Thursday, May 03, 2007

Infosys Strategy best among Application Outsourcing Companies

The Forrester report citing Infosys as the leading strategist among the several Application Outsourcing providers in North America comes as no surprise. The report states that

"Infosys is among the strongest offshore providers in applications outsourcing (AO). Like its contemporaries, its rapid growth indicates that it is competing effectively in the AO market. Infosys is not always viewed as the most price-competitive of the offshore providers, but its strong reputation for cultural fit among North American customers allows it to compete effectively with multinational corporations (MNCs) and offshore rivals alike."

In fact I wouldn't be surprised if I find other offshore players in the list too. The reasons are multifold. The key one I believe is the kind of marketspace that the offshore players are competing for. With homegrown players like Infosys, Wipro, TCS and Satyam competing in North American and European markets, they are bringing the home advantage of cheap offshoring while evolving new strategies to fit their Global Delivery Model to suit the cultures of the markets they are penetrating. This involves not just trying to offer what the client wants, but grooming entire business units that serve the client to respond to the finer requisites of making the client comfortable as he outsources his work to these new kids on the block. The other not so comforting factor that the Indian players need to constantly allay is the client fear of getting his work outsourced to half way across the globe.

Another brilliant strategic move by the Indian companies is in expanding to the emerging BRIC economies of Brazil, Russia, India and China faster than their North American companies like EDS, IBM, Accenture. They are foraying into these new markets with two purposes in mind. One to capture new clients and two to develop new offshore development centers that they can then plug into their GDM model to serve clients across time zones even more seamlessly.

The Forrester report is a recognition of the huge strides Indian software MNCs are making just 1.5 decades after their appearance on the global stage.

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