NEWS
The US outsourcing giants will be knocked off their throne by the emerging Indian powerhouses by 2011, according to analysts at Gartner.
Infosys, Tata Consultancy Services (TCS) or Wipro will augment, or in some cases surpass, "mega-vendors" Accenture, EDS and IBM by revenue in the strategic services market, it says.
Gartner says the "India-3" have used their success at meeting client needs to achieve record revenue growth - of about 40 per cent - over 30 quarters and have enjoyed growth rates almost three times that of the incumbent mega-vendors.
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The market capitalisation of the Indian providers is significantly higher than that of EDS, and almost on par with Accenture, which are much larger companies in terms of revenue, Gartner says.
Partha Iyengar, regional research director at Gartner, said in a statement: "The emerging mega-vendors have made dramatic progress in the past few years and have more than doubled their revenue in a four-year period, with the 2007 revenue being 2.6 times the 2004 revenue."
Gartner says the India-3 have achieved this by demonstrating process excellence, world-class HR practices, providing high quality services at a low cost and by winning significant "mind share" compared to their size.
But Gartner warns the India-3 will have to continue to evolve to reach true mega-vendor status, in particular they will have to achieve similar levels of revenue per employee to the US big three.
Comments
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1. Will Rogers
I have read several similar predictions even a day prior to the dot-com burst, how a company would grow 5 times in next 3 years and next day you see trucks line up picking up computers, furnitures, and everyone handed out a pink slip. You need to compare applet to apple. Is IBM willing to charge $25/hour to their clients, NO. Can any American business afford to offer services for a 6th of market rate, NO. And of course when you spend $2000, you will get a TATA Nano with one windshield wiper, no side view mirror, no air conditioning, not a Toyota Camry. But the fundamental problem is, if you are out of job, starving to make a living, you can't afford a Camry and will be willing to drive a junk car 30 miles and hour and wait for good days to come around. This is the story of western world and India is that beaten up used car that has all the demand these days. So don't predict till 2011, if this starving US doesn't get its act together, even fuel to keep junk car running may appear unaffordable.
2. A proud Indian
India may not have as many Camry's as your country may have. But please do read more about India before writing a derogatory comment with no sound basis and half information.