Outsource Magazine Issue 25 - (Page 40)

outsource global growth Markets built from scratch with state-of-the-art technologies [and] consequently, seen as a lighthouse on the basis of which you drive innovation,” said Gartner Research VP Ian Marriott. Executives from iGate Patni, Infosys, Cognizant, NIIT Technologies, MphasiS and others touch upon innovative opportunities in large turnkey projects, especially within the public sector. MindTree, for example, is currently involved in India’s Unique Identification Authority (UIDAI), wherein they develop an application which captures and manages data from different sources that includes biometric details, and provide maintenance support. MindTree, unlike some of its peers, currently prefers to stay focused on its selected verticals and geographies. MindTree General Manager & Head-UK (IT Services) Tridip Saha says: “India is our home territory, we have brand recognition and the market expertise. Projects like UIDAI are what we would like to focus on as this has resonance across the world.” India’s contribution to MindTree’s revenue stands at 8.6 per cent. Some other companies like CSC however take a cautious approach in this region. Though current and expected growth calls for a presence in the Indian market, the company has not set huge expectations of significant growth in the short term. Nick Wilkinson believes that India, with its vibrant IT industry, has the requisite understanding of the types of services and maturity in demand. “This therefore calls for prudence in investments and opportunities we go after. Latin America on the other hand holds huge potential for the company,” he added. Latin America is definitely the ‘buzz’ region of the moment amongst many ITES providers; European and North American vendors in particular have evinced a huge interest in the region. Peter Ryan of Ovum puts this down in large part to a strong familiarity with the North American service sector, the proliferation of North American products in use in every day life and, across Spain and Latin America. It will initially focus on selling SI professional services and technology security consultancies. Logica UK’s MD of outsourcing services, Peter Hands, says: “We have not seen a big propensity for straightforward outsourcing transactions. But we can see people talking about it and thinking about it, and are accordingly investing in Logica’s capabilities.” Capgemini’s recent acquisition of the Beijing-based IT services firm Praxis Technology, and of Brazilian IT services company CPM Braxis towards the end of last year, is a demonstration of their commitment to emerging markets. Steve Sutton points out that the company has been selling in the local markets for several years now and will continue with their investments through both the organic or inorganic route. The Indian heritage players are not far behind their peers, though Forrester’s Matzke believes that the Indian providers – while keen to move into South America – lag a little behind their counterparts in North America and Europe in this context. Even so, many Indian majors have outlined plans to tap the opportunities in these regions too. NIIT Technologies President Europe Sunil Surya says: “We operate on a three-year business plan that addresses developed and emerging markets. These plans are reviewed annually and unfold over a period of time.” The company acquired Madrid-based IT services firm Proyecta Sistemas de Informacion SA to boost its European presence. Meanwhile Latin America contributes 3.2 per cent to TCS’s global revenues – “due to ongoing investments and continuing expansion,” according to TCS Europe Chief Marketing Officer Abhinav Kumar. Infosys too expects a significant part of its business to come from both the Latin American and the Chinese markets though it will primarily be from supporting its global clients in those countries rather than from domestic business – for now. R Chandra Sekaran – Cognizant 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 r chandra sekaran, cognizant ❛ ❜ importantly, the expansion of the Spanish language in the United States. Ryan adds that “the talent set in particular in Latin America is tremendous and makes me think of the outsourcing talent working in India several years ago.” Global majors like CSC, Logica, and Capgemini have opted for the inorganic route to aggressively tap into Latin and the South Americas. CSC – which announced its increased presence in Latin America in 2009 with the acquisition of Bearingpoint’s Brazil operation – recently bolstered its position in the market with the acquisition of another Brazilian IT services firm, VIXIA Consultoria e Tecnologia. Meanwhile Logica recently completed the acquisition of Grupo Gesfor to strengthen support for its European clients @sandeep_sas: we would have been another china or brazil ‘had’ nehru opened the gates for outsiders during his tenure! he failed to appreciate capitalism 40 ● ● 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