CIO.com – IT Outsourcing Survey: Provider Profits Shrink, Growth Slows in India

Established IT outsourcers are getting squeezed at both ends of the competitive spectrum. According to the annual offshore outsourcing survey conducted by Duke University’s Center for International Business Education and Research (CIBER) and PwC, incumbent India-based and U.S. IT service providers are under pressure from outsourcing upstarts in other countries that are stealing market share from them and from existing clients demanding price reductions.

Meanwhile, Indian and American IT outsourcing providers are entering new markets with both low-end, commoditized services—a highly competitive field with few barriers to entry—and higher-end services where market entry is more challenging, say the researchers. It all adds up to a perfect storm for many large IT outsourcers, says Arie Lewin, director of CIBER and professor of strategy and international business.

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Alex Carroll

Managing Member at Lifeline Data Centers

Alex, co-owner, is responsible for all real estate, construction and mission critical facilities: hardened buildings, power systems, cooling systems, fire suppression, and environmentals. Alex also manages relationships with the telecommunications providers and has an extensive background in IT infrastructure support, database administration and software design and development. Alex architected Lifeline’s proprietary GRCA system and is hands-on every day in the data center.

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