Mid-size IT cos focus on specialized services

By siliconindia   |   Friday, 12 November 2010, 22:28 IST
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Bangalore: The mid-size IT companies of India such as MindTree, Mphasis, Microland or Sonata Software are focusing on core services to stay in the game. As per a report titled 'Survival of the Differentiated - The New Mantra of Success for Tier 2 Service Providers' by Everest, a research advisory firm, the tier II IT companies are doing so to drive growth in the $27 billion Indian IT offshore services market. These firms are showing distinctive value propositions inspite of having a limited mindshare of capabilities among global companies, said the report. Eric Simonson, Managing Principal-Research, Everest said, "They have developed pockets of strength." For instance, MindTree is a major player in providing infrastructure management services. Headstrong specializes in capital markets while Microland offers services in remote infrastructure management (RIM). Sonata's 48 percent of offshore revenues are gained from their travel, transportation and logistics capabilities in Europe. Usually the tier II firms in India largely offer services in India with revenues in the range of $100 million to $1 billion; they account for nearly 30% of India's offshore IT market. Their survival is constantly under competitive pressure from the big companies and speculation about being acquisition targets.