Indian IT outsourcing firms bounce back with multisourced IT supply business

A comprehensive survey of IT outsourcing contracts has revealed Indian IT service providers are enjoying a comeback as they embed local management teams and move outside their applications comfort zones.

A comprehensive survey of IT outsourcing contracts has revealed Indian IT service providers are enjoying a comeback as they embed local management teams and move outside their applications comfort zones.

Wipro, Mahindra Satyam and Cognizant top the 25 service providers analysed, when it comes to general satisfaction, in the annual survey of service provider performances within the UK from sourcing consultancy Equaterra. This survey asks end user businesses to rate their suppliers.


Click here to download a management summary of Equaterra's 2010 research into IT service providers. (Requires registration)


The survey covered 660 IT outsourcing deals signed by 220 UK based businesses. It revealed the relative performance of suppliers measured against different key performance indicators (KPIs):

Supplier key performance indicators used in the survey

  • General satisfaction
  • Quality
  • Price
  • Risk
  • Operational relationship
  • Strategic relationship
  • Innovation
  • Flexibility
  • Service provider governance
  • Successfully delivered transition

Lee Ayling, managing director at Equaterra, said the Indian IT suppliers are coming again. He says that, as Indian companies have grown their services, they have matured and restructured how they manage their accounts.

This has yielded success in building management teams local to the UK, which has improved their relationships with customers. "A lot of Indian companies are adding local management and clients feel more comfortable with this," said Lee Ayling.

He added that some Indian IT suppliers have successfully moved into areas outside their application lifecycle specialisation. "For the first time, Indian companies like Wipro and Cognizant are appearing in our infrastructure management sub-sector," Ayling said.

He said US giants HP and CSC have raised their game since last year.

Part of CSC's success lies in the fact it has started engaging with customers more thoroughly. "When a service provider starts to listen to clients it will improve its performance," added Ayling.

The research revealed businesses are multisourcing, with most using three or four service providers. Last year there was an average of 2.4 service providers per respondent. "Every year there is more and more evidence that multisourcing is the preferred way to buy IT services." Ayling said one consequence was that there were no more IT outsourcing "mega deals" any more.

Top five IT service providers in general customer satisfaction
 
1. Wipro
2. Mahindra Satyam
3. Cognizant
4. Capgemini
5. Computacenter

Bottom five IT service providers in general customer satisfaction
 
21. CSC
22. Fujitsu
23. Accenture
24. BT
25. Orange Business Services

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