New Delhi: The latest wave report by Forrester Research, analyzing leading North American applications outsourcing (AO) providers, reveals that MNCs and offshore providers are increasingly competing for the same deals, and that offshore players still have the edge in price competitiveness.
The report ‘The Forrester Wave - North American Applications Outsourcing, Q1 2007’ names five offshore providers – Cognizant, Infosys, Satyam, TCS and Wipro, and 6 MNC providers - Accenture, Capgemini, CSC, IBM, Keane, Perot Systems as leaders in North American applications outsourcing. CGI and EDS, the MNC providers, were judged strong performers. Forrester evaluated 13 leading AO providers across 50 criteria and spoke with more than 60 user client references who were customers of these 13 firms for this wave report.
”Though offshore players still hold the lead in price competitiveness, MNC players still have the edge in global reach. And with once-distinct value propositions between global players and offshore players converging, AO providers now exhibit contrasting — and in many ways complementary — strengths,” said Forrester Research vice president and research director Christine Ferrusi Ross.
According to Forrester, these companies offer adequate service offerings but they must be more proactive in demonstrating both business and technical value in AO engagements, though their customers are a generally satisfied bunch. Customers have to push their providers to supply the best practices that they assume they have learned from other customer engagements.
“While the multinationals possess more vertical industry and business domain competencies, most providers across categories struggle with applying them in the context of AO engagements, according to client references. Further, in case of offshore providers, their limits on scalability are becoming apparent to some customers,” said Forrester Research Principal Analyst and the author of the report, William Mortorelli.
The report “The Forrester Wave: North American Applications Outsourcing, Q1 2007” is currently available to Forrester RoleView clients and can also be purchased directly at Forrester’s website.