Backlash helped raise IT service revenues: Study

The backlash against outsourcing in the US and some other countries seems to have helped Indian IT service providers in increasing their revenues by 29 per cent in 2003, according to global research and analysis firm Gartner Inc.

‘‘The rise in revenues was mainly due to the publicity from the backlash, with even small- and mid-size enterprises jumping on to the bandwagon,’’ Gartner India principal analyst Ravindra Datar, quoting a study by the firm, said on Tuesday.

India-based vendors are companies that are headquartered in the country and offer service to clients across the globe. The backlash had resulted in companies becoming aware of the benefits of offshoring as US-based companies increasingly opted for it so that they could bring down costs, he said.

The rise was also driven by vendors, who had started popularising the global delivery model,he said.