First Tennessee plans to outsource some of its processing services including checks, statements, mail processing, and its back-office operations of Prescott-based operations center to WNS. The move is likely to affect the bank's 44 employees in its Prescott (Arizona) center and aims at achieving significant costs savings. About 76 employees of the bank will be affected from the bank's operations in Tennessee and Kentucky. Moreover, some of the affected employees are likely to be placed within the bank.

Revenues from Top 5 European IT Providers to Reach EUR 5Bn in ’08 – Value Leadership

According to Value Leadership Group, a New York-headquartered management consulting firm, revenues from the top five European IT companies (Capgemini, LogicaCMG, Atos Origin, Indra, and Tietoenator) are expected to increase from EUR 2 billion in 2006 to EUR 5 billion in 2008.

Among the key findings, India’s top two IT companies – Tata Consultancy Services (TCS) and Infosys – collectively generated net profit of about USD 1.7 billion in 2006, while the entire European IT industry generated net profit less than this figure of USD 1.7 billion. In addition, the combined market capitalization of the top five IT companies in Europe was USD 23 billion last month as compared to USD 100 billion among the top five Indian IT services firms including Infosys, TCS, Satyam, Wipro, and Cognizant (a US-based company having India-centric operations). However, the European IT market is expected to display various fluctuations by 2009 to compete with their Indian counterparts.

About 92 percent of the German firms are yet to realize the need for establishing offshore operations in India. However, some European big IT firms such as Capgemini have established their presence in India (Capgemini acquired Kanbay in 2006 to access Indian professionals).

Among the other key findings, Infosys’s revenues from Europe are expected to increase from EUR 950 million in 2007 to EUR 1.4 billion in 2008, reflecting a CAGR of 62 percent for the next decade. Even Wipro acquired few niche companies in Europe.

Hosting IT Infra Benefited SMBs

According to a study titled ‘The Small Business Transition to Hosted Technology: Costs vs Benefits’ conducted by BizTechReports.Com, a US-based reporting agency, small and medium businesses (SMBs) that outsource their IT infrastructure are benefited more than those that maintain their in-house IT department. About 54 percent of SMBs (those who outsource their IT infrastructure) revealed that they spent less than 5 percent of their revenues to upgrade IT infrastructure, while about 64 percent of the organizations (those who do not outsource) revealed that they spent more than 10 percent of their revenues on IT infrastructure.

Among the key findings, companies outsourcing their IT infrastructure are better in terms of frequency of security incidents or incidents of technical failures as compared to the companies who do not outsource their IT infrastructure. In addition, the outsourcing organizations gain exposure to cutting-edge technologies and approaches such as Software as a Service (SaaS) much ahead than their non-outsourcing counterparts.
According to Lane Cooper, the CEO of BizTech Reports.Com, outsourcing IT operations allows companies to focus on their core businesses and to achieve business objectives.

Firms in Automotive, Manufacturing, and High-tech Industries to Outsource IT and BPO Back-office Functions – EquaTerra

According to a study conducted by EquaTerra, firms across various industries including automotive, manufacturing, and high-tech in North America have been increasingly outsourcing their back-office IT and business processes functions to external vendors to remain globally competitive. In addition, reduced cost, improved customer satisfaction levels, and enhanced performance are the major factors driving the need for outsourcing such functions.

It has been discovered that firms across the three industries have been outsourcing their IT, call centers and CRM, finance and accounting, contract manufacturing, logistics, application development, and engineering functions for a long time. At present, they need to focus on outsourcing back-office IT and BPO.

Among the key findings, about 32 percent of firms revealed that they outsourced at least 1 process and are expecting to outsource few more processes in the future. About 38 percent of firms are expected to outsource their functions to new geographies or business units while about 29 percent are expected to expand their existing outsourced process areas.

According to EquaTerra, big outsourcing vendors are expected to offer a wide range of services in other areas, such as R&D, logistics services, document services, warranty, and after-sales services. However, the number of vendors offering multiple services across various geographies will not be substantial. In addition, it is expected that organizations will outsource their back-office BPO functions to low-cost destinations, such as India or China, and leverage those markets as well. However, Central and Eastern Europe will remain the preferred destination among buyers.

