Seems, smaller outsourcing companies in India are increasingly offering its services to the global IT outsourcing companies, along with big-ticket players like IBM, Accenture and Capgemini.
It is found, more and more Indian mid-tier firms like MindTree, Hexaware, Omnitech, iGate, Tech Mahindra etc. are participating in global bids. These firms are competing with big IT players on pricing and domain expertise. This is happening because; global customers have now started breaking up large deals into smaller components.
In presence of sluggish global economy and escalating cost pressures, global IT customers do not want to put all their eggs in one basket. For instance, a big deal that costs almost $500-million, is often broken into multiple pieces and given to three or four mid-tier vendors.
According to Sid Pai, partner in research and consulting firm Information Services Group, the landscape has changed and the billion dollar deals are things of the past.
He further added, where there were some 10 to 12 bidders for deal some time ago, there are as many as 45 bidders for the same deal today.
Besides India, the scenario is also changing in other parts of the world. Smaller companies like T-Systems (Germany), XChanging (US), Atos Origin and Steria (France), the IT arms of Fujitsu and Hitachi (Japan), the IT divisions of Samsung and LG (South Korea ), and Neusoft and VanceInfo Technologies (China) are also getting significant orders from other biggies of IT industry.
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