With the customers, small and medium-size Indian outsourcers are gaining favor with the customer during the recession because of the lower prices that they can offer. This is because they are willing to take up a smaller contracts. To drop prices, the larger Indian vendors have been reluctant. The senior analyst at Forrester, Sudin Apte said that they have also not been able to communicate to some clients, the value of doing business with them. The large Indian outsourcers like the Tata Consultancy Services and Infosys Technologies start compteinng with the likes of the IBM and accenture. The large deal sizes is their focus in which they leave a significant part of the market vacant for a smaller players.
The small and medium size firms offer specialized services and expertise in a certain industries that are also attractive to a clients. There is a clear opportunity or chance for a small and medium-size outsourcers as the clients are placing a smaller, specialized orders. Some of the smaller outsourcers can compete effectively with the larger players on a small that do not require a large scale deployment of staff. THe clients who have outsourced for a long time are now confident that they can manage more vendors. The clients can generate competition and get better terms from them.
The trend to consolidate vendors has been noticed that among some clients. The BP for an instance announced that last month, it was a cutting its service providers for an application development and maintenance to a five from 40 earlier. The number of the supplies after the consolidation will still be about five to seven and many at times include a mix of range, small and medium size vendors.
In a report, the forrester has however warned that the clients should not rush to sign up small and medium-size outsourcers on the basis of their lower prices alone. Into a lower cost of delivery, the lower billing rate may not necessarily translate. As some of the smaller companies, it may have lower productivity and be able to handle a complex projects. For low-skills and fairly commoditized types of work, the evaluating rates alone may be good enough.
In many other types of work, the customers need to evaluate more complex factors including the future value of the relationship and service innovation. On the vendors specialization, the clients should instead focus in which it could take the form of specialization around a technology. An industry vertical or business process of the vendors ability to offer a unique vertical or business process across the outsourcing life cycle. In India, they are about 400 small outsourcers and not all of them can offer specialization of value to the customers. Many of the small and medium-size outsourcers have started specializing in the certain niche areas.
Outsourcing always be the one who can help the business. It is a biggest help in all of the ways in businesses. Most of the people want to outsource, this is because there are lots of benefits here. Even though it is small and big companies, they outsource in many places.
REFERENCE:
http://www.networkworld.com/news/2009/091009-smaller-indian-outsourcers-in-favor.html
http://www.techworld.com.au/article/318069/smaller_indian_outsourcers_favor_during_recession/?fp=4&fpid=242
