The Bigger Picture

The Gartner Europe summit saw over 600 CIOs from all over Europe

congregate to discuss issues such as the new trends in both IT and BPO, the new

countries that are emerging as contenders for offshore supremacy, and the

imperative to have a total soup to nuts strategy that avoids the mistakes

inherent in a fits and starts piecemeal approach.

The combination of demanding customers, persistent need for more

information and Web-enabled business models is making the simple outsourced

model obsolete. It is creating something far more comprehensive and compelling.

Responding quickly to customer choices, process re-engineering and new

approaches in providing a seamless customer service experience now revolves

around the creation of an enhanced customer value experience.

When business links are built into the integration plan, a higher order of efficiencies can be reached

Ganesh Natarajan

Increasingly, companies are recognizing this shift in demand for

a comprehensive strategy to provide an integrated philosophy, and are organizing

their business models around core components to realize strategic transformation

to bring about an integrated business value. However integration in this haste

often impels organizations to use legacy access tools, middleware, migration

systems to get the job done. Unfortunately, patching systems together isn't

enough. The real solutions lie in integrating systems and process to deliver an

innovative, improved productivity model that generates long term business value

for the customers.

The potential benefit of this integrated approach to outsourcing

is far reaching than just cutting costs. When business links are built into the

integration plan, a higher order of efficiencies can be reached. Starting with

electronic procurement, companies can move to disciplines such as collaborative

demand forecasting, design and development etc. Interconnecting systems with

suppliers and customers allows companies to make dramatic improvements in their

business processes thus building onto the sustained competitive advantage. These

processes and technology links can then transform into profitable relationships

in the long run.

The integration journey begins with a single step: The vision

for a need to control processes in the face of rapid change. After that vision

is in place, then one can start project management activities such as

prioritization, identifying risks and urgency associated with each particular

integration project. In most situations today, it is the combination of the best

of IT capabilities and BPO prowess that makes the process really hum when it is

moved offshore.

To address this integration paradigm, the Gartner summit saw

most of the global vendors such as EDS, Accenture and Cap Gemini and Indian

companies (TCS and Zensar) present cases and new ideas to a discerning audience.

Linux migration services which only a few years ago was just

beginning to become relevant is another area that is now seeing the thick of the

action.

An interesting differentiation that emerges is between offshore

and global in the management of new applications portfolios. Global strategies

advocate dependence on maximum allowable onsite or on shore presence, which may

call for more overhead but enable better relationships. The need for best in

class knowledge management practices and systems to access, store, disseminate

and use the best information and knowledge across globally dispersed development

and implementation groups is also gaining traction.

Finally, it all boils down to people. Every case study of success spoke of

the need to build a trust continuum from the organization to group to individual

levels and evolve co-sourcing and co-management relationships. The focus on

"best fit" rather than the "most qualified" is an

interesting difference because very often, outsourcing partnerships come to

grief because of a relationship mismatch or a chemistry problem between

customers and vendors. Which is something that gives me the confidence that

India with its high relationship oriented culture will continue to rule the

outsourcing world in the foreseeable future.