The Global IT Services Industry - Heading for a Shakeout?

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : MISA002 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Case Length : 11 Pages
Period : 2005
Pub Date : 2005
Teaching Note : Not Available
Organization : -
Industry : Information Technology and Related Services
Countries : Global


For the past couple of years, the big Indian information technology (IT) services companies have been persuading clients to invite them to bid directly for the really big deals. The Indian companies have been strengthening their front end capabilities, hiring top talent from global consultancies, acquiring specialised consultancy firms, and increasing the breadth of their offerings. Meanwhile, the Big Six, IBM, Accenture, EDS, Affiliated Computer Services (ACS), Computer Sciences Corporation (CSC) and HP Services, have been ramping up their offshore delivery centres in India.

By January 2006, IBM, EDS and Accenture will have a combined Indian headcount of over 60,000. IBM alone has recruited 20,000 employees in India already. And over the next 18 months, the Big Six plan to strengthen their facilities in India through a combination of organic growth and big-ticket acquisitions. In the coming years, the players from the two groups will increasingly confront each other as they target the same clients for the same orders. They are also likely to compete head on to attract the same talent from India's leading engineering colleges. Will the Indian companies be able to take on the global majors?


  Page No.
Introduction 1
Offshoring in the early 2000s 2
A Growing Presence in India 3
The Indian Calculations 4
The Road Ahead 5
Exhibits 7


ABN AMRO, Global information technology services industry, Big Six, TCS (Tata Consultancy Services), Infosys, The US$2.2 billion out-sourcing deal, IBM, Accenture, Big Six's growing presence in India, Recent developments in offshoring, Nandan Nilekani, National Association of Software and Service Companies (NASSCOM), Satyam Computers, Business process outsourcing (BPO) in India

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