Tag Archives: Accenture

Achieving High Performance with Predictive Analytics

“Analytics is rapidly emerging as the next management discipline. Rather than relying on intuition when pricing products, maintaining inventory, developing marketing campaigns or hiring talent for example, use predictive analytics from Accenture Analytics to deliver the improved insights and outcomes that drive high performance”.

Descriptive Analytics is also known as Business Intelligence

Predictive Analytics is Business Led and Technology Enabled and helps understand what the data means the “So What”

Informed Decisions mean Better Business Results

“In this elastic world, high performance hinges on the ability to gain insights from data. Informed executives make more insightful decisions that deliver improved business outcomes across the enterprise.

Overview

Analytic capabilities underpin the most important imperatives C-suite officers face today:

  • Driving growth—from new markets, new customer segments and opportunities, marketing transformation and innovation.
  • Enhancing cost and cash advantage—through balance sheet efficiency; enhanced working capital; better capital allocation and return on investment; and resetting structural costs for more flexibility.
  • Improving operational excellence—by realigning the operating model; reengineering key processes; focusing on lean processes and operational effectiveness; and sourcing operational excellence.
  • Restructuring the business at scale—through M&A, divestitures, consortia, industry restructuring, value chain restructuring and business ecosystems.
  • Winning the war for talent—by re-skilling the workforce, sourcing new talent, developing change agents and creating a human capital strategy”.

Accenture is positioned as a Leader in Business Analytics IT Consulting and Systems Integration Services, according to the International Data Corporation (IDC) MarketScape Report.

May IDC MarketScape Report cites strategy, innovation and delivery as key Accenture strengths.

So Predictive Analytics is about having the capability to analyze and mine company data stores in order to predict future trends and forecast probabilities.

The organization will typically take the following approach:

  • look in the Rear View Mirror to determine What Happened
  • drill into the data to establish Why it Happened 
  • then apply this insight to predict What Will Happen Next

For me the key differentiator is whether the organization has the ability to outperform their competition by implementing Predictive Analytics to enable the Business to make informed decisions.  This is a real world example of how a technology solution is delivering value to the Business.    

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Is Reshoring the way to increased World Competitiveness?

Professor Stéphane Garelli is my favourite Economist. He is an authority on World Competitiveness and also the director of the IMD’s World Competitiveness Center: his research focuses particularly on how nations and enterprises compete on international markets

On 31st May IMD announced the findings of its annual World Competitiveness Yearbook (WCY). The WCY rankings measure how well countries manage their economic and human resources to increase their prosperity.

Here are the summary results for the UK and the US.

2012 Ranking

 

UK

US

 Overall Competitiveness

18

2

 Economic Performance

19

1

 Government Efficiency

23

22

 Business Efficiency

22

11

 Infrastructure

15

1

Report Finding 28. From Service to Re-industrialization

“Service competitiveness and the ability to integrate and manage a global business model were at the core of the competitiveness of Europe and the US. However both regions have lost 20% of their industry in 20 years, thus creating a higher level of permanent unemployment.

Companies reassess extreme outsourcing and delocalization. “Reshoring” and re-industrialization become an economic and political priority. There is no competitiveness without a sound manufacturing base”.

Harry Moser is the founder of the Reshoring Initiative

 

So like Manufacturing jobs will Information Technology Outsourcing and Business Process Outsourcing jobs reshore?

Outsourcing Service Providers have been landing staff in the US and the UK for years.  What has changed is that the Visa Entry Criteria has been turned up a few notches on the dial.  Individuals must have niche skills which are in short supply.  This does not explain the hundreds of staff at one Retail Bank who are providing commodity Testing Service onshore.

Stephanie Moore is a Vice President and Principal Analyst at Forrester Research

She serves Sourcing and Vendor Management Professionals.

“Forrester clients should act now to help solve this problem. Encourage your vendors to hire local for local positions and invest in training those locals. This will solve your context and requirements problems, your visa problems and the improvement in productivity will make up for any price increase related to local labor”.

Reshoring of ITO and BPO jobs is already a major issue in the US presidential election debate.  Political will is setting the agenda for increased investment in job creation.  

The Indian Pure Plays, IBM, Accenture etc. will all have to invest in more positions being based locally at client site.

At the end of March 2012, the BBC reported that “the UK economy will contract in the first three months of 2012, taking the country back into recession, according to the Organisation for Economic Co-operation and Development (OECD)”.

