Bangalore: Offshoring market in India is rising considerably. It continues growing its market share in global sourcing market. At present it is enjoying 70 percent of the total global market. Chief Information Officers (CIOs) are not reacting fully to the changed scenario as they look at deriving business value from their IT deployments rather than just cost savings, says Zinnov Management Consulting study. Another possible reason might be the failure of IT vendors to provide CIOs with technology requirement, says Chandramouli C.S., Director, Globalization Advisory at Zinnov. India's offshoring market is estimated to be $3.4 billion in 2010, growing at the Compound Annual Growth Rate (CAGR) of 21 percent from 2003. Compared to 22 IT service captives during 2006-2007, there were only 5 new IT service captive that opened in 2008-2009 due to the recession. It can regain its previous figures in another 24 months as the recession is over, provided vendors will start exploring opportunity areas for captive setup in India. Captives contribute to 22 percent of export revenue, and one percent of India's total GDP, says the study. "The IT services captives in India have evolved over the years and surely moved up the value chain. With the total revenue of $3.2 billion coming from them, testing services, application development and maintenance (ADM) are the prime focus areas for these centres," says Chandramouli. According to him, the IT service captives are increasingly using their India delivery base to offer services beyond application development such as testing, infrastructure management and consulting services. Report presented by Zinnov titled 'TT Services Captive Landscape in India- Way Forward' points out the major reasons for IT customers to plan at setting up their own offshoring centres in India. They include local tech firms lower maturity level in system integration and IT consulting, lack of agility and facility, focus on costs and margins, high attrition and failure to keep pace with customer expectations. These factors impact business value and companies start spending little higher than required on these counts, says Chandramouli. "India has already showcased success in captive R&D space and the same can be replicated for IT captives. There is a paradigm shift in the perceptions about captives, which were set up for cost efficiency and access to talent initially, which now are seen as attributes for business process innovation and access to emerging/new markets," marks study.