For Sourcing & Vendor Management Professionals (Length: 5 pages)

February 22, 2008

Understanding Indian Providers' Margin Defense Tactics

by Stephanie Moore

with Christine Ferrusi Ross, Allison Thresher

Executive Summary (This is a document excerpt)

As costs in India rise and the Rupee appreciates against the dollar, the pound, and the Euro, Indian service providers are struggling to maintain profit margins. Although initially providers were more focused on finding ways to insulate their clients from the worst of the inflation, today they are equally focused on finding ways to charge clients more money for similar services while avoiding excessively inflating rates. Sourcing and vendor management professionals must understand the insulation techniques as well as the newest pricing tactics in order to negotiate the best deals today.

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Analyst: Stephanie Moore
Technology: IT Services, Outsourcing, Sourcing & Procurement, Sourcing Strategy & Execution, Systems Integration
Geography: Asia Pacific

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