September 29, 2004
Vol. IV No. 39
Infosys Consulting Adopts 1-1-3 Strategy for Greater Offshore Advantage
MUMBAI: Infosys CEO Stephen Pratt says that his firm will enjoy a 40% pricing advantage over on-site integration rivals Accenture and EDS as his firm adopts a ‘1-1-3’ model: for every consultant based in the US, Infosys will have one more onsite person and three offshore employees. While U.S. onsite firms may be able to put 20% of their work offshore, says Pratt, the Infosys model allows them to put 60% offshore for a 40% cost advantage. Last April, the company announced a new consulting practice headquartered in the U.S. with a goal of 500 consultants over the next 3 years.
Why Tata’s IPO Should Worry You
[An excerpt from Consultants News]
Consider yourself warned: By this time next year Tata Consultancy Services will likely be traded on Wall Street. Its IPO in India this month will generate enough cash to spur some acquisitions. But access to the US capital markets could help catapult the firm into the top tier.
A.T. Kearney Forms Public Sector Consulting Practice
WASHINGTON, Sept. 21 /PRNewswire/ — Global management consulting firm A.T. Kearney today announced the formation of a Government practice in North America to serve federal and state government organizations looking to dramatically and rapidly cut costs, improve organizational efficiency and service delivery, and improve non-tax revenue growth in state governments. The new practice represents an aggregation of public sector consulting resources developed in the last decade by A.T. Kearney in the U.S. and Europe. A.T. Kearney’s Government practice will focus on gaining contracts from federal agencies and state and local governments in the United States and Canada. The practice will offer services centered on supply chain management and sourcing, and an array of service and technology efficiency and cost-saving applications.
[For an overview of the government consulting market, see Kennedy Information’s recent report, The Government and Public Sector Consulting Marketplace.]
BPTS: The Next Big Thing? IBM Places Its Bet
As web services built around open standards have continued to develop along with Internet and web-based technologies, new opportunities in IT consulting and systems integration are looming large on IBM’s horizon. Driven in part by Big Blue’s acquisition of PwC Consulting two years ago, the company has already booked $1.4 billion in revenue in what IBM is calling Business Performance Transformation Services (BPTS). IBM chairman Sam Palmisano recently told analysts that the market for BPTS is about $500 billion over and above the traditional $1.2 trillion that businesses around the globe spend on information technology products and services each year. To meet demand, IBM has opened a new supercomputing Center for Business Optimization at the company’s Somers, N.Y. location. The Center will work on a wide range of optimization engagements from revamping the U.S. Postal Service to mapping 3-D protein structures for the Tokyo-based Computational Biology Research Center.
Destination China
[A Management Consultant International News Brief]
Everyone knows that China is where the growth will be, and while some have waited for things to start happening there before investing, other consultancies have firmly established themselves in that market. Although it is still early in the growth curve, it appears things are picking up.
For data and analysis to inform timely planning and decision-making, turn to Kennedy Information’s family of consulting newsletters at newsletters.ConsultingCentral.com.
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