Hard Data On Opportunities And Threats For India's Outsourcers - InformationWeek
IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
3/11/2008
02:35 PM
Chris Murphy
Chris Murphy
Commentary
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%
RELATED EVENTS
Using Threat Data to Improve Your Cyber Defense
Aug 10, 2017
Attend this webinar to learn how you can determine which threats pose the greatest danger to your ...Read More>>

Hard Data On Opportunities And Threats For India's Outsourcers

Our just-published original research gives a glimpse into clients' satisfaction with their India-based IT outsourcers, and it's a key part of an in-depth package on "What's Next For India." Here are just a few data points that note strengths, weaknesses, opportunities, and threats for India's IT outsourcers.

Our just-published original research gives a glimpse into clients' satisfaction with their India-based IT outsourcers, and it's a key part of an in-depth package on "What's Next For India." Here are just a few data points that note strengths, weaknesses, opportunities, and threats for India's IT outsourcers.The findings are based on 430 IT pros whose companies are working with India-based IT service providers.

Strength: 31% of IT pros say "Understanding our business and industry" has significantly improved the last two years among India-based IT outsourcers.

This is the most-often cited area of improvement, and it's critical for outsourcers looking to move up the value chain. Rajesh Rao, head of Infosys' SAP practice, puts it this way in our "What's Next" package:

Gone are the days when we could say our primary attribute was our global delivery model and our knowledge of SAP. Those things won't even get us invited.

Weakness: 41% of companies say retention of key people on their projects has declined significantly over the past two years.

This the most-cited concern, and it's a part of any discussion of outsourcing. India's talent pool is the industry's biggest concern (though the dollar-rupee exchange rate's high on the list), but also it's biggest selling point. What other country, asks Infosys CEO S. Gopalakrishnan, can ramp up the tens of thousands of highly technical staffers who'll be needed to meet the growing market for remote infrastructure management?

Opportunity: 43% of companies using Indian IT services companies will increase their use over the next two years (26% will decrease, 31% the same)

In related data we'll publish in the coming weeks, we found that, of companies planning to cut back IT spending because of economic conditions, about a fourth expect new outsourcing contracts to be cut. Other categories such as hiring and application development face much bigger hits.

Threat: 45% are "less of a believer" in the value of working with Indian IT service companies than two years ago. (31% more of a believer, the rest about the same.)

Interest in offshore outsourcing remains intense -- seven out of 10 say they got the kind of cost savings that would prompt them to outsource again. But the data suggest India's IT outsourcers face obstacles as they move up the value chain. (Click here for more data, including charts suitable for your PowerPoints.)

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll