Xenis Infocom(Custom Web Design Company)

Thanks to printed media and internet, most of us know that outsourcing market is doing extremely well. However, some say that offshore IT services are undergoing a quite phase as big deals are rarely coming in.

In mid week of May, Fujitsu grabbed a big deal with the Post Office. The deal is believed to be worth £500m. News is pouring on from horse’s mouth and I am quite convinced that big outsourcing projects are few and far between.  However, the same is not true about the smaller deals. Renewal process is going on for a lot of projects and it has paved the way for the companies to break up the contracts. Some believe, this is happening to cut risk and may set a new trend. And yes, the government’s strategy to reduce contract size has a finger in this pie.

According to the latest report by Gartner, an IT analyst, expenses on offshore IT services have registered 7.8% growth in 2011 as compared to spending on the same in 2010. Bryan Britz who is a research director at Gartner has revealed the reasons behind the shrink in big contract deals. He has identified service industrialization as well as cloud services as the probable reasons. Clients’ adoption of industrialized service has resulted into revenue cannibalization. The ITO providers are getting good growth opportunities regarding infrastructure outsourcing.

Duncan Tait – working in the capacity of Fujitsu’s UK head – has admitted in an interview that it is a good trend to break up bigger projects of offshore IT services into smaller parts. He has also expressed his view that this contract break up can benefit both the public and private sector. Tait is very optimistic about this trend and has said that this will continue to be appreciated in future too.

Offshore IT job covers a vast canvas including website redesign, development, logo creation, SEO process, software development and other areas of web activities. Whatever purpose outsourcing is done for, the above said trend will reign until the breaking of every major deals. However, some say that after a few years, business firms will bundle back the smaller deals so as to slash the overhead IT costs.