TCS boasts highest number of offshore units: study
posted in Outsourcing News and Top Outsourcing deals |Source:www.hindu.com
IT behemoth Tata Consultancy Services has taken the lead in setting up its global footprint among the IT/ITeS space in the country with the company boasting of as many as eight offshore units in various nations worldwide, a new study says.
Among the forerunners of Indian IT space, TCS has scored well above its peers with eight offshore units worldwide as against Infosys and HCL’s two units each on foreign shores, Wipro’s three offices and Satyam’s five units, according to KPMG-Nasscom latest study.
The study titled ‘Emerging destinations for India IT/ ITES Industry’ reveals TCS, has offshore operations in — Hungary, Argentina, Brazil, Chile, Mexico, China, Malaysia and Canada.
While, Infosys has offshore units in China and Canada, HCL is present in Malaysia and Canada and Wipro has footprints in China, Malaysia and Canada.
All the leading seven Indian IT firms taken in the study have their offshore units in the fastest-growing economy, China except HCL and Patni Computers.
In terms of working population, China has 58.2 per cent of its population in the age-group of 20-59 years and post 2003, its GDP has crossed the 10 per cent mark.
Malaysia has 50 per cent of its population in the age group of 20-50 years and would grow to 60 per cent in year 2025. Since the two countries have the potential of churning out enormous number of graduates and lower wage available there, the Indian IT giants want to get a piece of the pie.
As for the TCS, experts say that if the company lowers the number of employees working offshore down, then the company’s revenue can spiral proportionately because employees abroad have to be offered substantially more salary as compared to its Indian counterparts.
Another leading IT firm Cognizant, having offices in Chennai, Hyderabad, Kolkata, Bangalore, Pune and Mumbai, also has offshore operations in China, Malaysia and Canada.
Cognizant has aligned its businesses vertically and has clients in banking & financial services, healthcare, manufacturing & logistics, media & entertainment, telecom, insurance, life sciences, retail and hospitality.
One of the pioneers in Business Process Outsourcing, Genpact has operations at China, Romania, Hungary, Mexico and UK along with India. HCL’s industry verticals are telecom, retail, financial services, logistics and utilities and is operated at Malaysia, UK and Canada.
Besides, Infosys has ventured its expansion to aerospace and automobile, banking & capital markets, communication service providers energy, utilities & resources though lags behind with just two offshore operations. Patni Computer Systems which has more than 200 Fortune 1,000 companies as its clients and has its offshore BPO centre at Canada.
Satyam with activities in healthcare, insurance, pharma, banking and financial services, manufacturing and automotive in BPO has also sets its sight afar at Hungary, Brazil, Malaysia and Canada but its still quite far behind TCS.
