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Follow UsGartner Inc., a US-based international research firm, has come out with the first-ever
comprehensive rating grid for the top nine Indian offshore service providers. The companies were assessed in five evaluation levels across 14 parameters. So, what’s the Gartner verdict? TCS, Infosys Technologies, Wipro Technologies and Cognizant Technology Solutions were given the “positive” rating, the US firm’s second highest rating in its offshore vendor-rating grid. Among these, TCS has been tipped as a leading contender to join the ranks of large global external service providers.
“This is a tremendous rating for the companies who have around $10 billion in revenues. This reveals that these companies have achieved a competitive positioning vis-Ã -vis the global market,” Gartner India vice-president Partha Iyengar said at a press conference held at Pune in early August. The remaining five companies–Satyam Computer Services, HCL Technologies, Patni Computer Systems, Syntel and Covansys Corporation–have been rated as “promising” overall. “The grid ratings focus on the vendor as a whole, not just the position within a single market or based on a few select criteria,” he explained.
The positive rating implies that the companies have demonstrated strength in certain areas, but these are largely opportunistic.
For customers, the global research firm has advised continuing incremental investments while potential customers have been advised to put these vendors on a shortlist of tactical alternatives. The promising rating signifies that the companies have shown potential in specific areas, however the initiative or the vendor has not fully evolved or matured. Customers have been advised to watch for a change in status and consider scenarios for short- and long-term impact.
According to Iyengar, enterprise buyers are now demanding that IT service providers offer a range of global alternatives, including onsite, domestic, near shore and offshore capabilities. In 2002, Gartner had mentioned that by 2004, more than 80% of US executive boards would have discussed offshore sourcing. And more than 40% of US enterprises would have completed some type of pilot or will be sourcing IT services through a global delivery model, such as near shore and offshore.
Indian IT service providers accounted for an estimated $10 billion of IT services delivered in 2002.
| Offshore Vendor Rating Project |
|||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | |
| TCS | Infosys | Wipro | Satyam | HCL | Patni | Covansys | Cognizant | Syntel | |
| Overall Rating |
Positive | Positive | Positive | Promising | Promising | Promising | Promising | Positive | Promising |
| Corporate Viability |
|||||||||
| Strategy | Positive | Positive | Positive | Positive | Positive | Promising | Promising | Positive | Promising |
| –Geographic Penetration |
Strong | Positive | Strong | Promising | Promising | Caution | Caution | Promising | — |
| (EMEA market) |
Positive | Positive | |||||||
| Financial | Positive | Positive | Positive | Positive | Promising | Positive | Promising | Positive | Promising |
| Marketing | Promising | Positive | Positive | Promising | Caution | Caution | Caution | Positive | Caution |
| Organization | Promising | Promising | Promising | Promising | Promising | Promising | Promising | Promising | Caution |
| Product/ Services/ Technologies |
Positive | Positive | Positive | Positive | Promising | Promising | Promising | Positive | Promising |
| Application Development |
Strong Positive |
Strong Positive |
Strong Positive | Strong Positive |
Positive | Positive | Positive | Strong Positive |
Positive |
| Application Maintenance & Management |
Strong Positive |
Strong Positive |
Strong Positive |
Strong Positive |
Positive | Positive | Positive | Strong Positive |
Positive |
| Enterprise Application services |
Promising | Promising | Promising | Positive | Promising | Promising | Promising | — | — |
| ITO | Promising | — | Promising | Promising | Promising | — | — | — | — |
| BPO | Caution | Caution | Promising | Caution | Caution | Caution | Promising | — | — |
| Technology | Strong Positive |
Strong Positive |
Strong Positive | Strong Positive |
Strong Positive | Positive | Positive | Positive | Positive |
| Pricing | Strong Positive |
Strong Positive |
Strong Positive | Strong Positive |
Strong Positive |
Strong Positive |
Strong Positive | Strong Positive |
Strong Positive |
| Customer Service/Support |
|||||||||
| Sales/Distribution | Promising | Promising | Promising | Promising | Promising | Promising | Promising | Promising | Promising |
| Support Services |
Promising | Promising | Promising | Promising | Promising | Promising | Promising | Promising | Promising |
Cyber News Service Pune