Value Leadership Group Website

New Value Leadership Group Strategy Paper

India: An Emerging Research Cluster

By Professor Srinivasa Rangan

Professor Rangan provides cutting-edge insights into the strategies companies are applying to leverage the emerging scientific research cluster in India.

This paper is based on a global Value Leadership Group next practice strategic research project involving the research centers of more than 20 companies in India including Philips, ABB, Motorola, HP, GM, and the Tata Group.

Professor Rangan’s paper builds on his work of almost 10 years with Professor Michael Porter at Harvard University.

Click here to download the complete study in PDF Format

The New Competitive Paradigm in European IT Services – Global Strategy Conference
in Stockholm

In June 2007, the Swedish investment bank, Handelsbanken Capital Markets, and the Value Leadership Group, hosted a global strategy conference in Stockholm. The theme of the conference was – The New Competitive Paradigm in European IT Services.

The Value Leadership Group provided exclusive analysis and CEOs from industry leaders gave important new insights into the competitive dynamics and likely future direction of the European IT services industry.

More than 125 senior executives from 18 countries and a cross section of industries were in attendance. Delegates and speakers gave this event the highest ratings.

Click here to download a 1-page anaylsis of the conference

Does your Offshoring
strategy create differentiation
and greater business value?

Read an exclusive interview on offshoring strategy with Peter Schumacher.

Best practice companies – regardless of size – are those that leverage offshoring to do things they would not be able to do otherwise. You can entrepreneurially rethink your business and implement organizational and service innovations.

Companies that are not thinking about offshoring strategically are likely to miss this opportunity.

This interview was released in Belgium in July 2008 in “Offshore Update” a publication of Applied Development, continental Europe’s first venture funded offshore services firm.

Click here to download the 1-page interview in English Language

Click here to download the 1-page interview in Belgian-Dutch Language

Value Leadership Group in the news

Indian tech titans push European rivals to shakeout
by Narayanan Madhavan
New Delhi, April 06, 2007
First Published: 22:13 IST(6/4/2007)
Last Updated: 01:34 IST(7/4/2007)

While much of the focus of India’s information technology boom has been on the US-led North American market, somewhat quietly, the country’s software service majors have conquered Europe and in 2008, are set to deliver a knock-out punch to the continent’s IT service players.

Value Leadership Group Inc, a consulting firm promoting offshore ventures to help Europe’s IT firms, estimates the top five Indian IT service companies to generate 5 billion euros in revenues in 2008 from European operations, up from 2 billion in 2006, with a combined headcount of 115,000 employees working on European projects.

“Under any scenario, European IT services are in for a major shakeout,” Peter Schumacher, chief executive officer of Value Leadership, said in a study presented at the technology industry’s pivotal CeBIT fair in Germany last month. “A highly disruptive competitive dynamics will develop in Europe by 2009.”

Schumacher, who made available his study to Hindustan Times, says 92 per cent of German firms still do not feel the need to step up offshore presence in India despite reports by investment bankers like Goldman Sachs as far back as 2002 that a shakeout was likely.

In a sign of the crunch, European leader Capgemini last year acquired Nasdaq-listed Kanbay for $1.25 billion, mainly to get access to 5,000 India-based workers.

A key factor is that after being hit by a slowdown in the US economy in 2001, Indian companies have aggressively courted business in Europe, taking on local rivals, which have been forced to step up presence in India. But these European majors have had to compete for talent with US giants such as IBM and Accenture, in addition to entrenched Indian giants, making their task more difficult.

Infosys, which had European revenues of only €18 million in 1999, is set to increase the figure to €1.4 billion in 2008, up from 950 million this year, showing a compounded average growth rate of 62 per cent over nearly a decade.

Wipro has acquired niche companies in Europe to get access to juicy customers.

Last month, the top five European IT service companies- Capgemini, LogicaCMG, AtosOrigin, Indra and Tietoenator, had a combined market capitalisation of only $23 billion, whereas Tata Consultancy Services, Infosys, Wipro, Satyam and Cognizant (US in incorporation but India-centric in work) had a combined value of $100 billion. The top three separately overpowered the European top five.

Note: Includes corrections as published on page 2 of the Hindustan Times (New Delhi edition)
on the 9th of April.

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