Posts filed under 'Offshore IT Services'

Flat Tyre in the Flat world?

(The views expressed on this website are the author’s personal views and do not represent those of his past/current employers)

Rahul Dravid, Sourav Ganguly, and Sachin Tendulkar: the terrific trinity of the Indian cricket pantheon. They lorded over Indian cricket for many years and their exploits have enthralled fans. They seemed unstoppable and could do no wrong. However, of late, a few not-so-spectacular performances and more importantly the changing demands of the game, new formats, and newer players have raised questions about their continued dominance.

The other Indian big three - Infosys, TCS and Wipro too find themselves in a similar predicament. Till recently, these poster companies for Indian IT were the darlings of the bourses, delivering impressive returns year after year on the back of high growth and profitability. But of late, they have fallen out of favor with the markets – their market caps have fallen by a third in 2007 and they trade at/near 52 week lows. The general consensus is that their returns are likely to be subdued for the near future, and won’t definitely be like anything in the past.

Continue Reading Add comment January 1st, 2008

The Offshoring Siren

The Offshoring Siren aka The CEO’s guide to increasing the stock price by 11%

Here is an attempt to quantify the cost savings that are potentially possible in an information technology offshoring scenario. I also try to quantify the impact such a cost-reduction can have on the firm profitability and consequently the share price of the company undertaking the offshoring initiative.

This is not an article that extols the virtues of offshoring and advocates that you pick up the phone to speak to an offshoring vendor right away or get on the plane to Bangalore, but just an effort to understand and explain why there is a clamor to offshore, why the offshore industry continues to grow at such a rapid clip.

Continue Reading Add comment February 1st, 2007