Outsource Magazine Issue 25 - (Page 36)

New worlds outsource global growth markets As global providers’ traditional markets struggle through continually sluggish economic waters, the focus for many is shifting to high-growth emerging markets – with their own distinct opportunities and challenges. Kavitha Nair Kavitha Nair is a business journalist specialising in Information Technology and processes. She is a graduate of the University of Mumbai. G lobal service providers are upping the ante on their investments in emerging markets, driven by the accelerated economic growth in these regions and the relative slowdown in traditionally core western markets. A growing number of heritage Indian and multinational players, who have historically been present in these regions as local support operations for their global clients, are now actively investing in these markets and scouting for local business. They are willing to dig in deep and stay in emerging regions for the long haul. Big IT services companies like CSC, iGate Patni and MphasiS are reorganising their businesses to make a serious play in these markets. Earlier this year CSC formalised its focus on developing markets and reorganised its geographies to make Latin America – previously bunched under the Americas – as a separate region, splitting South and Central America from North America. “A business looking to grow its top line cannot ignore the increasing rate of economic growth from the emerging regions. These regions have the potential to become significant contributors to our revenue. We have won several indigenous businesses and have a healthy pipeline,” says Nick Wilkinson, CSC President, Market and Product Strategy, Managed Services Sector. Post-merger, iGate Patni too has a wider net to cast. It has restructured its emerging geographies to focus on India, Australia, Asean and Japan. “To adapt and respond to the different characteristics and cultures of each of these markets, we have now appointed regional heads in each geography to manage local teams. This helps accelerate our growth here,” says iGate Patni EVP and Head of Sales – EMEA, Asia & Australia, Derek Kemp. IT major Cognizant posted revenues of over $187 million in the last four quarters from the emerging markets, which is an increase of 41 per cent compared with revenue of $111 million over the same period a year ago. Cognizant President and Managing Director, Global Delivery, R Chandra Sekaran says: “From one per cent of our revenue two to three years ago, emerging markets today represent a meaningful three or four per cent of our revenue on a much larger base. We expect this segment to grow faster than the company average this year too.” MphasiS engaged Boston Consulting Group towards the end of last year to restructure the organisation with a clear focus on emerging regions. “Consequently, we now have a separate market-facing unit that bears in mind the different buying patterns and creates accordingly an end-to-end model with an emphasis on value proposition for emerging markets, specifically India,” says MphasiS’ President - Applications & President - EMEA Sales, “I was in Bangalore, India, the Silicon Valley of India, when I realized that the world was flat.” – Thomas Friedman 36 www.outsourcemagazine.co.uk ● ● http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 25

News & Commentary
Making Contact
Taking the Chair
Clinical Outsourcing Strategies
New Worlds
To Share Or Not To Share?
Trends in Outsourcing Governance
The Next Big Idea
Smart Intelligence
Taking the ChairCracking the Wip
NOA Round-Up
Predicting Success
It’s Not The Contract.
Get Productive
Rigorously Agile
Good Relations
Knowledge Sustainability
Racking Up The Wins
Trust Me... I’m an Outsourcer
Top Ten
The Legal view
HfS Round-Up
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 25