TCS, HCL Tech's product play likely to eat into services revenue

Their plan to build a product portfolio will discourage global software vendors from building a strategic relationship with these big Indian IT firms

Domestic information technology services firms such as Tata Consultancy Services (TCS) and HCL Technologies are likely to witness a part of their services business being cannibalised in the near term. 

This is because their plan to build a product portfolio will discourage global software vendors such as Oracle, Microsoft and Fidelity, among others, from building a strategic relationship with these big Indian IT firms.

Though the value of software outsourcing contracts from these global firms are not big and pegged at not more than $10 billion, collaboration with these software majors not only provides Indian IT services firms an opportunity