Strategies for IT consulting companies
The dilemma of the rising rupee and the growing global competition
My grandfather counselled me never to advise people.He used to say,"Fools don't heed advice and the wise don't need advice.Therefore,advisers are usually patron-saints of mediocrity". In todays world unless you are able to make a difference and an impact you are considered no good as a consultant.We are in the "results" business.
For the Indian consulting profession and the IT sector, the specter of the rising rupee is clearly an opportunity disguised as a threat.If Churchill was alive he might have said too well disguised!!! As the marketplace rapidly consolidates , two issues will be critical to suceess :scale of operations and diversity of client portfolios.
Except in niche areas,small outfits that essentially serve a single client in a semi-captive way will come under immense pressure. To mitigate their own risks,clients will increasingly seek out large outfits with multiple locations with a diverse client portfolio and a critical mass of consultants. Companies with single locations,specially those with organizational or legal restraints on scope of services will wilt.
The worst hit will be those organizations that are unable to tap the Indian market with a full footprint of services.Talent inside these organizations will see the writing on the wall and vote with their feet. An insightful article in the IHT looks at options before Indian technology companies and discusses why it will be crucial for them to leverage and serve the Indian market.
My attention was drawn to this article by Somnath .
I recommend that you read this interesting article at http://www.iht.com/articles/2007/07/19/business/sxview20.php?page=1