Monday, May 29, 2006

Offshore Software Outsourcing firms go after larger deals

Offshore Software Outsourcing and IT is one of segment where organizations of India are giving international majors an exhausting run for the money. There is business model which is depend on cost arbitrage is not sustainable, hence organization likes of Tata Consultancy Services have to engage with the customers at a strategic level with the use of technology knowledge and our vast domain for addressing the main points, thereby they are enhancing the value of business in favor of clients. As an integrated full-services player in the global Offshore Software Outsourcing space, these giant organizations is looking forward to develop the business around five growth engines that are infrastructure services, engineering services, asset leveraging, consulting and platform-based business process outsourcing in addition to traditional Information Technology services.

Offshore Software Outsourcing Companies

As Offshore Outsourcing development around the globe rises with the size of the addressable pie gets bigger. The strategic moves from big Offshore Software Outsourcing Companies is on mergers & acquisition front, which is trying to fill key gaps in the portfolio of adding muscle and offering to global strengthening and capabilities at their home and outside country as well. Indian Offshore Outsourcing organizations are making change towards the higher end of the value chain with hosting of services such as consultancy. Moreover, Indians are building their own intellectual property constant services and creating re-usable tool-sets, methodologies and a framework that is helping firms to maintain margins during fixed cost Offshore Software Outsourcing deals.
For leveraging existing potential to the clients there is a huge potential to cross-sell higher value services these Indian outsourcing companies would have to slow down in building a variant of the hybrid business model. The hybrid model consist the value offering elements for the services landscape that goes beyond the price. Today, Outsourcing firms from India are initiation part of the discussion during mega deals, which are coming to the global offshoring market.
Now a day these Offshore Software Outsourcing companies are going for strategies that bag them larger deals. Nobody is ready to lose the contract that gives sustained revenue stream. It drops the margins by 1 % point, since there is guarantee in revenue stream, which could make up by operational efficiencies. Finally with the use of volume contract as a base one could sell the customer as differentiated range of services such as assurance & consulting that came under a different cost structure.
Offshore Software Outsourcing industry welcomes any type of competition and gives the track record with customer more than the business; they are much capable for management the tightness in the labor market.