IT companies' Q2 numbers on track
BS Reporter / Mumbai Oct 04, 2011, 00:52

“In Europe, many large banks and companies from other sectors are prioritising volume growth and transformational improvements over pricing cuts. While this will give offshore firms significant growth opportunities, it also will present many with complex challenges as new organisational capabilities and a shift in mindset are required. The companies that master this best will capture this new growth wave,” said Peter Schumacher, president and CEO of Value Leadership Group.

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Bonanza for Indian IT vendors as Europe's banks eye offshoring more work

ADITH CHARLIE

European crisis prompts the move, says study

Mumbai, Sept. 29 2011: Top European banks are set to increase offshoring to Indian IT vendors, such as Tata Consultancy Services and Infosys, as they seek to tide over the uncertain financial climate in the region, according to a joint study by Deutsche Bank and the Value Leadership Group.

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Top European banks might switch from the likes of IBM & Accenture to Indian IT

Karl Flinders
Friday 23 September 2011 10:45

The research was carried out by the German banking giant and management consultancy group Value Leadership Group. The researchers had detailed conversations with the CIOs of four of the top 10 European banks.

This is despite "the focus of banks [being] to increase the percentage of the work done offshore", according to Peter Schumacher, CEO at Value Leadership Group.

He said this is not just a trend in European banking, but is true across sectors and it involves businesses, in partnership with offshore suppliers, transforming their organisations. "Across the four banks, the theme that is emerging is that Indian firms are enablers for organisational transformation."

Schumacher at Value Leadership Group said Tata Consultancy Services (TCS) and Cognizant are set to be the big winners as a result of this trend.

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Cognizant key supplier to UK Financial Services Authority

25 Aug, 2011, 12.27AM IST, ET Bureau

"This is a prestigious win for Cognizant as the FSA is a very high profile and important organisation responsible for regulating the UK financial services industry. Additionally, a significant amount of IT work is in the pipeline as the FSA is being split into two organisations, consistent with the policy decision to implement a new model of financial regulation, called 'twinpeaks'.

Demerging the activities of the FSA is expected to drive a significant increase in infrastructure, applications, and highend BPO work," noted Peter Schumacher, president & CEO of Value Leadership Group.

He further pointed out that Cognizant's win shows that India-based IT services firms are moving up the value chain because they can deliver highly sophisticated services requiring deep domain expertise at a compelling price point.

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Cognizant bags UK govt's contract

ET BUREAU | Aug 25, 2011, 02.35PM IST

"This is a prestigious win for Cognizant as the FSA is a high profile organisation responsible for re

gulating the UK financial services industry.

Additionally, a significant amount of IT work is in the pipeline as the FSA is being split into two organisations, consistent with the policy decision to implement a new model of financial regulation, called 'twin-peaks'.

Demerging the activities of the FSA is expected to drive a significant increase in infrastructure, applications, and high-end BPO work," said Peter Schumacher, president & CEO of Value Leadership Group. He said the deal shows that Indian IT firms are moving up the value chain.

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TCS leads race to acquire Lufthansa's IT subsidiary; IBM also in the fray

20 Aug, 2011, 03.59AM IST, ET Bureau

"An acquisition of Lufthansa Systems by an Indian IT services firm would seem unlikely given the company's low profitability, lack of growth, and continued performance deterioration in 2011. To improve profitability, radical change will be required which would undoubtedly trigger enormous resistance. Overcoming these challenges would overwhelm the capabilities of any Indian firm and draw vital management resources and attention away from other more attractive businesses," Peter Schumacher, President and CEO of the European IT advisory firm Value Leadership Group said.

"There is no strategic imperative or rationale for acquiring Lufthansa Systems. Looking across the European sector, Indian IT services firms have many acquisition options that are more attractive," he added.

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With fierce competition from Cognizant, Wipro & TCS, will Infosys pursue a bold acquisition?

16 Aug, 2011, 06.32AM IST, Pankaj Mishra, ET Bureau

Peter Schumacher, CEO of European strategy at think tank Value Leadership that advises companies on doing business in the region, believes that Infosys has been losing momentum in part because customers have begun to realise that they need more than just functional benefits to succeed with implementing global service models.

"While Infosys has answered with structural changes, they have done little to address the soft factors that will distinguish the really big winners. Until Infosys can deliver a richer customer experience, clients will keep on ringing the bell at TCS and Cognizant." For Kamath, he will have to contend with a culture that is widely described as "insular".

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Cognizant overtakes Wipro Technologies, may topple Infosys as second-biggest IT exporter as early as Q3

3 Aug, 2011, 01.24AM IST, ET Bureau

Some experts say Cognizant appears to have hit upon a winning formula of balancing customer intimacy and operational excellence. "They recruit a much higher percentage of lateral staff in India and in client-facing roles a greater number of local staff with strong consultative business and domain capabilities," said Peter Schumacher, president & CEO of consulting company Value Leadership Group. "With the exception of TCS, customers see the other large firms as much more passive and lacking these capabilities."

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Cognizant to Acquire CoreLogic’s India Arm for $50 million

Will strengthen IT firms BPO and analytics capabilities
OUR BUREAU CHENNAI
July 27, 2011

Peter Schumacher, president & CEO of Value Leadership Group sees this as a good move by Cognizant. This is a smart move on part of Cognizant because they are acquiring this business at an enormous discount. An India based offshore IT services firm with 4,000 employees would have cost 3-5 times more, while involving greater risks, he said. Further, it seems that the timing of this acquisition was well-chosen as the US housing market remains in a slump. When the market picks up again, Cognizant should see gains from strong volume growth, he added.

Cognizant's strategy of acquiring captives in India is smart and with UBS and T-Systems they have demonstrated that they can execute it well. They leverage unique cultural capabilities to gain new revenue streams at good value, said Peter Schumacher.

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TCS outpaces rivals in topline growth for June-quarter

Moumita Bakshi Chatterjee
Adith Charlie

New Delhi / Mumbai, July 20, 2011

Mr. Peter Schumacher, CEO of US-based consultancy firm, Value Leadership Group, ascribes TCS' lead to an aggressive go-to-market strategy and stronger client engagements.

“The competitive intensity is increasing dramatically, and Indian companies need to do more than just restructure their organisations. They must start thinking beyond short-term cost-driven tactics and ask themselves what unique positions they want to hold five years from now,” Mr. Schumacher said.

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