Advertisement

Market Entry and Expansion Strategies of Indian IT Firms into the European IT Outsourcing Industry

  • G. Shainesh
  • Zeeshan Sultan
  • Jürgen Weigand
Chapter

Abstract

The success story written by Indian IT and technology companies in the past years has no doubt been impressive. While 10 years ago companies such as Infosys, Wipro, Tata Consultancy Services, or HCL were hardly known even to industry insiders, they have now evolved into important and highly visible players in the global IT sector. However, the high growth rates as well as the profit margins of the past are expected to come under increasing pressure. In other words, a new burst of growth is needed to extend the success story of the past. Expanding their foray into the European territory requires these firms to develop technological maturity and capabilities that are more advanced in terms of developing business relations in the European region. Moreover, regional expansion into the DACH region—the Germanic countries Germany (D), Austria (A), and Switzerland (CH)—will require these firms to identify new growth engines. Although Indian IT providers, e.g., Tata Consultancy Services, have been on the ground in Germany for 20 years with their own subsidiaries, they still lack the presence of global players such as IBM and Accenture or local heroes such as T-Systems. This chapter aims to look at the degree of regional adaptation of the Indian IT players especially in the non-Anglo-Saxon regions.

Keywords

Software Service Sale Force Soft Skill Indian Firm Indian Software 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Baeumer U et al (2010) Higher Hanging Fruits: Zielsegmente und Strategien indischer IT- und Technologieunternehmen in der DACH-Region. M&A Rev 19(10):590–596MathSciNetGoogle Scholar
  2. Barney J (1991) Firm resources and sustained competitive advantage. J Manage 17(1):99–120CrossRefGoogle Scholar
  3. Beil D et al (2009) Infosys’s quest for Germany: an IT farmland for sustainable growth? Ref 210-014-1 ECCHGoogle Scholar
  4. Capgemini (2009) The future of global delivery. Capgemini, ParisGoogle Scholar
  5. Eisenhardt KM, Martin JA (2000) Dynamic capabilities: what are they? Strat Manage J 21(10/11):1105–1121CrossRefGoogle Scholar
  6. Germany Trade and Invest (2011) The information and communications technology industry in Germany. Germany Trade and Invest, BerlinGoogle Scholar
  7. Grimme K et al (2006) Consolidation Continues… Analyse fer Handlungsoptionen. M&A Rev 16(6):261–266Google Scholar
  8. Hoffmann D (2010) Heimlicher Run aufs Offshoring. Available via http://www.computerwoche.de/management/it-services/2351512/
  9. Holdenried U (2008) Uns kommen die Trends entgegen. Available via http://www.computerwoche.de/cebit/1856115/
  10. Hromadko J, Grontzki P (2010) IT-Auslagerung bei E.ON geht in heiße Phase. Available via http://www.finanzen.net/nachricht/aktien/IT-Auslagerung-bei-E-ON-geht-in-heisse-Phase-Kreise-921136. Accessed Nov 2011
  11. Manning S, Massini S, Lewin AY (2008) A dynamic perspective on next generation offshoring: the global sourcing of science and engineering talent. Acad Manage Perspect 22(3):35–54CrossRefGoogle Scholar
  12. NASSCOM (2010) Opportunities for Indian IT-BPO industry in Germanic countries. NASSCOM, MumbaiGoogle Scholar
  13. NASSCOM-BITKOM (2010) Working in a cooperative world. 5th Indo-German ICT conference NASSCOM-BITKOM, CologneGoogle Scholar
  14. Pasanen M (2007) SME growth strategies: organic or non-organic? J Enterprising Cult 15(4):317–338CrossRefGoogle Scholar
  15. Pütter C (2010) Satyam-Europachef über BASF IT, deutsche Kunden und die WM. Available via http://www.cio.de/strategien/2233919/. Accessed Dec 2011
  16. Ribeiro J (2010) Wipro’s IT services revenue up on improved demand. http://www.cio.com/article/600335/Wipro_s_IT_Services_Revenue_Up_on_Improved_Demand. Accessed Jan 2011
  17. Shainesh G (2004) Understanding buyer behaviour in software services-strategies for Indian firms. Int J Technol Manage 28(1)Google Scholar
  18. Srilata Z et al (2009) Cluster capabilities or ethnic ties? Location choice by foreign and domestic entrants in the services offshoring industry in India. J Int Bus Stud 40:944–968CrossRefGoogle Scholar
  19. Teece D, Pisano G, Shuen A (1997) Dynamic capabilities and strategic management. Strat Manage J 18(7):509–533CrossRefGoogle Scholar
  20. Westhoff et al (2007) Inder ante portas? Szenarien des möglichen Einflusses indischer IT-Dienstleister auf die weitere Konsolidierung im DACH-Markt. M&A Rev 17(10):545–551Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Indian Institute of Management BangaloreBangaloreIndia
  2. 2.WHU-Otto Beisheim School of ManagementVallendarGermany

Personalised recommendations