Large outsourcing contracts worth up to $1 billion look set for a comeback this year, as companies from segments like retail, banking, telecom and utilities, apart from government bodies, seek to cope with renewed demand for their services and also lower their operational expenses.
Outsourcing experts and industry officials told ET last week that auto customers too are looking to award large contracts for managing their business and IT systems this year. British Petroleum’s IT contract worth $1.5 billion awarded to Indian vendors TCS, Infosys and Wipro early this year was one such mega deal.
There are several such projects lined up in the country’s power sector as well, said Everest Group country head Gaurav Gupta. “Governments in the US and other western markets tend to account for a big chunk of mega deals, but Indian companies are not strong contenders,” he said, adding that large deals for Indian companies are typically in the range of $50-100 million, though some Indian IT services vendors currently have some mega outsourcing contracts in the pipeline.