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AUSTRALIA's technology outsourcing market will swell almost 5 per cent to $10.9 billion this year, market researcher Gartner has reported.
But vendors and customers alike will struggle with skills shortages and local outsourcing market growth will be substantially slower than the 8.1 per cent increase tipped for IT outsourcing worldwide.
Similarly, India is set to face increased competition as a low-cost outsourcing destination as staff attrition and rising salaries erode the country's competitive advantage.
"Global companies continue to accelerate their demands for a presence in countries other than India, and providers are seeking to expand their geographic footprint of delivery centres accordingly," Gartner research vice president Ian Marriott said.
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