Indian Tech Services companies – Reinvent and prosper

With the slowdown predicated for the US economy, what’s next for Indian IT and ITES companies who rely too much on providing outsourced services from offshore? One possibility is that they look to other markets such as Europe, as Infosys and HCL demonstrate in their tussle for Axon consulting (Click here for the BusinessWeek story). While such moves may benefit in the short term through immediate impact on the balance sheet, for the long term a much more serious rethinking is needed.

I’ve argued that Indian IT and ITES companies have sufficient domain knowledge to develop new products and services for the international market in an article at Catalyzt, a market intelligence service for the TMT sector.