U.S. Companies competing with India's earnings in the IT world

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joyce.lavios

16 Nov, 2015 05:08 AM

How many times, in the information technology or IT world, have you been approached by someone from India? India has been dominating much of the information technology world and in many cases, they provide quality work. India has been providing rather inexpensive labor writing code and running databases. Two outsourcing India companies, Infosys Ltd and Tata Consultancy Services Ltd are, by sales volume, the two largest information technology companies from India. Both companies have been growing and Infosys net profit in the second quarter of this year rose by 9.8%.  Investors had been supporting the India IT businesses but that may change.

India's projected income
The projected income for Infosys's next quarter is 33.19 billion rupees or $512 million. The projected income for Tata Consultancy is 273 billion rupees.

Digital services
An entirely automated service is called a digital service. In other words, the customer can control the service, like an app on a cell phone, iPad or tablet.
Companies need to be able to collect and analyze data. Above and beyond, they need their customers to be able to access their own data, through digital services, and analyze the data and use it as they see fit. The India companies, Tata Consultancy Services and Infosys Ltd have been making large profits providing these services with their in-house servers and cheap labor. Tata Consultancy Services earned 12.5% of its income last quarter by offering digital service to its customers.

Cloud Computing and Digital Services
Cloud computing is changing the digital services world. Software and servers are accessed by users on the internet rather than on local servers that the India companies had been using. This opens the door for companies in the U.S. to compete with the India companies.

Outsourcing is slowing
In 2014, the volume of outsourcing shrank 17%. Instead of the $145.5 billion in 2013, only $120.4 billion in sales. The expected 13% growth this year is quite a decrease from the 30% growth year after year in previous years. India is trying to make up for this by adding new services, including analytics. But google might have something to say about that.
Equiinet is a U.S. Company stepping up to provide digital services
There are companies in the U.S. who are stepping up and competing with the India companies. Equiinet is one of those companies. On the forefront of technology, United States Company Equiinet can provide your company with everything you need in Cloud Computing.

Source: wsj.com/articles/investors-to-scrutinize-indias-information-technology-company-earnings-1444400552

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