Given the UK Economy reliance on Services jobs it appears that we are in need of a shot in the arm to kick start growth. 

Reshoring technology and knowledge worker jobs back to the UK may not make a material difference to the position of the UK in the WCY Ranking for 2013 but it feels like the right thing to do.  

Investing in Training and Career Development of graduates with intellectual firepower must be more important than chasing alpha / mammon.

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Take the first step on your journey from the Knowledge to Creative Economy

Gary Hamel – Business Thinker

“Don’t miss the innovation boat, turn management assumptions upside down.  Change must be dramatic, deep, and transformational. Gary Hamel explains the need for radical thinking that enables every employee to be a business innovator.”

01:45 We are no longer in the Knowledge economy we are now in the Creative economy and that is going to require huge changes in the way we think

02:55 Dramatically increasing the creative potential and capabilities of your own people.

05:00 Require a radical change in Management

Gary Hamel also mentioned that IBM took a $14bn swing in earnings in the 1990s.  Under Lou Gartner’s leadership IBM transformed from a Product led to a Services company. Gerstner said:

“Services is clearly the largest and fastest-growing portion of the information technology industry, and we continue to extend our leadership position each quarter, … Our software business continues to gain momentum.”

IBM has a heavy focus on innovation and spends >$25bn a year on R&D.  This has had a significant positive impact on the company share price.

Warren Buffet has seen an increase in his $10.7 bn investment in IBM stock to $13.2 bn (Mar 12)

Smarter Business Needs Smarter Thinking

The way we work isn’t working

What if there was a way for CIOs to take the busyness out of Business

Collaboration solutions enable people to connect to co-workers share knowledge and be more creative as a result.

Social Learning Fosters Innovation

Connect, Contribute and Cultivate to create One Global network

By investing in business innovation both Global High Value Consulting and Services companies are thriving whilst the Indian Pure Plays (HCL, INFY, TCS and WIPRO) are struggling to convince the Market that they have the “secret sauce” required to deliver the same CAGR. 

So the thinking around Knowledge Workers has been widely accepted and organisations of any size are at various stages of adoption.

These same organisations are also exploring how new ways of collaboration can unlock the creative potential of people.  

Increasingly an individuals performance is being assessed on their ability to create new content, connect with others to share their ideas and help build value for the organisation. 

To know is nothing at all; to imagine is everything – Albert Einstein

  

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Will the CIO survive or thrive?

 Does the company CIO have a future?

Mike Cooke (Booz & Company)

Extract from an article for the Financial Times.

What will become of the chief information officer by the year 2020? One only need reference the rapid change of both technology and the information technology (IT) function over the last 50 years to ascertain that the continued metamorphosis of the CIO role is unarguable.

Four macro-level, disruptive forces are largely responsible for IT’s waning influence:

  • The first was the bursting of the dot-com bubble.
  • The second was the “the great recession” – the second recession of the decade
  • The third force behind the trend reversal was the emergence of capable, global outsourcers.
  • The fourth was the development of technologies that took technology out of the hands of the IT department and gave it to a set of service providers or even the end-user.

CIO – Disruptor or Disrupted

Kevin Campbell (Accenture)

CIOs are now faced with increasingly fast technological change and the increasingly critical demands of business, says, which for them represent both a threat and an opportunity.

IT Leaders Spotlight Critical Role of CIO as Enterprise Leader and Essential Driver of Business Growth

Great CIOs deliver exceptional leadership, innovation and transformation. That was the main message at the [HMG] CIO Executive Leadership Summit held last week at the JW Marriott in Houston

Multiple breakout sessions and panels covered critical challenges such as enterprise leadership strategy; “cloudonomics” and delivering business value through cloud computing; guiding enterprise transformation; supporting innovation; protecting sensitive information; human capital development; and the emerging leadership challenges facing CIOs in the 21st century enterprise.

How CIOs can ensure they are fit for the future

Tom McEwan (PA Consulting Group)

CIOs must get the balance right between utility and innovation in order to enable their organisation to be Fit For the Future, and secure influence.

Carolyn Duffy Marsan – Network World

Top IT executives are spending more of their time [77%] than ever on business issues, such as finding ways to generate revenue and speed products to market through the adoption of new technology, rather than worrying about day-to-day operations of data centers or networks.

