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Published on: 6/1/2004
Last Visited: 4/18/2007
"It happened in a stealthy fashion," observes Jayant Sinha, a partner in the Delhi office of McKinsey, a strategy consultancy.For a long time, he says, the likes of IBM, Accenture and EDS ignored the Indian IT services companies as "simply capturing the labour arbitrage between India and the West."
Then came the dot-com bust of 2001 and 2002, and the western giants became preoccupied with their own survival."They took their eye off the ball, and when they looked up the Indian companies were suddenly right behind them," says Sinha.
Today, he adds, "these [Indian] companies are really starting to inflict some hurt on the global multinationals."The hurt is being inflicted in several ways.On the one hand, the western firms are losing direct revenue to their Indian competitors.