Latest News  

India to change outsourcing business model due to automation - FT

Companies such as Tata Consultancy Services (TCS), Infosys and Wipro will move from a strategy-based on high headcount and low costs to one reliant on higher employee costs and flexible services due to automation, writes Financial Times.

2016-06-30 15:52:22

"Their financial model is under stress. It's that simple. They can't just keep hiring freshers [out of college] to keep costs down," says Pankaj Kapoor of JM Financial Institutional Securities, a Mumbai-based brokerage. "Clients know data centres can be operated by one person now, so why do Indian companies need so many?"

As their clients move towards automation, artificial intelligence and cloud computing, India's IT companies are being forced to redefine their pitches. "Our context has fundamentally and irreversibly changed and we cannot go back to the approaches and methods of the past. The world as we know it has been transformed," wrote Vishal Sikka, chief executive of Infosys, in its 2015-16 annual report.
Wipro's chief executive Abidali Neemuchwala shared similar concerns with the Indian newspaper Business Standard in April.

"It's very simple. The number of people required in the lower end of the pyramid is going down. Robots and bots are taking over. You will see a slowdown in hiring across the industry."
Infosys, Wipro and their rivals are now revising their old service model: to provide a fixed IT service for a fixed cost.

"We have started seeing models where we are jointly investing with the client, putting skin in the game," says Pravin Rao, chief operating officer of Infosys.

"I go to the client saying: ‘We believe that by applying these technologies, leveraging them, we can bring you benefit. You can pay me based on the number of transactions, or based on the percentage of revenue I drive, or the kind of cost savings I do.' It's probably a small percentage of the business right now, but over the next five years it will become much larger."


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Stefanini named Eliza Irimia Financial Director for the EMEA region

Eliza Irimia joined Stefanini IT solutions company, with operations in 39 countries and 88 offices around the world, as Financial Director for EMEA. From this position, Eliza will coordinate the company's finan

 Read Full article »
The business environment - invited to get involved in the development of future employees

Over 5,400 Romanian young people have participated in the Duke of Edinburgh's International Award program in Romania (DofE) over the past six years, the personal development program that gives young people aged

 Read Full article »
Oracle study: Moving To IaaS is fundamental to remaining competitive

Research reveals benefits of Cloud Infrastructure established as a clear differentiator. A survey of 1,600 senior IT professionals explores the benefits and misconceptions surrounding IaaS adoption, according

 Read Full article »
Mihnea Diaconu appointed development manager at Webhelp

Webhelp Romania aims to consolidate and develops its local operations by hiring Mihnea Diaconu as Business Development Director.

 Read Full article »
The biggest FAB LAB from Romania has been opened in Iasi

Based on a concept made by the Miolk team, Fab Lab Iasi has a surface of over 700 sqm and it offers different scenarios for flexible use of the space (competition areas, co-working, makerspace, teaching rooms,

 Read Full article »
Deutsche Bank makes its computer code publicly available for the first time

Deutsche Bank announces it aims to create a common industry standard for trading technology by making its own computer code publicly available for the first time.

 Read Full article »
Deloitte: Leadership disrupted: Pushing the boundaries 2017 Global Human Capital Trends

According to a study of this year conducted by consultancy company Deloitte, today, Many organizations need a completely different kind of leader: a "digital leader" who can build teams, keep people connected a

 Read Full article »
Coface Technologies team already employs 30 specialists in core business applications

Six months after the inauguration of the IT development centre in Bucharest, Coface Technologies has already formed its first functional teams and has also launched the first successful projects, such as the au

 Read Full article »
Pavel Campan appointed as the new Vice-President of Operations for TELUS International Romania

Pavel Campan has been named Vice-President of Operations for TELUS International Romania. This appointment comes at a time when the company is about to reach 1,500 team members locally.

 Read Full article »
Roxana Tesiu appointed as the new Vice-President of Human Resources for TELUS International Europe

Roxana Tesiu has been named Vice-President Human Resources of TELUS International Europe. In her new role, she will lead the HR teams in both Romania and Bulgaria, at a time when the number of team members in b

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» Pavel Campan appointed as the new Vice...
» Roxana Tesiu appointed as the new Vice...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Manpower:Romania has world's third hig...
» Oracle study: Moving To IaaS is fundam...
» Molson Coors started to grow its busin...
» SII Romania moves to a new office in A...
» Comdata to buy four subsidiaries of Fr...
» PwC: The competitive advantages of Rom...
» The business environment - invited to ...
 
EDITOR CHOICE
Wipro launches automotive center of excellence in Romania

Wipro Limited, global information technology, consulting and business process services company, announced the launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania. This CoE will help Wipro d

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events