Tuesday, September 27, 2005

How to beat the biggies, think different

How does it feel like competing against a few firms of 30,000 and more people each conversant with atleast one technology, operating out of 25 countries with multiple site operations in India. Unfazed?
Add to it multiple failover sites in India and the world over, dedicated staff for security, helpdesk, risk oversight. Still think you can do it?
How about a comprehensive disaster recovery plan and BCP?
How about a 10% bench on every assignment?
How about being able to get a thousand people trained at a short notice?
How about your own consulting wing? Domain expertise?

This is what any emerging IT outsourcing services firm in India is up against.

This is the same competition that have seen the Accentures, Cap Geminis, IBM Global Services, EDS sit up and take notice. The Indian companies have taken the battle to the realm of the Accentures by opening their own consulting wings too. The questions that a client asks these biggies will be the same questions that the client will ask the me-too provider?

So, does a new company in the ITES segment have any hope?

No, if it tries to replicate all of this.
Yes, if it thinks different.

When todays Infosys, Wipro and TCS started out, they were up against some very formidable competition in the shape of the IBMs, EDSs and others. Then too they did not seem to stand a chance. But with lower costs, greater process control, innovative practices and the 24 hour delivery cycle, they have proved a point.

So, if someone thinks that this model will be replicated by say, the Chinese or Filipinos, well, it will only take them so far. For breaking out of the stranglehold of these firms, something different is needed.

What that "different" is, well, we will have to wait and watch.

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