Indian IT firms yet to tame the Chinese dragon

VENKATESH GANESH
K GIRIPRAKASH

Local firms wrenching away contracts from Indian majors
BANGALORE, JAN. 30 2013: 

“Daimler has seen its revenues in China jump six fold since 2007 - reaching more than €11 billion. For Yum Brands, the owner of Taco Bell and KFC, China is a larger market than the US,” said Peter Schumacher, CEO, Value Leadership Group.

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Wipro to open centres in Europe

VENKATESH GANESH

BANGALORE, JAN 21 2013: 

“Wipro’s intent to open a delivery centre in Germany for the manufacturing industry reflects that Indian IT firms are investing in Germany [Europe] for the long-term and leveraging the downturn as an opportunity to increase their presence in continental Europe,” Peter Schumacher, CEO of Value Leadership Group.

Germany, at present, employs about six lakh software engineers and 58 per cent of German firms are concerned about talent shortages in IT, which is resulting in more offshoring to destinations like India, according to Value Leadership. Also, according to German IT Association data, unemployment in Germany in the IT industry is 3.1 per cent, which is lower than other European countries.

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January 2, 2013, 2:21 PM

Indian IT Faces a Tough 2013

By Dhanya Ann Thoppil

Peter Schumacher, president and chief executive of Germany-based management consulting firm Value Leadership Group Inc., says the demand environment in 2013 will likely “remain tense,” especially during the first six months of the year.

“The demand for IT services in the Nordics, Europe’s best-performing region, has deteriorated notably following the summer,” he said. “Without more clarity and certainty on the political roadmap toward economic reform [in the U.S. and Europe], any recovery is likely to remain tepid as companies hold back technology spending and remain cautious.”

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Wipro Enterprises may appoint Rishad Premji to its board

If this happens, it will be the first time the Premji scion will get on to the board of a Wipro business unit

Pankaj Mishra 

First Published: Thu, Dec 27 2012. 03 02 PM IST

Experts tracking Wipro’s move to create a new non-IT entity said the new company will help create leaders who can work across business segments in the group, a tactic leveraged by top multinational firms such as General Electric Co. and Siemens AG.

“It can provide a broader organizational training ground and even a kind of leadership academy for executives and high potentials across the group,” said Peter Schumacher, president and chief executive of the Value Leadership Group, a management consultancy focused on strategy and organizational development. “The opportunity to shift executives between the (IT services and consumer goods) businesses can help create a stronger culture of learning and customer-mindedness, and even drive innovations from cross pollinating ideas and anchoring outside-in perspectives in the organizations.”

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Europe is Cognizant’s soft underbelly

The US-based firm has been unable to forge the same kind of success in Europe, and not for lack of effort

Pankaj Mishra 

First Published: Wed, Nov 14 2012. 11 15 PM IST
Updated: Wed, Nov 14 2012. 11 16 PM IST

“While customers believe Cognizant has a strong sales and marketing engine, some see Cognizant as being too sales-driven and lacking the strong engineering capabilities and advanced platforms of the Indian firms,” said Peter Schumacher, chief executive of Germany-headquartered Value Leadership Group Inc. His firm advises service providers on doing business with European customers.

“These last nine months, Cognizant’s European growth has been the weakest of all tier I firms, and even tier II firms like Hexaware and Mindtree have achieved much higher growth rates,” Schumacher said.

According to an analysis by Value Leadership, this calendar year, TCS’s continental European revenue will exceed $1 billion compared with about $425 million for Cognizant. In the UK, the gap is about the same, with TCS likely to achieve revenue of about $1.85 billion versus $750 million for Cognizant.

“More importantly, Cognizant has lost momentum when compared to TCS—with TCS outperforming Cognizant in terms of growth by a factor of 3 in both the continent and in the UK these last nine months,” Schumacher said.

“Many European banks are far smaller than US banks and spread across many countries. So to win scale, you need a much broader client portfolio across multiple countries,” Schumacher said.

Cognizant’s strategy of hiring local professionals to lead different country markets in Europe has not really helped it score over TCS, he said.

“While Cognizant is hiring local consultants from traditional IT services firms such as Logica Plc and Cap Gemini SA, TCS’s recruiting strategy combines mature executives with deep domain experience gained in industry with consultants. Many customers perceive the TCS approach as enabling stronger relationships and more pragmatic solutions,” Schumacher said.

Cognizant has also relied heavily on local alliances with firms such as T-Systems, an outsourcing unit of Deutsche Telekom, for gaining more business in the region. This hasn’t really worked out, Schumacher said.

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November 7, 2012, 2:15 PM IST

Obama’s Win ‘Not Best News’ for IT Industry

By Dhanya Ann Thoppil

“India-based firms that manage to connect more effectively with the business agenda of their clients and build unique advantages will see strong growth in the U.S. for years to come, independent of who is in the Oval office,” said Peter Schumacher, the president and chief executive of Germany-based management consulting firm Value Leadership Group Inc.

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Handelsblatt vom 11.09.2012 / Unternehmen & Märkte

Indischer IT-Konzern Infosys kauft in Europa zu

„Der Einkauf ist strategisch durchaus wichtig“, kommentiert Peter Schumacher, Chef des Beratungsunternehmens Value Leadership. „Lodestone ist stark in Kontinentaleuropa uns bringt exzellente Kundenkontakte mit.“

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Top-notch talent pool lures IT, BPO firms to Karnataka

Venkatesh Ganesh
Bangalore, Sept. 5 2012

“No other location in the world offers the large pool of quality talent found in cities such as Bangalore. They offer a bundle of distinct and mutually reinforcing benefits which companies can leverage for competitive advantage,” said Peter Schumacher, CEO, Value Leadership Group.

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July 19, 2012, 1:11 PM IST

India Outsourcers Await U.S. Senate Vote

By Dhanya Ann Thoppil

“It is primarily aimed at manufacturing companies, but everyone in the IT services industry in India seems to think it is aimed at them,” added Peter Schumacher, president and chief executive of consulting firm Value Leadership Group Inc.

Mr. Schumacher says the technology sector in the U.S. is creating a lot of new and well-paid jobs, seven times the national average over the last 10 years. The unemployment rate in the professional services sector was 5% in May and is still declining, he added

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IT companies may relook business strategies

Venkatesh Ganesh
EURO ZONE CRISIS
Bangalore, June 18 2012

“Indian companies should primarily look at Spain as a platform for nearshore delivery,” says Mr. Peter Schumacher, CEO of Value Leadership Group.

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