Hierarchy Among Indian IT Giants To Change As Outsourcing Wave Swings Direction

February 17, 2011

It appears that the hierarchy among IT firms in India is about to change. This is largely due to the fact that Indian outsourcing giants cannot simply sit on the offshore outsourcing bandwagon because service delivery has become more important. Subsequently, these firms need to move ahead fast.

This has been the case with Wipro, where both co-CEOs have resigned at the outsourcing major is still seeing double-digit growth. Analysts say that the pecking order of IT firms in India is in a state of change. Heavyweights like Wipro might give in to more streamline companies like Tata, HCL and Cognizant.

Experts say that Indian outsourcers will get a chance to stand out against competitors at home and abroad. However, the recent moves by IBM, HP, and Accenture to spike India operations have changed the playing field slightly. This translates to consulting skills weighing more in the industry.

It is also getting easier to discern the laggard from the leader. Wipro went with the option of a new CEO in TK Kurien after it began looking like a laggard with the resignation of Girish Paranjpe and Suresh Vaswani.

On the subject of Q3 earnings, Kurien who has been a long time employee of Wipro and ex-president of Wipro EcoEnergy, was quoted as saying by zdnet.com, “It’s only appropriate I do a deep dive into the business and discuss with my colleagues before I articulate the priorities. However, what I promise is that the process will be quick. And more importantly, its implementation will be efficient.”

The problem is not that Wipro is a flop. However, it is beginning to look like a mediocre stock in comparison to its competitors HCL and TCS. Essentially, the problem is the Wipro is looking at strong competition from HCL, TCS and Cognizant.


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