Venkatesh Ganesh
K. Giriprakash
Bangalore, July 4, 2012:

Mr. Peter Schumacher, CEO of Value Leadership Group, said, “At this juncture, aligning management, customers and employees around new vision should be of paramount importance.”

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3 Jul, 2012, 10.48AM IST, N Shivapriya, ET Bureau

Bring Jobs Home Act will make it less attractive for US companies to outsource jobs to India

"The primary aim of this proposed legislation is to create incentives to bring back manufacturing jobs to the US as millions of manufacturing jobs have been lost in the last 10 years. In contrast, the national average unemployment rate in professional services remains low at just 5% in May (the national unemployment rate was 8.2%).

In some parts of the country there are even significant shortages of qualified employees," said Peter Schumacher, founder of the Value Leadership Group and an expert in offshoring strategy.

"This data indicates that demand for offshore IT services should remain strong with no changes in the near or even mid-term to be expected," he said.

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VENKATESH GANESH
June 24, 2012

“All this used to be purchased and sold individually, but vendors are now beginning to offer their clients a simpler soups to nuts proposition in which these complementary services are bundled and offered as an integrated package of managed services," says Peter Schumacher, CEO of Value Leadership Group.

With regard to geographies, apart from the US, Indian IT companies have been seeing a gradual pick up in business in Europe, which contributes about 30 per cent at present. While investments have been made, still there is a lack of sufficient knowledge of local industries, says Schumacher. Also, Indian companies need to have a stronger case for global delivery as the US goes into election mode this year and a wave of anti-outsourcing sentiment is set to rear its head again.

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Can TCS achieve its ambition?

CEO N Chandrasekaran is aiming to double revenues in five years in challenging economic conditions

Shivani Shinde / Mumbai May 29, 2012, 0:10 IST

"Demand for offshore IT services is healthy in Europe and should increase significantly over the coming years, especially across continental Europe where many large companies need to lower costs, adjust their operating models to new competitive realities, and hedge their talent risks,” said Peter Schumacher, CEO of Value Leadership Group, an offshore advisory firm.

 “The key new markets here are continental Europe and Germany, in particular. TCS is the first choice amongst the offshore IT services firms and is seen as being easier to engage and work with, when compared with some offshore peers,” added Schumacher.

Finally, Chandrasekaran himself has dived into the fray by playing an active role in the client acquisition process. “This is resonating positively with buyers and is seen by them as a powerful differentiator,” says Schumacher.

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Venkatesh Ganesh
Bangalore, May 22, 2012

“Indian IT companies must reframe their thinking about costs and apply more innovation in thought and practice to leverage their core advantages effectively,” said Mr. Peter Schumacher, CEO, Value Leadership Group.

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Outsourcing game

The 'it' company

Ishan Srivastava | May 19, 2012

Cognizant entered the outsourcing game later than its peers but it is now poised to beat big daddy Infosys. But can it sustain its turbo-charged rise?

"While Cognizant lowered its annual growth forecast, it still remains high," said Peter Schumacher, CEO of US-based Value Leadership who has been tracking Cognizant for many years. "These next 3-5 years are critical for the offshore services sector as the top 4 firms have the chance to surpass most MNC incumbents in terms of revenue.

Accordingly the stakes are high, competitive rivalry and risks will increase dramatically. In the context of these challenges, it should be expected that not all of the top offshore firms today will be able to maintain their industry leadership positions."

"The challenges Cognizant faces concern its narrower business focus, weaker footprint in continental Europe, and gaps in platform and IP-based offerings," said Schumacher.

TIME FOR A RETHINK
According to Schumacher, a rethink on strategy is needed to ensure sustainable growth. "The offshore companies need to examine how they can best apply their inherent advantages to a broad spectrum of opportunities including non-linear growth, new geographies, new verticals and services, service innovations, and business opportunities higher on the value curve. A core challenge will concern how to at least double their business in continental Europe, " said Schumacher.

"Over the next 3-5 years companies such as Cognizant and TCS have the opportunity to double in size, i. e., TCS can reach $20bn in annual revenue and Cognizant $15bn. This growth cannot be achieved by just getting better at what they are currently doing and by applying the same kind of thinking they are applying today, " says Schumacher.

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Venkatesh Ganesh
Bangalore, May 22, 2012

“Indian IT companies must reframe their thinking about costs and apply more innovation in thought and practice to leverage their core advantages effectively,” said Mr. Peter Schumacher, CEO, Value Leadership Group.

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Venkatesh Ganesh
K.V. Kurmanath

Likely to impact onsite costs, overseas hiring plans

Bangalore/Hyderabad, May 18 2012

According to Mr. Peter Schumacher, CEO of Value Leadership Group, competitive intensity and risks in the IT services industry are increasing dramatically and outsourcers are looking at every possible way to cut costs. The rupee volatility has affected some of the Indian IT firms.

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The Economic Times Bangalore; Date: May 8, 2012; Section: Front Page; Page: 1

Cognizant March Qtr Revenue Up; Forecast Pared
Adopts conservative approach due to slow acceleration in demand

OUR BUREAU CHENNAI

“Cognizant's numbers confirm the strong performance of all firms in the manufacturing sector. This is good news because it reflects that the offshore proposition is finding broader adoption, in particular in continental Europe,” says Peter Schumacher, president and chief executive at consultancy Value Leadership Group.

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Venkatesh Ganesh
Infosys’ Mysore campus.

Bangalore, May 8 2012

“The industry is entering a new phase that will require directional change. Hence, the core strategic challenges are less related to management skills and more with leadership capabilities,” said Mr. Peter Schumacher, CEO, Value Leadership Group.

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