By siliconindia news bureau
Bangalore: Even though IT investment has started across sectors and India is increasingly becoming a hot bed for large deals, Indian IT vendors need to rework on their business strategy to cater the local market.
Enterprises that lagged in IT infrastructure are making investments, and many are matured to the extent of consolidating their IT infrastructure using components such as virtualisation, service-oriented architecture and application integration. However, vendors would have to find way to beat the price consciousness of clients.
Analysts at Edelweiss Securities said in a note, "It is possible to make decent margins in India by redefining the cost structure (by questioning what is core and non-core in delivery), applying shared services and linking pricing to transactions and outcomes.
Because of being less concerned with exclusivity of resources, the shared services model is suitable for the domestic markets. Referring to Wipro's shared services offering, analysts said that the same resources could be used across multiple projects simultaneously with client approval.
Analysts said, "Companies need to have dedicated delivery and technical staff for its India business unit. Wipro has a dedicated team of 15,000 professionals catering to the emerging markets, unlike some vendors that borrow resources from the global business units. As international players heighten their focus on India and other emerging markets, they will look at partners and local country affiliates to help them in their go-to-market strategy in various areas such as networking, storage, platform development and enterprise solutions."
Currently, IT services are a $12-billion opportunity in India.
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