Offshore based IT Service Providers from India have interestingly a very modest to negligible play in the domestic IT services market in India. With the exception of those which have a hardware based business in India for couple of decades and who do primarily hardware sale and systems implementation, most of the bigwigs have very little revenue coming from India. For those who have, it is in single digits or roundabouts of their total global revenue. Reason?:
- Core value proposition, including but not limited to labor arbitrage does not apply to customers who can also get work for as much as they do
- Access to competent and skilled resources for customers
- Lack of technology maturity in the domestic technology market
- Rampant insourcing in the industry in general
- Long, low value sales cycle. In comparison the same efforts would yield more and higher value (revenue and profit) business in US and Europe
Having spent few years of my earlier life selling in the domestic market, the experience of selling is also different where the customers' buying behavior is much different and not so sales friendly.
Things are changing, moreso with some of the large government or government backed IT spending initiated in recent years. There are also some large and early companies who are looking at total outsourcing
- Core value proposition, including but not limited to labor arbitrage does not apply to customers who can also get work for as much as they do
- Access to competent and skilled resources for customers
- Lack of technology maturity in the domestic technology market
- Rampant insourcing in the industry in general
- Long, low value sales cycle. In comparison the same efforts would yield more and higher value (revenue and profit) business in US and Europe
Having spent few years of my earlier life selling in the domestic market, the experience of selling is also different where the customers' buying behavior is much different and not so sales friendly.
Things are changing, moreso with some of the large government or government backed IT spending initiated in recent years. There are also some large and early companies who are looking at total outsourcing
