RSSIndian IT Services Co’s Performance - AMR
AMR's Dana Stiffler has an article on Indian IT Services Vendors performance, you can get the article here.
Some key highlights from the article:
Cost has always been a factor, but the difficulty IT management is having locating and acquiring the right skills at the right time is intense-and worsening. (Note: Indian IT Services vendors seem to be having similar problems)
For the largest Indian IT Services players the growth party continues.Every practice/Vertical/ Individual is on fire.
Financial Services Vertical Dominates Industry growth…No cold feet in wall street.
Infrastructure Management gaining more traction - Relatively new service offering but has been doing well Shibulal of infosys said "Today we get 40% of our revenue from services which have been added in the last 5 years…even Infrastructure management the margins are quite high " …HCL Technologies is the Indian specialist standout in this category
New customers and growth in existing client business-New customers are piling in. Satyam added 34 new accounts, Infosys 38, Cognizant 56, and TCS 62. Wipro added more than 100 new customers, 42 of which were due to acquisition activity.
Recruitment grows and diversifies-Alongside the perpetual graduate recruitment factory in place at these companies, across the board interest is greater in lateral hiring from traditional competitors and industry. The goal is to bring aboard more senior and professionally diverse resources in a bid to grab larger deals and command higher prices.Close to 30% of hires in CTS were functional / domain consultants.
Chief concerns are
- Attrition…Increased Salary costs
- Controlling other costs..using other levers - onsite/offshore ratio, bulge etc
- Ease of onboarding and offloading skilled staff
- Maintaining a healthy utilization rate
- Deal with complexity of large deals.
Customers have no intention of backpedaling on their outsourcing and offshoring strategy. At any rate, even at an increased price point, the skills crunch won't let them.
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