TCS and €˜free€™ outsourcing

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I’ve been reading articles in the media this week suggesting that TCS is set to offer ‘free’ outsourcing contracts. However, on closer inspection this is clearly not the case. Some service providers are taking on board the cost of ‘transitional change’ from end users to make signing a contract with them more appealing.

It’s also been reported that a number of providers over promise to attract new business and ultimately under deliver. In an increasingly competitive market, service providers need to develop new incentives to get ahead of the competition. Companies like TCS are attempting this by trying to identify innovative new methods to attract and retain customers.

With the looming credit crunch, end users are tightening their belts. For Indian suppliers, the rupee’s appreciation against the dollar is badly timed, making it expensive to outsource to a destination where wages and cost were already rising. To stay competitive in a global market, Indian providers seriously have to focus more than ever on lower costs and TCS is doing so in what seems to be an innovative way.

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