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Scenario Building - Harva Method Context :Global competency of Indian IT consulting firms Step I Present Scenario: The IT services industry is shaped like a pyramid.
Submitted by dazzler_dude on November 12, 2005
Category: Miscellaneous
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Context :Global competency of Indian IT consulting firms
Step I
Present Scenario:
The IT services industry is shaped like a pyramid.
« The top level space consists of IT consultants:
o Both established players like Accenture, IBM Global Services as well as small to mid-sized firms like Sapient and Keane Consulting.
« Right on top, are the business and strategy consulting companies.
« As one moves up the pyramid, the value-add increases; as does the per person productivity.
« The billing rates at this level vary from 6 to 10 times that of Indian pure players.
« The Indian companies
o Have already reached a dominant position in the off-shoring and application management space
o Have now made the logical move up the value chain.
o Have a very well refined global delivery engine which can be leveraged to obtain downstream work from high value consulting
« Infosys¡¦ revenues from consulting have grown from 1.6% of total revenues in 2000 to 4.2 percent in 2002.
Indian companies have learnt the hard way that cost arbitrage and skilled manpower can never be sustainable competitive advantages. And in the face of growing challenges from countries like China and Philippines, it is important for India to play at a level where these challengers cannot reach. This move is specifically important since Indian companies have been losing clients regularly, mostly on the basis of cost.
Advantages for Indian Companies:
« Lower overall cost structure - both in billable labor overhead, relative to
US/European MNCs.
« Focus on quality boosts credibility. The Tier 1 vendors all possess or are close to
possessing certification for all of the major industry benchmarks/rankings ¡V
SEICMM level 4-5, ISO900X...
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