companies, battered by grueling losses, are clearing a path to India
for offshore development.
than 20 percent of Sapient's revenue, up from 5 percent in the first
quarter, now is generated from client engagements executed through
the company's global distributed delivery model. While employees
were laid off in the United States this year, Sapient hired more
than 250 in India.
How, CEO of New York-based Scient, emphasized "access to low-cost,
offshore resources" as an attractive opportunity during the company's
recently announced plans to merge with Atlanta-based iXL. The merger
is expected to be finalized by the end of December.
one thing to say it, it's another thing to do it effectively, and
for some of [the e-services companies], it might be too late," says
Jeroen Tas, president of MphasiS.
an interactive integrator for the financial and retail sectors,
was early with a business model based on outsourcing to India.
earned Level 5 certification of the Capability Maturity Model for
software version 1.1 of the Software Engineering Institute at Carnegie
Mellon University. The company offers ISO 9001-certified processes
and has delivered more than 400 projects since 1992.
company,based in Santa Monica, Calif., and Bangalore, India,reported
second-quarter profits up 213 percent from the same period last
That success can be found, in part, in a reduction
of at least 30 percent in the cost of application development and
maintenance for customers. Tas says.
Greenberg, co-CEO of Sapient, says he has been hearing definite,
yet cautious, interest from CIOs about what offshore work in India
aim is to meet client demand for end-to-end solutions within a trusted
relationship but get the advantages of lower-cost offshore work,
has found recent success in an automated e-CRM solution and live
support services in India, Tas says. The company set up two 24x7
satellite customer-care centers in India where employees handle
voice mail and e-mail, and clients collaborate with engineers and
consultants via a secure Web site.
system alleviates most customers' fears about dealing with a different
culture and the work being done so far with the satellite centers.
That model is based on Tas' and MphasiS co-founder and CEO Jerry
Rao's background as top financial executives at Citibank.
easier said than done. Nobody is paying $250 anymore for Web-site
design, so Sapient has seen that and changed their tune," Tas says.
"IXL and Scient may be talking about it, but I haven't seen any
evidence they've actually changed their model."
would not comment on the details of its offshore work or how much
that work would figure into the merged company.
began its foray offshore in December, when the company finalized
an offshore development partnership with HCL Perot Systems (HPS),
whereby iXL sold 1 million shares of its stock for $3 each to HPS,
according to company information.
of the agreement, HPS, a joint venture between HCL Technologies
Limited and Perot Systems, supplements IXL's engineering capabilities,
including e-commerce, legacy system maintenance and enterprise integration.
has eight development centers in Noida and Bangalore, the company
successful, they'll probably have to open their own offshore company
because companies like HPS don't come cheap," says Stephanie Moore,
an analyst at Giga Information Group. "There are a lot of great
possibilities, but Bob Howe and the Scient way need to prevail."