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According to a Forrester report, the top three vendors are Accenture, EDS and IBM for onshore, and Infosys, TCS and Wipro for offshore IT services.

Forrester has graded the vendors using 60 different low-cost global delivery model (GDM) criteria. The study concludes that the offshore players need to add more domain expertise and improve account management to better interface with the business buyer, while onshore players need to fully embrace capability maturity model integration (CMMI) and encourage their account teams to more consistently utilise its low-cost GDM capabilities.

Forrester has defined GDM as integrating rich domain expertise, broad technical skills, and project management discipline across a network of low-cost locations through consistent and robust processes, tools, and infrastructure to maximise the timely delivery of superior IT and BPO solutions.

Elaborating on the concept, the report said that traditionally, large IT service providers have had a vast network of offices in every country doing work for local clients or supporting remote operations for multinationals.

With the evolution to a low-cost GDM, technology services firms will not only rely on a network of in-country staff, but on the expertise in near and offshore locations.

A low-cost GDM works on a distributed development model where much of the work is done in a network of centres across different near and offshore geographies and not just in the local country where the client is located.

Factors such as higher user sophistication and shifting industry economics are forcing IT services vendors to ramp up their low-cost remote delivery capabilities.

"This is part of a broader shift to a more distributed, process-centric, low-cost global delivery model (GDM)," the report said.

The major providers had till now touted their global capabilities as a mechanism for serving clients locally wherever the client happened to be. This is in contrast to the low-cost GDM, which relies on using nearshore or offshore facilities to remotely service clients in other geographies.

Indian IT to be $55 billion industry by 2008.... Read more
Domestic IT market shows 24% growth as against 17% in software exports.... Read more

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