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IT biggies eyeing global delivery models: Forrester
KAVITA NAIR / Mumbai
In a bid to achieve full scale ‘global delivery
models’, IT firms appear to be rationalising future corporate strategies.
Three US vendors—IBM, EDS and Accenture —and the big three Indian
IT services companies—Infosys, Tata Consultancy Services and Wipro—are
working on strategies to achieve this goal, according to Forrester Research
Group director, John C McCarthy.
Interestingly, while the goal is the same for all these
IT biggies, the reasons why they are trying to adopt the global delivery model
are different. While the US-based companies are ramping up access to attain
low-cost operations and high quality-process-based labour, the domestic players
underscore the need to focus more around relationships, build up vertical expertise
and provide innovative solutions to clients.
This is the result of planned research on the big US
IT service firms versus top Indian IT players. IBM, EDS and Accenture are making
moves to bolster their offshore capabilities while at the same time TCS, Infosys
and Wipro have been trying to go upmarket. This report analyses all six players
and their ability to deliver offshore services to US and European customers.
For the domestic vendors, process, low-cost, project-based
work has been their strength. On the other hand, IBM, EDS and Accenture display
more of a relationship-centric, consulting vertical expertise.
Said McCarthy: “Global delivery model means having
multiple locations that coordinate to deliver low-cost solutions to customers
using consistent processes. While there may have been some degree of sophistication
for some of the customers, it must be remembered that the market is maturing.
The vendors are maturing and so are the customers.” However, it may be
noted that this transition is still at a nascent stage and the companies will
require at least two to three years before they attain a ‘fully developed
sophisticated global delivery model’, he said.
McCarthy added that just as US vendors are hiring in
India, Indian vendors are doing the same in the US. Furthermore, Indian vendors
will have to step up on building vertical domain expertise and US vendors will
have to step up their offshore presence
—The Financial Express
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