Offshore Outsourcing Evolution - Survival of the fittest

March 31, 2016 11:07 am | Updated 6 months ago.

By Arup Gupta

The offshore outsourcing started picking up momentum in the late 1980s. The clients in the USA, the UK and Europe were, however, highly apprehensive about the quality and predictability of delivery from the offshore vendors. To address these apprehensions most Indian IT companies got themselves certified first under ISO 9001 and then at CMM Level 4 or Level 5. These quality certifications gave the required edge to the Indian IT companies in delivering complex business solutions compared to their competition in China, Philippines and other emerging countries.

Today, with most Indian IT companies having obtained CMM Level 5 certification, the customers want to see a number of other differentiators in the services being provided to them, especially leveraging the innovations that are taking place in the world of technology today, to make their decisions. This is what is driving the next phase of evolution of the IT companies as they strive to offer IT solutions that deliver transformational value to customer’ business by leveraging the technology innovations, rather than the incremental value provided earlier.

To remain competitive, the IT Solution Providers need to maintain pace with the technology trends being set by FANG (Facebook, Amazon, Netflix and Google) and also need to ensure that these innovations are being demonstrated in the business solutions that they develop for their customers.

In this fiercely competitive race to innovate, the IT Solution providers that fail to bring in the innovations as indicated above will see rapid erosion in their market share and will become extinct sooner than later.