Bangalore, India
29 January 2007
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Indian
IT Services Firms and Financial Core System Development
Report Published by Celent
Celent provides advice to financial
services firms considering outsourcing core IT systems development to
Indian IT vendors.
Indian IT vendors have been at the vanguard
of IT outsourcing. However, their main competitive advantage of cost is
fast eroding due to the expansion of global service vendors like IBM,
Accenture, HP, etc. into India and other low cost countries, and from the
newer low cost offshore locations.
Indian IT service vendors have been
credited with perfecting the global service delivery process, have served
more than half of the top 20 global financial firms, and have played a
leadership role in the maturity of the overall global offshore industry.
Lack of deep domain expertise in the financial industry meant that they
competed mostly for the lower end (in terms of billing rates and services
provided) of outsourced IT services during much of the earlier years.
Despite this, the vendors experienced high growth, leveraging low costs,
high quality execution, technological expertise, and superior
process-oriented methodologies.
However, Indian IT vendors dominance in the
market is under threat. The expansion of global service vendors like IBM,
Accenture, HP, etc. into India and other low cost countries, and from the
newer low cost offshore locations is allowing other companies to offer low
cost options.
To counter these threats, Indian vendors
started aggressively building their business domain expertise around five
years ago as a means to provide higher value services and compete
effectively with these new market players and gain a larger share of
clients’ IT budgets.
"Tier 1 Indian vendors have now built
proven capabilities in developing and implementing core systems in each of
the banking, capital markets, and insurance industries. They have core
systems’ products that are either the market leaders in their category
or that have been implemented for some of the leading financial
firms," says Sandeep Hebbar,
author of the new Celent report, Indian IT Services Firms and Financial
Core System Development. In addition, the vendors have started
engaging on IT consultancy assignments and winning complex, end-to-end
outsourcing contracts.
The report profiles the top five Indian
service vendors and the top product-centric vendor in the financial
services domain -- Tata Consultancy Services, Infosys
Technologies Ltd., Wipro Technologies, Satyam Computer
Services Ltd., Hindustan Computers Limited Technologies, and i-flex
Solutions -- and describes some of the areas where they possess
sufficient domain expertise to build core systems and provide BPO
services in the financial services domain.
The report is 46 pages long and contains 25
figures and nine tables. A table of contents
is available online.
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