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Quo Vadis, India's Offshore Rate Cards? (GloBus INSIGHT Brief)

Wolfgang Messner

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GLOBUS INSIGHT BRIEF, 11-001, 15 June 2011
www.globusresearch.com

Quo Vadis, India's Offshore Rate Cards?
Essential background information for clients negotiating contracts with India's offshore service providers

Dr Wolfgang Messner

In 2011 and 2012, firms will restructure their offshore outsourcing contracts and enter rate negotiations with their providers. Offshore rate cards are influenced by nine overarching industry factors. If India’s offshore service providers want to maintain their profitability, clients will have to expect a rate increase between six and nine per cent. While some providers boost full sales pipelines and will be unwilling to sacrifice profitability for discounts, other multi-national providers are currently struggling to meet their headquarters’ offshore penetration targets in some geographies and will go a long way to pocket more deals. However, providers will try to recover from such discounts via shortcuts potentially leading to mid-term delivery problems and long-term pressures to increase rates even further.

Dr Wolfgang Messner is Director and Principal Consultant of GloBus Research Ltd.; he has been associated with India’s services industry since 1995 and since then spent a total of four years living and working on the subcontinent, in a captive centre of a universal bank, as Delivery Director of a multi-national service provider, and as visiting professor at the Indian Institute of Management Bangalore. He holds a Ph.D. in marketing from the University of Kassel, an M.B.A. from the University of Wales, and a Master's Degree in informatics after studies at the Technical University Munich and the University of Newcastle upon Tyne.

Language: English

Format: Kindle Edition

Publisher: GloBus Research Ltd.

Release: June 14, 2011

Quo Vadis, India's Offshore Rate Cards? (GloBus INSIGHT Brief)

Wolfgang Messner

0/5 ( ratings)

GLOBUS INSIGHT BRIEF, 11-001, 15 June 2011
www.globusresearch.com

Quo Vadis, India's Offshore Rate Cards?
Essential background information for clients negotiating contracts with India's offshore service providers

Dr Wolfgang Messner

In 2011 and 2012, firms will restructure their offshore outsourcing contracts and enter rate negotiations with their providers. Offshore rate cards are influenced by nine overarching industry factors. If India’s offshore service providers want to maintain their profitability, clients will have to expect a rate increase between six and nine per cent. While some providers boost full sales pipelines and will be unwilling to sacrifice profitability for discounts, other multi-national providers are currently struggling to meet their headquarters’ offshore penetration targets in some geographies and will go a long way to pocket more deals. However, providers will try to recover from such discounts via shortcuts potentially leading to mid-term delivery problems and long-term pressures to increase rates even further.

Dr Wolfgang Messner is Director and Principal Consultant of GloBus Research Ltd.; he has been associated with India’s services industry since 1995 and since then spent a total of four years living and working on the subcontinent, in a captive centre of a universal bank, as Delivery Director of a multi-national service provider, and as visiting professor at the Indian Institute of Management Bangalore. He holds a Ph.D. in marketing from the University of Kassel, an M.B.A. from the University of Wales, and a Master's Degree in informatics after studies at the Technical University Munich and the University of Newcastle upon Tyne.

Language: English

Format: Kindle Edition

Publisher: GloBus Research Ltd.

Release: June 14, 2011

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