India may receive $1 billion outsourcing contracts this year. Companies from retail, banking, telecom and utilities segments, apart from governmental bodies are seeking India as their outsourcing partners to cope up with their higher service demand and to lower their operational costs. Moreover, auto customers are also looking forward to award large contracts to India for managing their business and IT systems this year. New verticals like media and entertainment and healthcare are also driving growth.

One great example of the mega deal is the British Petroleum's $1.5 billion IT contract early this year. The contract was given to Indian vendors TCS, Infosys and Wipro. India's power sector is also in the race to acquire such big outsourcing contracts. U. S. governments and other western markets are intended for mega deals, but Indian companies are not strong contenders.

Generally, Indian companies have big deals in the range of $50-100 million. However, few Indian IT companies currently have few mega outsourcing in the pipeline. Almost $25 billion worth outsourcing contracts were awarded in the fourth quarter of 2009, up 47% over the third quarter, according to latest TPI Index. In the second half of previous year, financial services, manufacturing and telecom were top gainers with sequential growth of 33%, 76% and
24%, respectively.