IT-BPO performance strong in 2006; rise in MNC investment

Bangalore, Dec 27 (UNI) The year 2006 revalidated the Indian IT-BPO growth story, with the industry performance remaining strong and leading firms reporting above expected growth rates in the first half of the fiscal.

IT firms continued with their steady expansion into newer service lines and increased geographic penetration during the year, which also witnessed an unprecedented rise in MNC investments in spite of lingering concerns about gaps in talent and infrastructure impacting India's competitiveness, NASSCOM said here in a review of the IT-BPO industry performance in 2006.

NASSCOM said that at a broader level, the past 12-18 months have witnessed evolution of global perspectives about offshore outsourcing from a mix of heightened exuberance and protectionist criticism to a wider, more rational acknowledgement of economic imperatives, value drivers as well as possible risks of this phenomenon. Maturing socio-political attitudes and a growing appreciation of the proactive efforts by key stakeholders to further strengthen India's value proposition were helping reinforce its position as the destination of choice, NASSCOM said.

Consequently, India remained an integral part of any major global sourcing strategy, though alternate destinations were being explored to add multi-country delivery capability of IT companies.

MORE UNI VK GD HVB1710