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that IT is associated with substantial increases in output and productivity (Black et al. 2001; Dedrick et al. 2003; Hitt et al. 1996; Lichtenberg 1995). When organizations implement new IT, it lead to significant transformations in the ways of work, in organizational business processes, and in organizational performance outcomes (Markus 2004). The ability to successfully manage organizational transformation has become a competitive necessity for modern organizations. Information technology (IT) can help organizations to change and innovate.
Business Transformation : It is a key executive management initiative that attempts to align People, Process and Technology initiatives of an organization more closely with its business strategy and vision to support, help, innovate new business strategies and meet long term objectives. IT enabled Business Transformation : Using technology to fundamentally alter the way business is conducted in an industry. Business Transformation Goals Develop Superior Competitive Advantage Achieve Customer Intimacy Achieve Operational Excellence Product Leadership Increase Strategic Agility
Business Crisis
Business Transformation
Competitors Actions
Introduction
Service is an old concept originated in the commercial world, which indicates an exchange of value from one party to another through some experiences in an area of need that might be related to the sale of a product.
In recent years, service orientation has found its way in the field of information technologies, which has to do with how components in a computing system interact with one another. Service orientation advocates the enablement of service-oriented
architecture that can sign on and off system components without interrupting existing information services
What is ITES ITES is Outsourcing of process / Services that can be enabled with IT and covers diverse areas like Finance, HR,
Administration, healthcare, telecommunication etc. IT services are those services that are directly related to computer software/hardware and/or telecommunication systems. For example, providing custom software will be classified as an IT service. An ITES service is one that uses computer / telecommunication systems to provide the service for a non-IT field. e.g. call centre services, medical transcription, KPOs are all ITES services.
IT Enabled Services look after all outsourcing needs such as Customer Relationship Management (CRM), Back Office
Operations, Revenue Accounting, Data Entry, Data Conversion, Finance & Accounting, HR Services, Transcription/Translation Services, Content Development, Animation, Engineering and Design, GIS, Other Services including Remote Education, Data Search Market Research, Network Management & Consultancy Services.
Armed with technology and manpower, these services are provided from e-enabled locations. This radically reduces costs and improve service standards. In short, this Internet service provider aims in providing B2B e-commerce solutions.
No. 1
PROCESS
Telemarketing Collections Customer Support (Voice, Email, Chat) Billing Receivables Management Creditors Management Financial Accounting
Content Development Data Entry/ Data Conversion Transcription Medical/ Legal/ Pre-press/ PreMedia Geographic Information System (GIS) Tax Processing Claims Processing Check Processing Card Processing Transportation Materials Management Warehouse Management
Transaction Processing
Supply Chain
Moving up the value-chain ITeS started with basic data entry tasks over a decade ago, is witnessing an expansion in its scope of services. It offers services such as business process outsourcing (BPO), knowledge process outsourcing (KPO), legal process outsourcing (LPO), games process outsourcing (GPO) and design outsourcing, among others. ITES has not only added scale, but has also matured significantly in terms of scope of service offerings, buyer segments served and service delivery models. Apart from achieving maturity in the horizontal segment, providers are increasingly developing vertical / domain specialization to capture greater value.
Important industry verticals being serviced by the BPO segment are insurance, retail banking, travel and hospitality, auto manufacturing, telecom and pharmaceuticals.
Horizontals such as Customer Interaction and Support (CIS), Finance and Accounting (F&A) and Human Resource
The Indian animation industry is estimated to grow at a compounded annual growth rate of 22 per cent to reach US $1 billion by 2012, according to NASSCOM.
It also estimates the gaming industry to grow 49 per cent, reaching US $830 million by 2012.
According to a report 'Globalization of Engineering Services', published by NASSCOM and Booz Allen Hamilton, India may capture 25 to 30 per cent of the projected US$ 150 billion to US$ 225 billion market for offshored engineering services, i.e. around US$ 50 billion, by 2020.
According to a report by consultancy firm ValueNote, the LPO revenues in India are estimated to reach US$ 1.1 billion in 2014 from US$ 146 million in 2006.
According to AT Kearney's 'Global Services Location Index 2011', a ranking of the top 50 most attractive offshoring destinations, India continues to be the most preferred
India accounts for around 28 per cent of IT and BPO talent among 28 low-cost countries.
