December 19, 2006

India moving up

Sadagopan's - moving up the food chain: "Look at a few cases that demonstrate this : Northeast Utilities in Hartford, Connecticut consolidated three customer information systems into one, and six call centers into two. Global firms and Indian headquartered firms competed for this opportunity. The usual providers of this kind of advice are firms such as IBM, Capgemini and Accenture , the well-known shops that sponsor golf tournaments and run ads during the Super Bowl. These firms bid on the aforementioned projects, but they lost. The winners came from Bangalore and Chennai, firms such as I-flex Solutions, Mphasis BFL Group, Infosys Technologies and SlashSupport. In the case of Northeast Utilities, Infosys got the strategic advice business while IBM got left with the scut work of moving the company's 2 million customer records from the old system to the new. Seven years ago GE Appliances entrusted Satyam to prepare only engineering drawings and blueprints for its home business. Four years later Satyam was doing tear-down analysis of all its products and its competitors' products. Now it's the only point of contact for GE Appliances' vendors and components suppliers, and it has also taken over the design of nearly all new product features. Multinationals are relying on Indian firms for fundamental missions." Yes this is only a few deals, it's still early to say it is now the norm. I don't think we can underestimate the adaptation capabilities of the incumbents. Yet sometimes I wonder if enough people have read the innovator's dilemma, I mean are they taking this threat seriously. India inc will have its own challenges going after that business, US based players can't deny it, even the high margin work is under threat.

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