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IT service providers must diversify delivery model: IDC

Our Bureau

New Delhi , Dec. 9

INDIA could lose its edge in offshoring in the coming years unless Indian IT service providers become truly global and diversify their delivery model to other locations such as China, Singapore and Brazil, an IDC analyst said today.

"India currently has a major share in the global offshore business but this will come down significantly unless the Indian IT players diversify their delivery model to locations outside India to become truly global," Mr Phil Hassey, Associate Director, Asia/Pacific Services, IDC said on the sidelines of `Global Outsourcing Forum 2004' here.

He pointed out that top IT service companies such as IBM and Accenture had established delivery centres across the world and had capabilities to provide services in all languages and execute complex projects requiring expertise across many categories.

"For all you know they might even take over a small percentage of work Indian companies do and might even offer to do it for free," Mr Hassey said.

He said that another issue that needs to be addressed urgently is the dependence of Indian companies on business from existing clients.

"If some existing client moves work elsewhere and they miss quarterly numbers they would on a shaky ground with market capitalisation falling rapidly," he warned.

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