Wednesday, October 19, 2005

Indian Outsourcing Firms Grow Strong

The two largest Indian outsourcingcompanies, Tata Consultancy Services and Infosys Technologies, announced healthy earnings growth on Tuesday, indicating that Western corporations continue to look to India when outsourcing technology and back-office operations.
The $17.2 billion Indian outsourcing industry is flourishing as companies hire skilled yet inexpensive English-speaking programmers and call center employees to work on technology projects and provide customer support for their American and European clients.
Tata Consultancy, the top software services exporter in the country, announced that its quarterly profit rose 20.5 percent, while its closest rival Infosys said its quarterly net profit rose 36 percent.
In results announced this week, even smaller outsourcing companies like iGATE Global Solutions and Aztec Software said they had nearly or more than doubled their quarterly profits.
Tata Consultancy, which is based in Mumbai, said Tuesday that its profit for the quarter ending Sept. 30 rose to 6.94 billion rupees ($155 million) from 5.76 billion rupees a year earlier as revenue gained 23 percent to 29.83 billion rupees ($664 million).
Infosys said its net profit for the quarter rose to 6.06 billion rupees ($134 million) from 4.47 billion rupees a year earlier. Revenue rose to 22.94 billion rupees ($511 million) from 17.5 billion rupees.
The chief executive of Infosys, Nandan Nilekani, said in a statement that the company had seen robust growth in the quarter because of its focus on offering a broad array of services to its customers.
"It took us the whole of fiscal 2004 to reach a revenue of $1 billion; we reached the same level in the first six months of this year," Nilekani said.
Infosys also forecast that its revenue for the year ending in March 2006 would increase by more than 31 percent, a full five percentage points above its previous forecast.

The article sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.