It’s Time to Rank the Rankers!
The outsourcing industry, it seems, “loves” to rank the players in this area. As a rule, many outsourcing advisors, researchers and consultants release their own lists of top IT and BPO services providers from across the world. Most of them come up with annual lists; and not surprisingly, many come up with quarterly rankings as well. I track these lists, and write stories around them. And I find that I end up writing on an average 2-3 stories based on such lists almost every month!!!
Most rankings span similar categories — top global IT services providers, top FAO global providers, top HRO provider, etc. — yet, the differences between the lists are perceptible. Sometimes the traditional players (EDS, CSC et al) emerge on top, while at other times they make their presence felt by being completely omitted from the lists. The only ones that I find consistently making it to most lists/rankings are: Accenture, and the Indian biggies — TCS, Infy, Wipro, Cognizant.
What’s the objective of these lists: To help customer companies identify the best service providers across skillsets, industries and geographies. But, do they serve their purpose? I’m not too sure. Save for the top few positions (which are fairly predictable) the inconsistencies across lists only serve to confuse. Maybe the industry now needs “analysts” to evaluate these lists, and recommend an “industry standard” list. What do you say?
Btw, here are just some of the lists that have come out in the last few months: January 2007 Global Services and neoIT’s Global Services 100 January 2007 Workforce Management’s Top End-to-End HRO providers January 2007 FAO Today’s Top Enterprise-level FAO Service Providers March, 2007 IAOP’s 2007 Global Outsourcing 100 March 2007 PlatformOne’s Top Five End-to-End Mid-Market HRO Providers June 2007 The Forrester Wave: Global IT Infrastructure Outsourcing Providers, Q2 2007 June 2007 The Black Book of Outsourcing June 2007 Dataquest’s Top 10 Software Services Exporters
Hi,
I have been reading these posts with interest, especially as so much discussion is going on about DQ Top 20 rankings. As the Executive Editor of Dataquest, I think I should put some matters straight.
DQ is a magazine that reaches to the Indian audiece–especially enterprise IT managers. And about 90% advertisements–barring the occassional brand campaigns targeted at the larger community–are targeted at them. Now, take a look at what comprise the DQ Top 20 ranking. Out of the 200 companies ranked, 77 are companies that export IT services. With the exception of a very small number like TCS and Wipro, they do not do any business in India. Naturally, they never advertise and they do not need to.
Yes, I agree that Fortune 500 or DQ Top 20, have some element of hype attached to it. But that hype is not about the companies ranked and advertisers. And I won’t say I do not like if someone calls itself a DQ Top 20 company to introduce itself. But that is about it. Anyone who is familar with ether DQ Top 20, Fortune 500 or any such list will know that most edit people see the ads only when the issue comes in print.
Vishal,
I tend to agree with you….but not less with Satish too…you both are talking about two sides of the same coin…where there exists highly credible media rankings (e.g. fortune 500), there definitely ‘grey area’ rankings too. But let me tell you, with 100’s of speciality magazines you cannot escape this fact that – rankings help both the parties make money. If media is gaining from it, there is nothing wrong in it all…coz all the top ranking cos. today have used these ranking for a long long time to clinch big dollar deals…consciously or subconsciously every customer tends to look for credibility of the co. through these rankings..thts one reason why they are over-publicised.
Cheers!
Hi Satish
I fully agreed with your point. The companies get listed in DQ Top 20; have so much advertisement and promotional budget to pay CyberMedia for good ranking. Infect many companies not advertised in DQ.
But my comment is that media promotes the business and business promotes the media.
For example.. DQ Top 20 lists more then 300 companies, and one XYZ Company get listed in top ranking, then that company get more business due to this ranking. They will use the DQ name on there marketing proposals, website, marketing collaterals etc.
Now see: DQ promotes the XYZ company and XYZ company promotes DQ… its long team business.. not the one time… take money and advertise them
Those companies really work hard to manipulate the surveys and get listing in the top ranking..
Another example.. I am running my own small company; last week I got some offer to work with GAIL… I ready to work for them in very nominal amount.. Only because GAIL is listed in Fortune 500 Companies, so we can use on our website “we are working for Fortune 500 companies”
Now Fortune promotes the GAIL
Other
GAIL and my company (IndiaVantage) promoting the Fortune…… and I regularly buy the Fortune and DQ Top 20 kind of magazines to find out the business.
It’s really a good business books for any one…
So I think you take very wrong direction of my comment.
Satis, I have all the facts,.. I know how a big company manipulates data for survey. I can show you the companies name also there manipulations.. These companies have best ranking in Fortune, DQ, Times, also in Business World…
And you people not time to cross check the data… also its not possible…
But not the Blog… mail me I will reply. …… I write when I am sure about myself…
CHEERS
Vishal…
Its a passing comment which is being made here, with no facts and figures. I think its easy to make a comment that its B2M and M2B, its practically not, and here is why it is “practically not”.
Pick up a copy of DQ Top 20 or any other credible survey – the ones you mentioned….step one (you should read them and not see around:-)
Second step: Just have the top 200 companies who are listed – and then compare it with the advertisers list (which can be done easily if you have interest in going deep into reality)
The result you get: Not all the companies ranked are “advertisng” with them. And to look at it, the other way – there are many companies who advertise with them/group and are not listed “at all” – and they continue to advertise for long – never hoping to be listed but working hard to reach there by sheer hard work and not by paying Money. Indian IT is not a political game where ethics can be played with…your assumptions would work better in a political blog…i can help you find them:-)
And for your surprise, you will find this list (advertisers not ranked) taking more time to count…never ending.
If a company is willing to pay to get listed, then a company ranked no.50 can afford to pay more to be listed on the “TOP 10″ – which is not the case and it can never be – be it any survey. “Not Credible” is a status of inability to carry out a better survey and not that its B2M/M2B. Call on me to know more if you wish to, else design your thoughts and one shall wink
You might be unaware of the facts which companies undergo while doing a survey. Advise and comments are free of cost, so no harm in making and passing them….kiddo!!!
Don’t just blog for a purpose of publicity, have your facts in place!!!
Cheers
But Jamima, I think Vishal is kinda right in what he says. I think there is a ‘Mutual Admiration Society’ amongst the media/consultant companies or whosoever brings out these listings and the industry. They feed each other so that the show goes on…
Vishal, what I can make out this post is that the blogger is thinking in a different way. It’s not about the authenticity of those studies or rankings, but it is about how frequently they come up with such listings. So I think someone should take a call and start to analyse these listings
That means another ranking…watsay
It’s the big business behind the rating and ranking. (so many companies KPMG, IDC etc)
Most demanding issue of Fortune is “Fortune 500”
Same in Cyber Media…. “DQ Top 20” is most demanding issue… can you tell me the reasons?
Is the listing really true?
Are the companies really best, as they clam?
If not, then why all these listings, rankings and other surveys?
I think
It’s B2M (Business to Media) and M2B (Media to Business) trade, so everyone take care of each one.
All things are depending on the surveys. and that can be easily manipulated
Hey!!! don’t forget about mine….http://businessprocessoutsourcingprojects.blogspot.com/