Friday 27th March, 2015

Top software service exporters are facing increasing pressure to slash prices from key clients such as American Express and Home Depot as their contracts come up for renewal.

Rates have fallen by double digits as the big IT providers such as Infosys and Wipro compete for market share. Being able to retain the kind of outsourcing contracts that bring in at least $100 million annually is crucial.

The change appears to be due in part to the shift in customer attitude and a greater awareness of the wider marketplace and a potential growth in the use of robotics.

With the market starting to investigate robotic use, some of the larger IT outsourcing companies are looking to move away from third-party development, and bring it in-house.

The theory being, this should give the companies better leverage with the profit margin.