Ray Wang (Constellation Research)

CIOs of the future will no longer oversee multimillion dollar IT projects and lead organizational change through technology adoption.  Instead, the CIO definition will be broader, demanding that CIOs deliver more business value, profitability and market differentiation.

How will the CIO Thrive?

The CIO must strive to build a true service organization, operating like a business within the business.

The CIO must guide their organization in leveraging technology to move the business forward.

The CIO must lead the technology team to better meet internal stakeholder needs.  For example, addressing the consumerization of IT where staff want to use personal devices and technologies they are comfortable with at work.

To thrive in the future the CIO must consider ways that big data, mobility and analytics can deliver value to the Business and external customers.

  • Big Data – A highly valued digital treasure trove to help meet the evolving needs of customers, spot trends and create new products and services.
  • Mobility – New devices, whether smartphone or tablet are placing new demands on organisations and service providers about how they interact with customers.
  • Analytics – More “predictive” analytics helps organisations to use the insights gathered to make more effective decisions that can deliver better outcomes.

Ideally the CIO must either be a member of the full exec board or participate in the same governance forum as the CFO and COO.

The difference between the good and great CIO is that their focus is less about managing technology but more about spending the majority of their time delivering the business change agenda. 

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Service Intelligence or Service Excellence?

In this post I will address the subject of service intelligence and provide an overview of the Multi -National Company offerings that help clients achieve excellence in Service Management Practices.

As we approach the winter holiday period and you consider selections for your reading list, I suggest you include the following:

 

Service Intelligence: Improving Your Bottom Line with the Power of IT Service Management

This is a book written for the business professional which talks about IT Service Management concepts in business terms.  Sharon Taylor, the @ITSMQueen, explains ITSM by cutting through the jargon.

“Good service management should be relatively invisible to the business. Services should operate as expected, and no service disruptions should be experienced. When support is needed, it should be provided efficiently and effectively, and it should resolve issues the first time. This is typically what we think of as a good service experience”.

This book is about finding those ITSM “a-ha” moments.  Coverage includes

  • Recognizing what excellent IT service looks like and assessing what you’re getting now
  • Selecting the best IT service providers and services for your needs
  • Spotting and rectifying trouble with internal or external supplier relationships
  • Making sure you don’t pay for services you don’t need
  • Negotiating services, requirements, levels, price, quality, and delivery
  • Leveraging ITSM practices without losing focus on the business
  • Creating business-focused service reports and scorecards that focus on what matters most

Introduction – (Illuminating Your Vulnerabilities, Capitalizing on your Strengths, ITSM – in Good Company)

Chapter 1 – ITSM 101: From Data to Wisdom (Data, Information, Knowledge, Wisdom)

Chapter 2 – ITSM: The Business Asset

Chapter 3 – The Service (Anatomy, Ingredients, Catalog, Agreement)

Chapter 4 – IT Service Provider (Types, Competencies, Sourcing)

Chapter 5 – The Negotiation (Decision Styles, Steps, Objectives, The Service Contract)

Chapter 6 – The Service Agreement (Core, Service Package, Description, Hours, Support, Reporting, Complaints, Reviews)

Chapter 7 – The Partnership in Action (Partner Compass, Service Monitoring, Trigger Points, Roles)

Chapter 8 – Service Performance in Action (Indicators, Dashboards)

Chapter 9 – The Bottom Line (Common Cents, Transformations)

Appendix A – IT Strategy Template

Appendix B – Service Contract Template

Appendix C – Service Agreement Template

Appendix D – References for Further Reading

“The mainstay of every business and IT partnership is the knowledge that ITSM requires a holistic approach from governance to operation and is an ongoing journey where a balanced view of the health of the partnership, the services, and the practices enable them to flourish. Even the best ideas at the right time can be made better with solid service management behind them”.

This book definitely explains ITSM or Service Management Practices in business language, however, based on my personal experience, I would have to say that it plays more to the needs of the Procurement function rather than the intended target audience of Business Unit decision makers.

A word of caution to the business reader.  Service Management process improvement programmes are sometimes initiated without fully understanding the business problems that need to be resolved.

 

Being intelligent about IT services & practices

Need to keep a pulse on how well IT Service Management Practices are doing.

Be prepared to invest in your people their attitudes and behaviours 

Promote cultural perception and acceptance about Service Management Practices

It is important to reward those people that shift their focus from a technology bias to demonstrate an end-to-end service-focussed culture. Linking levels of acceptance of new ways of working to the company performance appraisal scheme is a powerful way of incentivising people to change their behaviour.

