Pandemic, travel bans result in higher offshoring for IT firms

Indian IT services providers have reported higher offshoring in the previous financial year as employees worked from home through the Covid-19 pandemic and as a result of travel bans by the United States, their largest market.

The trend was likely to continue going forward, analysts and companies said, since clients have become more open to people working remotely and because of its positive impact on margins.

“Offshoring has been increasing very rapidly and, in revenue terms, it has increased by 5% over the last year,” said Sudhir Singh, chief executive of Coforge.