NOW is the best time to Outsource!

Nothing new in this! People supporting outsourcing always use every opportunity to suggest it’s the best time to outsource. So what’s so unique right now?

Well, right now you need it. Most companies are left with very few options but to cut or rather freeze their IT spend. Even if you decide not to introduce a single new IT system, your current IT comprising of systems, infrastructure and back-office support are going to need an efficient handling that too in a reduced budget scenario. On the other hand some IT systems might just become a necessity to maintaining your competitiveness. Club these two scenarios and you know right away that you need outsourcing.

Having explained and hopefully convinced you that you need outsourcing now lets see why it’s the best time. Here’s why:

1. Outsourcing has evolved and the right outsourcing partner can just provide you with the innovation and experience your IT need to help you remain competitive and in business
2. A deal today is going to be at-least 30% cheaper than it was a couple of years back. Recession coupled with increased competition has forced IT vendors to reduce costs and introduce more value in their service offerings. Also, lower employee attrition and reduced salary levels across the Industry coupled with falling real estate prices in India have helped the Indian IT vendors to reduce their costs
3. Whatever you save in an outsourcing deal today provide you with additional budgets for new but necessary initiatives
4. Most Indian IT vendors have introduced innovation as a success mantra and you get the direct benefit of this mantra

As an India based sourcing advisory, we not only help you understand when and what you can outsource but also assist you in selecting the best suited Indian IT vendor for you specific requirements. We walk alongside you through the whole outsourcing engagement to ensure highest delivery levels from the selected IT vendor and an unprecedented level of vendor management in your best interest. Evident cost savings is just another benefit.

So, you need it, and it’s the best time. Go for it.

Davos 2009 – The IT Industry Perspective

While world leaders discuss the larger issues impacting the earth, as a Sourcing Advisory consultant I am left to speculate what is going to happen in the IT Industry.

In Davos, the one common view observed was that 2009 is going to be a terrible year. An equally worrying aspect though is that the impact might well spill over to 2010 and 2011. And this is where I wonder what the biggest world leaders think of IT as an industry and its future. Will technology reinvent itself and hold the key to reviving the world economics?

Davos 2009 has strengthen the belief I expressed in my previous post that “Innovation” is going to be the key for the IT industry hereon. IT budgets are frozen world over and so when the economy reopens, budgets for IT expenditures would be extremely limited. Every penny spent will be accounted for and questioned. Thus IT will necessarily reinvent itself ensuring rate of return is justified in the larger framework of “higher value driven” expenditure policies.

Some facts that in my views hold the key are:

• The exponential growth of networks and internet
  
• Aspiring and demanding new generation of internet users and spenders
  
• Rising demand and availability of real time information feeds
  
• Capital available with large number of PEs, willing to bet on brighter ideas
  
• Green technologies taking center stage across industries

As an India based Sourcing Advisory, we are keeping a sharp eye on every economic move that impacts global enterprises and their engagements with IT as a whole; especially in India.

Davos 2009 - World Economic Forum: “the mindset”

Leaders from across the globe met at the World Economic forum in the backdrop of the biggest recession of our times. These are no ordinary times and this was no ordinary summit. We know this for sure because it’s not always that the head of states and governments in such large numbers (almost 40) are seen attending what predominantly is a global business forum.

Such large scale political participation raises doubts of Protectionism as each country tries to overtly protect its own economy and interests. Such a tendency can negatively impact the global business phenomenon and practices that have developed over the past 2 decades. These troubled times I know are bound to change the way business is looked world over. But I sincerely hope that the impact is not catastrophic to the very idea of globalization.

The three key discussions in Davos 2009 were:

1. Finding ways to stabilize and revive the current global economic system
2. Addressing the challenges of the “post crisis” world
3. Global fight for environmental protection

The good part is that world is already looking forward to a values and principle led post crisis world. That too “cleaner and greener”.

Will this strategic exercise of the biggest global business minds help changing the course of the future? Well, only time will tell.

What’s in store for Indian IT?

That’s not really a million dollar question.

