EU signs 1/3 contracts

European companies signed 36% of all outsourcing deals during the first quarter of 2008, says ZDNet.co.uk.

This is according to Everest Research, that adds most contracts were for the outsourcing of IT and business processes.

The Market Vista report showed that the credit crunch and recession were not having a significant impact on the offshoring industry. Financial services dominated the offshoring market, accounting for more than 14% of transactions.

Inspired by the success of Bangalore on the IT front, Dalian in north-east China has set for itself an ambitious target of becoming world's top IT centre within a decade and stand in the same league as India's 'Silicon Valley', says Business Standard.

A scenic coastal city set among green hills, it has already attracted a large number of international and local corporations to set up regional bases for IT outsourcing and business process outsourcing services.

Among these are 34 Fortune 500 companies. "By 2017 or 2018 we hope to be a peer with Silicon Valley (of America) and Bangalore," said Dalian Mayor Xia Deren.

Citigroup's India-based business process outsourcing arm, Citigroup Global Services, and its technology and infrastructure outsourcing arm, Citos, are up for sale, the Economic Times has reported, citing unnamed sources, according to Market Watch.

Citigroup could be close to finalising the deal with multinational technology vendor IBM Global Services, which is the lead contender for the assets, the report said.

French information technology company Capgemini and a large Indian IT services firm, reported to be Tata Consultancy Services, are the other two contenders, it said.