Having capable people is one thing, but without a framework in which they can operate, it is difficult to share “good” practice and deliver results quickly.

 

Achieving Excellence in Service Management Practices

The Multi-National Companies (MNC), listed below, have invested heavily in optimising processes and developing the competency of their people.  They typically provide services from Multi-Client  locations which have over the years fine tuned ways of working. It is in their interest to focus on industrialisation which represents a relentless drive to discover how an activity is optimally done, then doing it in exactly the same way every time.  It eliminates redundancies, automates and standardises wherever possible, and then drives the work to the most cost-effective and competent workforce available.

HCL

New delivery models are emerging in IT Service management Space:

  • Standardization instead of customization- service providers are standardizing services across heterogeneous environments rather than customizing solutions for each client.
  • Opex instead of Capex- The cost basis of service delivery models are changing from capital expenditure (CAPEX) to operational expenditure (OpEx) – a sign of both innovation and maturity.
  • Alternate Cloud-based/SaaS based delivery – adoption of aspects of cloud computing and software as a service (SaaS) for flexible multi-tenant infrastructure management

 Cognizant

We look for the best and brightest when hiring so our management is constantly focused on making our workplace one that’s stimulating, positive, and inclusive. A workplace that’s dedicated to service excellence and reflects the highest standards of conduct.

IBM

Today, we could not even begin to achieve basic business goals without IT to serve as the central nervous system of the organisation.  This means that IT, in the 21st century, delivers a lot more than economic savings. It creates new possibilities, generates new business advantages, empowers new services and strategies, connects organisations with new customers and markets, and much more.

HP

To drive innovation, company growth, alignment between business and IT, your technology organisation must establish a sustainable, service-centric approach. Through service management you can reduce costs, meet compliance requirements, manage risk, and focus on fulfilling strategic business goals.

Deloitte In pursuit of IT excellence

The recent economic downturn has forced companies to examine many aspects of their operations. Firms have refocused on their value propositions and are increasingly challenging enabling functions like IT to deliver more.

In this new world, IT must improve efficiency and lower cost to serve yet continue to deliver new and improved capabilities and solutions to the business. It must offer flexible and rapid collaboration capabilities yet maintain robust and resilient security. It must scale and industrialise its delivery yet maintain tight alignment and responsiveness to the business units.

Accenture

CIOs must build service organizations that can choreograph IT services to respond to business threats and opportunities and drive the enterprise forward. Accenture IT Service Excellence helps CIOs achieve this dual imperative.

Achieving service excellence starts with understanding the needs of customers before focusing on internal capabilities such as processes, organisations design, sourcing strategies, tools and technology or skills and training.

Ernst & Young

IT effectiveness — provides a roadmap of potential IT Effectiveness improvements designed to help the IT function fulfill the evolving IT mandate of managing risk, rationalizing costs and creating value for the entire company.

Sharon Taylor stated that it is about “Selecting the best IT service providers and services for your needs.” One of the selection criteria should cover the relative merits of Internal vs External Service Providers. To what extent can an Internal Service Provider compete with the “Best of the Best”?

Collaboration and co-ordination across large or distributed organisations and service providers is significantly easier when there is a common language and the “best practice” frameworks provide a good starting point for achieving excellence in service management.

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What is my Cloud Computing Strategy?

At its most basic level, Cloud Computing allows users to obtain computing capabilities through the internet, regardless of their physical location.  Computing clouds are in essence online huge datacentres containing thousands of servers hosting web applications.  Cloud services from infrastructure to complete business processes can be purchased through web interfaces and turned on and off as they are needed.

Most Business and IT senior executives are aware of the benefits that cloud computing can bring – capital light, lower run costs, agility and faster time to market – all enabled by flexible access to applications and processing power on a pay-per-use basis.

 Red Flag 1 – The discretionary (Variable) and non-discretionary (Fixed – Keep The Lights On) cost management pressure that business place on IT will increase to become the new normal.  In addition use of an IT resource no longer depends on having the capital to own it.  The business is able to source, scale and deliver compute capacity unbound of physical location or labour thanks to the cloud.  

Red Flag 2 – Business Units are already choosing third party cloud vendors and bypassing the in-house IT function, which they find to be too slow, bureaucratic and difficult to work with.  While IT remains cautious, business users have fully embraced Cloud based services. Cloud usage in the enterprise today is widespread and uncontrolled, with security and audit implications.

