Indian vendors in excellent position to become serious competitors in Continental Europe.
Our research shows that the Continental European market is crucial for Indian outsourcing vendors in their growth to global service delivery. The main reason for this is the growing demand for outsourcing on the continent, which follows the tracks of the US and the UK. In addition the survey comes to the conclusion that Indian outsourcing vendors are a good alternative for Western companies. Quint India interviewed 23 Indian IT and Business Process Outsourcing (BPO) vendors for this research.
Quint Wellington Redwood expects significant growth in infrastructure outsourcing. Next to that general demand for Indian outsourcing services amongst Continental European organizations will keep growing. Right now the US is the largest customer of Indian outsourcing services, followed by Great Britain. 83 percent of the respondents believe that continental Europe will pass the US in the coming years. The main reason is saturation of the American market. Respondents say that's the reason they focus more on Europe.
Most of the Indian vendors' customers are financial services providers (32 percent). According to the research most potential customers are also from these sectors. In addition respondents expect that health care, retail and government organizations will use more outsourcing services. Indian vendors can profit from a growing demand in these sectors.
At this moment the demand for application outsourcing is the highest, but demand for infrastructure services is growing fast. The research shows that application and infrastructure outsourcing counts for 64 percent of Indian outsourcing vendors' turnover. Nevertheless Quint Wellington Redwood expects growing demand for maintenance services. Many vendors do not or hardly offer this traditional outsourcing service. The survey shows that there are opportunities in this field. By extending the services offering vendors can offer an end-to-end services portfolio.
"Indian outsourcing vendors are adapting to the globalizing outsourcing market. They not only use more and more local outsourcing centres, but also comply with global standards such as ISO20000 and CMMI," says Arno IJmker, partner at Quint Wellington Redwood. "The research is positive about the opportunities for Indian vendors on the European main land. We hope that these results will stimulate Indian companies to present themselves differently. Instead of emphasizing low pricing they should emphasize their global and innovative capabilities. In this way they can grow into influential players on the European outsourcing market."
About the survey
The survey was conducted in India amongst 23 Indian IT and Business Process Outsourcing vendors. All respondents work at companies that try to get a footprint in the Continental European outsourcing market. Quint Wellington Redwood asked them about their expectations and views on the market. The research offers insight in the market strategy of Indian outsourcing vendors and their expectations. It also provides advice to these companies on how to develop the European main land.
The study can be ordered for € 138.
