Outsourcing renewals:
Where do I source services?

Karl Flinders
Services Editor
26 Oct 2015 11:00

With thousands of IT services contracts coming up for renewal, CIOs should take a careful look at where they source services from

Peter Schumacher, director at business consultancy The Value Leadership Group, said businesses use offshore centres to help them differentiate, rather than just cutting costs. “You have to use offshore centres today to do things that you can’t do elsewhere and not just cut costs.” He said because companies – not suppliers – own the offshore resources, the savings made are being invested in further offshore work. He said this is as much about creating business opportunity as cutting costs.

CIOs renewing contracts need to think about India in a different way, according to Schumacher at The Value Leadership Group

He said scale is India’s biggest draw. It has the infrastructure and skills that can help companies start from zero and scale up to operations with thousands of staff. Labour attrition might be high, but it is easier to find replacements, he said. He said new recruits are available to fill gaps quickly. “India has the biggest and most diverse talent pool.” And it is not just new graduates seeking low-level work but highly skilled and experienced staff. “There are a lot of people available in India with 10 to 15 years’ experience.”

Many of these workers have been employed at other global businesses. There is former staff of technology giants such as Google based in India’s technology hubs and knowledge is the new resource being traded. The likes of Google employ thousands in India. When these people move on the knowledge and experience goes with them and other companies can tap into it, at a lower cost in many cases.

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IBM reports continued sales
decline in Q3 results

Karl Flinders
Services Editor
20 Oct 2015 11:45

Peter Schumacher, CEO at business consultancy The Value Leadership Group, said when it comes to services many businesses see companies  like TCS as being innovative and adding value. "At the same time, they see IBM stuck in a time warp, not willing to move away from its traditional behavior and way of doing business," he added.

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Infosys changes strategy, to train workers in ‘design thinking’

Target: 70,000 employees by end of this fiscal year

VENKATESH GANESH
BENGALURU, JUNE 2 2015:  

Peter Schumacher, CEO, Value Leadership Group, said that culturally, Infosys has such a deeply analytical mindset that there are questions over whether the company can successfully implement this strategy.

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OFFSHORE IT SERVICES

Manila breaks India top six in outsourcing index

Karl Flinders
Thursday 07 May 2015 17:00

But Peter Schumacher, CEO of management consultancy the Value Leadership Group, said the Philippines and India offer very different environments.

He said the Philippines is largely focused on BPO to US companies and most of the operations are not owned by indigenous companies but rather by foreign companies. In contrast, India is mainly indigenous owned.

This makes a difference because there is a vested interest to invest more in Indian locations rather than just access them for services.

Schumacher said Bangalore, which was number one in the Tholon top 100, is growing at a very high rate.

Bangalore has over 100,000,000 sq ft of prime office space leased out, and this will increase to 150,000,000 sq ft in the next five years. Schumacher said that while the Philippines has a focus on value-for-money business processes, cities like Bangalore have very diverse technology and services ecosystems.

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May 5, 2015

Analysts sceptical about
Infy meeting targets

VENKATESH GANESH

“For design thinking to have a meaningful impact, Infosys must apply it across its business on a broad scale, which will not only take a long time, but also require a cultural change and new organisational capabilities,” said Peter Schumacher, CEO, Value Leadership Group.

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Updated: April 27, 2015 10:30 IST

The cloud opens up

Peter Schumacher, Chief Executive of Germany-headquartered Value Leadership Group, says, “While Indian IT services firms like to think of themselves as being tech-savvy, customers are looking for the Indian firms to develop a deeper and more comprehensive understanding of the business implications.” So, he says, “Indian IT services firms need to figure out how they are going to position themselves in this changing landscape, and what the unique value is that they can deliver to their customers.”

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IT SERVICES

Capgemini to acquire iGate for $4bn

Karl Flinders
Monday 27 April 2015 14:27

Peter Schumacher, CEO of management consultancy the Value Leadership Group, said: “Like its acquisition of Kanbay in 2006, iGate will strengthen Capgemini’s global delivery model and business in the US.

“Additionally, Capgemini will gain expertise around managed services models, an area where iGate has been on the leading edge. The success of this acquisition will be determined by the revenue synergies it creates. As always, this will be a tough challenge.”

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NEWS

Infosys acquires Panaya for automation

Karl Flinders
Monday 16 February 2015 16:45

Peter Schumacher, CEO at management consultancy Value Leadership Group, said investing in automation software makes a lot of sense to Infosys. 

“However, expectations should be moderated in terms of the impact Panaya can have toward renewing and differentiating Infosys's service lines," he said.

"The key questions to consider are whether Panaya will give Infosys unique and difficult-to-emulate advantages over its peers. In other words, how can Infosys leverage this acquisition to create distinctive value for its customers? Given that many of Infosys' competitors are already working with Panaya, these remain open questions.”

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Satyam scam: Global tech analysts
hail changes and verdict

By Anirban Sen, ET Bureau | 10 Apr, 2015, 01.38AM IST

"This case harbours several key learnings: First, illegal and unethical business practices come with serious consequences," said Peter Schumacher, chief executive of Germany-headquartered Value Leadership Group.

"The second learning is that effective crisis management is critical and can mitigate the fallout" he added.

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Former SAP Labs India MD Anirban Dey joins Infosys

By Anirban Sen, ET Bureau | 1 Apr, 2015, 05.22AM IST

"Vishal is putting together a team of the smartest SAP technologists in the world. And Andy (Anirban Dey) fits the bill — he is a world class technologist. He knows how to run big teams, having been in charge of the 5,000-strong SAP Labs team in Bangalore, and will fit into the star-studded team that Vishal is building," said Peter Schumacher, founder of Germany-based Value Leadership Group and who has interacted with Dey a few times.

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IT SERVICES

More double-digit growth for Tata Consultancy Services

Karl Flinders
Thursday 15 January 2015 15:07

According to management consultancy Value Leadership Group CEO Peter Schumacher, IBM is losing ground to offshore-based firms.  

He added that TCS is the main challenger to IBM Global Services. 

According to Schumacher, TCS is now on the list of every European corporate that buys IT services. “In Europe, TCS will add almost $1bn in new business in 2014, which underlines the enormous market momentum and customer confidence they now enjoy,” he said.

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