Date - September 14, 2008.
Event – The UK based Barclays PLC pulls the curtain – inking a full-stop to the journey of the 158-year-old Lehman Brothers. John Thain, the CEO of Merrill Lynch succeeds in saving his company by arranging the sale of his company to Bank of America for about $50 billion.
One single day and the US financial system changed – forever. America will never be the same again. Actually, the world will never be the same again.
What does it mean to India and its services industry space? Is it all over? Where are we heading to? Well, who else can answer these questions better than the leaders of the Indian outsourcing vendors? However, talk to the CXO of any Indian service provider and it’s highly likely that you’ll end of listening to the same story – we knew this is going to come and had already fastened our seat-belts, we’re un-affected, we’ve got a strong foundation, we’re embracing a unique business model that shields us from these macro-events, blah..blah..blah. Give us a break guys.
I don’t know why – but traditionally, Indian service providers have always shown reticence to the hard reality – a reality that’s giving them sleepless nights, a reality which if continues will threaten their survival. The following statistics will tell you “why?”
Event – The UK based Barclays PLC pulls the curtain – inking a full-stop to the journey of the 158-year-old Lehman Brothers. John Thain, the CEO of Merrill Lynch succeeds in saving his company by arranging the sale of his company to Bank of America for about $50 billion.
One single day and the US financial system changed – forever. America will never be the same again. Actually, the world will never be the same again.
What does it mean to India and its services industry space? Is it all over? Where are we heading to? Well, who else can answer these questions better than the leaders of the Indian outsourcing vendors? However, talk to the CXO of any Indian service provider and it’s highly likely that you’ll end of listening to the same story – we knew this is going to come and had already fastened our seat-belts, we’re un-affected, we’ve got a strong foundation, we’re embracing a unique business model that shields us from these macro-events, blah..blah..blah. Give us a break guys.
I don’t know why – but traditionally, Indian service providers have always shown reticence to the hard reality – a reality that’s giving them sleepless nights, a reality which if continues will threaten their survival. The following statistics will tell you “why?”
- 44% of Genpact’s clients are from the BFSI (Banking, Financial Services and Insurance) industry segment (as on December 31, 2007).
- In the fiscal year ending March 31, 2008, 57.4% of WNS’s revenues came from the BFSI industry segment. The figure stood at 35.7% for Infosys and at 44.14% for Tata Consultancy Services.
- In the quarter ended June 30, 2008, 27.3% of HCL Technologies’ revenue came from the BFSI industry segment.
- In Q1, this fiscal, BFSI accounted for 21.38% of Satyam’s revenue.
Interestingly, the aforementioned are the big guys of the Indian IT and ITeS industry and these are not the only ones. Considering that the BFSI industry segment has traditionally been the biggest outsourcer and the biggest revenue generator for the Indian vendors, the threat is apparent.
