In a report by Canada-based research firm XMG Global, India and China were singled out as the market’s top revenue generators, pulling in revenues worth $48 billion and $28 billion, respectively.
According to Vincent Altez, Senior Analyst at XMG, India will account for 44.8 percent of the global market, while China will hold 25.9 percent. China seconds the list and generated revenue worth $28 billion. XMG named the Philippines as the third-best performing destination, growing at an estimated 21.7 percent to register $7.3 billion in revenues by year-end. India’s market share is expected to remain similar due to accounting adjustments following Satyam’s financial scandal and demand moving to other offshore countries.
Altez said in the report: “We are seeing new levels of normalcy in which the recession has provided the opportunity to rationalize, and shift work to other offshore destinations other than India.
Altez says that global market’s overall growth will slide from last year’s 19 percent but the 14.4 percent growth is seen as positive due to recession. According to XMG, several factors will impact the industry’s market value and “dynamics of global sourcing” in 2010. These factors include the economic recovery of Europe and the United States, which will create business process outsourcing (BPO) demand over IT services, as well as the continuing agility and commitment of governments in China and Vietnam to attract foreign investors and improve infrastructures.
XMG named the Philippines as the third-best performing destination, growing an estimated of 21.7 percent to register $7.3 billion in revenues by year-end. The figure is still lower than the initial forecast of 24 percent, the research firm noted, where demand has been sluggish due to slower growth for IT services and delay in expansion plans by major market players in the country.
The Philippines is projected to account for 6.9 percent of total offshore revenue, compared to 6.7 percent in 2008.
Altez noted, indicating that offshoring and outsourcing is “part of a natural ongoing economic revolution notwithstanding a financial crisis”.
According to XMG, several factors will impact the industry’s market value and “dynamics of global sourcing” in 2010. These include the economic recovery of Europe and the United States, which will create business process outsourcing (BPO) demand over IT services, as well as the continuing agility and commitment of governments in China and Vietnam to attract foreign investors and improve infrastructures.