About 72% of Irish Firms Prefer IT Outsourcing – ICS


According to a study by the Irish Computer Society (ICS), the national body for ICT professionals in Ireland, about 72 percent of the Irish organizations outsource their IT operations, while the remaining 28 percent do not outsource their IT functions due to factors such as uncertainty regarding providers’ ability to supply the required level of service, apprehension about the realization of outsourcing benefits and goals, and concerns over the management of the outsourcing providers.

In addition, hardware maintenance, application development, application support, website development, and consultancy were cited as the most frequently outsourced IT functions. In terms of sectors, public sector organizations prefer to outsource application development and hire consultants, while private sector organizations outsource hardware maintenance.

The study estimated that although the smaller organizations do not have appropriate IT infrastructure and human resources, they outsource less as compared to large organizations. Only 4 percent of the organizations outsource the entire IT functions to external vendors.
The study revealed that the IT outsourcing among the various Irish firms was driven by the provision of additional IT services and not cost reduction.

Delphi has announced its plans to offshore about 650 finance jobs from its worldwide operations to Genpact. The move is in line with the company's plans to restructure its operations and exit court protection.

According to the papers filed by Delphi with the US Bankruptcy Court in Manhattan, the company has signed a deal with Genpact under which Genpact will provide finance-related functions, such as bills and receipts processing, travel and expense reporting, accounts receivable, and accounts payable. Through the deal, Delphi is likely to save about USD 150 million over the 88-months term of the deal. The company is expected to spend USD 220 million (including payments to Genpact) to shift its finance-related functions to Genpact.

IBM has expanded its presence in India by opening a new Autonomic Computing Technology Center in Bangalore, India, to cater to the needs of self-managed autonomic technology and systems among its Indian business partners and clients. The facility will primarily aim to focus on IBM's global Autonomic Computing initiative and will enable IBM to create and provide systems equipped with in-built intelligence to the Indian market and will help in simplifying IT complexity for clients. Employees in the center will work in association with various other software development centers of IBM, including IBM India Research Laboratory, across the globe to develop autonomic solutions.

According to a study conducted by Frost & Sullivan, although healthcare information technology (HIT) market in the US is currently in its early stages, the market is expected to offer considerable growth opportunities for HIT vendors in the near future.

The federal government has been significantly focusing on electronic health records, which is driving growth opportunities for the HIT industry. The study also revealed that vendors must focus on educating third-party payers about various benefits of HIT solutions. In addition, vendors should also educate insurance companies and other organizations about benefits derived from implementing HIT systems. Among the other key findings, reasons, such as lack of technical expertise and professionals, need for workflow changes, and lack of awareness on HIT are major factors hampering the adoption of HIT by various physicians. However, independent physicians are more reluctant to HIT adoption than salaried physicians.

According to recent 4Q 2006 Outsourcing Pulse Surveys conducted by EquaTerra, the demand for outsourcing in the overall BPO and IT outsourcing markets has grown at a slower rate in 4Q 2006 as compared to 3Q 2006 and 4Q 2005.

The number of expected deals grew to 61 percent in 4Q 2006 as compared to 48 percent in 3Q 2006 and 67 percent in 4Q 2005. The study also anticipated a low growth in the outsourcing market during 1H 2007. This slow growth is primarily driven by multisourcing and capacity constraints among BPO service providers. The study also revealed that outsourcing of non-traditional functions, such as document and imaging services, legal processing, knowledge process outsourcing, and logistics services are expected to grow significantly in terms of demand as well as supply in 2007. The existing renegotiations for outsourcing deals among buyers and suppliers were not the main reasons for slow growth in the outsourcing industry. However, it has been predicted that large outsourcing vendors will be able to retain a majority of their business with their existing buyers.



According to a recent study by AT Kearney, the US firms will not be benefited (in terms of cost savings) by offshoring their IT and back-office work to destinations, including India and China, in the next 20 years due to rising wages and price inflation in such countries. Among the key findings, the average wages for the programmers in India, China, and Eastern Europe grew by up to 40 percent in 2006 as compared to up to 10 percent for their US counterparts. Despite this fact, majority of US-based companies, such as Accenture and IBM, are establishing/expanding their offshore units in countries such as India and China, in order to leverage the low-cost labor market in such countries.

It is evident that Indian professionals' wages are 40-60 percent less as compared to their US counterparts.

Indian Salaries Saw Highest Growth in A-Pac in 2006

Working in India could not have been better at any other time considering the salaries that the market is offering. Employees across industries in India saw their salaries increase between 11.9% and 16% (average 14.4% increase) in 2006 over the previous year, according to Hewitt Associate’s 11th annual Salary Increase Survey released a few days ago. This makes 2006 the fourth consecutive year in which salaries grew by double digits.