 It is important to revisit the IT Strategy to incorporate the cloud and the new services it will enable.  With this in mind what guidance is available to help formulate the strategy?  The most common frameworks are ITIL, ISO 38500 and COBIT 5.

ITIL 2011 Edition – Service Strategy

“Strategy Management for IT services (page 136) is intended for managing the strategy of a service provider: it will include a specification of the types of service it will deliver, the customers of those services and the overall business outcomes to be achieved when the service provider executes the strategy.”

“Strategy Management ensures that all stakeholders are represented in deciding the appropriate direction of the organisation and that they all agree on its objectives and the means whereby resources, capabilities and investments are prioritized.”

Figure 4.3 The strategy management process (page 138) illustrates the Assessment, Generation and Execution phases.

Appendix C – Service Strategy and the Cloud (Page 387)

“The basic principle of the cloud is that whatever IT service or utility a customer needs can be provided directly using the internet (or intranet) on a pay-per-use basis.  Customers do not see, nor do they care, how the services are created and delivered.”

ISO/IEC 38500 Corporate governance of information technology

“The objective of ISO 38500 is to provide a structure of principles for directors (including owners, board members, directors, partners and senior executives) to use when evaluating, directing and monitoring the use of IT in their organizations.

 Directors should govern IT through three main tasks:

1. Evaluate the current and future use of IT.

2. Direct preparation and implementation of plans and policies to ensure that the use of IT meets business objectives.

3. Monitor conformance to policies and performance against the plans”.

 COBIT 5

COBIT 5 introduces a Governance Domain which has 5 EDM processes as described in my previous post.

In summary the guidance (What) provided by these three frameworks will help design and establish a robust governance framework; however there is limited (How) detail around the specific approach to take for Cloud enabled services.

Formulating a Cloud Computing Strategy

So let’s explore five key decisions that will need to be addressed in order to formulate a cloud computing strategy:

  • Do we continue to build out our own computing infrastructure?

IT must determine if the computing infrastructure is expensive and too inflexible because a highly virtualised and well managed infrastructure saves money.  Some legacy applications  will remain core and do not lend themselves to a cloud strategy (e.g. SWIFT transactions) however applications approaching end of life should migrate to avoid further investment.

  • Which parts of the Business do we move to the cloud?

IT should consider the cloud for new applications or business processes as requirements evolve.  The cloud can significantly reduce time to market when rolling out new functionality and processes.

  • What type of cloud deployment do we use?
  1. Public Cloud: scalable bandwidth shared with multiple tenants.
  2. Private Clouds : applications and services deployed through the cloud but within the confines of the organisations on premise data centre or off premise (TelCos building private clouds for customers)
  3. Hybrid Clouds: Mixing Public and Private Clouds is the preferred solution for the business because it provides the best balance of flexibility and risk management.  
  • How must our governance framework evolve?

IT must retain control over which services are offered and managed and business units will have a say in getting the technology they need.

  • How do we protect sensitive customer information?

New measures will be required to help ensure that while data can be accessed anywhere and anytime, businesses do not breach data protection laws.

Cloud Computing – Not If but When

What are the actions needed to create the cloud enabled business?

IT must partner closely with business customers across the enterprise to understand and meet their needs in a responsive and cost effective way, while also helping to manage and integrate private, hybrid and public cloud based services alongside existing core business applications and technology.

Appoint a Cloud Leadership Team to drive change across the organisation in a co-ordinated effort that is led by Business and IT champions who aggressively push communications.  The team should develop a position on how the cloud will impact the business – create new opportunities, new channels to market and new competitive threats – and how the technology can accelerate existing needs.  The Cloud Leadership Team will need to specify which changes are going to have the most profound impact and prioritise these initiatives based on business benefit, difficulty of migration and any required investment spend.

IT must develop and implement a roadmap to replatform or replace existing business applications over time and then to build new applications using cloud based platforms.

As IT implements its new cloud strategy the IT function has a great opportunity to transform its role and establish itself as the business’s supplier of choice.

IT will require new skills and capabilities, for example hybrid managers who are close enough to the business to fully understand their issues and how cloud computing can respond to meet their needs quickly and cost-effectively.  These hybrid managers will manage all the current and future cloud vendors and integrate cloud services on behalf of the business.

IT will act as the key service interface between the business units and the various suppliers.  Ensuring seamless data integration between cloud and non-cloud services is a critical element of IT’s new role.

