Comments on: IT Services: More on Convergence and Competitive Strategy http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/ Sharad Sharma examines the transformation challenges facing the software industry Thu, 28 Aug 2008 10:53:36 +0000 http://wordpress.org/?v=2.0.2 by: Sharad Sharma http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/#comment-801 Mon, 26 Feb 2007 17:45:43 +0000 http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/#comment-801 Thanks Vinnie and Sadagopan for your useful comments! Thanks Vinnie and Sadagopan for your useful comments!

]]> by: Sadagopan http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/#comment-786 Sun, 25 Feb 2007 23:11:39 +0000 http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/#comment-786 The services industry is still a fragmented market where the top 20 global players account for approximately 35% of the market opportunity. Best illustration of fragmentation – An analysis of top 100 global consulting &#38; outsourcing deals show that over a period of years the number of players competing for such deals have steadily increased! – from 26 to 45, tracked annually in the last three years. I agree with you that it would be very difficult for well established players to change their business models and their organizational DNA to come out with a winning competitive strategy. The offshore players have in a way grown faster on this count. All indications are that the stronger players would continue to do so in the near future. But consolidation is far away but tiering of service providers in terms of scale, expertise, geographical reach growth rates and capabilities would happen and this would happen faster than were seen in the past. See my <a href="http://123suds.blogspot.com/2007/02/convergence-competitive-strategy-of.html" rel="nofollow">brief post</a> on this. The services industry is still a fragmented market where the top 20 global players account for approximately 35% of the market opportunity. Best illustration of fragmentation – An analysis of top 100 global consulting & outsourcing deals show that over a period of years the number of players competing for such deals have steadily increased! – from 26 to 45, tracked annually in the last three years.

I agree with you that it would be very difficult for well established players to change their business models and their organizational DNA to come out with a winning competitive strategy. The offshore players have in a way grown faster on this count. All indications are that the stronger players would continue to do so in the near future. But consolidation is far away but tiering of service providers in terms of scale, expertise, geographical reach growth rates and capabilities would happen and this would happen faster than were seen in the past. See my brief post on this.

]]> by: viinnie mirchandani http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/#comment-769 Sat, 24 Feb 2007 04:25:59 +0000 http://orbitchange.com/blog/2007/02/23/competitive-stgy-two/#comment-769 and my response is you are comparing Accenture and Infosys which make up 2% of the global services market - as compared to HP and Dell which have far greater market share of the PC laptop market. When I was at pwC a long time ago, we primarily focused on Accenture (then Andersen) - the reality is services is an incredibly fragmented market. and my response is you are comparing Accenture and Infosys which make up 2% of the global services market - as compared to HP and Dell which have far greater market share of the PC laptop market. When I was at pwC a long time ago, we primarily focused on Accenture (then Andersen) - the reality is services is an incredibly fragmented market.

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