US IT industry to witness increased offshoring: Study

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{image-IT consulting_05112008.jpg}Bangalore, Nov 3: Fundamental changes in the drivers of the IT consulting market have ushered in a new market paradigm - manifested by healthy demand, lessened economic sensitivity, and central roles for globalization and offshoring. The shortage of IT talent in developed countries and the growing sophistication of offshore IT labor markets are supporting healthy growth in the IT consulting market, according to a market analysis and survey of 15 IT consulting companies by the Everest Research Institute and Bernstein Research.

The IT consulting market, estimated at US$104 billion, has shifted its value proposition to meet growing needs of vertical industry buyers seeking solutions for business changes, regulatory issues, access to new technologies, and heightened needs for specialized talent, according to the study, Reading the Alphabet Soup: SI, PI, ERP, etc. - The Changing Drivers of IT Consulting.

Says Gaurav Gupta, Country Head & Principal, Everest Group, "As a result of globalization, the industry is now looking at more and more specific IT consulting tasks that can be offshored. Suppliers have engaged IT talent in low-cost geographies like India, Eastern Europe and South/Latin America, to provide activities such as ERP implementation support, clearly indicating an increase in offshorability of all IT consulting activities except such few highly interactive ones that necessitate an onsite presence."

The Everest-Bernstein research of the IT consulting market analyzes these shifts in demand drivers, details findings from interviews and profiles the consulting capabilities of 15 participating IT services companies surveyed for the study: Accenture, Atos Origin, CSC, Cognizant, EDS, Perot Systems, Genpact, HCL, L&T Infotech, Patni, Sapient, Satyam, Softtek, TCS, and Wipro.

Rod Bourgeois, Senior Analyst of Bernstein Research, argues, "In the past, killer software applications and the economic cycle were the primary drivers of IT consulting demand, but our research has emphasized that today's consulting market is characterized by lessened economic sensitivity and supported by a diverse set of demand drivers that vary substantially by industry vertical." please e-mail or call +1-214-451-3110.

About Everest Research Institute

Everest Research Institute serves as a central source of independent and objective strategic intelligence, analysis, and actionable insight for leading corporations, suppliers, technology providers, and investors in the global outsourcing and offshoring marketplace. The Institute addresses both business process and information technology sourcing topics, providing the global outsourcing and offshoring community with information that empowers highly productive, sustainable sourcing strategies and relationships. The Institute"s wealth of knowledge and experience provides unique perspectives into today"s marketplace and the competitive edge required to take advantage of emerging opportunities.

Everest Research Institute is the research arm of the Everest Group (, a global consulting firm with offices in such leading business centers as Dallas, New York, Toronto, London, Amsterdam, New Delhi, Melbourne, and Sydney. Everest Group has earned a worldwide reputation for ongoing innovation as it helps clients achieve maximum value from their operations including sourcing strategy and implementation. Please visit for more information.

About Bernstein Research

Sanford C. Bernstein & Co. ( has been providing top-quality investment research to institutional investors such as pension managers, mutual funds, banks and insurance companies for more than 25 years. The Bernstein research brand is defined by our renowned "blackbook" reports. These are known for their unbiased in-depth company and industry forecasts. In addition, Bernstein reports have established a reputation for disciplined research into valuation and the factors affecting stock-price movements.

To produce our "blackbooks" and other research literature, we have brought together a community of company and industry specialists, with a strong tilt toward those who have business experience in the industries that they cover; quantitative analysts; and a team of portfolio strategists dedicated to conducting in-depth fundamental research on a global basis. The goal of each Bernstein analyst is to forecast earnings power and industry trends by disaggregating the components of profitability in each line of business of each company within our coverage universe. Bernstein's research has been sought out by leading investment managers around the world, and we are annually ranked as among the best by acknowledged arbiters such as Institutional Investor, Greenwich Research and Reuters.

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