MNC Service firms now turn to INDIA

Shyamala Seetharamanan, Chennai
Financial Chronicle
Multinational IT services companies have started looking at India as a potential market at last. Uncertainty in mature verticals such as banking and finance and in established geographies such as North America has forced these players to diversify their portfolio and concentrate on countries such as India.

Cognizant announced the appointment of S Venkatramani as head of business for India and emerging markets, last week. The appointment is part of the company’s strategy to strengthen its presence in under-represented markets, said R Chandrasekaran, president and managing director, global delivery, Cognizant. The company announced its first Indian deal with e-commerce company mjunction, last month.

“You will see a lot more investments in emerging markets. In two to three years, Cognizant will be lot more global than what we are today,” he said in a recent interview to Financial Chronicle.

Nasdaq-listed Virtusa Corporation also announced its foray into the Indian market last week. The company believes that the Indian market offers opportunities for growth.

According to Doug Mow, senior vice-president, marketing, Virtusa: “Nasscom estimates the present domestic IT services spend in India would touch $8.3 billion in 2009, growing at 20 percent over the previous year. Virtusa is looking to addressing this market.”

Perot Systems Corporation has plans to tap the domestic healthcare sector. The company is in talks with four large Indian hospital chains and hopes to close its first domestic deal during the coming quarters.

“From late last year, we have been looking for domestic deals. Our one big goal is to diversify our sources of revenue,” said Vardhman Jain, MD of Perot Insurance and Business Process Solutions group.