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Bangalore: According to Forrester Research, the next five years will test the Indian IT service providers' ability to evolve a need for more business offerings. While the Indian IT majors like TCS, Infosys and Wipro have shown spectacular growth in the past, their conservatism and continued focus on traditional strengths of cutting costs for their clients may hamper their performance in the emerging IT and business landscape, reports Sreejiraj Eluvangal from DNA.
The new research report 'The Evolution of Indian IT Service Providers into Business Technology Competitors' by Forrester's Senior Analyst Chris Andrews said that each of the top three (TCS, Infosys and Wipro) has the capabilities to make this transition, but they will face some significant challenges related to changing client perceptions of them as low-cost IT providers, reports Thanuja BM of mydigitalfc.com.
Simplifying the story of their strategic evolution will be the key as these companies have far too much difficulty articulating their long-term growth strategies and core value proposition. This is largely a problem of marketing and one that will need to be addressed in coming years, it added.
The reports based on written answers and interviews with Infosys, TCS and Wipro, warned that the global IT services market was theirs to lose as companies try to balance geographical risk by opting for non-Indian outsourcing partners as well. Like these Indian IT giants global companies like IBM and Accenture too have acquired the India cost advantage. However, unlike IBM and Accenture, the Indian firms have more or less failed to move beyond IT consulting into the higher-margin business strategy.
"Although each company has shared its goals to build more business-focused capabilities at the front end of the services value chain, these priorities are often fixed with a broad range of other and sometimes conflicting messages. Simplifying the vision and strategy for the provision of strategic business services will go a long way toward helping the market, clients, partners, and internal employees understand what to expect from these companies in the next five years," said Andrews.
Forrester, however, lauded TCS for being the most acquisitive and Wipro for being the most focused on research-based projects. However, it put TCS and Wipro below Infosys on marketing adaptability.
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