This article was published on December 26, 2013

VENKATESH GANESH

IT firms are hoping for a better year even as they stare at challenges in the form of technology and global policy changes.

But in the post-2008 era, it is getting harder to predict a sure-shot method which will work for these companies. “Tier I Indian vendors have had limited success in providing higher value-add services,” says Peter Schumacher, CEO, Value Leadership Group. Offering business services that are valued beyond cost and aligning processes with their objectives is the biggest challenge vendors face, he adds.

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“The question for Poland is, ‘How do I move up the value chain?’ ” said Peter Schumacher, chief executive of the Value Leadership Group, a management consultancy based in Frankfurt and New York. “How can I go from basic process management work to more sophisticated creative work?”

But Mr. Schumacher of Value Leadership Group said the next goal for Poland should be a higher link on the value chain: for Poles to establish their own business service providers so that the country is less dependent on the whims of foreign investors.

 “That,” he said, “is where the future lies.”

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FIRST PUBLISHED: FRI, DEC 20 2013. 05 45 PM IST

V. Balakrishnan exits Infosys as executive exodus continues
This is the eighth top-level exit from Infosys since co-founder Narayana Murthy returned as chairman in June

Anirban Sen | Mihir Dalal 

Bangalore

“This is obviously a very critical departure—Infosys right now is at an inflexion point,” said Peter Schumacher, founder of Germany-based consulting firm Value Leadership Group, which advises companies on their European strategy. “All eyes are on Infosys right now. Questions are now being raised among certain clients about the process that Mr Murthy is pursuing—some time has passed since he took over, yet these departures come as a surprise.”

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BPO units of IT firms growing twice as fast as standalone ones
Back-office units of TCS, Infosys and other top-tier technology firms are growing revenues twice as fast as Genpact, EXL and WNS

First Published: Wed, Nov 20 2013. 12 43 AM IST / Anirban Sen

“Many large customers are in the process of building out their captives and moving them up the value chain,” said Peter Schumacher, founder of Germany-based Value Leadership Group that advises companies on their Europe strategy. “This trend may be cutting deeper into the business of some of the specialized BPO players.”

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VENKATESH GANESH

“Senior level exits are cause of concern but business impact will be known in the next couple of quarters.”

BANGALORE, NOV. 19 2013:

The many executive departures underscore that there are fundamentally different points of view about the future amongst Infosys’ top executives. “Transforming this contention into alignment around a shared and compelling future is a key CEO challenge and will be a proof point for Infosys’ turnaround,” said Peter Schumacher, CEO, Value Leadership Group.

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November 15, 2013

VENKATESH GANESH

“Offshore-based firms need to work harder on their relevant differentiation and invest more in efforts to move up the value chain and create a more refreshing customer experience,” opines Peter Schumacher, CEO, Value Leadership Group. He adds that while they have a strong interest in helping Indian companies move up the value chain and are willing to partner with them to help them accomplish this, more efforts need to be put in to convince customers of this value.

In a series of recent customer strategy sessions organised by Deutsche Bank and the Value Leadership Group that involved decision makers in multinationals, pointed out that outsourcing vendors will have to innovate to counter the impact of the impending comprehensive Immigration Bill in the US.

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Cognizant beats estimates, peers
Ishan Srivastava, TNN | Nov 6, 2013, 04.52 AM IST

"Cognizant and TCS are likely to continue to significantly outpace its/their offshore competitors and the industry. In just three years' time (end of CY16), it is possible that Cognizant will have $15 billion annual revenue and TCS $20 billion - making them roughly twice the size of their tier-I offshore rivals," said Peter Schumacher, CEO of Value Leadership, a management consulting firm. "Cognizant and TCS will be in a league of their own on par with Accenture and IBM and customers will be considering them for their largest and most complex contracts."

"The key development of these last years is that Cognizant has managed to break away from the rest of the industry. But, this hasn't been the result of circumstance. Instead, Cognizant has consciously chosen to interpret the global delivery model differently from its competitors," said Schumacher. "By developing a more agile operating model and building an organizational culture that is more open and inclusive across cultures, Cognizant has managed to craft a unique mix of sustainable advantages."

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Cognizant may see 19% revenue growth in Q3
Ishan Srivastava, TNN | Nov 5, 2013, 06.14 AM IST

"We recently met with about 30 top customers of offshore IT services firms in USA and Europe. Cognizant clearly enjoys the strongest customer momentum and pull," said Peter Schumacher, CEO of Value Leadership, a management consulting firm. "Despite slow economic growth, demand for offshore-based services should remain very strong as European customers are under increasing pressure to reduce operating costs and move to more flexible offshore-based variable cost structures." 

On the immigration issue, he said that "all offshore-based firms will face greater scrutiny now. The Indian firms need to re-frame their thinking. Selectively using more local consultants is an opportunity to enhance the overall customer experience and provide greater value." The Indian firms that fail to recognize this will not capture the customer premium and instead will fall deep into a commodity trap, he said. 

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VENKATESH GANESH

BANGALORE, OCT. 4 2013:  

“Companies like Infosys with their kind of success have found it hard to evolve organisationally and culturally when compared to some of their peers,” said Peter Schumacher, CEO, Value Leadership Group.

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Cognizant buys French firm Equinox Consulting
With Equinox acquisition, Cognizant looks to strengthen foothold in Europe, reduce reliance on North America

First Published: Wed, Oct 02 2013. 01 36 PM IST
Updated: Thu, Oct 03 2013. 01 02 AM IST

“The timing is well chosen as French banks are under pressure to cut their costs and shifting work to offshore is one of their largest—still unexploited—levers for cost reduction and operational ‘run the bank’ performance improvement,” said Peter Schumacher, founder of Germany-based Value Leadership Group that advises companies on their Europe strategy. “Equinox Consulting is the perfect size acquisition as this firm comes without the baggage that a larger European firm would carry.”

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