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Indian outsourcers see a turnaround ahead

John Ribeiro | Jan. 14, 2010
They will have to build new expertise and expand globally, say analysts

As spending on IT increases, there will be more opportunities for Indian outsourcing companies, Chakraborti said.

India will be a preferred location as customers in the U.S. and Europe look to cut costs, said Apte. But Indian companies will have to be willing to explore a variety of engagement and pricing models with the customer, he added.

To take advantage of upcoming opportunities, Indian companies will also have to invest in a variety of new technologies like cloud computing and green computing, said Siddharth Pai, a partner at outsourcing consultancy firm Technology Partners International (TPI). Customers will expect their providers to be able to help them make the transition to the new technologies, he added.

The cloud computing trend will also determine how outsourcers will deliver services to customers, throwing up new business models, Pai said.

Indian outsourcers will also have to start looking like global companies with the ability to service their clients from multiple locations, according to Pai.

These companies will also face increasing competition from multinational services companies like IBM and Accenture that have set up operations in India to tap low-cost talent in the country, Pai added. Customers planning to outsource to India will evaluate both Indian companies as well as multinational companies with operations in India, he added.

 

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