Emergence of the Midtier Indian IT Services players

By admin, July 27, 2007 10:00 am
Emergence of the Midtier Indian IT Services players

Forrester report titled "Not The Usual Suspects: Cost, Quality, And Client Service Benefits From Midtier Providers" highlight 3 companies that are not often written about or highlighted among the Indian IT services player, Hexaware, Syntel and US Technology. Recently i had the opportunity to talk to Bharat Desai from Syntel highlighted here.

Some excerpts on those companies from the report

1. Hexaware

  • Founded in India in 1990
  • began operations in both North America and Europe in 1995
  • Late 1990s had established a significant PeopleSoft practice, did product development and support for PeopleSoft. After acquiring PeopleSoft, Oracle decided to acquire Hexaware's PeopleSoft development and support center.
  • company still has deep HR expertise and a strong PeopleSoft bench as a souvenir.
  • Although small (approximately $200 million and 6,000 employees), Hexaware has strong global capabilities, and works with clients across North America, APAC, and EMEA.
  • Hexaware is distinguished by the following capabilities:

  • Proficiency and focus concerning PeopleSoft. About 45% of Hexaware's revenues come from its ERP services practice.
  • Strong HR capabilities. Hexaware not only has strong capabilities in terms of its HRIT offerings, but also caters to HR BPO.
  • Capabilities/vertical expertise in the transportation/airlines industries.
  • Ability to partner with large technology and services firms.

2. Syntel

  • founded in 1980
  • Operates a hybrid model featuring US-based ownership and operation with a significant offshore presence and workforce.
  • Finishing 2006 with $270 million in revenue,
  • It has a strong applications development and outsourcing offering (about 70% of Syntel's revenue is derived from this practice) in addition to packaged solutions services that include CRM, BI, and Web technologies as well as "integrated" business process outsourcing (BPO).
  • At present, Syntel has about 8,650 employees and continues to grow. It has an aggressive hiring practice, with plans to add between 3,500 and 4,000 employees in 2007. It expects to recruit 75% of its new hires from Indian campuses.
  • Other features that distinguish Syntel include

    • Outstanding client loyalty engendered by top line client service. About 95% of Syntel's business each year comes from repeat clients and referrals.
    • Understanding how to map resources to the client's need. Perhaps learned from its staff augmentation heritage, Syntel understands the importance of using the right resource for the right job.
    • A "comfortable" approach to offshore. Syntel's hybrid approach offers clients new to the outsourcing game a way to "get their feet wet."

3. US Technology

  • Established in 1999.
  • Today nearly 5,000 employees and a global footprint
  • The firm is committed to delivery of high competency, high quality services though four well-focused centers of excellence (CoEs). US Technology's major enterprise service offerings are: enterprise consulting, technology (Java, MS, etc.), systems (ERP, CRM, etc.), and infrastructure. The firm also offers BPO services including a strong offering for mortgage BPO.
  • Other features that distinguish US Technology include:

    • "Client University" program. US Technology employs an innovative, cutting edge process and tool called the "Client University." The Client University started life as a knowledge acquisition tool to help optimize transition from the client to the provider environment.
    • Investment in people. US Technology's attrition rate is less than 10%, far below the industry average of around 20%.
    • "Quality versus quantity" client focus. In terms of client relationship management, US Technology's motto seems to be "fewer clients, more attention."


Technorati Tags: syntel - us+technology - hexaware - forrester - indian - it+services

Prashanth Rai

One Response to “Emergence of the Midtier Indian IT Services players”

  1. Mohan Babu says:

    Interesting topic. Glad to see even the mid-tier players get some much-needed spotlight.

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