MindTree and 2e2 deal shows mid market offshore opportunity

An agreement between 2e2 and Indian IT service provider MindTree is an interesting one.

The deal sees MindTree provide SAP helpdesk, support and development work for 2e2’s clients. The interesting part is that this will open up offshore resources to customers that would not normally be able to access.

Tridip Saha, head of MindTree in the UK says mid market find it too expensive to use offshore services. “The threshold for the mid market to access offshore services is quite high.”

But he says a company like 2e2 can aggregate its customers and create a larger virtual customer which makes the offshore service affordable.

He says the mid market would require a heavy investment for offshore companies to target directly because it is so big and made up of smaller companies that spend less than FTSE 100 companies for example.

“Some of these markets are too fragmented for us but through 2e2 we can reach them.”

TCS’s UK head A S Lakshmi told me last year that TCS could target small companies through the cloud.

He says the problem for suppliers attempting to succeed in the SME sector is the fact that it is fragmented and companies do not all fit into a single mould. “They have the same requirements of large companies but it is difficult because they are very fragmented.”

But cloud computing will reduce the overheads of serving a fragmented market.

So through a combination of partnerships between IT suppliers specialising on the UK mid market and offshore services firms as well as cloud computing the UK SME could soon have enterprise level services with the advantages of offshore delivery.

See this link for an inteview with offshore service pioneer Ashok Soota who is the chairman at MindTree until later this month when he leaves to set up his own venture.