News »Browse Articles »
`Indian IT firms need long-term deals to make gains in Europe`
+1
`Indian IT firms need long-term deals to make gains in Europe`
Indian IT majors are still finding a major share of their revenue from European market through project services, while most of the MNCs prefer to go with long-term outsourcing contracts. Top Indian IT companies like TCS, Infosys and Wipro will have to shift focus on long-term outsourcing in order to make significant gains in the European market, says IT analysts. These three companies derive around 25 percent of their revenue from European market.
Unlike Indian firms, MNCs such as IBM and Accenture along with the European-headquartered players including Capgemini, Atos Origin and Logica are making a large share of their revenue from European market as part of multi-year contracts.
"A fall in project services spend is impacting all service companies irrespective of where they are headquartered," said Kate Hanaghan, Senior Analyst, The Bathwick Group. An official of a top Indian IT firm opined, "We surely need to increase the share of bigger, long-term contracts in order to gain competitive edge."
"The revenue contribution from Europe is expected to remain at same level as Indian companies will be wary of making any substantial investment in the region under the current circumstances," said Dr Pradeep Mukherji, Managing Director, Avasant Asia, a sourcing advisory firm.
Unlike Indian firms, MNCs such as IBM and Accenture along with the European-headquartered players including Capgemini, Atos Origin and Logica are making a large share of their revenue from European market as part of multi-year contracts.
"A fall in project services spend is impacting all service companies irrespective of where they are headquartered," said Kate Hanaghan, Senior Analyst, The Bathwick Group. An official of a top Indian IT firm opined, "We surely need to increase the share of bigger, long-term contracts in order to gain competitive edge."
"The revenue contribution from Europe is expected to remain at same level as Indian companies will be wary of making any substantial investment in the region under the current circumstances," said Dr Pradeep Mukherji, Managing Director, Avasant Asia, a sourcing advisory firm.
Search News
News Categories
What's the News?
Post a link to something interesting from another site, or submit your own original writing for the HR community to read.
Most Popular News
-
25 Things You Should Never Include on a Resume
Published about 09-08-2008 | Rated +29 -
Recruitment process
Published about 31-12-2008 | Rated +27 -
10 things about Technology every HR Manager should know
Published about 09-08-2008 | Rated 0 -
Satyam to axe 4,500
Published about 09-08-2008 | Rated +1
Most Recent User Submitted News
- Individual Effectiveness
Submitted by Naheed | Rated +1 - Creating A Better Present And Future By Learning From The Past !!!
Submitted by | Rated +1 - India is top spam sender in Asia
Submitted by Rajesh | Rated +1 - HAS AMERICA GONE TO THE DOGS....
Submitted by | Rated +1