This includes UK's publicly-funded healthcare system National Health Service's (NHS) $3.7 billion IT outsourcing contract that involves application maintenance and development (ADM) and systems integration (SI). US-based IT major CSC is the current primary vendor for the contract.
Detroit-based General Motors, whose brands include Chevrolet and Cadillac, had awarded a $2-billion IT outsourcing contact in 2011 for ADM, SI and infrastructure management that will come up for renewal in July this year.
Hansa Iyengar, IT analyst in Ovum, said that many large deals coming up for renewal have a sizeable infrastructure component to them and most of these involve very large, complex legacy systems that need to be modernized. "We have anecdotal evidence of Western incumbents walking out of the deals as they perceive them to be too risky for the given contract values and these are some of the deals that the Indian vendors are picking up," she said.
Last year Cognizant bagged a $2.7 billion deal from HealthNet and Wipro won a $1.2 billion IT outsourcing deal from Canadian logistics and utilities provider Atco.
Such mega contracts are rarely awarded to a single entity any more; clients prefer to take a multi-supplier approach. Ian Brown, senior analyst-IT services in Ovum, said one consistent factor in all of the high-end deals is that they are primarily IT infrastructure outsourcing deals - with the exception of Wipro/Atco, they are either single or twin infrastructure towers (data centre and end-user). "But the infrastructure towers, especially data centre, is very complex with a lot of expensive legacy assets, much of which needs to be written down and which partly accounts for the very high contract values. HCL and Wipro already play in this high-end infrastructure market, while TCS, Infosys, and Cognizant are all investing in their infrastructure practices," he said.
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