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Bangalore , Feb. 7

SOURCING advisory Technology Partners International has set up its India operations to respond to the increase in IT and BPO outsourcing to India.

Announcing this, Mr Arno Franz, Partner and Managing Director, TPI, said the company found about 40 per cent of an outsourcing contract value went offshore - In 2004, over 19 mega deals (greater than $1 billion) were made, amounting to a total of $32 billion in value.

"The traditional `big six' outsourcers are now losing market share for large as well as the smaller deals and many Indian players are now on the consideration list for such mega deals," Mr Franz said.

Indian third-party providers offering a full range of services will have a greater competitive edge compared to skewed offerings, according to TPI which found that most large corporations, accounting for the bulk of outsourcing deals, preferred a single service provider with a larger bandwidth compared to breaking up their outsourcing contracts into discrete offerings.

"Application management, managed services, call centre, BPO, the whole range of services is preferred by our Global 2000 clients and companies offering such services from global delivery facilities are more competitive, said Mr Paul Schmidt, Project Director - Global Service Delivery.

Eastern Europe is a competing location for the Indian IT and BPO sector since they offer the comfort of proximity along with language capabilities not matched by India. China too has seen significant interest, Mr Schmidt said.

Indian companies need to address issues of attrition, as outsourcers are more sophisticated now, Mr Siddharth Pai, Partner, said. Indian companies would face significant downward pressure on rates going forward, but volumes and deal sizes would get bigger, he added.

TPI has enabled over 650 outsourcing transactions, with contract value of more than $360 billion and has about $15-18 billion in contracts in the pipeline.

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