This article is in Russian

CIO Summit взял инициативу                                       
версия для печати
June 4, 2008

This article summarizes Mr. Schumacher’s keynote talk at the Russian CIO Summit II in St. Petersburg, June 3, 2008:

Key Points:
  Indian offshore IT services firms are now in the driver’s seat
  Indian offshore firms are changing the game in the global services industry
  Indian offshore services firms are leveraging a new kind of competitive
    eco-system that gives them “unfair” competitive advantages
  Indian offshore services firms have set a new “gold standard” in
    corporate governance and performance
  In Europe, Indian offshore services firms are miles ahead in terms of
    growth and profitability
 Under any scenario the European IT services sector is in for a major shake out
 To win, European firms must reevaluate the logic of their business – and innovate
 Simple cost reduction will not do – European firms must entrepreneurially rethink
    their value delivery model
  Four strategic options for Russian offshore IT services firms

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IT-BERUFE
Eine Beilage der Süddeutschen Zeitung

Samstag/Sonntag, 1./2. März 2008 / Süddeutsche Zeitung Nr. 52 / Seite V2/12

Von Hannover nach Bangalore und zurück
Durch Allianzen und Akquisitionen bekommen deutsche IT-Fachleute immer häufiger indische Kollegen: beide Seiten müssen erst lernen, zusammenzuarbeiten

Von Lars Reppesgaard
In this article Peter Schumacher comments on the opportunities alliances offer German and Indian IT services firms.

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Venkatesh Ganesh, Hindustan Times
Mumbai, March 05, 2008
First Published: 22:26 IST (5/3/2008)
Last Updated: 22:32 IST (5/3/2008)

Cognizant Technology Solutions, US-based but for all practical purposes an Indian company, struck a major entry into a huge, largely untapped European information technology market on Wednesday in a strategic partnership with T-Systems, Deutsche Telekom’s IT outsourcing services division.

Peter Schumacher comments on Cognizant’s strategic alliance with T-Systems.

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This article is in German

Indische Unternehmen buhlen um Partner
Von Lars Reppesgaard

HANDELSBLATT, Montag, 3. März 2008, 17:34 Uhr
IT-Wirtschaft

Bisher kauften westliche Unternemen indische IT-Dienstleister auf. Nun drehen diese den Spieß um. Immer mehr Unternehmen vom Subkontinent versuchen, in Deutschland Fuß zu fassen. Doch im Gegensatz zu den Geschäften in den USA oder Großbritannien erweist sich der Einstieg in den deutschen Markt als schwierig.

In this article Peter Schumacher comments on the difficulties Indian IT services firms face in gaining access and building share in the German market. Large acquisitions involve high risks and are unlikely. Several Indian firms have found that partnerships are an effective market entry strategy.

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This article is in Norwegian

Slik lykkes man med «rightsourcing»
By Av Ann Kristin Bentzen Ernes
Publisert 12.12.2007 07:27

Å bare tenke kostnadskutt kan bli en felle, mener outsourcing­ekspert Peter Schumacher.

In this article Peter Schumacher discusses offshore-enabled business model innovation strategy with a journalist at Norway’s digi.no. In this interview he talks about how the new global economic paradigm is triggering a broad and fundamental shift in the underlying dynamics of local and global businesses. He asserts that a strategic response is required to win in the new competitive game. Companies have to creatively rethink their value delivery model. Simply cost cutting will not solve the problem. The article mentions “The Chindia Effect” and references several international cases examples Mr. Schumacher used in his presentation at this prestigious event in Oslo that took place December 11th

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This article is in Norwegian

Tenker bare på penger
By Kari Vartdal Riise
Publisert: 31.10.2007 - 10:58 Oppdatert: 31.10.2007 - 16:18

De fleste som setter ut oppgaver til lavkostland tenker bare på hvor mye de kan spare. Det er helt feil.

In this article Peter Schumacher discusses how Norwegian companies should see offshoring as an opportunity to develop service innvovations and offer new value to clients. He highlights that the real, longer-term gain to be had from offshore strategy is not simply from cutting costs, but from using the unique combinations of strengths and assets to be found in India to build sustainable competitive advantage. Schumacher provides examples of innovative Nordic companies that have made service offshoring a core competency allowing them to offer their customers a richer and more compelling value proposition and reframe their opportunity space.

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IT Europa is the leading provider of strategic business intelligence, news and analysis on the European IT marketplace and the primary channels which serve it. For more information please visit: www.iteuropa.com

IT Europa Newsletter Issue 15 2007 – 28 Sep 2007

Everything up for grabs in Europe

By Tom Bowker
Tom.bowker@iteuropa.com

Indian IT services companies are feeling the need to diversify geographically from their traditional hunting grounds of the US and the UK, and continental Europe is coming more and more under their spotlight. But how do they compete with Europe’s best – and should the locals feel threatened?

The Indian players have not only ‘gone global’, though. “A new global economic paradigm” is how the Value Leadership Group, a global consultancy focusing on offshoring and globalisation, characterizes the current state of play – a paradigm in which “everything’s up for grabs.” “People always talk about labour rates”, says Peter Schumacher, Value Leadership’s founder, president & CEO. “But the game has shifted to assets and success drivers that are much more difficult to imitate. Labour cost advantages are easily replicated; but the barriers to imitation have increased tremendously and continue to grow.” In other words, the Indians have moved up the value chain.

Download article in PDF Format  (courtesy of ITEuropa)

Outsourcing September 25, 2007, 12:20PM EST

Why Krakow Still Works for IBM
For Big Blue and other IT services companies, Poland's skilled workforce makes up for rising wages with skills that offset Bangalore's low costs

by Jack Ewing

The fact is, major outsourcers have learned that no one location provides everything they need to be competitive against Indian outsourcing juggernauts such as TCS (TCS.BO) or Wipro (WIT)—and even the Indian companies are setting up operations in Europe and the U.S. "You need a multi-geography footprint," says Peter Schumacher, chief executive officer of offshoring consultancy Value Leadership Group in Frankfurt. The best companies, he says, are those that can draw on expertise around the world.

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The Bangalore experience goes Baltic
by Indrajit Basu

Asia Times, June 30, 2007:

In this article Peter Schumacher, President & CEO of the Value Leadership Group, discusses the advantages and disadvantages of nearshoring with the CEOs of 3 leading nearshore services firms from Russia (Auriga), Slovenia (Hermes SoftLab), and Bulgaria (Sciant).

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Services in Europe's Backyard
by Indrajit Basu

Global Services, May 30, 2007:

Even as many Western companies turn to India and China to seek IT and business services, a growing number is finding countries like the Czech Republic, Hungary, Poland, Russia, Ukraine and Belarus more suitable

Peter Schumacher, of the consultancy firm Value Leadership Group says that "cost in the CEE is more likely to increase rapidly than otherwise." These issues give enough reason to some to argue that while the CEE is at best a cost cluster, India is a value cluster. "For some companies this is a big difference. Also the CEE is a localized proposition while India is a global platform from which many markets can be served," says Schumacher.

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