Information technology (IT) consulting market, worth $104 billion will witness increased offshoring, says a report by Everest Research Institute and Bernstein Research.

The shortage of IT talent in developed countries and the growingsophistication of offshore IT labour markets are supporting this growth in the IT consulting market, states the report based on market analysis and survey of 15 IT consulting companies.

The consulting market has shifted its value proposition to meet growing needs of vertical industry buyers seeking solutions for business changes, regulatory issues, access to new technologies, and heightened needs for specialised talent.

“As a result of globalisation, the industry is now looking at more and more specific IT consulting tasks that can be offshored. Suppliers have engaged IT talent in low-cost geographies like India, Eastern Europe and South/Latin America, to provide activities such as ERP implementation support, clearly indicating an increase in offshorability of all IT consulting activities except such few highly interactive ones that necessitate an onsite presence,” says Gaurav Gupta, country head & principal, Everest Group.

Rod Bourgeois, senior analyst of Bernstein Research, argues: “In the past, killer software applications and the economic cycle were the primary drivers of IT consulting demand, but our research has emphasised that today’s consulting market is characterised by lessened economic sensitivity and supported by a diverse set of demand drivers that vary substantially by industry vertical.”