Indian information technology (IT) outsourcing players may be in for a big boost as deals worth $23.4 billion are up for renewal in 2019-20, according to data shared by Everest Group exclusively to CNBC-TV18.

“Deals worth $37.2 billion are coming up for renewal in 2019. However, the caveat for 2019 end of term deals is that the renewal activity for most of these deals is already underway (at various stages of sourcing),” explains Abhishek Singh, vice president, Everest Group.

“Hence, a better lens is to also include in the mix 2020 end-of-term deals, for which renewal activity is about to kick off (or at a very early stage of sourcing). Deals worth $43.4 billion are coming up for renewal in 2020,” said Singh.

Everest Group further reveals the top 3 industries the deal renewals are coming from. The deal renewals are coming from the government/federal sector, specifically in US and UK, are 50 percent of the total deal renewals, 20 percent from banking and financial services and 10 percent from the technology and communication sector.

From a geographical perspective, the top 3 geographies that contribute to the deal renewals include US with 38 percent contribution, UK with a 25 percent contribution and India with an 8 percent contribution.

While these contracts are varied and across the board, Everest Group shared an exclusive data base of some of the contracts that are up for renewal soon.

These include contracts worth $4 billion from Zurich Insurance Group for multiple towers of infrastructure services and application development & maintenance, $2 billion worth of contracts from Bharti Airtel for application development, maintenance and infrastructure, $2 billion contract for BPO services from Saudi Telecom, $1 billion contract from Sanofi for BPO services and another $1 billion for BPO services from global life insurance major Resolution Life Group and finally $500 million contract for BPO services from Swiss Re.

“Service providers, who are incumbents in the above deals include IBM, DXC, Accenture, Covance, Aegis, Capita, among others,” Singh added.

Many of these deals are either already in the discussion period of the bidding or the same will be starting soon. CNBC-TV18 independently reached out to Indian IT players to understand if they would be bidding for the same.

While no IT player formally wanted to reveal their bidding strategy, sources within companies like TCS, Infosys, HCL Tech, Wipro and Tech Mahindra said they would all be interested in bidding once the process begins.

First Published:Jan 4, 2019 3:45 PM IST