Patni computers bagged 5 year contract worth GBP 20mn with 2e2. The contract involves providing a range of support services to 2e2s end user clients and in house support services. The contract has the potential of extension based on future conditions. Patni will start providing initial services under this new contract before the end of this year.
2e2 is an ICT Lifecycle Services Provider; an agile, customer-focused provider of end-to-end IT services. The company creates solutions that transform business processes, reduce infrastructure costs and enhance performance – ‘creating business advantage’ for its customers. 2e2 focuses on solutions and managed services for medium and large private and public sector organizations, delivered on premises, in the cloud, hosted, as a managed service or as a hybrid. It has worked with many companies within the telecommunications, media, healthcare, retail, transport, public, financial services and professional services sectors. In 2009, 2e2’s Group turnover was £200million. Following the acquisition of Morse, turnover has increased to £430m and 2e2 now employs over 2,500 staff, operating across the UK, Ireland, Spain, Benelux, USA, Channel Islands and the Isle of Man.
Patni Computer Systems Ltd. is a provider of Information Technology services and business solutions. The company employs over 15000 people, and has 23 international offices across the Americas, Europe, and Asia-Pacific, as well as offshore development centres in 8 cities in India. Patni's clients include more than 400 Fortune 1000 companies.
Many Indian companies have bagged IT deals in UK this year. Prominent deals include TCS 10 year pension deal with National Employment Saving Trust (NEST) and phoenix life and pension contract. The UK Personal Accounts Delivery deal between TCS & NEST came under scrutiny after the new British government decided to cut the government spending but recently deal has been cleared by the UK government.
The outsourcing in recent times has faced severe criticism from the western world. The fear of job loss seems to have outweighed the cost advantage and nations are showing their unfavorable response to the companies. The most startling fact about this protectionism is that it is coming from the western countries which are considered most open to the globalized economies. Clearly recession has pushed the governments into defensive mode.
As UK was facing huge budget deficit and faced most severe slowdown among its G-8 peers, the pressure definitely seems to have on players outsourcing their work contract. While the outsourcing has helped the companies remain competitive, the job loss in the country of origin has met with backlash. Despite the stand shown by the UK government, the situation in UK remains far more favorable than US, where the official opposition to outsourcing has become open and clear. Infact the strategic shift of Indian companies towards UK is a vindication of the growing realization among IT companies that US markets may not be sustainable in the long run. Though efforts are in full swing through both official & unofficial channels, there are no signs that a settlement is within the reach.
Indian companies have been at the helm of affair in bagging IT deals. While the cost has been one factor, the skill set has helped to retain the competitive advantage. There is no denial to the fact that Indian companies will keep getting such contract even in future but the need of hour is to move upward in value chain. As the costs in India are moving up, the Indian companies have to explore more avenues and specific domains to be in the business. The ultimate reality is that cost only remains a temporary factor and only a quality work can help the Indian companies to be perennial player in this cut-throat competition.
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