Niche vendors rising in India: Forrester

By agencies   |   Thursday, 04 August 2005, 19:30 IST
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NEW DELHI: The maturing and diversifying Indian IT services market has resulted in the emergence of numerous qualified niche players, widening the ambit of choice beyond the top five Indian IT vendors. However, this puts more pressure on clients to look at issues such as managing remote sourcing relationships, evaluating human resource capabilities and assessing financial viability, says a recent report from Forrester. "The Indian IT services market continues to enjoy tremendous growth. Across industries and countries, more companies, large and small, are increasing their consumption of Indian IT service capabilities. So far, tier-one Indian IT vendors have been the primary beneficiaries of this massive growth. "But these vendors may not be appropriate for all classes of service and all classes of customers. Fortunately, the Indian IT services market is maturing, fragmenting, and diversifying - resulting in the emergence of numerous, qualified specialist players," a report by Forrester Research said. While the earliest providers in the Indian IT industry gained the most from the off-shoring boom, the maturity of smaller players and customers is changing market dynamics. "Emerging vendors can now more legitimately offer services to North American and Western European customers. For example, small vendors such as Aztec Software, ITC Infotech and Persistent Systems have developed more mature customer management capabilities," it said. The tier-one category comprises large vendors with multiple service lines in multiple verticals, along with offices and delivery capabilities in countries other than India and the U.S. These vendors include HCL, Infosys, Satyam, TCS, Wipro, and Cognizant. The report listed out Flextronics Software Systems, i-flex Solutions, Kanbay, L&T Infotech, Mahindra British Telecom and Polaris Software Labs as vertical specialists; and Aditi Technologies, Aztec Software, Hexaware Technologies, Ness Technologies, Persistent Systems and Symphony Services as research and development and support specialists. The report also listed Sapient, ThoughtWorks and Valtech as agile/iterative development specialists.

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