
US visa fee hike: IT firms must brace for profit hit
Venkatesh Ganesh / Kurmanath K.V.
Washington, March 28 2012: “While this is a steep y-o-y increase, visa charges as a share of revenue for Infosys were higher in FY 07 and 08,” said Mr. Peter Schumacher, President and Founder, Value Leadership Group Inc.
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Infosys expects better pricing in consulting, systems integration biz
Venkatesh Ganesh
Bangalore, March 15 2012
“This market segment is a huge growth opportunity for the offshore firms and critical to cracking the continental European markets where almost 50 per cent of IT spend is on project-based services,” said Mr. Peter Schumacher, President and Founder, Value Leadership Group Inc.
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Europe crisis, boon for Indian IT firms
Venkatesh Ganesh
Infosys, TCS, Wipro see revenue growth in the region
Bangalore, March 12 2012
“European corporations are working hard to become more competitive. This means cutting costs, becoming more agile, addressing growing talent shortages, and globalising their operating models. A growing number of European companies believe that offshore firms are the ideal partners for helping them achieve these business objectives,” said Mr. Peter Schumacher, President & Founder, Value Leadership Group Inc.
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14 Feb, 2012, 04.47AM IST, ET Bureau
TCS pips CSC for multi-year deal from Danish Telco TDC
"TCS has excellent Nordic client references and the highest customer satisfaction amongst all IT services firms in the region. In short, projects with TCS have gone much better than expected in 5 critical performance dimensions: clients have spent less than budgeted, delivery quality has been better than with previous suppliers, there have been fewer contract disputes, and TCS has been able to take on bigger and more complex tasks than previous suppliers," Peter Schumacher, CEO of Germany-based business advisory services provider Value Leadership Group, said.
According to him, Indian IT firms are not only able to offer more cost-effective services but also offer better quality. "The offshore firms are very hungry for business, while many incumbents remain strategically asleep. Buyers see the offshore firms as being much more flexible to do business with," Schumacher said.
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IT services supplier Cognizant sees cloud sales take off in quarterly results
Karl Flinders Friday 10 February 2012 15:05
Peter Schumacher, CEO at management consultant The Value Leadership Group, said Cognizant stood apart from many of the growing global service providers. He said services providers, particularly the India-based suppliers, are challenging large western based global service providers Accenture and IBM Global Services for global clients.
The Value Leadership Group recently completed research of 80 large companies across Europe, looking at their attitudes to IT service providers. It found customers are increasingly attracted to offshore suppliers that have a global footprint.
Schumacher said Cognizant – commonly grouped with Indian suppliers because most of its staff are based in India – stands out from this crowd because of its US management.
“The key difference that Cognizant brings to the table is the fact that it can connect the business and IT and deliver technology enabled business change. The Indian companies come at it from a functional point of view and fix a problem but when a client asks for more in-depth advice such as making the business more agile to react to a competitive challenge, they struggle.”
Schumacher said that, in the view of companies interviewed in the survey, Cognizant speaks the language of business and IT, whereas many other offshore suppliers talk IT only.
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Cognizant Technology stuns all with a 23% growth guidance for 2012
9 Feb, 2012, 01.47AM IST, ET Bureau
"Their strategy of investing in a stronger front-end that connects emotionally and is capable of shaping the client agenda and business relationship is paying off," said Peter Schumacher, president & CEO of Value Leadership Group.
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Tata Consultancy Services not keen on Lufthansa systems buy on profit concerns
27 Dec, 2011, 07.39AM IST, Shruti Sabharwal & Pankaj Mishra, ET Bureau
"European labor issues are a structural impediment to acquisitions of larger firms by offshore firms which is precisely why none have happened so far," said Peter Schumacher, Chief executive of European think-tank Value Leadership. "These issues cut across Europe, as the recent strike by more than 400 Danish employees of CSC shows," Schumacher added.
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IT cos go extra mile to renew contracts
Shivani Shinde / Mumbai December 02, 2011, 0:36 IST
Clients are appreciating greater flexibility, responsiveness, customer-mindedness and appetite for risk from vendors. A recent study by Value Leadership Group, a Europe-based analyst firm, along with Deutsche Bank, found most banks complained that in the last financial crisis, despite the service agreements, MNCs like Accenture and IBM saw resource issues offshore and used a greater proportion of their onsite headcount while implementing application development projects. This increased the overall cost of execution.
Add to this the fact that clients are getting extremely conscious about vendors' capability. Peter Schumacher, president and CEO, Value Leadership Group, said: “This is evident in some of the growth figures of the top four Indian IT services firms. Some of them are not growing as fast as others in Europe. While TCS and Cognizant have been growing extremely fast, Infosys’ market momentum and growth has fallen behind significantly. It is clearly missing out on opportunities. Buyers across Europe have told us that Infosys delivers well and precisely. However, they are also seen as being less pro-active and more rigid, e.g., getting the initial contract signed takes much longer. Additionally, their premium price positioning has been costing them business,” he added.
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For IT firms, euro zone is a land of opportunity
Shivani Shinde & Arijit Barman / Mumbai November 18, 2011, 0:52 IST
A recent report from Deutsche Bank and Value Leadership Group states Indian players have managed to garner market share from MNC players, while TCS has emerged as a preferred vendor to some of the top European banks. Reason: TCS’s “range of offerings and willingness to partner with clients even on seemingly difficult engagements”.
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Cognizant emerges new leader, serious challenger to IBM, Accenture
3 Nov, 2011, 12.36AM IST, ET Bureau
"Cognizant has become a serious challenger to the biggest global firms including Accenture and IBM. It is doing everything right at the moment," said Peter Schumacher of Germany-based business advisory services provider Value Leadership Group.
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