But while L&T Infotech may be lesser known in the Canadian market, acquiring Citigroup’s resources will prove to be an advantage. “If they’re going to be successful in Canada, they’ll probably want to take the same route by focusing on manufacturing, utilities, and energy,” said Schrutt. “That would be a natural because that’s what they are doing in the U.S.”
Schrutt said partnering with other IT service providers will be an important strategy for L&T Infotech, considering customers’ tendency to multi-source rather than rely on a single end-to-end provider. “The vendors have to play together. Partnerships will be critical to win business,” said Schrutt.
Banerjee said L&T Infotech will invest in its IT services platform by maintaining and enhancing it to keep up with the changing IT services landscape, and using it as the foundation to broaden its global foothold. He expects that in the course of the next 12 months, L&T Infotech will need a larger office space than what Citigroup’s IT outsourcing arm currently has.
IDC Canada issued its technology predictions for 2011 this week, one of which was that Tata Consultancy Services Ltd., a global IT outsourcer, will join the ranks of the Top 10 service providers in Canada.
Referring to global IT outsourcers in general, Banerjee said the Canadian market is attractive for such vendors who have yet to build a strong presence here. “There’s no question that global firms who have commanding presence and have a large number of resources in low-cost countries are going to lead the charge as far as entering new markets are concerned,” said Banerjee.
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