Gartner Says Global Delivery of IT Services is an Irreversible Trend; Gartner Vendor Ratings and Qualitative Analyses Looks at 18 Offshore ESPs.

Business Editors/High-Tech Writers

STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 1, 2003

Enterprise buyers are demanding that IT service providers offer a range of global sourcing alternatives, including on-site, domestic, nearshore (services delivered from an adjacent or nearby country) and offshore capabilities. Nearshore and offshore capabilities are absolute necessities for IT services providers to even compete, according to Gartner, Inc. (NYSE: IT and ITB).

"Despite economic and geopolitical uncertainties, IT service providers with resources in India continue to be the dominant choice for U.S. enterprise buyers with estimates that exceeded $10 billion of IT services delivered in 2002," said Frances Karamouzis, research director for Gartner.

"There are thousands of external service providers (ESPs) around the globe responding to these demands by providing some part of their offerings through a lower-cost labor market, which makes the evaluation and selection process for enterprises more complex," Karamouzis said.

To gain a better understanding on the leading offshore ESPs, Gartner's offshore research community has published Gartner Vendor Ratings on the larger offshore ESPs and also qualitative analysis on small/midtier offshore ESPs.

The offshore ESPs headquartered in India, which were analyzed as part of the vendor ratings process, included Tata Consultancy Services (TCS), Infosys, Wipro, Satyam, HCL Technologies and Patni.

Additional vendor ratings included ESPs headquartered in the United States with significant revenue delivered through Indian resources. Those included Covansys, Cognizant and Syntel.

Lastly, small/midtier ESPs analyzed include Birlasoft, HPS America, Mastek, i-flex, Mphasis BFL, Hexaware Technologies, iGATE, Intelligroup and L&T Infotech.

Additional information on the Gartner Vendor Ratings is available in the Gartner Special Report "Global Sourcing Options from India." This report provides detailed analysis on each of these leading ESPs headquartered in India, as well as ESPs headquartered in the United States, that have significant revenue delivered through Indian resources. The report is available on Gartner's Web site at http://www.gartner.com/research/asset_46843.jsp.

Gartner Vendor Ratings provide insight, analysis and advice on key indicators of a vendor's overall status and the status of initiatives, such as strategy, organization, products, technology, marketing, financials and support. Additional information about Gartner's Vendor Ratings is available at http://www.gartner.com/1_researchanalysis/vendor_rating/vr_main.html.

To keep up to date on the latest outsourcing issues, please visit Gartner's Outsourcing Web site at www.gartner.com/outsourcing. This Web site offers content, tools, products and services that are needed to make effective, strategic decisions around outsourcing. When browsing the site, users receive a breakdown of key outsourcing issues, industry trends and best practices for making smarter business decisions. This area also includes relevant research and links to Consulting and Measurement services. Custom Alerts are also available, enabling users to stay current on new research focused on their outsourcing agendas. Free copies of the Gartner outsourcing handbook, Outsourcing: The Real Deal, can also be ordered on the Outsourcing Web site.

About Gartner

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients leverage technology to achieve business success. Gartner's businesses are Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has more than 3,800 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. Revenue for calendar year 2002 totaled $888 million. For more information, visit www.gartner.com.