What drives the demand for IT consulting, according to the study, is the shortage of IT talent in developed countries, as well as the growing sophistication of IT labour markets abroad. As a result, the offshorability of most IT consulting services to low-cost territories such as India, Eastern Europe and South America has risen.
Gaurav Gupta, country head and principal at the Everest Group, said: “As a result of globalisation, the industry is now looking at more and more specific IT consulting tasks that can be offshored.”
For the study, titled “Reading the Alphabet Soup: SI, PI, ERP, etc – The Changing Drivers of IT Consulting,” Everest and Bernstein did a market analysis and conducted a survey of 15 IT consulting firms, including Accenture, Atos Origin, CSC, Cognizant, EDS, Sapient, Tata Consultancy Services (TCS), and Wipro.
The IT consulting market has an estimated net worth of $104 billion and appears poised to grow thanks to the current offshoring trend, according to a new report from Everest Research Institute and Bernstein Research.