The appeal of offshore outsourcing as IT budgets tighten was further highlighted this week with Indian service group Satyam and Tata Consultancy Services (TCS) both posting strong financial results.
TCS posted full-year profits for the year ending 31 March 2008 of $1.3bn on revenues of $5.7bn. Revenues rose 33 per cent year-on-year, while profits were 32 per cent higher.
Meanwhile Satyam saw its revenues grow by 46 per cent year-on-year, to $2.1bn for the year to 31 March 2008; profits were 40 per cent higher at $417m.
"Because of economic challenges in major markets, we are increasing our focus on ways the organisation can sustain continued growth," said Satyam chairman and founder, B. Ramalinga Raju.
The results follow an earnings report from Infosys Technologies Ltd last week reporting 35 per cent increase in annual revenues.
IT services advisory firm TPI argued in a new report that more companies are turning to outsourcing to deliver lower costs as they enter into a tougher economic climate. But TPI also notes that outsourcing in the financial sectors has decreased for a short period of time because the banking sector has frozen decision-making while it tries to quantify the scale of the economic problem.
Although financial services is normally the leading sector for outsourcing, it now fails to rank in the top thee sectors by total contract value awarded, said TPI.
As CIOs prepare for budget cuts, investment in leading-edge projects first to be hit 21 Apr 2008
The Office of Government Commerce does not waste money, it counters 11 Apr 2008
Connect survey reveals major differences in IT budgets and priorities between the sexes 04 Apr 2008
The prosperity of the IT industry is looking shaky 17 Apr 2008
Shell is to press ahead with its plans to outsource the majority of its IT division 01 Apr 2008
Services provider sees strong profits but cuts full-year revenue guidance for 2009 17 Oct 2008
Scandal may result in a similar outcome to that of Enron 08 Jan 2009
But Indian IT provider achieves record annual revenue, and positive results for fourth quarter 20 Apr 2009
Revenue up 24 per cent, but profit growth is slower 15 Jan 2009
Shift in financial advantages may signify a 'repatriation' of offshored IT, says study 15 Sep 2008
Survey of public sector IT managers reveals deep concern over ability to deliver on carbon-neutral targets 03 Jul 2009
Fresh funding will provide new wave energy research equipment and support research 03 Jul 2009
EPA hints it could soon raise efficiency bar for routers, modems and storage systems 03 Jul 2009
More news
From record-breaking solar panels to the International Renewable Energy Agency's new home, we round up the top stories from the past week 03 Jul 2009
Well, I hope they got a no win, no fee deal. I don't like being cynical (it's more of a congenital thing)... 03 Jul 2009
Recycling waste heat is nothing new, so why has the computer industry not kept up? 01 Jul 2009 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
