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Introduction

Many Indian IT service providers (ITSPs) are challenged today by the threat of automation and its potential impact on their labor arbitrage business model. A way out is in quickening the speed of digital transformation. We examine the external and internal challenges that Indian IT service providers face today, and recommend a few ways to address these challenges.

Highlights

  • Some Indian ITSPs are slow to transition away from labor arbitrage. But the headwinds are strong. For example, the impact of a contraction of US H-1B visas is being felt across the Indian business process outsourcing providers - threatening to increase operational costs and shrink the margins for many of these providers.

Features and Benefits

  • Analyzes how Indian ITSPs can help customers join up disparate parts of the customer journey.
  • Assesses the level of training Indian ITSPs must invest in to broaden and deepen employee skills and relevance in the digital era.

Key questions answered

  • Why is there an urgent need for some Indian ITSPs to transform away from being purely labor-arbitrage players to more holistic IT providers?
  • How can Indian ITSPs succeed in their digital transformation?

Table of contents

Ovum view

  • Summary
  • Most IT service providers will struggle to survive in the digital era
  • Refocus efforts on improving the customer journey

Appendix

  • Further reading
  • Author

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