Changing Rules of Competition in the Global Technology Marketplace

1
Changing Rules of Competition in the Global
Technology Marketplace

• Outlook for 2008

2
Panel Members

• Alistair Cox, CEO, Xansa, UK-based outsourcing.
  Large India presence.
• Rajendra S. Pawar, chairman, NIIT, Indian
  software services company.
• Vineet Nayar, president, HCL Technologies, Indian
  IT services.
• Pramod Bhasin, CEO, Genpact, pioneer of Indian
  BPO industry.
• Dennis McGuire, chairman, TPI, leading
  outsourcing advisory firm.

3
The Emergence of Indian Services

• Nearly 300 growth in IT and related services in
  five years.
• Broadening from software programming to package
  implementation, BPO, and datacenter management.
• Growth accelerating for top firms.

4
Keys to Success

• Low cost labor and efficient operations
• Dedication to quality and constant improvement.
• True commitment to customer satisfaction.
• Adoption of global best management practices.
• Skillful at hiring, training, and deployment of
  employees.

5
The Empire Strikes Back

• Western tech services leaders have moved
  operations offshore.
• IBM has 45,000 employees in India Accenture has
  25,000.
• The incumbents have restructured operations to
  lower costs.
• Theyre expanding operations in other low cost
  markets.

6
An Industry at a Turning Point

• Low-cost labor is no longer a great
  differentiator for the Indians.
• Reputation is no longer the great differentiator
  for the incumbents.
• The old landscape cost advantage versus
  relationship advantage.
• The new landscape Its all about higher-order
  capabilities.

7
Key Capabilities

• Establishing high-quality workforces in multiple
  low-cost countries.
• Global coordination of teams.
• Automating services with software.
• Bringing basic research to bear.
• Consultative approach to clients.
• Transformational engagements.

8
Who Has the Upper Hand?

• Quality, low-cost workforce Indians.
• Global coordination Incumbents.
• Automation Incumbents.
• Research Incumbents.
• Consultative approach Incumbents.
• Transformation Incumbents.

9
Conclusion

• Huge growth opportunities exist for the top
  Indian firms.
• The domestic market is booming, providing home
  field advantage.
• But controlling wages costs will be an ongoing
  battle.
• And matching the incumbents higher-order
  capabilities will be the biggest challenge of
  all.