Ok, I coined the term SWITCH for the major India centric vendors to show their momentum in the market. But I was thinking a few market share points. So I have to pause when I see projections India centric firms are ready to take over the market - as comes across in TPI's and Forrester's optimism about the firms.
The Big 6 western outsourcers - Accenture, Cap Gemini, CSC, EDS, HP and IBM - have over $ 125 billion in annual services revenues. SWITCH has roughly $10 billion. For every dollar an IBM may lose to a TCS, it will be likely at 50c to TCS at lower offshore rates. Do the math on how long before Indian vendors get anywhere close. And as I wrote here, it is unlikely India can sustain continued rapid growth - of SWITCH and those of the Big 6 themselves as they make investments and acquisitions there.
With their huge valuations, they could close the gap but so far the Indian vendors have been cautious and just made small acquisitions.
Corporations are increasingly staring at a rock and a hard place. Many are jaded with the Big 6 model. And increasingly worried about India's heated economics.
Other offshore markets, rural western providers, new utility computing providers, SaaS vendors all have the opportunity to step in to this growing void.
