Having charted the rise, and warned of the potential, of the India-based pure play service providers, over the past eight years, this warning from Gartner doesn’t really surprise me. I do believe Accenture is a cut above the other members of their peer group and will thrive along side the “India-3” going forward.
According to analysts at Gartner, the US outsourcing giants will be knocked off their throne by the emerging Indian powerhouses by 2011.
Infosys, Tata Consultancy Services (TCS) or Wipro will augment, or in some cases surpass, "mega-vendors" Accenture, EDS and IBM by revenue in the strategic services market, it says.
Gartner says the India-3 have used their success at meeting client needs to achieve record revenue growth - of about 40 per cent - over 30 quarters and have enjoyed growth rates almost three times that of the incumbent mega-vendors.
Partha Iyengar, regional research director at Gartner, said in a statement: "The emerging mega-vendors have made dramatic progress in the past few years and have more than doubled their revenue in a four-year period, with the 2007 revenue being 2.6 times the 2004 revenue."
Gartner says the India-3 have achieved this by demonstrating process excellence, world-class HR practices, providing high quality services at a low cost and by winning significant "mind share" compared to their size.
But Gartner warns the India-3 will have to continue to evolve to reach true mega-vendor status, in particular they will have to achieve similar levels of revenue per employee to the US big three.