Offshore outsourcing sector “neutral”

12/22/05 - Prudential Financial

NEW YORK, December 22 (newratings.com) – Analyst Bryan C Keane of Prudential Financial issues a "neutral" rating on the offshore outsourcing sector.

In a research note published this morning, the analyst mentions that offshore outsourcing trends are still in the early stages. The analyst believes that the offshore outsourcing sector would grow at 25% annually over the forthcoming several years. According to leading consulting firm neoIT, only 5%-10% of the IT budgets are meant for outsourcing at present, while there is potential for 25%-30%, the analyst says. According to Prudential Financial, ERP implementations, systems integration projects and BPO-related works are expected to gain offshore outsourcing momentum going forward.