‘Billion-dollar deals no longer there'

Not wanting to risk handing over turnkey deals to a single vendor in this challenging macro-environment, clients are segregating their portfolios. Here's what Mr Srinivas had to say on this process.

Have you benefited from the vendor rationalisation process undertaken by large clients?

With the existing clients where this has happened, we have been net gainers, both in the US as well as Europe. It has been a positive for us.

Obviously, we have had to do a lot of things right to win those parts, and it is not just about pricing. We need to be competitive, no doubt, but execution capabilities are important for clients.

In other words, they are risking more business with fewer vendors.

They will obviously consolidate with large players whom they can trust in the long run.

We have seen large transformational deals coming to a halt. Could there be a revival?

There is no doubt that the large deals have definitely come down across sectors. This is not because of the current macro-environment, but because of the fundamental philosophy of clients changing and their not wanting to put all their eggs in one basket. They have refrained from letting out entire turnkey IT operations to one vendor.

They have not seen any benefits by doing this in the past; in fact they have had a lot of challenges by handing over these large deals. They have not been able to have control.

They have not been able to upgrade or derive any business benefits. So, opportunities in terms of billion-dollar deals are no longer there. They are a thing of the past.

Large deals are more in the $200-300 million range as clients have distinguished and segregated the portfolios.

COMMENT NOW