Innovation in IT Services and BPO

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Innovation in IT Services and BPO
NASSCOM Innovation Forum

• Dr. Ganesh Natarajan
• Dy. Chairman MD
• Zensar Technologies Ltd.

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Is the Indian IT services and BPO industry become
a commoditized sector can innovation make a
difference
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• Growing importance of Futuristic Potential

wall street wont pay any more for raising
profit margins on a stagnant sales base. The
crucial issue has become how far does a
company stretch for growth Pankaj Ghemawat,
Harvard Business School
In the final Analysis you cant continue
to reduce cost and grow Paul Cook, founder
Raychem
Incrementalism is innovations worst
enemy Nicholas Negroponte, MIT Media Lab
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Defining innovation in IT services and BPO is
it only moving up the value chain
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Innovation_at_Zensar
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Key Challenges

• Flight to Scale
• Galloping Manpower Costs
• Increasing investments in Infrastructure
• Customer Retention
• Customer Acquisition
• People Retention.

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Does innovation need to be IP led can we
innovate with processes and solution frameworks
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Our Services
Innovation Alignment with Customer Needs

• Enterprise Application Services
• (EAS)
• ERP Services (Oracle, SAP)
• BI/DW Services
• ECCM Services

• Application Portfolio Management
• (APM)
• Application Development
• Application Support Maintenance
• Testing Services
• Infrastructure Management Services

• Innovative Technology Solutions
• (ITS)
• Migration Re-engineering
• Product Engineering Services
• Application Modernization
• Embedded Systems Services

• Business Process Outsourcing
• and Optimization (BPO2)
• Voice led Services
• Non Voice led Services
• HR Shared Services
• Knowledge Services

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Innovation Technology Framework
Solution BluePrint Our Innovative Framework
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Innovation Automation
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The Power of Innovation

• Flight to Scale Zensar emerging among the best
  of Tier 2 choices.
• Galloping Manpower Costs Technology Intensity
  of SBP solutions.
• Increasing investments in Infrastructure Global
  Delivery Model minimises Brick Mortar
• Customer Retention Successive successes with
  CISCO, NGT , MS etc..
• Customer Acquisition Significant successes with
  new practices frameworks
• People Retention Managerial Attrition in single
  digits building architects rather than plumbers.

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Other examples

• Iflex Solutions-
• In a unique way of strengthening relationship
  with key customers, i-flex Solutions has
  announced that it would issue convertible
  warrants or options to General Electric Capital
  Corporation and IBM Global Services India Pvt
  Ltd. The warrants or options will be converted
  into equal number of i-flex shares at a later
  date
• Polaris -
• A brochure to go with a box of apples and
  ascorbic acid, a preservative. That's Polaris'
  way of assuring top bankers that its software
  will keep tab of what they have lent. At a
  total cost of Rs 30,000 for the entire exercise,
  Polaris targeted 20 Indian bankers through this
  direct marketing tactic for its banking product
  Intellect Suite, and says the results have been
  great 14 of the 20 responded.

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• IP-led innovation helps organizations take a
  middle path between pure services and
  full-fledged software products. Margins are high
  in such an innovation and is essentially helpful
  for small and mid size companies. It acts as a
  differentiator from bigger companies and you are
  unlikely to be displaced by a competitor.
• Smart Indian IT companies such as Wipro, Sasken,
  Geometric Software, Ittiam, Aftek Infosys and
  Mistral Software, are all leveraging IP to boost
  revenues.

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Client partnerships in BPO

• Programs, Not Just Tasks
• Bigger scale and a range of service is allowing
  our industry to craft multi-process and
  multi-function programs that add greater value to
  our clients. We can talk real partnerships with
  our clients that can fundamentally transform
  their business.
• There are several benefits of scale, it is
  easier to convince customers that we can handle
  big programs. It becomes feasible to enhance the
  quality of infrastructure, range of employee
  services and the quantum of investments for
  future growth.

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Areas of value-add in the BPO sector

• Innovative ideas on how to enhance operations,
  reduce operation costs, improve IT performance
  and streamline processes as part of their normal
  expectations
• Provide new technologies and intellectual
  property that would enhance business processes,
  especially for BPO
• Provide innovation in business models, such as
  carve-outs or joint ventures
• Have payment plans based on project outcomes and
  business performance (for example, increases in
  profitability or reduction on claims processing
  costs) that benefit for both parties
• Innovative retention strategies in BPO
• Innovative client-based partnerships

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How do you build a culture of innovation
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The real work of innovation is in the
transformation of culture

• Building organization wide innovation culture
  will be the only sustainable growth strategy of
  the future, any success NOT driven by
  organizational innovation capacity will either be
  a lucky coincidence or a temporary arbitrage
  opportunity
• MACROCULTURE
• MICROCULTURE   

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Innovation Because the best wayto predict the
futureIs to invent it !

• ganeshn_at_zensar.com