India’s salary increase was the highest in the Asia Pacific region. Not surprisingly, China came second to India; but at 8.3% average increase in 2006 over the previous year, its percentage increase still quite behind India.

While forecasts for 2007 are more or less along the same lines as 2006, the numbers for Singapore make one sit up. From an average salary increase of 4.6% in 2006, it is expected to see an increase of 8.9% this year. The Philippines, too, which is seeing increasing international investment, will see a much higher increase in 2007 (8.9%) than in 2006 (8.2%).

Average Salary Increases in Asia Pacific :

Country Year 2006 (%) 2007 (expected) (%)

India 14.4 14.5
China 8.3 8.2
Philippines 8.2 8.9
Korea 7.4 7.4
Thailand 6.5 6.6
Malaysia 6.2 5.9
Australia 4.8 4.4
Singapore 4.6 8.9
Taiwan 4.3 4.4
Hong Kong 4.0 3.9
Japan 2.6 2.7

While salary hikes may be good news for employees in India and other Asia Pacific countries, it may not be so for Western companies that have taken to increasingly source IT and business services from the Eastern hemisphere. Salaries comprise a large component of the total cost of offshoring incurred by customer companies.

Yet, a recent McKisney studies argues that rising wages in India do not impact the overall cost. It presents data to show that other costs — technology, infrastructure, staff productivity, shift utilization — if managed efficiently keep the fully loaded cost of offshoring low.

Yet, India’s offshore market is likely to maintain its low-cost labor advantage over countries such as the U.S.A. and U.K. for at least the next two decades, according to Everest Research Institute’s 2006 Global Sourcing Market Update.

source: GlobalservicesMedia, Everest Research Institute

No Plans to Divest Indian BPO Unit: HP

Hewlett-Packard (HP), the U।S.-based PC giant, has no plans to sell its Business Process Outsourcing (BPO) business in India, according to media sources. The firm’s Business Development and Communications Head in India Arundhati Chakraborty confirmed the information. In fact, the company is planning to increase headcount in its Indian BPO unit 20% from the current strength of 6,500 employees to 7,800 employees over the next one year.

The company is also planning to ramp up its operations with headcount and infrastructure additions as well as new contract wins.


via: globalservice media

According to a study conducted by IDC, the Philippines IT and telecom spending is expected to grow by 10 percent during 2007. About 67 percent of the IT spending is expected to be contributed by hardware, while about 68 percent of the total telecom spending will be contributed by wireless services. The Philippines IT industry is expected to witness a shortage of human resources in 2007 due to the widespread outsourcing of the Philippine IT professionals to ASEAN countries. The study also predicted that the Philippine BPO industry will try to reposition itself as a quality-of-service destination rather than a cost-reducing destination in order to compete with various emerging countries such as China, Vietnam and Eastern European countries in the BPO space.

According to the recently released Indian budget, all the services carried out in the contract research and clinical trials industry was proposed to be exempted from the services tax of 12.24 percent. The proposal has been approved by the Indian Parliament and the exemption will be enforced from April 1, 2007, in India. The move will help to boost the growth of contract research organizations (CROs) as well as encourage international pharmaceutical firms to establish their CROs and outsource clinical trials to India.

Annual Banking IT Budget to Increase by 30% by ’10 – Deloitte

According to the latest study by Deloitte, the annual IT budget of the banking industry is expected to increase from 6 percent in 2006 to 30 percent in 2010. Several banking organizations around the world will increase the percentage in their IT budget to secure technology services from various offshore providers operating from low labor cost countries, such as India and China, in the next three years.

The study also reported that the banks have started relying on offshore service providers, as they have moved away from outsourcing low-level work. At present, banks consider offshoring as a basic necessity and not just a cost-cutting strategy. Also, offshoring of technology workers help in savings as the Indian programmers receive 40-80 percent less than their US competitors.

According to the study, shifting bank’s IT projects to an offshore service provider could save about 40 percent in their IT budgets. It also claimed that extensive salary hike reduces the cost savings offered by offshore outsourcing. About 55 percent of the banking IT executives expect offshoring costs to increase by about 10 percent in 2007, while 36 percent expect a decline in the costs.

