We have been saying for yonks that the best way for mid-tier India-based IT services firms to play in the UK market is by partnering. And, by the way, vice-versa for those UK firms who missed the offshore boat.
Point proven by the news that privately-held Bangalore-based infrastructure services firm, Microland, has renewed its long-standing relationship with Serco, with a $55m ‘multi-year’ contract. Microland has been providing infrastructure management services to Serco since 2005, via India and Birmingham.
Serco is no stranger to offshore partnering. We have written many times about its relationship with (now) iGate Patni (see Patni partners for Serco’s SAP) and (interestingly) with India-centric BPO player, Genpact (see Serco renews BPO deal with Genpact). More recently, Serco took the offshore plunge itself, acquiring Mumbai-based BPO firm, Intelenet (see Serco’s expensive offshore gamble). Serco is not alone in offshore partnering of course. UK infrastructure services ‘plus’ firm, 2e2, has a long-standing relationship with (also Bangalore-based) Mindtree (see 2e2 applies MindTree minds to SAP services).
Microland is much smaller than Serco’s other offshore partners. With some 2,300 employees, we’d guess that Microland’s revenues are under $70m p.a. But isn’t that just the point? How else would a firm that size win a $55m deal in the UK?