HfS: Countdown to commodization: Why the Indians need to get on the acquisition trail

InsightaaS: Phil Fersht’s excellent Horses for Sources provides insightful commentary on the outsourcing market. In this post, he looks at why the Indian W-I-T-C-H firms (Wipro, Infosys, TCS, Cognizant and HCL) should turn to acquisitions to drive sustainable growth.


“Trying to analyze why one Indian service provider had a better quarter vis-à-vis another is becoming pretty moot.

Yes, there are various nuances clearly helping or hindering some of the W-I-T-C-H firms with certain deals, such as TCS’ flexibility to win selective large complex deals, Cognizant’s savvy US leadership team, HCL’s price aggressiveness to pillage legacy EDS contracts, and the fact that Wipro and Infosys somehow “lost their mojoes” in the kerfuffle. However, the bottom-line is clear:  The Indian services business is hurtling toward commodotization, and there needs to be a much more radical play from their ambitious leaders to alter the game…

Read the entire post: http://www.horsesforsources.com/countdown-to-commodization_070613