• Tweet
• Sharebar

• Tweet

Analysis group Gartner says that the degree of outrage directed at outsourcing IT jobs to India is unwarranted, considering its actual effect on the local IT industry.

Gartner claims that Indian software developers have only secured 2 percent of the Australian IT industry’s AU$3.585 billion market – AU$71.71 million for development and integration services.

Among a number of medium-sized companies and smaller firms, there were five Indian companies that acquired the majority of work outsourced to India from Australia. These companies were Infosys Technologies, Pentasoft, Satyam, Tata Consulting Services, and three companies from the HCL group. These companies had a posted growth of as much as 36 percent.

“These companies can be pleased with this achievement as their competitors are all registering single-digit growth,” said Rolf Jester, Asia Pacific VP for Research at Gartner. “However in the scheme of things, this is a small share of the market. Certainly, it is disproportionate to the large amount of opposition to offshore outsourcing that has been expressed in Australia in the last few months.”

“Opposition will eventually die away as Australian companies take advantage of the quality and cost benefits and realise there is more to be gained economically by embracing, not resisting, the global delivery model,” declared Jester, saying that the local IT industry regarded offshore outsourcing as a threat to their jobs, causing it to be criticised by different government representatives.

The top 10 companies in the local software development and integration sector comprised 46 percent of the total market, or AU$1.649 billion. The forerunner among these top 10 companies is IBM GSA, which will soon establish roots in Ballarat.