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Transcript of WTC Manesar at NILF Day 2
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N E W S L E T T E RDay-2
Presents
FEbRuaRy 13-15, GRaNd HyaTT, MuMbai
The Business of Infotech
in assocton wth
Powering the future
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Ed Nir
The thor s Etor o dtqest & Glol Servces
Tall Ambition and Dwar Execution
Editor's Note
The panel discussion on Reality Check- Is
India Suering From Tall Ambition and
Dwar Execution threw up divergent, but
nonetheless thought-provoking views.
Sachin Pilot, Honble Minister or Corporate A-
airs debunked the label that India has been a non-
perormer. He lauded the aith amongst Indian people
that the uture belongs to India. He cited the success
o many national projects and its economic perorm-
ance despite global economic meltdown. Pilot seemed
to champion the governments success in achieving
these milestones.
Comparison between India and China is inevitable
in discussions like these. Chinas economic success,
razor-sharp execution o national projects, and ormi-
dable ambition pales in comparison to Indias stodgy
planned approach to development. An irrepressible
Swaminathan S. Anklesaria Aiyar, Consulting Editor,
The Economic Times championed the success o in-
dividual achievement over government driven initia-
tives. He said that Nasscom itsel is a good exampleo how private individuals achieved what government
would not have been able to. Other examples cited
were the success o the auto and auto ancillary indus-
tries in research and design and the pharma industry
in dealing with the patent regime that restricted access
to global markets.
It is not that Aiyar does not see a role or the gov-
ernment. He said, The role o the government is to
acilitate positive reorm to enable business and pro-
vide governance. He bemoaned Indias lackluster
showing in global ranking or business-riendliness.
India ranked 134 out o 183 in Doing Business, 166
out o 183 in Starting Business, and even worse at
182 out o 183 in Enorcement o Contract.
Pilots retort was that rankings dont matter, they
dont tell the whole story. Countries like Macedonia
and Colombia have leapt up even 40 ranks by ocusing
on a ew parameters that determined the ranking, he
said. Instead, delivery and overall economic and social
impact is what matters, Pilot stressed.
Janamejaya Sinha, Chairman- Asia Pacic, The
Boston Consulting Group pointed towards a global
reset in the ong. He said that the western world willbeat towards Asias doors in the next 20 years. Sinha
said that in the next seven years, $15T o additional
consumption is expected to happen out o Asia, o
which $2.6T would be rom India alone. He stressed
that the opportunity is India and that this is the best
period in its history.
The discussion did not really get to deliberating the
issue about Indias dwared execution. While gaps in
execution were identied, painting pictures o a rosy
uture was the dominant theme. It let one wondering
whether we agree at all at India has tall ambitions, but
dwared execution.
view point
Project Tem
E Nr, Editor
Stsh Gpt, Hed Sles & Mrketing
Shrknt G, associte Editor
Smt Vsevn, Opertions Editor
Shlp Shnhg, Sr Correspondent
Prern Shrm, Correspondent
Prmo S Rwt, Design nd Lout
Cisco to align withthe national agenda
Jeff White
Present- in n SaaRC, Csco
Je White took over the reins at Cisco India
barely our weeks back. On the sidelines o
Nasscom Leadership Forum, in an exclusive in-
teraction with Dataquest, Je gave a quick peek
at his mandate and his rst impressions about Cisco
in India.
How have the past our weeks been or you?
I got a good sense o the opportunity in India and my
appreciation or it has grown. I would like to rearm
our commitment to India and we would continue to
invest here.
Your uppermost priorities?
Growth, developing the employee base, and driving
innovation. I have seen signicant innovations hap-
pen out o India. I am very optimistic, energized, and
excited about these opportunities.
One big part o my mandate is to align Cisco to the na-
tional agenda, the priorities o the government. These
include broadband access, healthcare, education, and
social responsibilities and we would want to take theseto the next level.
What was the biggest surprise?
The market opportunity is bigger that what I thought.
There is massive urbanization, rising middle class, and
demographics o one-third o the population below
15. The potential or broadband in Tier-2 and Tier-3
cities is huge.
Secondly, I was incredibly impressed by the talent
o the people here. I had heard about it- that we had
around 10,000 people, but their quality was equally
impressive.
Whats on your plate right now?
I am in the midst o dening the companys priorities
here with my senior team. We will eventually create an
India board comprising people rom all across Cisco.
In an interaction with Ed Nair
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in pictures
i
Spl
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330 CITIES. 100 COUNTRIES. 1 MILLION BUSINESSES
wtc corporate Dialogue
The Global NetworkTaking on the unique advantages o the WTC model,
a world class integrated business city at Manesar is all
set to jump start commerce and new opportunities.