Why India
High Hong Kong US Netherlands UK Ireland
Location Attractiveness
Infrastructure Foreign Direct
Philippines India Mexico China Lo
Workforce Capability Skill Sets, Language Proficiency Quality of work / work ethic Differential
High
With a young demographic profile and over 3.5 million graduates and postgraduates that are added annually to the talent base, no other country offers a similar mix and scale of human resources.
Due to operational excellence with low delivery cost, quality leadership and a conducive business environment. Favorable policy interventions, enabling infrastructure and augmenting a wide skill base from the government has further enhanced India's brand image.
International Players
Reliance Jindal Hero Group Hiranandani
Significant Developments
Tata Consultancy Services Ltd (TCS) has announced the launch of its first BPO centre in the Philippines. This is also the firm's first BPO centre in the South-East Asian region.
Four Soft (4S) Ltd, which offers software solutions for the logistics and transportation industry, has signed a large contract with Jacobson Companies, for implementing its multimodal transport management system and business intelligent tool across
Aegis Ltd has acquired Actionline, one of the largest BPO firms in Argentina. The acquisition will give Aegis a 5,000 people strong facility and a presence in the Latin America region. Four Soft (4S) has signed a deal with the Dubai-based Aratrans Transport and Logistics Services LLC for the implementation of global freight forwarding (4S eTrans) and contract warehousing Vertex, a global customer management outsourcing (CMO) and BPO company, has announced a joint venture (JV) with Shell Transource Ltd to address the domestic BPO market. Spain-headquartered BPO company, Accelya has acquired a 35.61 per cent stake in Kale Consultants Ltd, a Mumbai-based IT services and solutions company for around Rs 97 crore.
Patni Computer Systems has secured outsourcing engagements from the Scandinavian insurance company Codan Group and the UK-based Serco Learning.
Venture capital (VC) firm Sequoia Capital has invested Rs 60 crore (US$ 12.86 million) in security products company Quick Heal Technologies. The funding will help Quick Heal expand its product portfolio and global distribution footprint.
French IT services company Capgemini has acquired Thesys Technologies Private Ltd, a Chennai-based IT services company, to strengthen its global delivery capabilities for Temenos-enabled core banking solutions and product offerings.
Build Infrastructure
Idea
Raise Capital
Process
Acquire Customers
Wealth Creation
Operational Excellence
Concerns
1. Regulatory Issues 1. 2. 3. 4. 2. Red Tape Involved In Getting Clearances Licensing & Connectivity issues Interconnection Approval to connect to multiple points FDI Clearance Can not be more than 49% for a Non-Indian Entity
Technical Problems 1. 2. 3. 4. ATM Network Still in Infancy Not widely available Not able to route voice Leased Circuits only real option to transport voice & other time sensitive data ATM-Frame Relay Interworking only possible only for Data SLA Based Service Offerings Still Not Available
3.
Commercial Concerns 1. 2. 3. 4. NLD/Link Cost Still Very High Alternatives for domestic connectivity only just beginning to appear Deregulation Still a Work-in-Progress Single window clearance for ITES Startup
Tackling security threats has become a big challenge for companies dealing into IT enabled services. Such companies suffer from many traceable and untraceable threats for which it needs to stay alert and watchful. Every year billions of dollars are lost to such threats on account of data loss, restoration of data and resources. Lesser known threats are Identity theft, accounts hacking, disclosure of confidential info, electronic pilferage, blocking of applications to cause loss and routing of certain malware programs to cause repetitive postings over website in an attempt to haul the services. Major security threats are theft & misuse of electronic files, alteration in programs causing malfunctioning of applications resulting in complete crash of systems ultimately.
Global IT and IT-enabled services covers a wide spectrum of topics. These include business processes and management in a global setting, such as global workflow technologies and applications, global information system integration and interaction, globalized supply chain management, and global knowledge management. Another area is related to the cultural differences occurring in the global business environment, such as global software development, outsourcing and offshoring strategies, IT governance and compliance across national boundaries, and privacy, assurance and trust in a global environment. Topics in this area include service-oriented enterprises and architectures, service computing and service management, social computing, transformation of enterprise information systems, technology transfer and adoption, and Web 2.0 technologies and applications for globalized organizations.
HR Issues
Organization Structure Communication Culture Decision making process Performance management Recruitment (skilled manpower) Employee motivation