I have been observing an interesting trend in customer requirements in recent times. While the requirements a few year back were restricted to managed services and people at the technical skill level, there are more and more openings for tactic and strategic roles and organizations are willing to staff aug such roles through Indian IT firms. However, startegically IT service providers in India has neither positioned itself nor strategised to reach this level. It is now a focus and trend that is catching up everyone's attention.
So, for many years we have been trying to crack the managed service model for support organizations through GDM and pyramid structure to reach scale and quality. The pyramid mandates that bulk of work gets done through flexible, core skills pool and risk and planning for this is done by relatively more expeirenced people. The leadership of these teams is defined by ability to manage and control teams and risks. Communication and hand on knowledge has been the key for the same.
However, now IT organizations have become comfortable in letting external vendors take on programmes end to end, aid in SME areas and seek inputs in planning and staregy for the IT. As this skill is short and expensive in local markets, there is more and more requirement for experience to travel and aid in such processes. These are not long term, annuity backed tail kind of business, nor is the skill easily an readily available. The service providers will need to identify these niche skills, build a relatively flat pyramid and grow the skills in SME and Programe Mangement sectors. There will be a learning curve and service providers will themselves haveto build the ecosystem and come to terms with the non volume, non crowd backed ratios of the work, but the ones who succeed will set themselves up for the next level in IT services and outsourcing.
Indian IT service providers will probably have to now think of a new service pyramid and build ecosystem and talent pool to cater to different segments:
Opearational Base: The operational model to support this should be pyramid driven, more and more youngsters, few stars to drive the work.Process and cost should be focus for support and BAU activities. Pricing should be based on quality of services requested. Uniform high pricing will not sustain, at the same time price paid should determine the service quality. Role ratios, freshers, processes are answers to the base of the servic pyramid.
Tactical Mid: Need to build work force for tactical roles like Application Development, Programme Management, Product Selection, Business Case creation for IT organization. This will not be essentially very broad based pyramid. This will require highly qualified, smart, team driven individuals. Interestingly, i think consulting firms have identified this gap and liked of deloitte, PWC and E&Y make a fair part of their margin by positioning themselves in these segments.
Staregic Cap: The real consulting organization for IT will sit here. This will require people from business background and broad technical know how. Such people should be able to think and plan on how can IT enable business. Decisions around cloud, security, outsourcing etc should fall under such role requirements.
Given the finesses with which we have made the operational model work, it is time to step up the pyramid and build a solution and eco system for the higher up skills and take on the market. The medium priced consulting firms have an edge over service providers, given the eco system of smarter people, ability to attract and retain such talent, but as long a suitable employee policies, packages and work opportunities are generated for such people, this should not be a tough one. We are definitely better positioned to move up AND deliver; given the operational strong base and network of relations in sales across myriad of IT organization. Branding differently for different segments will be key though.
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