No downturn for Offshoring - Forrester
Filed in archive Management by prashanth on August 09, 2006

Richa Govil from the Infosys Think Flat blog points to a report at Forrester titled "IT Services Paradigm Shift Drives Continued Indian Provider Success" by Stephanie Moore with Christine Ferrusi Ross, Ronald J. Furstoss
The executive summary of the report:
Major global service providers continue to lose ground to large Indian firms, especially in the application services market. Despite the fact that IBM has announced an additional $6 billion investment in India and EDS has purchased part of a tier two Indian vendor that has been up for sale for years, the tier one Indian providers have continued to thrive while most legacy service providers have posted minimal to negative growth. The popular press is currently touting a pending slowdown among Indian providers as they become victims of their own success, but the truth is that Indian firms will continue to grow - and not just because they are a lower-cost option. These players will continue their growth path because they have caused a fundamental and structural change in the service provider/client relationship. Offshore providers have taught clients to expect transparency, efficiency, and accountability in service delivery. With a few exceptions, onshore
service providers are struggling to adapt to this new dynamic. As a result, Forrester expects the offshore trend to continue.
Prashanth Rai
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