Indian Tech Outsourcers Aim to Widen Contracts, Essay Example

The following article concerns the strategic management, goals and perspectives of the top Indian IT corporations, their activity amid the global financial crisis among the top IT corps. Indian top IT corps such as Infosys Technologies Ltd. and Wipro Ltd. aim to achieve the western market, and attain a greater share of the global market. Indian companies are applying a broader use of outsourcing to strengthen their influence and reach HP and IBM levels.

Before the global economic downturn Indian IT companies had an anual revenue growth of 30%, today these statistics are unhopeful. The specification of Infosys Technologies Ltd. and Wipro Ltd. are based on technology services, in the past they usually offered their services to companies who prefered more cost saving services than of IBM and HP. The problem now is that among emerging economies like the Philippines and Vietnam, technology services are even cheaper. With the quality of service that Indian companies provide their prices cannot be cut, so the dilemma could only be solved if Infosys and Wipro reach HP and IBM level and broaden their services. Indian companies became anxious when US companies outsourced their influence into the Indian market. As a result Indian major IT service providers decided to expand their market share by aggresive competition, they used outsourcing to expand their influence by winning million-dollar contracts on the management of global company’s software applications, infrastructure of their networks, including cellular networks. Analysts say that in order to achieve the goal that Indian IT corps put, they need to completely reorganize their management policies as well  as hire more talented staff.