The already-blurred distinction between Indian outsourcers and the traditional big services companies will soon disappear, the head of tech giant Wipro has claimed.
As Indian services companies look at bigger deals and more complex consultancy, while traditional services companies expand their Indian presence, the "demarcation lines" between them will vanish, said Azim Premji chairman and managing director of Indian tech giant Wipro.
He told Silicon.com in an exclusive interview: "They are copying our model we are copying their model and the customer is the net gainer."
And he added: "I think you will have a least two [Indian] companies that are in the top 10 global services providers in the next five years. I think customers will have the top three or four Indian companies in their evaluation set for all major orders."
Premji also said it would be decades before rising wages reduced the cost-saving potential of using Indian companies.
He said: "Wages are going up, they're going up 12 to 14 percent a year. But the nice thing is that if you compare yourself with western nations our average salary for an engineer from college is about US$7,500 a year--a similar engineer in the United Kingdom costs US$55,000 a year roughly.
"If your salaries were to go up by three percent a year and ours were to go up by 13 percent a year it will take 25 years for the two salaries to merge."
Steve Ranger of Silicon.com reported from London.
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Unless Indian companies provide significant value for the oursourcer, they may not wait for 25 years to conclude that it ain't worth sending the work to India. They would say, sure I have to pay a little more but atleast I get things done faster and the quality I get is better.
Posted by anonymous on Monday, November 13 2006 02:43 PM