4/30/2007

China Makes List For World's Best Outsourcing Service Providers

April 30, 2007 -- IBM ranked number one on the list of the world's top outsourcing service providers, according the International Association of Outsourcing Professionals (IAOP). In their second annual Global Outsourcing 100 list, Neusoft of Shenyang, a Chinese firm, was among the leading 25 providers for the first time.

Indian companies on the list include Wipro, Infosys and Tech Mahindra. Their combined revenues hit $55 billion.

Capgemini, an IT outsourcing provider based in Paris, France, was ranked number two, rising three spots from last year, and other high ranking companies included Hewlett-Packard, France's Sodexho Alliance and Accenture.

Revenue among the best companies grew nearly 20% in 2006 to more than $170 billion. Companies on the list had on average $1 billion in annual sales. Employment by these firms was up 13% from the prior year to an average work force of 13,688. Productivity also rose to $83,000 per employee, according to the report.

Companies on the Rising Stars list with revenues of less than $60 million come from around the world and continue to be led by India and China. U.S.-based Summit HR Worldwide was ranked in the top spot in that section. Six firms that were rated Rising Stars last year made it to the Leaders category in this year's ranking. These companies include ExlService, HiSoft, KPIT Cummins, Concur Technologies, EPAM Systems and MindTree Consulting.

Newcomers on the list are targeting various niches -- from human resource management to engineering and design services -- reflecting that the industry has morphed into areas beyond contract manufacturing, information technology and back office operations.

"Outsourcing has grown beyond a way to cut costs to being used as an effective business strategy by all major companies in all industries to find the very best innovation and talent, wherever it is located in the world, to better serve their customers," said Michael Corbett, IAOP chairman. "Many of the top leaders, as well as rising stars, were recognized for their innovation."

Companies recognized for innovation included: Mastek, EDS, HCL Technologies, Cartus, Stream, Hexaware and Syntel, Summit HR Worldwide, Datrose, Objectiva Software Solutions, Intetics Co., Smart Sourcing and Sento.

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