For Indian vendors a global strategic move from mega information technology deals and nearly to modular outsourcing will initiate various opportunities in the next few years, and it is expected the deals to come in the year 2012, according to the analysts.There are 199 deals with an overall contract value of $38 billion as the administrator is not an Indian service provider based on the Standard Chartered Securities report with the TPI data and by June 2012 the deal is for renewal.
Based on the analysis, for Indian vendors, they analyze that the near-term opportunity result is almost $7.2 billion, they expect that the near-term deal swept to reflect in fiscal year 2013 volume growth for Tier-1 players, given the 2-3 quarter lag within the project ramp up and deal signing. The primary driver for medium-term growth will be the renewal deal opportunity referring to the report. The other thing is that the mega deals have not gained the efficiencies or the cost savings they conceptualized.
The examples given by the Vice-President and Distinguished Analyst for the Regional Research Director of Gartner India, Mr. Partha Iyengar is the GM and ABM Amro that over some previous years renewed its information technology contracts that comes up with some smaller deals. With that, most Indian IT vendors like the two large companies Infosys and TCS got the pie sliced that goes to the HP or an IBM.
He added that there are various factors for this and by the end of the second year and up in some of the large multi-year deals, it will be the vendors that manage the clients and not the other way. Big deals are said to be a hindrance to agility, in an assertive way the relationship also locks the customers in creating technology. While based on the Standard Chartered Securities analyzed that there are a directive of almost 1,000 contracts with the non-Indian vendors of the combined contract value that is about $207 billion exactly for renewal beyond the coming five years. The analysts said that they believed that between $50-250 million was the total contract value or TCV deal amount would be a good sign for Indian offshore vendors as there could have some bigger size deals, they expect it to be limited and unique.
According to a research analyst from a foreign brokerage deal size has lessen all over the globe, however not smaller from the mindset and outlook of the Indian information technology services. Customers have moved up towards the silo sourcing for a more excellent breed of vendors, from providing deals to a single vendor for about $1 billion. From the point of view of the Indian IT services they will now attempt to compete for the $50-100 million deals instead of just competing with $10-25 million space.
An IT research analyst with another foreign brokerage said that it is advisable for the mid-cap Indian firms. Some large companies are hesitant to bid out projects individually and allot such a greater amount. At the end of the season, they find out that a large multi-year deal of as much as $500 million will just work out for more than $500 million. As another analyst with a foreign brokerage analyzed that cloud efficiency earns are available instantly, it is applicable to mid-cap firms. A CEO of a mid-size Indian IT firm said that he was surprised to see multi-year deals into just 90-day setups.
REFERENCES:
http://www.theoutsourceblog.com/tag/indian/
http://www.thehindubusinessline.com/industry-and-economy/info-tech/article3247626.ece
