to Tap USD 200 bln Global Infrastructure Outsourcing Market

Wipro Technologies, to tap the USD 200 billion global infrastructure outsourcing market, is investing heavily in the business besides setting up a centralised global command centre in Bangalore. “The company is making investments to tap this segment and the centralised command centre which will be opened in a few weeks, is part of that investment plan,” said G K Prasanna, vice-president, infrastructure services business. As part of the company’s strategy to capture the burgeoning market, Wipro Technologies is also hiring people and developing new service lines, added Prassana.The company has 8,000 employees on its rolls, who are working on infrastructure outsourcing. Of which, 2500 work on international clients. The outsourcing market for infrastructure management is dominated by large players such as EDS, IBM and Accenture and Indian vendors account for a small fraction of it.“Although the company has witnessed a CAGR of 85 per cent over the last five years and has revenues worth USD 95 million from this segment, we have a minuscule portion of the market,” added Prasanna. Nasscom, however, is hopeful that Indian companies would be able to get a bigger share of the market."Sixty per cent of the market for infrastructure outsourcing can be sent offshore, opening avenues for the Indian industry," said Kiran Karnik, president, Nasscom. According to the analyst firm Forrester, the market for infrastructure outsourcing in US alone stands at USD 110 billion. "The Indian market is likely to grow by about 100 per cent and the growth should be consistent as the Indian vendors currently account for a mere USD 450 million of the total market size," said Sudin Apte, country manager (India), Forrester.
The article sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.