India to gain mainly from BPO: Gartner
Mumbai: The research firm Gartner has said that vendor consolidation and accelerated job losses will last through 2005, with as many as 50 per cent of technology suppliers to be eliminated from the landscape. This is one of Gartner's top 10 predictions for Asia-Pacific in 2004, which sums up to a bright long-term outlook for IT though it will also result in pain for many.

For the survivors, Gartner has some good news. The days of 'customer is king' will shortly end as market forces crush the weaker vendors, leaving the IT sector dominated by a few large vendors. India continues to be a key beneficiary with global delivery outsourcing becoming mainstream and an 'irreversible mega-trend,' in both IT services and, increasingly, business process outsourcing (BPO), said Gartner. But this growth through BPO will be accompanied by increasing consolidation among the Indian vendors, an increase in the number of failures among smaller tier-three vendors that cannot articulate a compelling value proposition, as well as an increase in mergers and acquisitions activity in India.
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