Date:21/08/2004 URL: http://www.thehindubusinessline.com/2004/08/21/stories/2004082101741900.htm

Back `Offer business solution with offshore edge'

Our Bureau

Chennai , Aug. 20

INDIAN information technology companies need to move up the value chain and offer a comprehensive and integrated business solution with offshore advantage rather than just a vanilla offshoring services, said Mr Subu D. Subramanian, Senior Vice-President, Satyam Computer Services Ltd.

IT companies need to have skills such as technology, customer engagement, business consulting, programme management and change management. In addition, companies should use local expertise and have a global delivery model, he said at the Srikanth memorial annual lecture here on Friday.

According to Mr Subramanian, offshore outsourcing to India has become mainstream. However, the business environment for Indian offshore is changing. The economy is turbulent with higher wage bills, exchange rate volatility and inflation inching up. Customer expectation is also expanding as they want comprehensive business solutions at lower cost. Companies are building captive offshore centres to take advantage of the low cost work force in India, he said.

Also, other low cost locations are fast emerging. Competition from China, Eastern Europe, Russia and the Philippines is becoming formidable. Options for Indian IT firms are limited, and it is now a matter of survival or death, he said.