Will Indian IT firms have a field day as economy picks up?

Earlier this week I blogged about the latest report about suppliers from Equaterra.

The report revealed that Indian suppliers such as Wipro, Cognizant and Mahindra Satyam were doing well in the eyes of their customers. The company’s UK boss told me part of this success was down to the fact that these suppliers have built local management teams. This gives customers a warm feeling.

Last week Jean-Louis Bravard, director at sourcing consultancy Burntoak Partners, said something similar in an opinion piece he did for Computer Weekly .  In fact he goes as far as saying Indian suppliers could be on the cusp of a period of success.

Jean-Louis was  previously global head of financial services at EDS so he knows a thing or two about what it takes to be a true global service provider.

“Indian suppliers may have a field day if they develop a strategy of strong local presence leveraging their huge home advantage. In that I see firms such as HCL, Infosys or Wipro thrive if they have the courage to use M&A to create solid outposts and acquire a more diverse sales force than the current one,” he said.

Read his full opinion piece here. He talks about the suppliers that could win or lose in the recovery.

Just to remind you the Equaterra study revealed that Wipro was the best supplier in terms of general UK customer satisfaction. Mahindra Satyam was second with Cognizant third.
So are the Indian suppliers now becoming true global players with management teams local to their customers?

With the Indian suppliers bringing up the rear in Gartner’s top 15 European service providers list (in revenue terms) there is certainly room for them to increase their European footprints.

For example, in 2008-09, IBM had a 7.8% sghare of the UK market and India’s biggest supplier TCS only had 0.8%, according to Gartner.

HCL has just won a deal in Sweden with financial services group OP Pohjola. The deal combines local and offshore support. “We are confident that our scalable and localised delivery set-up, combined with our focus on value added services will increase the effectiveness of OP Pohjola”, said Liselotte Hägertz Engstam, head of Nordic region at HCL Technologies Sweden.

HCL is attempting to increase its local workforces in Europe.

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