Indian Tech Companies Embrace Global Alliances to Win Large Contracts

Strategic Insights -

Indian software services companies are aggressively forming partnerships with global tech giants to bag large contracts, challenging the dominance of multinational corporations like IBM, Accenture, and Hewlett-Packard. This strategic move has enabled Indian companies to secure sizeable deals, such as the three-year, $100-million contract Infosys Technologies won to manage Microsoft's internal systems in partnership with US-based Unisys Corp. HCL Technologies, on the other hand, has partnered with global tech companies to secure service contracts from Nokia, Xerox, and Electrolux.

Key Takeaways:

  • Infosys Technologies has nearly 15 alliances with global technology providers, including Unisys, BMC, VMware, and Tibco, and has a similar number of "team agreements" with regional players such as Colt and KVH.
  • The company's partnership with Unisys has enabled it to operate in 405 locations in 104 countries, expanding its presence beyond its initial 40-odd countries.
  • Infosys will rely on Unisys for desk-side support and multi-lingual services in the Microsoft contract, which was initially won by the company with less than 10% of the work.
  • Wipro Technologies has expanded its global reach through alliances with companies such as CompuCom, Infocare, Sun ITS, and SunGard, and has a strong presence in North America, Europe, and Asia-Pacific.
  • The partnership model has become essential for Indian companies to compete with global IT majors, as it allows them to deliver services more efficiently and effectively.
  • Analysts predict that the partnership model will gain further currency as Indian majors continue to challenge the dominance of global IT majors in large global contracts.
  • HCL Technologies infrastructure services president Anant Gupta notes that partnerships are beneficial for both Indian companies and their partners, as they enable additional business opportunities in local markets.
  • The market size of the Indian IT outsourcing industry is estimated to be around $60 billion.

Statistics:

  • Infosys Technologies has 15 alliances with global technology providers and 15 "team agreements" with regional players.
  • The company operates in 40-odd countries but has a presence in 405 locations in 104 countries through its partnership with Unisys.
  • The Microsoft contract is valued at $100 million and has a tenure of three years.
  • Wipro Technologies has expanded its global reach through alliances with over 10 companies, including CompuCom, Infocare, Sun ITS, and SunGard.
  • The average big deal size in the Indian IT outsourcing industry has risen to $200 million, with an average tenure of five years.
  • The market size of the Indian IT outsourcing industry is estimated to be around $60 billion.

Sources:

  • Times of India
  • Infosys Technologies
  • Unisys Corp
  • HCL Technologies
  • Wipro Technologies
  • Gartner India
  • Zinnov Management Consulting
  • Pari Natarajan, CEO of Zinnov Management Consulting
  • Anand Nataraj, Vice-President and Infrastructure Management Services Head at Infosys Technologies
  • Diptarup Chakraborti, Principal Research Analyst at Gartner India