INDIAN IT
FIRMS GENERATE ABOUT 27 PER CENT OF THEIR UK REVENUES FROM THE FINANCIAL
SERVICES DOMAIN.
Indian
technology firms seem to have cracked the code for success in United Kingdom’s
commercial outsourcing space. This comes at the expense of American and
pan-European vendors. Indian IT majors have seen their collective market share
for both IT and BPO deals grow by over 6 times in less than a decade, a new
report by the NASDAQ-listed Information Services Group has suggested.
“In the
commercial world in particular, substantial growth is seen in the market share
of India-based providers (up from 4 per cent in 2002-2005 to 25 per cent since
2010) but this has come at the expense of other foreign providers, particularly
those based in the US and Europe, rather than domestic providers. United
Kingdom’s enterprise IT services market was worth USD 38.5 billion in 2013.
Indian IT firms generate about 27 per cent of their UK revenues from the
financial services domain.
As
competition within Europe rises and costs spiral, UK-based companies are
increasingly viewing outsourcing as a valid means of cost reduction. While
European firms were busy restructuring, offshore firms were outperforming the
European firms in all key financial metrics by a factor of 6. Additionally, they
used their financial strength to accelerate the pace of change.
Indianproviders, on the other hand, have wisely built on their cost and labor
arbitrage advantage to get into higher value services. “There was a time when
some of our larger UK-based clients would look at Indian firms for smaller projects
and the American vendors for big ticket deals. But now, Indian companies are
competing head-to-head on all levels with their global counterparts across
applications, consulting, infrastructure and other technology areas.
However,
Indian firms are yet to make significant inroads into UK’s public sector
outsourcing market, which continues to be dominated by domestic vendors.
Analysts
see Indian providers giving tough competition to their American counterparts
not only in UK but also rest of Europe and Asia.
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