U.S., India Adjust Policies to enable greater trade in high technology

The U.S.A. and India agreed to begin adjusting their policies to enable greater trade in high technology, part of efforts to cement their fast-growing economic and political relations.

The U.S.-India High Technology Cooperation Group produced plans to ease U.S. export controls for selected Indian buyers, while tightening India’s regime governing exports of industrial items with military applications, US Assistant Secretary of Commerce Christopher Padilla told reporters.

The United States is committed to “clear up the Cold War cobwebs” of U.S. curbs on dual-use technology that imposed restrictions on pro-Soviet India, he said after the two-day meeting of government officials and business executives.

Washington has identified Indian technology companies that will be eligible for the U.S. “Trusted Customer Program” of streamlined or waived licensing requirements for buyers with good records of compliance with nonproliferation treaties.

India would be included in a program, proposed last year and under U.S. governmental inter-agency review that will also cover China and other states, Padilla said. To facilitate trade in chemicals, military supplies and other technology, Washington presented lists to New Delhi of products for which it wants India to bring its policies in line with international anti-proliferation standards.

Experts from the two countries would meet in several months and conduct a

“product-by-product comparison of the Indian control lists with the four major multilateral control regimes,”

Padilla said.

India’s policies on exports of nuclear technology and missiles were getting close to those of the Nuclear Suppliers Group and the Missile Technology Control Regime, he said.

India was also moving closer to harmony with the controls of the Australia Group, which aims to prevent chemical and biological materials from being sold to countries or others that would use them in weapons, said Padilla.

New Delhi still needed to close large gaps in its policies with those of the Wassenaar Arrangement, which governs dual-use items and conventional weapons, he added.

The United States and India dramatically advanced their relations in 2005 when visiting Indian Prime Minister Manmohan Singh and President George W. Bush signed a host of agreements, including a deal that, when finalized, would allow US sales of civilian nuclear equipment and fuel to India.

via: Globalservicesmedia

Russian ITO Market to Grow by 40%-50% in 2007: neoIT


In 2007, Russian Information Technology Outsourcing (ITO) market will grow by 40%–50%, says a study by neoIT — a management consulting firm. Russia is currently the third largest IT outsourcing supply market, behind India and China. Russian IT companies are specialized in high-end software and embedded software product development, which acts as a differentiator from lower-priced offerings from Indian companies, according to the research.

The study predicts the key trends for 2007. The key trend this year is business transformation, which global companies will leverage to improve time-to-market, gain new business, standardize processes and significantly lower costs.

“Business transformation through services globalization is one of the most important levers that global companies can no longer afford to ignore,”

stated Atul Vashistha, CEO, neoIT.

“We see the services globalization industry continuing to grow at a brisk rate of 25%–30% in the coming year, as more and more companies ramp up their services globalization initiatives.”

The new report looks at the factors that contribute to the growth in services globalization and identifies several trends. The report also takes an in-depth look at the impact that the increasing number of sophisticated buyers, who now have several years of global sourcing experience, will have on the industry.

On the supplier side and perhaps more relevant for Indian companies, the report says, competitive forces are leading to increased supplier sophistication. The year 2007 will see an increased focus among service providers on developing industry-specific subject matter expertise through acquisitions. In fact, acquisitions will be a continuing trend in 2007 with the report saying that Eastern companies will acquire Western outfits to gain a global footprint and venture into services that demand a significant onshore presence. The companies based in the West will take a keen interest in setups in the East to stay competitive as well as explore eastern markets, which are not only cost effective delivery locations, but also rapidly emerging markets by themselves. Geographically, new locations are emerging, although India will continue to lead the supplier market, with Europe showing strong growth.

The research brief also predicts that billing rates will go up amongst the Tier 1 suppliers by two to three percent due to the growing demand for skilled resources, rise in wages and increased overheads incurred in maintaining quality or ensuring tight security.

The report also says that despite the ongoing debate about Tier 1 versus Tier 2 cities and concerns of wage inflation, attrition and infrastructure issues, Indian Tier 1 cities (NCR, Bangalore, Chennai, Hyderabad and Mumbai) will grow at a continued pace in attracting offshore delivery work, through 2007. The European market for global services is also expected to grow at a faster rate with European companies offshoring to India, China and the Philippines and other lower-cost locations, depending on the language and culture-dependence of the particular service.

