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Indian Outsourcing Firms Put Pressure on Big Six

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Recent reports from analyst firms specializing in outsourcing have stressed several key trends. According to these reports, increasingly sophisticated buyers are opting for smaller, single-process deals that favor specialists rather than outsourcing generalists.

Big firms, including GM and Kimberly-Clark, have forged the way, insisting they get better service for less money with these types of deals. Smaller companies have paid heed, and are beginning to follow in their footsteps.

Perhaps the biggest winners with these types of outsourcing deals, however, are Indian providers like Wipro, Tata and Infosys.

The global market share of such firms rose to 7 percent in 2006, up from just 0.5 percent in 2002. Their gains came at the expense of Accenture, IBM, HP, ACS, CSC and EDS. The market share of the so-called "Big Six" fell to 46 percent in 2006, from 71 percent in 2002.

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