Mid-tier IT Firms Need to Specialize, Says Sanjay Viswanathan, CEO of Sonata Software

BANGALORE, India, December 15, 2011 /PRNewswire/ --

Sonata Software, a global IT consulting and software services provider, announced that its CEO, Sanjay Viswanathan, delivered the opening presentation at the recently concluded QS European Global Sourcing Summit, held at Frankfurt/Main, Germany. The event had CXOs of leading organisations and industry leaders from within the outsourcing ecosystem speak on trends in global outsourcing.

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Sanjay's core expertise is to create enduring value in Tech and Outsourcing across IT / BPO. He brings deep insight in IT / BPO sector on a platform of global operations and sales. He has built and led world-class leadership teams and added several billion dollars of tangible enterprise value.

Speaking on "Outsourcing 2013: The top 5 game changers", Sanjay provided valuable insights into top outsourcing trends that could become game changers for service providers, especially mid-tier firms.

With smart mobile phones and tablets gaining in popularity, global outsourcing of software development is likely to see game-changing shifts. A distributed workforce is becoming the norm for businesses. Additionally, there is a surge in mobility adoption and mobility solutions taking the software industry by storm. A Forrester report of Feb 28, 2011 (Mobile App Internet Recasts the Software and Services Landscape) forecasts app sales for smart phones growing from $1.9 billion in 2010 to $29.4 billion by 2015. In the same period, app sales for tablets will rise from $300 million to $8.1 billion.

The software provider landscape will see a polarization between niche specialists and large generalists. Clients will allocate 70% of their budgets to generalists and 30% to specialists.  

Deal sizes will shrink, with clients awarding smaller contracts to de-risk execution and stay in control. An IDC survey of global IT-BPO deals already shows the trend with deal value between Q2 2010 and Q2 2011 shrinking by 57 % and number of deals shrinking by 36%.

Another game changer, points out Sanjay, will be an emphasis by clients to have CEOs and CFOs making O&O (Off-shoring and Outsourcing) decisions, and a stricter scrutiny of Return on Investment on technology initiatives. For the service providers, this implies selling to the business rather than just providing technology and need to invest in consultancy skills as well as client-facing staff who understand the client's business. The customer will look at outcomes rather than inputs and the onus will lie increasingly on service providers on capacity planning and productivity gains.

About Sonata Software Limited

Sonata Software (http://www.sonata-software.com), headquartered in Bangalore, India, is a global IT consulting and services company. It is a leader in technology- and business- outcome based execution, and in delivering balance-sheet impact to its customers. Sonata's customers are located across the US, Europe, Middle East and the Asia-Pacific region. Its key service lines include Microsoft Services, Emerging Technologies (Mobility and Cloud), Business Intelligence and Analytics, IP/Domain led services, Testing, Enterprise Solutions Open Source/ Java and Remote Infrastructure Management. As per the industry rankings released by NASSCOM for FY 2009-10, Sonata Software figured among the Top 20 IT Software Services Exporters in India for the third consecutive year. Sonata has been recognized for its excellence in providing Software/ISV R&D and Cloud Computing Services to global customers by Zinnov Management Consulting Pvt. Ltd.  Sonata features both under the Software/ISV as well as Cloud Computing verticals in Zinnov's "Execution Zone".

Sonata's subsidiaries include (1) TUI InfoTec - Sonata's Joint Venture with TUI, Europe's largest tourism group, (2)  Sonata North America Inc (formerly Offshore Digital Services Inc) - Sonata's arm in the US, which provides development and consulting services to clients, using an Onsite-Offshore Delivery Model, (3) Sonata Software FZ LLC - Sonata's fully-owned subsidiary that provides value-based IT solutions to customers in the Middle East and (4) Sonata Information Technology Limited, which is a premier software services and product distribution company with India-focused business operations.

For further information, please contact:
Swati Sengupta
Sonata Software Limited
A.P.S. Trust Building,
Bull Temple Road, N.R. Colony
Basavanagudi,
Bangalore  560019, India
Tel : +91-80-30971999 

SOURCE Sonata Software Ltd.