software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, May 13, 2005

Wipro enters into consulting business

One of the India's software outsourcing company Wipro started boston office for project management with plans to establish business units which specialize in providing professional consulting services like IBM. Wipro has setup office in Boston as a part of this effort to pitch it against consulting companies.
This is a strategic decision to avoid tuff competition in current business process outsourcing and software outsourcing market where chinese companies are entering with lower labor costs and already so many indian companies are competing.

Wipro is not the only one to venture into consulting business. Already, Infosys has started consulting division last year and Tata Consultancy services is also in this business. Wipro, which started as vegetable oil distributor has business expanded in many fields. Current move is inline with outsourcing fundament of saving money by executing business process in India for US and Europe. According to wipro, it is not aiming to compete against broad based consulting companies like Boston Consulting group but will concentrate on small family of niche market.

Though, salary rises are very high and in double digit in India, still an indian graduate earns a fraction of his American counterpart. This allow outsourcing providers to put several employees on single project.