(PTI) Tata Consultancy Services (TCS) topped the list of top 10 best performing IT Service providers worldwide rated by Global Services, a specialized publication for IT businesses.
Indian companies dominated the list with Cognizant Technologies occupying second position followed by Infosys Technologies, HCL Technologies, Neoris and Patni Computer System.
The 7th spot was occupied by MindTree Consulting followed by Politec, Satyam Computers Service and Wipro Technologies.
The top ranking for both Leaders in Human Capital Development and Best Performing BPO providers went to Genpact, and Hinduja TMT was selected as the Best Performing Global Call Center Provider.
The honour for the best performing Managed Services Providers went to Affiliated Computer Services of the US.
While Polaris Software Labs with delivery centers in India led the list of the Top 10 Specialty Application Development Providers, the Top Engineering Services Provider slot went to Patni Computer Systems.
India accounts for the largest number of companies among the top 100 with 36 finding the coveted slots and is followed closely United States with 32 outfits. Together India and the United States corner 68 of the 100 slots.
Expert from Global Services, a CMP-CyberMedia publication and outsourcing experts at neoIT, a consulting firm that specializes in servicing globalization, identified top service providers on the basis of survey conducted by the publication.
CMP-CyberMedia LLC is a 50-50 Joint Venture between CMP Media in the U.S.A. and CyberMedia in India.
The evaluation is based upon 250 data points collected from service providers from 18 countries and third parties regarding effective operations, service offerings, client relationships, and human capital.
The winners are organized in three categories: Customer and Business Process Awards, Regional and Emerging Provider Awards, and Tech-Delivery Awards.
Commenting on what made these firms more special than others, Pradeep Gupta, Chairman and Managing Director, CyberMedia, said, "These firms demonstrated a pattern of market leadership, innovation and outstanding customer service."
Quoting an analyst from Aberdeen Group, Global Services predicts that the market for outsourced IT services will become more global in nature leading to a buyer's market. A broader competitive field will create downward pressure on prices as providers in other parts of the world, particularly Eastern Europe, are finding better seats in the arena.
The listing, the Global Services said, throws up an interesting challenge to India's software supremacy in the form of 8 firms from China, 4 firms each from Malaysia and Eastern Europe, 3 each from Brazil and Mexico, and 2 from Russia.
An off shoring software firm each from Ukraine, Philippines, Latin America, Czech Republic and Romania signals the arrival of an entirely new set of nations providing software and IT services.
It estimates that the US purchases of IT goods and services will grow five percent in 2007 to touch $1.55 trillion. Over a dozen of the 32 American firms listed in the Global Services 100 survey are servicing their global customers through their India facilities.
America is known to source nearly two-thirds of total IT and BPO exports from India. Indian firms are hoping to export IT and BPO services exceeding $31 billion in the 12 months ending March next.
The Top emerging Global Service Providers slot went to Globant of Argentina; the Top South of the Border slot went to Softtek of Mexico with delivery centers in Mexico, Brazil and Spain.
Neusoft Group of China with over 10,000 employees bagged the Top Emerging Asian Markets rank and the IBA Group of the Czech Republic, the largest IT service provider in Eastern Europe, topped the list of Top Emerging European Markets.
Interestingly, nearly two-fifths of the respondents to the Global Services 100 survey expressed concern about extended sales cycle, employee attrition and the ability to scale operations.
The survey also reveals that 50 per cent of the outsourcers look for firms that bundle IT and BPOs services.
The Indian firms in the top 100 included: 24/7 Customer, Caliber Point Business Solutions, Exl Service Holdings, Genpact, ICT Group, i-flex solutions, Infinite Computer Solutions, Intelenet Global Services, ITC Infotech, Knoah Solutions, marketRx, Mastek, Microland, MindTree Consulting, Mistral Software, Motif, NIIT SmartServe, OfficeTiger, Promantra Synergy Solutions, QuEST, Satyam Computer Services, Sonata Software, Symphony Services, TransWorks Information Services, Customer, Vee Technologies, WNS and Zensar Technologies.
2/05/2007
China no threat to India in IT/BPO: Report
China will remain only a distant competitor to India in the outsourcing landscape, according to a white paper prepared by Tholons Inc, a services globalisation advisory and investment firm.
Lack of maturity in service delivery, cultural incompatibility, poor English and communication skills and lack of confidence from buyers in the US and Europe will confine it to basic IT and BPO functions for some time.
India will lead in the IT/BPO space, but it faces challenges such as overheating of the offshore outsourcing market due to attrition, escalating wages, talent scarcity and rising real estate prices, which are leading entrepreneurs to explore other options including China, the Philippines, Russia and other tier II cities of India.
"Many people seem to think that China is the next IT/BPO outsourcing destination. But we are yet to see a significant movement outside of the manufacturing industry," said Mr Avinash Vashistha, CEO & Chairman of Tholons.
