India emerges as ‘outcome sourcing’ hub

Dec 03 2012, 11:08 IST
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The $70-billion IT & BPO services industry in India is thriving on the well-established global delivery model (GDM).  (Reuters) The $70-billion IT & BPO services industry in India is thriving on the well-established global delivery model (GDM). (Reuters)
SummaryA large European company recently engaged Infosys to shift its data centre operations to a private cloud infrastructure and the $7-billion Indian IT services firm successfully brought about this transformation along with making more than 1,000 servers redundant, resulting in multiple benefits like, among many others, lower energy and real estate costs.

commoditised and the biggest game-changer is to create value. Our goal is to transform ourselves from just an outsourcing outfit to a technology company.”

This change in strategy is also reflected in the kind of deals being bagged by Indian IT firms. Pradeep Mukherji, president and managing partner, Avasant, an IT-BPO advisory firm, said: “Outcome-based deals have a direct impact on the business of the clients. We are seeing a trend towards these kinds of deals. It is not necessarily all large deals are fully based on the outcome model. Of the large contracts, 30-40% will have an outcome-based component.”

The innovative ability of Indian IT companies is also happening from its traditional bread-and-butter services like application development and maintenance, testing, infrastructure, BPO, and from the new-age services like products and platforms.

Kakal said, “Clients are looking at lot of innovation in the service line itself and they are expecting faster response from us in an agile manner.”

Ankita Somani, IT analyst, Angel Broking, said: “There is definitely a shift from the low-cost service model to high-end services like consulting, package implementation and now to products and platforms. Indian IT services companies are investing heavily into these areas to build up expertise.”

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