You thought that India’s export focused software services companies were only fond of international assignments but this scenario is changing as these companies are targeting outsourcing deals on their home ground as government departments and banks are increasing their technology spending in order to cut their costs and improve efficiency.



It is expected that by March 2007 the domestic spending on software and back office services would shoot up to $7-7.3 billion and the annual growth is expected to reach anywhere between 20 to 25% in the years to come as retail, finance and healthcare companies are opening their purses to outsourcing.



The reason behind this move is that even though Indian software industry generates around eighty percent of its revenue from US and other western companies they have started to face stiff competition from Data Systems Corp, IBM Corp and Accenture Ltd which are expanding their outsourcing units in India.