London, UK (PRWEB) July 5, 2006
Alsbridge, the independent advisors on Outsourcing, Shared Services and Offshoring, today circulate a Point of View on the ensuing battle between Indian-based suppliers and Western global consulting giants for complex BPO deals.
It comes in light of an increasing number of Indian suppliers competing for the more complex, high-value BPO deals traditionally the exclusive domain of Western global corporates such as Accenture, IBM and Capgemini. The entry vehicle has mainly been Finance and Accounting services, the largest and fastest growing sector in the complex BPO market.
The Point of View outlines 3 reasons why companies such as Genpact, TCS and WNS have all won significant deals in the last year:
1) Cost – Unencumbered by the added costs of inherited corporate overheads faced by western corporations, Indian suppliers can undercut by up to 30% on price
2) Capability – Whereas 2 or 3 years ago the market lacked confidence in their generic ability to deliver, confidence in Indian suppliers is now significantly growing
3) Commercial flexibility – Complex BPO contracts have traditionally been difficult and adversarial to negotiate, despite this Indian suppliers have gained a reputation as easy to do business with
By the same token however, it outlines three serious and ongoing challenges Indian suppliers face in competing against global consulting and integration giants. Firstly, they do not have the profile or brand, secondly they do not have the consulting heritage and thirdly, their low prices and commercial flexibility may not be sustainable.
Viewpoint author, Rick Simmonds, a Partner with Alsbridge Europe comments: “Despite these challenges, the Indians are here to stay. The traditional players will need to adapt to deal with them, and the ensuing battle for this multi-billion dollar market should be interesting”.
To read this opinion piece in full, please visit http://alsbridge.com/outsourcing_articles.shtml
or to receive a hard copy, please contact Helen Ricardo, Alsbridge Europe on +44 (0)20 7242 0666.
Alsbridge (http://www.alsbridge.com) is the premier consulting firm providing unbiased advice on the use of Outsourcing, Shared Services and Offshoring for functions such as Information Technology (IT), Human Resources (HR), Finance & Accounting (F&A), Customer Relationship Management (CRM), Procurement, and other business processes. Our consultants average over 15 years experience specializing in Outsourcing, Shared Services and Offshoring transactions and have served as managing partners and senior executives at leading firms such as Ernst & Young, Capgemini, EDS, Accenture, PwC and KPMG. With global presence across North America, Europe and Asia Pacific, we provide clients with unmatched functional experience and in-depth industry knowledge. We help clients reduce costs, improve processes and maximize shareholder value through the use of both onshore and offshore Outsourcing and Shared Services.
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