For most of the clients, year 2006 has already started with the IT outsourcing budgets that frozen around the time and from that it can see clients hope to continue to do better performance. At least the current quarter for the Offshore Outsourcing and the next quarter look good from the client's point of view major of the Indian IT organizations points out. Now, clients are showing willingness for partnership with big IT Outsourcing Organizations in and trying to grow their existing relationships with offshore vendors. So year 2004-05 could best be described as the year of Indian software and outsourcing services. Offshore Outsourcing and information technology firms reported growth rates more than fifty per cent. One reason is that top Indian Offshoring and Software Development companies that have huge operations flourished in 2004 at was their scale of operations.

One can say that managing growth is very difficult but that might be in very good position to be in. When one becomes huge in the scale and size of operations, from a client point of view it minimizes risk that they bear. For example we could say that Infosys has doubled its capacity and size during last three years from near about 15,000 IT-employees to about 35,000. This is the case with organization such as Wipro that has last 2 years added more than 17,000 IT-employees to its work force.

This apart, Offshore Outsourcing in high-end segment is expected to gain ground. Indian IT company announced that it had won a contract from Italian car maker Ferrari for embedded work, not a long time ago. So apart from building on what they achieved in 2004, IT Outsourcing firms will continue to cash in on offshore business from. More and more out of the Fortune thousand organizations will offshoring in year 2006. Offshore Outsourcing Industry has become main-stream and it will gain fringe players and momentum that have sat to climb the bandwagon purely due to peer pressure.

Out of Fortune 1,000 organizations, most of these companies have already done Offshore Outsourcing services, only minority of them has not participated but now they are ready with the justification of offshore to. Industries such as pharmaceuticals and healthcare would also start outsourcing work from as these industries have now understood the value of Offshore Outsourcing to for IT services.