July 27, 2016 1:19 pm | Updated 2 years ago.
Offshore Outsourcing Firms
2016 witnessed companies adopting higher standards, shifting to cloud computing and leveraging opportunities to settle for the best deal as far as IT offshore outsourcing is concerned. Everest Group, a research firm that focuses on Consultancy related to Outsourcing, brought to light the names of the topmost IT outsourcing service providers of 2016.Cognizant ranked first, followed by Accenture. The third spot went to IBM followed closely by TCS.
The Everest Group based their results on the organization’s revenue growth, market share, deals won or renewed, innovation, intellectual assets, and technology development capabilities. Emphasis was also given to the global presence that the organizations have, the number of employees they recruit and their scope for future development. Cognizant backed the top honors based on their year -on -year growth.
Recently, HfS Research, a service research company for business operations and IT services released a report containing the names of the top twenty-five high-value IT professional and managed service providers. As per their research, IBM is in the number one spot followed by Accenture in the second place. Cognizant has been pushed to the eight place with TCS (Tata Consultancy Service) acquiring the fifth spot.
Segmentation of IT offshore Outsourcing Companies:-
The IT offshore outsourcing companies can be broadly divided into three categories. They are:-
- The traditional IT service providers,
- The offshore centric firms,
- The IT as service providers (Google and AWS).
In the present market scenario, organizations are increasingly adopting cloud computing as a result of which the cloud providers are generating huge profits. The traditional providers are finding it hard to survive in this fast-changing environment. The offshore suppliers are also generating more revenue as they readily offer similar services at cheaper rates. Various offshore outsourcing firms have continued to grow because of their cheap labor cost but the situation seems to eventually undergo a change as mid-tier IT firms are assertively competing with each other on price. The traditional players need to focus on the technology created or invested by them.
The topmost IT Offshore outsourcing companies:-
IBM- International Business Machine Corporation headquartered in New York, USA, is a consulting and multinational technology company.IBM secured the first place because of the big deals it had won.IBM also envisages on transforming its work culture by focusing more on developing entrepreneurship among its workforce.
Accenture – Headquartered in Dublin, Ireland is a global professional service organization that actively engages in consulting, digital, technology and operation services. It is also popularly known as the world’s largest consulting firm based on its revenue growth and surpluses over the past years.
HP and CSC are under the scrutiny by their competitors, because of their decision to merge. Their offshore competitors are criticizing this particular move. On the other hand, TCS has continued to win deals and is presently regarded as one of the most successful offshore firms. Although Capgemini’s ranking suffered because of the change in the euro-dollar exchange rate, its acquisition of iGate has restored its place. Cognizant, which was given the number one spot by the Everest Research Group can be also adjudged as one of the most successful companies in the recent years.
Experts predict that 2017 onwards cloud providers, i.e IT offshore outsourcing companies that have moved to cloud computing, will be the most sought-after firms. The companies that are investing in cloud-based infrastructure will be the next generation of market leaders. IBM, Cognizant’s Cloud 360, Accenture’s Cloud Platform and HP’s Helion Network have already developed an integrated cloud platform. Traditional offshore outsourcing firms need to embrace this change and leverage the advantages of a rich cloud ecosystem. Organizations that will not play a part in this changeover will lag behind and will lose out in the long run.