It has been a dynamic year in the IT outsourcing industry. The Indian rupee rose to record levels, while the US dollar declined against most major currencies, impacting global IT service providers and customers alike. Merger and acquisition activity went into high gear (with the exception of poor Affiliated Computer Services, which tried - and failed - to go private for the second time).

The consolidation activity was most notable for the inroads Indian providers made into the US market by buying local providers. And Mumbai-based Tata Consultancy Services announced a $1,2bn IT service deal with The Nielsen Company, technically the biggest offshore contract to date, hinting at the increasing maturation of the outsourcing market. Buyers of IT services also began to look beyond India to balance their offshore outsourcing portfolio, from Shanghai to São Paulo and more than a few spots in between.