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Most
analysts saw the slowdown and ensuing recession as the harbinger
of bad news for India’s pre-dominantly outsourcing dependent
IT industry. However, contrary to popular expectations, things
seem to be looking up for Indian companies. One such company
is Syntel India, an application outsourcing provider, which
has seen an upswing in its operations in the last six months.
Says Rajiv Tandon, senior vice president, Syntel, “We
have seen a strong recovery with almost every global company
outsourcing their needs to countries like India. The potential
is undoubtedly huge with over 80 percent of the market still
untapped. With our expertise, we are confident that we will
be among the top three offshore providers globally within
the next three years.”
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Tandon
says with every company looking to cut costs, offshore
service providers in India stand to benefit |
Traditionally
known for its cost advantage, India has been the main beneficiary
of global majors outsourcing their requirements in an effort
to cut costs, and Syntel, with the advantage of being one
of the early movers in this space has an extra edge over its
rivals.
Envisaging a huge demand in this space, Syntel moved out of
traditional businesses such as body shopping. The gamble paid
off with the company now realising 87 percent of its revenues
through outsourcing activities in verticals such as finance,
automotive, retail and health care. Adds Tandon, “We
have been witnessing higher growth rates in our focused verticals
than the industry average.” The company has made strong
inroads into the automotive segment with an impressive clientele
like Ford and DaimlerChrysler. Insurance is another big growth
area, which has a huge potential of outsourcing, and Syntel
is moving aggressively to capture a huge chunk of the pie.
Besides the four focused verticals, the company also has a
significant presence in the logistics, healthcare and retail
segment.
Syntel is also looking at markets like China, as potential
development centres. With a 40-50 percent cost difference
between the two, Tandon believes the scope for growth in this
area is huge.
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