According to a recent report by technology research firm Information Services Group, the annual contract value of global outsourcing contracts fell 3% over the year last year to $21.2 billion. During the final quarter of 2012, commercial outsourcing contracts with annual contract values of more than $5 million fell 27% over the year to $4.8 billion. By scope of work, annual contract values of business process outsourcing (BPO) contracts grew 14% over the year to $7.9 billion. The increase was dampened by an 11% reduction in the contract values of IT outsourcing projects to $13.3 billion.
According to the National Association of Software and Services Companies (NASSCOM), the Indian IT industry is expected to grow 11%-14% over the year during the current year after surpassing the $100 billion mark last year. Recent results announcement by leading IT players in India saw more mixed results. Players are looking at global expansion of operations and talent pool while focusing on product growth to capture the high-growth market.
Virtual Information and Communications (VirtualInfoCom), based in Kolkata, India, provides its customers with services like game development, simulation, Windows Phone applications, mobile applications, iPhone applications, Android games, mobile gaming and ad promotion, ad commercials and short films, corporate films, animated movies, music videos, visual and special effects, software development, Web page designing, and management solution tools. In short, everything around its core competency of animation and graphics.
Sramana Mitra: Hi, Arijit. Let’s start with your background. >>>
Founded in 2009, KMS Technology partners with clients that range from startups to Fortune 500 companies to provide software development services such as research and development, product innovation and management, application management, testing, support, professional services, and staff augmentation.
Sramana Mitra: Hi, Josh. Let’s start with some background about you and KMS Technology.
Josh Lieberman: I’ll start with the company that we had prior KMS because I think a lot of our history leads into how we formed KMS to be what it is today. Trade relations with Vietnam opened up in 2005. My partner, Vu Lam, is in Vietnam as we speak. He and I are partners in KMS. Vu started a company with a couple of friends called Paragon Solutions. Their mission with Paragon Solutions was to develop the outsourcing model in Vietnam, not just India. So, Vu moved to Vietnam, started an offshore development center in conjunction with the university over there. He and his friends bootstrapped Paragon Solutions. >>>
The founders of Elance, Freelancer.com, and others perhaps never envisioned that one day smart, industrious, and innovative contractors would use the freelance work platforms to build million-dollar businesses. Srish Agrawal, CEO of A1 Future Technologies created accounts on Elance and Scriptlance, which was acquired by Freelancer.com in July 2012, and before long, he found himself at the helm of a thriving Web development business.
Sramana Mitra: Hi, Srish. Let’s start with your story. Where are you from? Where did you grow up, and what kind of environment did you start working in? >>>
Two former Citibank executives came up with the idea for MPhasiS in 1999. A merger between U.S.-based IT consulting company MphasiS Corporation and the Indian IT services company BFL Software Limited in June 2000 produced MPhasiS Limited, a global company that provides business process outsourcing services as well as applications and infrastructure services. One of the largest IT services companies in India, MPhasiS boasts revenue in excess of $1 billion.
Sramana Mitra: Hi, Gopi, let’s start with an introduction of you and your company to set a little context. >>>
According to Everest Group’s Market Vista: Q1 2012, during the first quarter, the global outsourcing and offshoring market transaction volumes remained relatively flat with 441 outsourcing deals compared with 433 transactions signed a quarter ago. First quarter global transaction volumes increased 11% sequentially to an all-commodity volume of $3 billion, with growth being driven from business process outsourcing transactions, which reported an increase of 9% over the quarter. Analysts believe that the global outsourcing services market will remain steady in terms of transaction volumes until economic conditions stabilize.
When people think of outsourcing, things like customer service and Web development often come to mind. Group FMG is an international marketing solutions company with business offices in New York, London, Bangalore and Chennai. Group FMG helps clients develop brand strategies, builds e-commerce solutions and produces content that attracts customers and facilitates business growth. The company has worked with well-known brands like Microsoft, Staples, Fortnum & Mason, Sears, Kenneth Cole, and the New York Philharmonic among others.
Sramana Mitra: Hi David. Let’s start with some background about you and your company. >>>