For IT Services Professionals

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	August 6, 2004 Low-Cost Global Delivery Model Showdown Comparing Accenture, EDS, And IBM With Infosys, TCS, And Wipro by John C. McCarthy with Christine Ferrusi Ross, Stephanie Moore, Bill Martorelli, Adam Brown

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Executive Summary

Higher user sophistication and shifting industry economics are forcing IT services vendors to ramp up their low-cost remote delivery capabilities. This is part of a broader shift to a more distributed, process-centric, low-cost global delivery model (GDM). Traditionally, major providers have touted their global capabilities as a mechanism for serving clients locally wherever the client happened to be. This is in contrast to the low-cost GDM, which relies on using nearshore or offshore facilities to remotely service clients in other geographies. To assess providers' progress in adopting a low-cost GDM, we graded the top three vendors from each starting point — onshore (Accenture, EDS, and IBM) and offshore (Infosys, TCS, and Wipro) using 60 different low-cost GDM criteria. While all six vendors are making significant investments in skills, processes, tools, locations, and infrastructure, none is fully entrenched in the leader category. The offshore players need to add more domain expertise and improve account management to better interface with the business buyer. The onshore players need to fully embrace CMMI and encourage their account teams to more consistently utilize its low-cost GDM capabilities.

TABLE OF CONTENTS

• Offshore Users Are Becoming More Sophisticated
• Providers Evolve From Offshore To Low-Cost Global Delivery Model
• The Low-Cost GDM Criteria
• The Forrester Wave: Low-Cost Global Delivery Model
• The Evolution Of A Low-Cost GDM

WHAT IT MEANS

• A Move To Low-Cost GDM Will Recast IT Services

ALTERNATIVE VIEW

• Complexity And Alternatives Limit Low-Cost GDM Development
• Supplemental Material
• Related Research Documents

This is an excerpt

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