Boutique Players Likely To Play A Big Role In India’s Outsourcing

August 25, 2010

According to a new report by Forrester Research, second tier outsourcers located in India can offer specialized services in certain areas that their larger counterparts like Infosys or TCS may find too niche to resolve.

Principal analyst at Forrester, Suden Apte, was quoted as saying that a large number of clients offshore a large quantity of work in application maintenance, infrastructure support, and business process outsourcing to outsourcing giants. However, when it comes to specialized project, they are likely to stick to smaller outsourcing firms.

Meanwhile tech consultancy firm, Technology Partners International (TPI) said these smaller firms are in reality takeover targets for the larger firms because they will be making an attempt to tap into the new business.

Several second tier outsourcers have specialized into firms dealing exclusively with agile software development, billing software or telecommunications operations. In addition, there are other firms capitalizing on specialization and innovation in relationship management with clients outsourcing to India.

In effect, these are specializations that are often overlooked because large firms might not focus on these unless they derive a large amount of business from it. Testing is one example of a service that was not very popular. But the testing business grew as the volume for the business grew for small specialized firms and now it is a key service area.

Partner at TPI, Sidddharth Pai, believes that boutique players are bound to have a significant role in outsourcing to India. However, they are going through some rough times, since clients keep trying to push down prices. This is particularly true since they are not willing to pay the kind of money they pay to bigger outsourcing firms.


2 Responses to “Boutique Players Likely To Play A Big Role In India’s Outsourcing”

  1. Suman on August 27th, 2010 6:20 am

    Good read.

    Outsourcing is good if you want to cut costs, but you should choose a good firm to outsource your projects to or you will just lose your money and time.

  2. Niche outsource vendors on August 30th, 2010 3:19 pm

    I agree with the blogger. There is a good demand for niche outsource and BPO vendors. In my current company we do several CAD outsource work for large manufacturing firm and we keep getting more outsource work on monthly basis. The rate is also little higher compared to traditional BPO jobs.

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