"To overtake India, China has to establish itself as a viable and large-scale offshore destination."
Shortage of skilled resources, primarily at the middle management level, is another factor that could inhibit China gaining traction in the European and US markets. However, China could gain from being the most preferred location for outsourcing for the Japanese market, with the Japanese living in Dalian and Wuhan giving an edge.
Service providers like IBM, EDS, Accenture, TCS, Infosys, Wipro and Cognizant have either set up centres or partnered with local players in China to leverage those skills and expand their market base.
'Over the past two years, we have seen selective offshore outsourcing of small IT projects and product development going to China. In the BPO space, we are seeing China emerge only in the area of non voice-based services,' said Mr Vashistha.
Lack of maturity in service delivery, cultural incompatibility, poor English and communication skills and lack of confidence from buyers in the US and Europe will confine it to basic IT and BPO functions for some time.
India will lead in the IT/BPO space, but it faces challenges such as overheating of the offshore outsourcing market due to attrition, escalating wages, talent scarcity and rising real estate prices, which are leading entrepreneurs to explore other options including China, the Philippines, Russia and other tier II cities of India.
"Many people seem to think that China is the next IT/BPO outsourcing destination. But we are yet to see a significant movement outside of the manufacturing industry," said Mr Avinash Vashistha, CEO & Chairman of Tholons.
"To overtake India, China has to establish itself as a viable and large-scale offshore destination."
Shortage of skilled resources, primarily at the middle management level, is another factor that could inhibit China gaining traction in the European and US markets. However, China could gain from being the most preferred location for outsourcing for the Japanese market, with the Japanese living in Dalian and Wuhan giving an edge.
Service providers like IBM, EDS, Accenture, TCS, Infosys, Wipro and Cognizant have either set up centres or partnered with local players in China to leverage those skills and expand their market base.
'Over the past two years, we have seen selective offshore outsourcing of small IT projects and product development going to China. In the BPO space, we are seeing China emerge only in the area of non voice-based services,' said Mr Vashistha.
About 80% Clients Satisfied with BPO Operations
According to a study conducted by NASSCOM-McKinsey titled, ‘Operational Excellence: The Next Frontier in Offshoring’, about 80 percent of clients are satisfied with the performance of BPOs. The study is in continuation of the two companies’ report regarding India’s ability to generate about USD 60 billion from IT/BPO export.
In addition, the pressure on various offshore companies is likely to increase due to high expectations from clients. Among the key findings, the study indicates that there is scope for various BPO firms to reduce cost by about 20-30 percent, and for IT firms to increase EBIT margins by about 3-6 percent.
In the BPO domain, the priorities of clients will shift towards other benefits, such as innovation and productivity, once the offshore services are well established. In addition, there is a lack of consistent performance across various companies due to inadequate recruiting practices. Owing to high retention rates, the performance of data-based operations is better than voice-based processes.
However, in the IT domain, the IT service providers are estimated to improve performance and consistency across six practice areas, including requirements gathering, solution design, and training. Despite client satisfaction and strong outcomes, inconsistencies are reported in issues, such as solution design, training, and recruitment. There has been a significant increase in clients seeking upstream services such as requirements gathering and solution design. At present, these services are not strong enough to competently meet a client’s demands. The leading IT performers are expected to increase salaries in the range from 15 percent to 18 percent, without impacting their profit margins.
According to Kiran Karnik, President, NASSCOM, India is the leader in the global offshoring market with about 50 percent market share. Companies need to focus on operational excellence to achieve the target of USD 60 billion from IT/BPO export revenues by 2010.
In addition, the pressure on various offshore companies is likely to increase due to high expectations from clients. Among the key findings, the study indicates that there is scope for various BPO firms to reduce cost by about 20-30 percent, and for IT firms to increase EBIT margins by about 3-6 percent.
In the BPO domain, the priorities of clients will shift towards other benefits, such as innovation and productivity, once the offshore services are well established. In addition, there is a lack of consistent performance across various companies due to inadequate recruiting practices. Owing to high retention rates, the performance of data-based operations is better than voice-based processes.
However, in the IT domain, the IT service providers are estimated to improve performance and consistency across six practice areas, including requirements gathering, solution design, and training. Despite client satisfaction and strong outcomes, inconsistencies are reported in issues, such as solution design, training, and recruitment. There has been a significant increase in clients seeking upstream services such as requirements gathering and solution design. At present, these services are not strong enough to competently meet a client’s demands. The leading IT performers are expected to increase salaries in the range from 15 percent to 18 percent, without impacting their profit margins.
According to Kiran Karnik, President, NASSCOM, India is the leader in the global offshoring market with about 50 percent market share. Companies need to focus on operational excellence to achieve the target of USD 60 billion from IT/BPO export revenues by 2010.
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