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 On his recent visit to India, Somshankar Das, President, CEO and Founder of e4e spoke about the future of Global Service Delivery and how the very fabric of the service industry is going to change in the coming years. Here are excerpts from his conversation where he discusses topics like competition, costs and destinations and how the industry needs to tackle the future. |
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Global Service Delivery has given us more degrees to freedom. Freedom from 10 hour days; labor shortages, economic constraints and single point dependencies. Selected and designed correctly, the GSD model benefits both the customer and the service provider.
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Competitive pressures in all industries - This forces customers to look at new business models to stay ahead of the competition. We have already seen this in the past with manufacturing industries. The emergence of global manufacturing supply chains has introduced huge efficiencies in the entire world of manufacturing. End consumers can get access to better and better products at lower and lower prices.
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| (b)
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Technology – especially telecommunication and collaborative technologies – which help create remote monitoring and management capabilities and virtual work forces around the world.
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Branches are small organizations with limited functionality, dependent on geography. That kind of organization might make sense in an unconnected / unwired world. But in today’s globally connected world, GSD model makes the most sense. We can maximize the utilization of all the service provider’s assets.
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Yes, but there are other values to be achieved, such as an extended working day; access to skills in short supply, ability to design new solutions etc. Essentially, we can increase the runway of “time and resources” to develop more innovative solutions.
In the case of e4e, we use the GSD for delivery of REVENUE ENHANCEMENT SERVICES FROM EXISTING MARKETS for our clients. This is a unique value proposition from e4e.
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I think best sourcing is being practiced by sophisticated service providers. In the case of e4e, there is one enterprise customer, for whom we are the only provider of technical support services at all levels. We provide the support from our facilities in Phoenix and Bangalore. Both our delivery centers are coordinated to provide full transparency to our customer.
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India will continue to grow as a very important service delivery hub in the global services supply chain. Indian service providers are becoming increasingly sophisticated, and have proven this in recent times. There is considerable depth of talent and unexplored / untapped locations in India from which a variety of services can be delivered.
Other regions will also develop – obvious names that come to mind are Philippines, China, Eastern Europe (for IT and engineering skills) and South America (at least a few countries like Argentina)
Philippines – BPO type services
China – IT and Engineering Services
Eastern Europe – IT and Engineering Services
South America – Spanish based BPO type services
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China can become an important destination. Most Chinese Service companies are however focused on the domestic Chinese market. The manufacturing culture is very strong. Service Companies need a different orientation. Client Management is more important in the services sector than in the manufacturing sector.
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The key challenges are running a 24X7 operation without dropping the ball. This is very hard. Having people work during night shifts on a continuous basis is a very complicated component of the entire Delivery Operations. In some BPO processes, culture plays an important role, and this can complicate matters.
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- Competitive Presssure
- Demographics Imbalances
- Technology Innovations
- Global Market Opportunities
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| I am optimistic about the GSD Model – it will become more robust over time as we have seen in the past with the manufacturing sector. Over time, customers will get very used to delivery of a wide variety of services from different global locations. The introduction of new technologies, maturing processes and practices will increase confidence in the GSD model with respect to customer data protection, reliability of service, etc.
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