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	August 5, 2008 (updated August 12, 2008) Surviving The Offshore Vendor Polarization Puzzle Guidelines For Selecting Between India's Highly Divergent Service Providers by Sudin Apte with Christine Ferrusi Ross, Andrew Parker, John C. McCarthy, Onica King	Average: 10  (2 ratings)

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Executive Summary

Polarization between the offshore providers in India is tightening. Fast growing and enviably profitable, India's top three providers — Infosys, Tata Consultancy Services (TCS), and Wipro — now drive almost half of India's total IT services exports by value. While Cognizant, HCL, and Satyam still hold their ground and continue to grow, most nonspecialized and undifferentiated tier two and tier three firms stand to lose out. Margin pressures do not allow them to invest enough in building specialization or take proactive initiatives such as process consulting or cultural workshops to help clients ramp up. The result? The majority of sub-billion-dollar firms is falling prey to a staff augmentation deathtrap and is increasing headcount without corresponding returns. Forrester predicts that many firms will shed up to 30% of their current clients to pursue a more specialized strategy and rebuild competitiveness. Forrester recommends that sourcing professionals reassess their vendor's survival readiness and review their supplier selection criteria in response.

TABLE OF CONTENTS

• Indian IT Services Polarization Accelerates As Subscale Providers Fall Behind
• Lack Of Investment By Subscale Providers Limits Their Client Value
• Mapping Your Provider Polarization Survival Strategy
• How To Identify Your Provider's Subscale Issues

WHAT IT MEANS

• Subscale Firms Take Drastic Steps To Refocus And Beat Marginalization
• Supplemental Material
• Related Research Documents

This is an excerpt

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