Source: NeoIT, Global Services Mag

Remote Infrastructure Management Outsourcing (RIMO) Market Growth to Exceed US $8 Billion over Next Five Years

The Remote Infrastructure Management Outsourcing (RIMO) market is likely to exceed US $8 billion over the next five years, according to a new report released today by the Everest Research Institute.

The RIMO market, an emerging Infrastructure Outsourcing (IO) model, is growing at approximately 60 percent annually. According to the Infrastructure Outsourcing Roadmap report, 75 percent of this growth is attributed to renewals of pilot contracts with significant scope increases with the remaining 25 percent is attributed to new deals. The Roadmap report also provides insights into the benefits of RIMO for buyers, such as enhanced flexibility in IT asset ownership arrangements and increased control over IT service delivery, as well as discusses suppliers’ challenges in meeting these new trend demands. The report is the first of a series of four studies to be released this quarter by the Institute’s newly formed ITO Research Group, established to analyze the ever-changing ITO marketplace in greater depth and provide actionable insights into its future evolution.

“While the Infrastructure Outsourcing market appears calm on the surface and is growing in line with the overall IT industry,”

said Ross Tisnovsky, Vice President, ITO Research Group,

“there are significant structural changes in the market itself that are driven by emergence of new technologies in infrastructure and fundamental changes in the IT asset ownership dynamics.”

The report series will progressively build the picture of the IO market trends and dynamics through analyses of the effects on key market stakeholders relative to four key market developments:
(1) arrival of the labor arbitrage in the IO market;
(2) changes in the asset ownership dynamics;
(3) emergence of new business models in IO; and
(4) emerging global locations for offshore infrastructure management delivery.

The first report, Infrastructure Outsourcing Roadmap, revisits the IO market history and reviews the prevalent business models in this market (traditional outsourcing, managed services and RIMO). After an examination of the fundamental drivers of the new models, such as RIMO, the study describes the entry of the offshore suppliers and their approaches to the market’s growth. The report also discusses the economic rationale behind traditional and RIMO models of service delivery, defines the impact of labor arbitrage, and offers a balanced view of the growth prospects and next steps for the market constituents.

Following the Roadmap report, forthcoming reports this quarter from the Institute’s ITO Research Group are:

• “Asset-light Outsourcing Model” will offer insights into one of the most important drivers of changes in the IO market – the IT asset ownership trends in an infrastructure outsourcing deal. The report will cover the historical reasons for asset ownership transfer in the IO deals and changes in the ITO landscape, which have prompted buyers to reconsider their asset ownership strategies. This report will also examine the decoupling of asset control from asset ownership requirement through remote management tools, the emergence of third-party financing alternatives, and looming changes in accounting that will further decrease the benefit of asset ownership transfer.

• “Growth of Infrastructure Management Outsourcing” will predict growth scenarios for RIMO market and outline effects on the overall IO market. The report’s findings will be gleaned from an analysis of key market forces shaping the IMO marketplace that determine IMO growth prospects, as well as an outline of the Institute’s growth model for the RIMO space that incorporates the effects of key market forces and defines a mathematical model of key signing and renewal dynamics in the RIMO market.

• “Selecting a Location for Remote Infrastructure Management Service Delivery” will provide a high-level view of the emerging global locations for offshore infrastructure management service delivery and identify the most attractive cities in pre-selected geographies by utilizing the Institute’s proprietary location selection methodology.

ChrysCapital to Sell Global Vantedge BPO to ACG

According to media sources, ChrysCapital, an Indian private-equity firm, and other shareholders are expected to sell their respective stakes in Global Vantedge, a US-headquartered credit and receivable management BPO services provider, to Aegis Communications Group (ACG), a US-based CRM BPO services provider, for about INR 1 billion.

Chrys Capital holds a 75 percent stake in Global Vantedge. The BPO firm has been offering credit and receivable management services to various clients including credit card companies, telecom operators, and auto companies catering primarily to the US and UK markets through its two Gurgaon-based centers in India since 2001.

Aegis has been operating from its 24 centers across the world offering a wide range of CRM services including customer acquisition and customer services, back-office services, and value-added services catering to the telecom, retail, financial services, energy, education, and logistics verticals. It employs about 9,000 professionals in India and the US.

About 80% Clients Satisfied with BPO Operations

NASSCOM-McKinsey

According to a study conducted by NASSCOM-McKinsey titled, ‘Operational Excellence: The Next Frontier in Offshoring’, about 80 percent of clients are satisfied with the performance of BPOs. The study is in continuation of the two companies’ report regarding India’s ability to generate about USD 60 billion from IT/BPO export.

