Offshore is thriving, onshore on retreat: Forrester

Tier-1 Indian IT vendors have continued to thrive while major global service providers are losing ground, especially in the application services market, according to Forrester Research

The firm said in its latest report Indian firms will continue to grow, not just because they are a lower-cost option, but because they have caused a ‘fundamental’ and ‘structural’ change in the service provider-client relationship.

The report entitled ‘IT Services: Paradigm Shift Drives Continued Indian Provider Success,’ authored by Ms Stephanie Moore, Vice President, Forrester Research, refutes the idea of a pending slowdown among Indian providers and firmly believes that the offshore trend will continue.

According to Ms Stephanie Moore, “Offshore providers have taught clients to expect transparency, efficiency, and accountability in service delivery. With a few exceptions, onshore service providers are struggling to adapt to this new dynamic. Despite the talk that Indian vendors would be supplanted by global majors, tier-1 Indian vendors continue to take business from legacy service providers and to demonstrate tremendous power in creating value.’’

Sudin Apte, Sr Analyst & Country Head (India ), Forrester Research said, “To move up the value chain, top Indian vendors are working successfully towards penetrating the global market for high-end services and their approaches include building domain competency, consultancy practices , and customer-specific solutions....’’