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Indian Tech Outsourcers Aim to Widen Contracts

October 5, 2009
by Amol Sharma and Ben Worthen
Reporters, The Wall Street Journal

Amol Sharma and Ben Worthen

Indian technology-outsourcing companies no longer just want to serve their clients’ computing departments–they want to be them.

For years, India’s big tech firms positioned themselves as a cheap alternative to U.S. and European competitors for tasks such as software maintenance and database upgrades. They were content to take whatever work companies like Citigroup Inc. (C) and BT Group PLC parceled out to offshore specialists.

But the days of 30 percent annual revenue growth from such work are over, a casualty of the global economic downturn and increasing competition in the tech services industry world-wide. Now, Indian companies such as Infosys Technologies Ltd. (INFY) and Wipro Ltd. (WIT) are racing to broaden the services they offer and compete for higher-level work that usually goes to larger rivals including International Business Machines Corp. (IBM), Hewlett-Packard Co. (HPQ) and Accenture Ltd. (ACN).

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