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Accenture a Poster Child for Outsourcing Innovation

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We've blogged about the market share erosion of U.S.-based outsourcing providers, many of whom are losing contracts to Indian providers like Wipro and Infosys.

 

But one member of the so-called Big Six -- Accenture, IBM, HP, ACS, CSC and EDS -- does not appear to be suffering too badly. Indeed, as a recent BusinessWeek article relates, Accenture has become somewhat of a poster child on how to leverage globalization to achieve a competitive advantage.

 

The company is adding 8,000 employees to the company rolls in India this year, bringing its workforce there to 35,000. In contrast to some other companies, however, Accenture positions its Indian team as part of a global innovation network rather than an island of low-cost labor. Employees in India collaborate with Accenture consultants who work on-site with clients around the globe.

 

Indian providers are struggling to provide a similar model by developing expertise in specific verticals and by expanding their global presence. Accenture has a bit of a head start. While still part of Anderson Worldwide Consulting, the firm established a financial services center in the Philippines in 1985. "We have been operating a global virtual company for decades, so we had a lot of advantages other companies didn't have," its CEO tells BusinessWeek.

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