In addition, the pressure on various offshore companies is likely to increase due to high expectations from clients. Among the key findings, the study indicates that there is scope for various BPO firms to reduce cost by about 20-30 percent, and for IT firms to increase EBIT margins by about 3-6 percent.

In the BPO domain, the priorities of clients will shift towards other benefits, such as innovation and productivity, once the offshore services are well established. In addition, there is a lack of consistent performance across various companies due to inadequate recruiting practices. Owing to high retention rates, the performance of data-based operations is better than voice-based processes.

However, in the IT domain, the IT service providers are estimated to improve performance and consistency across six practice areas, including requirements gathering, solution design, and training. Despite client satisfaction and strong outcomes, inconsistencies are reported in issues, such as solution design, training, and recruitment. There has been a significant increase in clients seeking upstream services such as requirements gathering and solution design. At present, these services are not strong enough to competently meet a client’s demands. The leading IT performers are expected to increase salaries in the range from 15 percent to 18 percent, without impacting their profit margins.

According to Kiran Karnik, President, NASSCOM, India is the leader in the global offshoring market with about 50 percent market share. Companies need to focus on operational excellence to achieve the target of USD 60 billion from IT/BPO export revenues by 2010.

Pharma Firms to Expand Outsourcing Scope : EquaTerra

According to a report, ‘Outsourcing trends in the pharmaceutical industry’ by EquaTerra, about 44 percent of the pharmaceutical companies that have already outsourced one or more IT or BPO services are likely to outsource a few more functions, including HR and finance, during 2007. While the primary reason for IT outsourcing is cost reduction, BPO services also help to improve costs as well as processes.

Among the key findings, while about 39 percent of the pharmaceutical companies are planning to outsource their activities to new geographies or business units and about 22 percent are likely to expand their existing outsourcing activities. The firm also reported that none of the companies are planning to reduce their outsourcing activities.

The organization also confirmed that IT is the most common process that is being outsourced by pharma companies. About 72 percent of the pharmaceutical firms are already outsourcing their IT services, while the others are either planning to or have no intention to outsource. In addition, the survey claimed that business process functions, such as call centers, finance, and human resources in the pharma industry are still in the nascent stage and are expected to mature gradually.

In the BPO domain, the most common processes which are outsourced in the pharma domain include call center or CRM services. The report also highlighted the increase in outsourcing activities in clinical trials, R&D of new drug, and developing drugs in the future.

Indian IT-ITeS ‘07 Export Revenues Expected to Increase 32.6% to $31Bn – NASSCOM


According to a study by NASSCOM, an Indian IT and BPO industry trade lobby, export revenues of the Indian IT- ITeS industry for FY 2007 are predicted to increase at a rate of 32.6 percent to reach USD 31.3 billion as compared to USD 23.6 billion (an increase of 33.3 percent) in FY 2006. In addition, the total IT industry, including hardware sales, is predicted to reach about USD 47.8 billion in FY 2007 and USD 100 billion by FY 2010.

The IT industry is forecasted to contribute about 5.4 percent to the GDP of the country in FY 2007 as compared to 4.8 percent in FY 2006. A recent study of India’s IT and BPO sector, conducted by NASSCOM and McKinsey, predicted that the industry to be worth USD 60 billion by 2010. The current NASSCOM estimates are in line with the prediction. NASSCOM also predicts that the software exports will be required to grow at a CAGR of 24.2 percent for the next four years in order to achieve the target.

In addition, NASSCOM expects that the employment level in India’s software and services sector will reach the 1.6 million mark in FY 2007, representing a growth of 26 percent over the previous year. The export services contributing to the growth of the IT industry are expected to account for USD 18.1 billion in the FY 2007. The UK and the US were the largest market for exports in FY 2006. The Americas accounted for about 67 percent, Europe for 25 percent, and rest of the world for 7.7 percent.

Among other key findings, the domestic IT industry is anticipated to grow by 21 percent to generate revenues worth USD 15.9 billion in the fiscal year, with the software and services segment accounting for majority of the growth. The domestic hardware will contribute USD 7.6 billion, while USD 5.6 billion is expected to be attributed by services, followed by USD 1.6 billion from software and USD 1.2 billion by the BPO sector. MNC investments over the next few years are expected to exceed USD 10 billion for FY 2007.