Indian IT definitely stays. Though this is the time for Indian IT to come off age, companies to rethink on business strategies and align their business.

Building specializations and creating a niche is the key to success for the future. Now, when the fight is tough, Indian IT must prepare itself to hold its global leadership, specially the tier 2 and 3 companies. Such an effort will help these companies gain recognition and compete for specialist roles in the outsourcing pie of the future. CIOs and Sourcing consultants do look at tier 2 and 3 vendors whenever specialization becomes a key to vendor selection. Developing a niche will facilitate such companies become the obvious choice of future.

Many Indians have been instrumental in revolutionizing IT with their innovative thinking. But as an industry we still are categorized as a service provider rather than a think tank. Being an Indian, I strongly believe we need to change this. Thinking of new ideas and conceptualizing them into ground-breaking products is another need of time and the Tier 1 Indian IT companies as well as start-ups should take on this cause. This will not only help us reduce dependence on MNC IT products but also pave way for global customers to look towards India for beating competition.

“Innovation” is the only way forward!

Bad Times, Good Times

"Good and bad times go hand in hand". This is an age old saying.

The current economic meltdown is threatening us all. I heard an analyst express his fears “if an economic downturn can force a country like America to turn toward socialism (pseudo), than it definitely is alarming."

Never before in our lifetimes have we witnessed such a widespread impact across the verticals, globally. Experts believe that the “BRIC” countries are better off even now. But sooner than later we in India have started feeling the jitters hinting that we too are global citizens, connected and not indifferent for sure.

A good friend used to say “Don’t just hope, Believe.” Hearing, discussing and reading the views of the global experts makes me a firm believer, a believer in happier times, growing economies and expanding businesses. These testing times are surely pushing us more and more towards the charismatic future that awaits us all. This meltdown symbolizes the survival of the fittest and gives all an opportunity to tighten the screws and be ready to welcome the good times ahead.

OBAMANIA and the Outsourcing world

Yesterday I witnessed unarguably the most extravagant presidential swearing-in ceremony of our times. Also the most awaited, I believe. No points for guessing, the OBAMANIA has arrived and was very evident with more than 3 million Americans in Washington and over 1.3 Billion television viewers witnessing "the change" that is bound to reshape the world.

I was forced to think if this is the end of the Outsourcing era? The era that has lasted more than a quarter of a century! Not really, my mind suggests. Outsourcing is no longer just the buzzword, its a phenomenon that has transformed the way companies look at IT and can consider IT as a contributor to the organizational growth story.

Will things change? Surely they will. But the extent is going to be limited and definitely not something that the IT Service companies in India need to worry about.

Outsourcing is no longer about Costs alone and thats the best part. Companies today are looking beyond costs for other benefits like better service levels, governance issues, information security, process optimization and innovation. The list is long and IT companies in India have, to a great extent, transformed their offerings to offer these benefits to their clients.

While exploring your Sourcing Options these benefits are definitely something you as a CIO or IT Director should consider before zeroing down on your Outsourcing vendor. Using a Sourcing Advisory services helps you doing just this.

Beat the SlowDown: CIO Strategies

Slowdown is on our minds and on the minds of all the CIOs and IT Managers. So what can we do to beat the slowdown, to the extent that our IT excels and helps us justify the TCO while adding value to the organization by increasing ROI in real terms?

The 3 simple ways are:
1. Use Offshore Support and Customization for your IT/Apps
2. Use Sourcing Advisory services for effective and value driven outsourcing.
3. Go GREEN with IT

Success Stories: Benefits companies have managed to get using a well defined Sourcing Advisory Process:

- A 200+ store multi-brand retailer achieved a saving of over 40% of the estimated outsourcing costs through well placed processes.
- A global electrical energy industry leader saved over 30% of costs quoted by their incumbent vendor while getting additional value added services.
- One of the largest privately owned departmental store business in the USA saved over 40% from vendor quoted costs by well defined processes.

Not sure how and where to start. Contact me to discuss how your IT Costs can reduce substantially and IT can become a value add to your organization's fight to the global meltdown.