The Indian three IT vendors to go Mega – wishful thinking or reality ?
SOURCE: CIOL
DATE: August 13th, 2008
Mohit Soapbox:
www.corrystone.com
The Indian three vendors to become mega vendors and beat IBM, Accenture and EDS by revenue ! Hmmmm this is a great goal to have but are the top three Indian vendors ready for this and have a global model build to do this over the next three years ? Maybe I have a warped view of the world, but what I see and hear every day from my clients ( some of them are the Fortune 100 firms ) I don’t see it – maybe that’s what Gartner gets the big bucks for to see the larger view of the world!
If the current economic condition continues, India’ cost advantage slowly erodes and the industry matures will it still happen ?
Will the top three Indian vendors compete in mega deals sure, they already have started too, will they continue to grow – absolutely they have to survive and feed the beast, have they become good at HR – sure but only in certain geographies, have these vendors created service expertise – yes they have create repeatable quality processes. I don’t believe the strengths mentioned are enough for these three vendors to become mega vendors. If these vendors are still labeled as India vendors and not global suppliers after trying hard to create a global image they are already at a loss! Accenture will have 50,000 people in India by mid 2009 and has done that after a late start to Indian vendors and over the past five years. IBM has one third of their work force in India or plan to. They are still considered global suppliers. IBM offers products and services, Accenture offers consulting which the Indian vendors are trying to build a foot hold into product and services markets for a period of time.
I agree with the author that it has been an impressive run for the Indian firms but then so goes the disclaimer – “Past Performance is No Guarantee of Future Results”
Wishful thinking or a possibility – will love to hear your views.
ARTICLE
Tata Consultancy Services (TCS), Infosys Technologies and Wipro Technologies, collectively referred as ‘India-3′, would emerge as the next generation of IT service mega vendors by 2011, according to Gartner, an IT research and advisory company.
They are likely to replace the present mega vendors – IBM, Accenture, EDS by revenue, a Gartner study said today.
The ‘India-3′ have leveraged their strong success with meeting client needs to achieve record growth levels during a long period of time (30 quarters continuously) and have outperformed the incumbent mega vendors by almost a 3:1 margin in growth rates, according to a press release.
These emerging mega vendors are much smaller than the current mega vendors but will increasingly compete for the same mega deals that had been the exclusive domain of the incumbent mega vendors, it added.
The Gartner study says the emerging mega vendors have leveraged four critical competencies to achieve this status: process excellence; world-class HR practices; providing high quality services at a low cost; the achievement of significant and disproportionate ‘mind share’ compared to their actual size.
“The emerging mega vendors have made dramatic progress in the past few years and have more than doubled their revenue in a four-year period, with the 2007 revenue being 2.6 times the 2004 revenue,” said Partha Iyengar, vice president, distinguished analyst and regional research director, Gartner.
“This level of growth differential has continued even as these vendors have become multi-billion dollar enterprises. To put this in context, there are just 100 service enterprises globally with more than $1 billion in revenue,” he added.
©CyberMedia News
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