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Indian offshoring services giant Wipro will expand their existing product design services to include actual manufacturing of prototypes.Wipro plans to work with thirdparty manufacturers to put together small prototype product runs, a responsibility which will be shifted to the customer should the product prove successful.
This is an excellent extension of traditional outsourcing services which makes a lot of sense by most traditional metrics, startup costs can be the most significant part of introducing a new product line for years and years, and with no guarantee of success, the company particularly smaller companies without welldeveloped internal prototyping systems can potentially defray considerable costs and much risks by outsourcing that segment of the product development cycle.
Concerns over IP control and time to market probably comprise most of the concern over outsourcing and particularly offshore outsourcing of these services, but Wipros reputation may be sufficiently welldeveloped to assuage these sorts of doubts among potential clients.
Indias top software services providers boosted their share of the global IT services market in 2007 and are targeting western Europe for further growth in offshoring services.
According to market researcher Gartner, Indias top six Indian software service firms identified as SWITCH Satyam, Wipro, Infosys, Tata, Cognizant and HCL achieved growth rates that outpaced the rest of the market.
With plenty of cash on hand, the companies are expanding their service portfolios while spreading to geographies other than the U.S.
In 2007, the Indian software developers accounted for 3.6 per cent of the U.S. IT services market, compared with 2.8 per cent in 2006. Western European revenue reached 51 per cent in 2007, almost four times the total market.
Since 2001, each of the Indiabased service providers have made strong advances in the worldwide, U.S. and more recently in the Western European market, said Arup Roy, senior research analyst at Gartner.
Indian companies are increasingly competing for large, multiyear outsourcing deals exceeding Rs.400.21 crore USD100 million. Application development and management services accounted for most of the new revenues, Gartner said.
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