Competitive analysis of proposal in Indian IT industry

Abstract

In today’s competitive world, efficiency plays a major role in the success of an organization. To achieve efficiency, organizations improve themselves on continuous basis and deploy techniques like Business Process Re-engineering (Aitken et al. 2003). Focusing on the core competencies of the organization and strategic simplification of processes help the organizations accomplish these tasks (Prahalad and Hamel 1990, Quinn 1999). Outsourcing some of the non-core organizational activities, processes and functions to a third party not only simplifies the processes but also provides the organizations with more space to focus on its core areas. According to empirical research, effective outsourcing can reduce overall production costs by 20-40% per year (Domberger et al. 1995, 2002). Thus, outsourcing turns out to be an important implication to cost/price oriented firms. Companies are increasingly adopting outsourcing with an objective to gain competitive advantage in the market place while suppliers are continuously offering a value proposition in terms of cost advantage through economies of scale or differentiation through specialization. The most prevalent form of outsourcing is digitization which has created multi-billion dollar software outsourcing industry with hubs in developing countries like India and Philippines. The scope of this CCS project is competitive analysis of proposals in IT industry.