Mumbai: India’s IT outsourcing firms are betting on US President Barack Obama’s healthcare reform to rev up revenue growth which is slowing as the $146 billion industry’s key financial and manufacturing clients spend less on software services.
The US is the biggest market for the outsourcing industry, which is dominated by TCS, Infosys and Wipro. It also accounts for 90 per cent of all healthcare related contracts, which researchers Everest Group expect to more than double to about $68 billion in 2020 from nearly $31 billion two years ago, largely due to “Obamacare”. “In terms of technology maturity, sectors like manufacturing, banking are more mature than healthcare,” said Rajib Bhattacharya, head of a healthcare software unit set up by Tech Mahindra.
Average revenue growth for India's top five outsourcing firms by market value is likely to slow to 13.3 per cent yoy in the quarter that ended June 30 from 18.6 percent growth in the same year-ago period.
