To excel in outsourcing industry, low cost is not the only driver that can paddle a business to success. With shift in preferences, customers are looking for new capabilities.

The changes in the preferences from customers now demand, involvement of IT outsourcers in business outcomes with sound knowledge of the client’s business field. The shift has however cascaded pressure on Indian IT outsourcers that have distinguished themselves from the rest on the low cost and easy availability of staff.

The business model “Time and Material” is becoming obsolete and getting commoditized.  Furthermore, the number of staff and low cost would however spell no big difference to the clients, though certifications would still serve as a preferred base for fetching in the orders.

Infact vendors are moving towards emerging economies and establishing the centers for themselves.

The transferring of process to some-other country base is no more “in”; presently the companies are targeted to manage the process by developing their own platforms. Tangible benefits are the need of the hour instead of cost reductions.

The top clients are forcing the Indian outsourcers to bring a change in the engagement model encompassing customer interaction, R&D, and creation of intellectual property.

The bottom line is that Indian outsourcers need to focus on client-facing roles to show their aggression on client commitment.