The Global IT Services Industry - Heading for a Shakeout? | Miscellaneous Case Studies|Case Studies|Management|Business|MBA|Marketing|Strategy|Case Study|Case Studies

The Global IT Services Industry - Heading for a Shakeout?

            
 
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Case Details:

Case Code : MISA002
Case Length : 11 Pages
Period : 2005
Pub Date : 2005
Teaching Note :Not Available
Organization : -
Industry : Information Technology and Related Services
Countries : Global

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Introduction

In early September 2005, the global bank ABM AMRO made a surprising announcement by appointing India's largest software company, TCS as a primary vendor for its $2.2 billion outsourcing deal. Till then, the big outsourcing deals had been the exclusive preserve of the global "Big Six" - IBM, Accenture, EDS, Affiliated Computer Services (ACS), Computer Sciences Corporation (CSC) and HP Services. The Indian IT services companies were, for all practical purposes not considered a part of this club. They generally concentrated on application development deals valued below $10 million, typically sub-contracting work received from the global giants.

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But with this announcement, ABN AMRO seemed to signal that the Indian majors had graduated to the next level.

For the past couple of years, the big Indian IT services companies had been attempting to persuade clients to invite them to bid directly for the really big deals. The Indian companies had strengthened their front end capabilities, hired top talent from global consultancies, acquired specialized consultancy firms, and increased the breadth of their offerings...

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