Aiming for the Top: iTOPS or India?
(13 pages of text)
In August 2010, Phaneesh Murthy, chief executive officer of iGATE Global Solutions, was reflecting on the strategic options before him with regard to the future of iGATE. The options were two-fold. Should iGATE continue to focus on its traditional markets of North America and the European Union, or should it change track to focus on India? The U.S. and E.U. markets had been growing at less than four per cent since 2008, and this would likely continue until 2013. However, iGATE had developed a product tailored to the specific needs of customers in the developed world who were facing the economic downturn. Known as iTOPS, it was showing the promise of adding to both the top line and bottom line of iGATE.
The IT-enabled services market in India was growing at an average of 14.5 per cent for the period of 2008-2013. The promise of top-line growth had drawn many global business process outsourcing (BPO) companies to India. iGATE would be just another player in India with plain vanilla offerings and no differentiation. The domestic market was competitive. The commoditization of its BPO products and services had, of course, opened up an opportunity to develop a product tailored to Indian needs, but iGATE had no such offering in the pipeline. It was in this context that Murthy wondered what strategy he should pursue: iTOPS or India?
This case can be used to discuss the threats created by changes in the environment and the need to develop a strategic response; the appropriateness of a strategic response in view of a firm’s competencies and strengths; the pros and cons of strategic focus (narrower product line and customers served) versus breadth (broader product line and broader segments of customers served); and the pros and cons of focusing on traditional versus emerging markets. This case is appropriate for a number of undergraduate and graduate courses, including strategic management (to evaluate strategies by conducting an industry and resource analysis) and international management (to illustrate the opportunities and challenges of operating in emerging markets).
Information, Media & Telecommunications
India, United States, Large, 2011
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