Global contracts will not be given to companies with the lack of certification. The lack of security certifications will cause customers to have security related concerns while sending data offshore.
3 Access to distribution channels and technology
This poses no difficulty. Many top business unit heads have previously quit from Wipro and spawned off their own company which has grown and sometimes taken a part of the market share of Wipro. Since the industry thrives on knowledge workers when a senior person leave he takes access and knowledge of customer base and customer contacts with him. The Internet is present everywhere and software technology in the era of open source is easily accessible to all.
4 Government Subsidies and policies
Current favourable policy by government for new ITES-BPO firms is creating competitive situation for Wipro and other established players in the India IT …show more content…
New companies with none of the legacy of Wipro, can come in with niche focus and take a portion of maket share related to R&D, innovation where creativity, technicall prowess is more key than standard processes, certifications etc. So time and again projects are lost to smaller companies who are more nimble and lean and once that happens it can plot the growth story of a new rival in that specific domain for Wipro.
Wipro thrives majorly on large offshore multi-year dollar contracts in application maintenance, infrastructure management where skills are not high end. The requirement is to maintain large bench strength to quickly source these projects. This adds to the cost of most key players in the Indian IT scene.
3 Strategic Objectives
For the past 5 years Wipro and other key players have had relatively lesser focus on moving up the value chain. All key players are still milking the standard IT services industry demand for maintenance, testing, infra management contracts with global companies in an primarly offshore model. Growth strategies are mainly to expand to newer geographies access the same standard IT services demand. Growth of all key players have been demand driven and more or less uniform. There have been few acquisitions but no aggressive growth stories amongst competing