India Leads Asia in IT Outsourcing

India is leading Asia in the IT outsourcing market, according to new research published this week.

Analysts at Springboard Research revealed this week that the Asia-Pacific IT services market is set to grow by a five-year annual rate of 10.5 per cent, to reach $55.9 billion (£28 billion) by 2011.

Excluding Japan, India will lead this market, which is the fastest growing IT services industry in the world, valued at $37.5 billion (£18.75 billion) in 2007.

Phil Hassey, vice-president of services research at Springboard Research, said: “The markets of interest [in the region] are not just the top four – China, India, Australia and Korea – but [also] emerging ones like Indonesia and Vietnam, which will register significant growth going forward.”

According to the report, application hosting – with an annual growth rate of 19.5 per cent between 2007 and 2011 – would register as the fastest growing sector of this market.

Enterprise IT outsourcing, which was the largest IT services market in Asia-Pacific during 2007, is expected to lag behind due to the reluctance of Chinese firms to outsource business.