To win clients, mid-tier IT firms look at ‘hyper-specialisation'

Business Line , 27 March 2012

What it Says: Mid-tier IT companies are going deeper into their niche to provide specialised solutions to clients. 

Impact: Differentiation or 'hyper - specialization' is new marketing buzz word for IT services vendors. And its not hollow. Mid-tier IT firms, that differentiate themselves from larger players like TCS and Infosys will continue to grow faster than the industry average. Clients should engage with these firms for 'that' specific skill set they bring on the table. But look out for imposters. Be sure about the delta-value-add these 'hyper-specialized' firms bring over large firms. BFSI is not a specialization. Check how much revenue a vendor gets from outside its specialization (it should not be more than 20-30%). Limited business outside its focus area helps a vendor to invest more on its specialization. Refer our research Do You Find Your Offshore Providers Undifferentiated? for good practice.