skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration


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.


  • 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


  • Further reading
  • Author

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.


Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700

Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

+44 (0) 207 551 9047 - Operational from 09.00 - 17.00 UK time

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at

Contact marketing -

Already an Ovum client? Login to the Knowledge Center now