Indian Tech biggies in race for $38-bn outsourcing deals

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Top IT firms in India like Tata Consultancy Services (TCS), Infosys and Wipro are busy chasing multi-billion contracts from customers including China Mobile, Verizon US and Bharti Airtel, against multinational rivals as reported by ET.

As per one research by outsourcing experts firms such as Ovum said around 500 contracts worth nearly $37.5 billion are set to expire by September this year, ranging anywhere between $1 million and $1 billion each. “It’s a long, tough summer,” said a senior official at one of the Indian tech firms exploring opportunities at telecom majors such as China Mobile and Verizon. “Coming out of recession, we are facing perhaps the toughest sales challenge ever — the deals are smaller, competition is breathing down our necks and there is this huge expectation that we are back to normal,” he added, requesting anonymity.

Larger offshore vendors, which now include the likes of HP, IBM, and Accenture, are likely to bid for a number of contractual opportunities, said Jens Butler, principal analyst at Ovum. “Cost-cutting is not the only theme, it is a component of client requirements,” added Mr Butler, who is based in Sydney, Australia.

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Not to forget that due to recession lots of contracts which are due for renewal went on hold last year. Since the market has been stabilized, companies are looking further to renew the same but with those companies who can offer a better deal than previous ones in terms of commercial, services, and flexibility. All this because of tight budget and possibilities of further negotiated T&C.

At the other hand, various SMBs are also keeping an eye on these deals to get a pie. Most of the biggies who are likely to be awarded few deals have started engagements with such SMBs to ensure the low commercials and high-profit margin by outsourcing these deals to right companies in turn.

Source [ET]

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