The Indian IT outsourcing industry has witnessed a surge over the last few months, with companies trying to cut costs to remain globally competitive. The last few months have witnessed an increase in the number of outsourcing clients; the Indian IT hubs have witnessed a growth in IT requirements. The demand has picked up from companies in the US and Europe which preferred local vendors and are now shifting their requirements to Indian outsourcing companies such as Wipro, Cognizant, Mindtree, Syntel, and WNS. According to Milan Sheth, partner at Ernst & Young, majority of the companies that outsource IT services to India are mid-scale companies with revenues less than USD 5 billion. These companies expect Indian IT service providers to help them offer a larger services portfolio at an affordable cost. These companies enter into a 3–5 year outsourcing contract for maintenance work and application development. The competitive pricing makes the mid-sized IT and ITES companies the major beneficiaries. According to Keshav Murugesh, the CEO of Syntel, the projects are initiated on a small scale and are gradually extended. The duration for a maintenance projects is typically 2–3 years with a contract value of USD 3–5 million, whereas development projects run for 6–12 months and are valued at USD 1–2 million. The KPOs witness a longer relationship (5–7 years); the contract value depends on the number of processes and transaction volumes.