Picture of India Gate
India has rising domestic labour costs

Indian suppliers strengthening UK presence

But outsourcers must learn new skills to compete with established Western firms

Written by Tom Young

India’s five largest IT services suppliers will double their market share in the UK over the next four years if they follow their current growth trajectory, says a study.

Indian suppliers TCS, Infosys, Wipro, HCL and Satyam are expected to grow their market share from under three per cent to more than seven per cent by 2011, according to Pierre Audoin Consultants (PAC).

The vendors are winning contracts in the UK based on the quality of their service rather than a cheaper price, but still need to improve in certain areas, said PAC senior consultant Nick Mayes.

"If they are to become major players in areas such as infrastructure outsourcing, they will need to prove their ability to successfully handle the transfer of staff from the client, which is an area where the likes of IBM and EDS carry far greater experience," he said.

In the last 18 months, UK companies including Carphone Warehouse, DSG and
Skandia have all committed to £100m contracts with Indian service providers.

The report found that Indian outsourcers will also have to combat the steady erosion of their price advantage by rising domestic labour costs and the strengthening rupee.

Tags:

reader comments

related articles

Liverpool Victoria HQ

Insurer replaces EDS with Atos Origin

Four-year Liverpool Victoria deal is estimated to be worth between £15m and £30m 22 Jan 2008

 

Wipro profit up 11 per cent

And earnings at the firm's global IT business grew by 26 per cent 18 Jan 2008

TCS profit up 35 per cent

Some 54 clients and 7522 staff members added in the quarter, says Indian outsourcer 16 Jan 2008

Satyam profit up 55 per cent

And the Indian firm is paying £18m cash for Chicago-based consultancy Bridge Strategy Group 21 Jan 2008

Infosys profit up 42 per cent

Sales hit £1.5bn in the first nine months of the year 14 Jan 2008

Battle ahead for outsourcers

Fast-growing Indian suppliers could suffer as Western customers look for money-saving deals 31 Jan 2008

Outsourcing moves away from India

China, Morocco and Hungary are the new locations of choice for offshore centres 29 Feb 2008

Off-shoring moves beyond India

China, Morocco and Hungary challenge India's dominance as off-shore location of choice 29 Feb 2008

related whitepapers

today's top stories

IT's stock is soaring at the LSE

London Stock Exchange IT chief David Lester explains to Angelica Mari how the integration of Borsa Italiana is keeping his team busy, despite the worsening economy 20 Nov 2008

Keeping IT in fashion

John Bovill has been hooked on retail since his early years as a fashion market trader. His industry knowledge is now helping him build a slick IT operation, reports Charlotte Moore 20 Nov 2008

Cutting-edge IT delivers the goods

Chief technology officer Jay Bregman explains how constant innovation is part and parcel of his strategy for delivering competitive advantage at eCourier 20 Nov 2008

Computing podcast: Europol's data sharing woes; credit card protection at Cotton Traders

The pan-European fight against organised crime is undermined by lax data sharing arrangements; and Cotton Traders enhances its credit card protection 20 Nov 2008

Keeping IT on track

Catherine Doran, winner of Computing’s IT Leader of the Year award, tells Angelica Mari of her determination to drive on with technology-led transformation at Network Rail despite uncertainty over funding 19 Nov 2008

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Will attempts to rebrand IT as a "cool" choice of profession increase the number of IT graduates?

Will attempts to rebrand IT as a "cool" choice of profession increase the number of IT graduates?

Can brand building reverse a decline in IT graduate numbers?

Previous poll results

Latest audio and video articles

Video

The definitive guide to converged communications

Five key trends and five best practice tips to help you improve your corporate communications 20 Nov 2008

PodcastAudio

Computing podcast: Europol's data sharing woes; credit card protection at Cotton Traders

The pan-European fight against organised crime is undermined by lax data sharing arrangements; and Cotton Traders enhances its credit card protection 20 Nov 2008

Latest in-depth articles

StarFeatures

Retaining the stars of IT

Jim Mortleman investigates the innovative techniques IT leaders are using to hang on to their star performers 20 Nov 2008

Dave BaileyComment

Clouds darken outlook for Vista's successor

Windows 7 looks like being an improvement on Vista, but economic and environmental concerns may mean few enterprises will rush to adopt it 20 Nov 2008

Advertisement

Primary Navigation