IT will need to assess and mitigate the risk of “lock-in”.  With Infrastructure as a Service (IaaS) cloud makes it easier to migrate relatively smoothly to another provider.  But with Software as a Service (SaaS) data is stored on the supllier’s servers making it difficult to disentangle.

 As companies start shifting computing tasks to outside providers in the cloud, intermediaries have emerged to help them do it.

Cloud Service Brokerage

 “A successful cloud computing strategy often involves customizing services from one or more vendors.  One way to do this is through an intermediary service provider: a Cloud Services Brokerage.  A CSB can make it easier to consume and maintain cloud services, while reducing the cost and risk encountered when an enterprise tries to address these issues alone.” Gartner

If you want to consume SaaS, access an Information store or other services then the Cloud Service Broker provides a single interface and can also offer managed services, professionbal services or Business Process Outsourcing. 

The Cloud Service Broker sits between public cloud services and the customer taking the commodity like cloud services and customising them to be more specific to the customer. CSB also allows the business to extend their control over their applications and data into the cloud.

The Cloud Service Broker adds value when it is aggregating multiple services.

A recent Gartner report outlined three categories of cloud brokers that will enhance cloud services:

Cloud Service Intermediation: An intermediation broker provides value added services on top of existing cloud platforms, such as identity or access management capabilities.

Aggregation: An aggregation broker provides the “glue” to bring together multiple services and ensure the interoperability and security of data between systems.

Cloud Service Arbitrage: A cloud service arbitrage provides flexibility and “opportunistic choices” by offering multiple similar services to select from.

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Globalisation 2.0 – Why IT matters

In a week when European Union disunity has overtaken events at the G20 conference, China backs away from plans to save the eurozone via a bail-out fund for the PIIGS (Portugal, Italy, Ireland, Greece, Spain).  The proposed eurozone rescue deal depends heavily on the response of especially China but also Russia, Brazil, India, and South Africa — the so-called “BRICS” — for contributions to a EU rescue mechanism.  The Chinese say they will not give any money until this latest spasm in the eurozone debt crisis clears and some kind of stability is restored.  This shift in economic power to the emerging markets is referred to as “Globalisation 2.0”.

 Stephane Garelli describes a New Paradigm – Globalisation 2.0 which is service led and consumption based.

Garelli – If you draw a line from Mexico to Moscow future growth in consumption of products and services will take place below the line.

  

Globalisation 2.0 raises the prominence of the emerging markets.  The following 21 countries are classified as emerging markets which includes the more well known BRICs.

“Economic activity increasingly gravitates to the powerhouse economies of Asia and Latin America.  Africa’s untapped growth potential is also becoming more prominent.  Spurred by a burgeoning middle class and rapid urbanization, emerging market demand is opening up opportunities in exports of goods and services.

Emerging market consumers with limited financial means are driving demand for low-cost, mass market solutions that can provide no-frills products.  Volume, simplicity and function along with longevity or durability take centre stage in offering design.

There is a “southern surge” in financial services offerings (mobile banking, micro finance and insurance) to the middle class in South and South East Asia.

The emerging market middle class is expected to increase by 1.4 billion people within the next decade creating a critical mass of demand for cars, luxury goods and services.

It is important that companies in the West build new bridges to trade with the emerging world by harnessing the potential of mobile and social networking media to reach customers and employees in new and imaginative ways.

Structured channels need to be put in place to allow rapid diffusion of ideas and know-how across regions.”

To achieve this aim the major Multi National Consultancies are encouraging staff to “Look East” whilst the Indian Pure Plays are accelerating recruitment of on-shore client facing people in the West.

The Economist comments

To make the leap into the top league of global IT services, India’s three giants (TCS, InfoSys and WIPRO) may have to hire many more people in rich countries. That is partly because the required skills are scarce in India, and partly because a physical presence is needed for some tasks, especially in consulting. Japan’s carmakers were pilloried in America until they shifted some production there, hiring locals and thus creating local loyalty. India’s IT firms are now following their footsteps.

So as the slump in rich countries continues it will impact the revenue growth projections of  the established IPPs (TCS, InfoSys and WIPRO).  Given this, outsourcing should expand further from its core geography of rich English speaking countries to places like southern Europe, Japan and the emerging markets.

Source – New Waves of Growth.  Unlocking opportunity in a multi -polar world.  Accenture Institute of High Performance and Oxford Economics

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