In 2008, many companies concentrated on keeping their balance books in check and the company afloat, rather than pondering on the best place to outsource.

However, in 2010, all eyes are on Asia, particularly when it comes to IT outsourcing.

According to Dell Services Chairman Jim Champy, “IT outsourcing is set to rise in Asia as the region’s companies begin to modernize business processes and technology systems in a build-out that could last decades. We see, as most providers do, the Asian markets growing faster – clearly more than Europe, and certainly faster than the US,” reports Seekingalpha.com.

It seems that offshore vendors in India and other outsourcing locations have taken the right steps in the right direction with investing in technology. According to a forecasts from the Asian-Oceanian Computing industry and KPMG, predicts that Asia is likely to consume 26.3% of all BPO and IT services in the next decade or so. It is not surprising that heavyweights like Capgemini and Accenture added to their presence in Asia in the IT division in Q4 of 2009. The conclusion is that partners and clients find the abundance of technical skills at cheap prices to be an advantage, say analysts.

Most service providers say that the recovery is coming with smaller proportions of deals but at a higher volume of contracts. Accenture and IBM executives say, “IT outsourcing is set to rise in Asia as the region’s companies begin to modernize business processes and technology systems in a build-out that could last decades. We see, as most providers do, the Asian markets growing faster – clearly more than Europe, and certainly faster than the US.”

Taking the entire revenue stream of Accenture and IBM into account, small deals make up a lot of their business. In order to gain a better foothold in the IT offshoring market, Accenture took over RiskControl, an IT consulting firm. Adding up the pieces, most tech vendors acquired technology consultant firms at a rapid pace last year. Yet others who made similar acquisitions include Affiliated Computer Services and Perot Systems.

Jacob Cherian writes for SourcingLine, a leading provider of directories on ecommerce development firms and mobile application firms.

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