Indian offshorers muscle in on turf of big outsourcers

Stan Beer
Friday, 14 November 2008 07:44

IT Industry - Strategy

According to IDC's Aprajita Sharma, there are two major factors that are giving the Indian service providers the edge and they have nothing to do with the commonly held perception of lower cost.

"It's not really been a price game," says Ms Sharma.

"After having spoken to many of the companies out there, they've never actually said that they've engaged an Indian offshore provider because they're low cost.

"The areas that they've highlighted where the Indian players have been better at is a strong project methodology and more integrated onshore anf offshore capability.

"Some of these companies have said that when tier-1 companies go to them it's like because they've acquired some offshore capability in India, it seems like that there are two differentiated teams in terms of culture and positioning.

"Also in terms of delivery capability, it's very distinct - it's not presenting one face to the client."

Aside from better offshore and onshore integration, Ms Sharma says the evidence is showing that the Indian offshorers have better developed project methodologies.

"In terms of timeliness of delivery of projects, having delivered some of the large offshore projects in the US and the European markets, they've developed more experience over the last 15 years or so compared to the players who have only quite recently ramped up their offshore activity."