Cyber Online India Ltd, the internet venture from the publishers of well known IT-related magazine, Dataquest, has entered into a strategic alliance with California-based, neoIT, to build an IT-outsourcing website, which will function as a meeting place for Indian software service providers and global buyers of these services.

neoIT is in the business of providing a virtual online global marketplace for outsourcing IT project and, according to Mr. Avinash Vashistha, managing director, India is fast becoming a leading destination for outsourcing projects.

Mr Pradeep Gupta, managing director and publisher, Cyber Media (India) Ltd said, "There is a growing demand for IT services globally, which will be difficult to service. We see a trend towards greater acceptance of outsourcing , not just basic IT but core development, including mission critical applications. Services like call centres, biotech and test, verification and technical support services will see an exponential increase in outsourcing."

Speaking to domain-B, Mr. Vashistha said, "The outsourcing market is just evolving and people do not even know what this entire outsourcing is all about. The total IT outsourcing market by 2005 is expected to touch $ 400 billion".

According to Mr. E Abraham Mathew, president, CIOL , "The site will have relevant information and services for buyers and providers thus encouraging the growth of IT outsourcing. The site will also drive at portraying India as a hot destination of global majors for outsourcing It projects."

The project, the first of its kind in India, is expected to notch a turnover of $ 50 million in the first year to end in June 2001, which is further projected to rise to $ 800 million by June 2005.The financial relationship between the two companies is based on cross investments ie both of them having made some investment in each other's company and no major change in
equity pattern has taken place.

The site expects to have make a positive contribution to both, buyers as well as providers of services. Whereas service providers will have access to global markets and global IT projects, significant reduction in sales and marketing costs and an online project tracking and collaboration engine. The buyers will experience enhanced speed to the market, access to high-quality Indian service providers, verification of provider quality and online project administration.

Major competition to the website will come from the internal IT departments of companies and two other companies exclusively engaged in similar activity, IT Square and Hello Brain.