'Top Indian IT firms will continue to dominate'

The tier one Indian software service providers have continued to thrive while major global service providers carry on to lose ground, especially in the application services market.

According to the latest Forrester Research report analysing performance of global IT vendors and their Indian counterparts it further states that Indian firms will continue to grow "" not just because they are a lower-cost option "" because they have caused a 'fundamental? and 'structural' change in the service provider-client relationship.

The report titled 'IT Services Paradigm Shift Drives Continued Indian Provider Success', and authored by Stephanie Moore (vice president, Forrester Research), refutes a pending slowdown among Indian providers and firmly believes the offshore trend to continue.

Says 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 one Indian vendors continue to take business from legacy service providers, and to demonstrate tremendous power in creating value."

Confirming the trend of top Indian vendors performing well, 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 pain specific solutions."

He added that Indian firms challenged by linear revenue growth linked with the labour growth, are trying their best to break direct connection between the two. And reusable components, framework based repetitive solutions and efforts such as lean software factories clearly demonstrate the quest."

The report presents performance figures of onshore and offshore vendors and makes the point that Indian providers are clearly outsmarting global majors in terms of growth and profits.

The report also substantiating the fact that global majors are struggling to compete in the more efficient and transparent world of IT service provisioning created by the Indian vendors.

The author further adds that this struggle is unlikely to abate as the Indian firms invest in moving up the value chain, and the global majors continue to be distracted by their legacy delivery engines and stall on their ability to provide a true global, seamless, and efficient experience.