The World Trade Centers (WTC) symbolizes glo-
bal trade and it has acted as the platorm o commerce
since its inception in 1939 in New York. Through its
years o existence WTC has remained true to its name.
The WTC is clearly a source o inspiration or entre-
preneurs across the globe.
As we browse the acts - one is bound to be amazed
at the scale and size o WTC. Headquartered in New
York, the network comprises oce complexes across
330 cities in 100 countries and serves over 100,000
member companies.
However, WTCs reach spans the world- ar and
wide beyond NYC in cities such as Chicago, Tokyo,
Rome, Beijing, Frankurt, Las Vegas, Athens, Miami,
Mexico, Tokyo, Dubai, Moscow, Sydney and so on..
list is endless.
WTC exists or the unilateral purpose o aiding the
development o the business o its members through
the ever changing climate o commerce. It does this
by creating a closely meshed network o entrepre-
neurs that acts as a platorm in promoting and oster-
ing opportunities or its members. Also by ostering a
community approach, it creates a sense o security as
well like creating homogeneity out o heterogeneous
business goals and aspirations.
As we look at trade networks on a common unied
platorm, it promotes prosperity through internation-
al trade and at the same time it augments development
o local business communities. It does so by providing
a host o reciprocal services to help oster partner-
ships. It also promotes knowledge dissemination on
broad areas like: acilitating trade missions, access to
global businesses and capital; trade inormation serv-ices and market research services or local business
knowledge; trade education services; world class o-
ce complexes; expo and conerencing acilities; short
term oce space; stay acilities and much more.
Today world trade is o the order o US $12 tril-
lion (including both goods and services), o this, an
estimated US $4 trillion (i.e. one third) trade fow
through World Trade Centers. The WTC thereore is
at the pulse o the changing dynamics o the business
every day, giving its members access to opportunities
no other network can.
While India is not new to the concept o WTC
How about looking at North Indias 1st operational
WTC
North Indias 1st operational WTCWTC Manesar is a 1.6 million square eet complex
which is also Indias rst mainstream green building,
holds a Leed platinum certication & was awarded -
Worlds best oce development, by CNBC.
The complex is now operational is ready to host
the operations some o the best international & na-
tional brands across industry sectors. Being a member
o the elite global WTC network, and a place or busi-
ness networking, WTC Manesar is already high prole
events including the upcoming - Indo-Japan Strategic
Summit on 19th February.
Apart rom being an ultra modern structure in
terms o design and layout, it incorporates whole lot
o modern amenities in one place. Clearly, these are
modern buildings, ecient with interesting design.
Quips Gaurav Bansal, Sr. General Manager (Mar-
keting), More than a building or a complex, WTC as
a networking platorm strives to bring together vari-
ous stakeholders such as Corporates, Associations,
Government Agencies, SMEs & Other institutions.
Going orward, WTC Manesar will be hosting various
industry events, B2B matchmaking sessions & discus-
sions.
During his recent visit to India, Mr. Eric Dahl,
CEO, World Trade Centers Association said, While
there are many industry and trade associations in In-
dia, WTC serves a complimentary unction. When
Indian rms reach out to the world, the typical routes
are through Indian Consulate or through their or-
eign business partners. But small rms cant aord
these. Thats where WTC chips in as well. I like to call
it the United Nations o Business.
According to Khair Ull Nissa, Senior General
Manager, WTC Manesar, The complex aims to pro-
vide a comprehensive eco-system that osters businessgrowth and revenue enhancement or companies op-
erating rom the campus. Manesar, being a strategic
location, have excellent connectivity, planned ameni-
ties and inrastructure which makes it a avored busi-
ness destination or several multinationals. We are
happy to associate with World Trade Centers Asso-
ciation and operate under the brand name o World
Trade Center.
WTC ServicesWTC International Trade Serv ices & Facilities
A WTC oers its members and tenants a wide range o
acilities and international trade services. Since WTC
services are reciprocal, members can access them atall operating WTCs around the world. Here are the
services and acilities that are oered to companies
seeking to expand international markets.
Trade Inormation & Market Research
WTCs provide up-to-date inormation about their re-
spective regions, including local products and services,
market conditions, government regulations and busi-
ness culture. WTCs urnish detailed proles o local
business contacts, including manuacturers, distribu-
tors and services providers. They also perorm market
research tailored to specic needs.The WTCAs inter-
net website (http://www.wtca.org) is a marketing tool
or the WTCs around the world, promoting events
and businesses.
Business Services
WTCs oer state-o-the-ar support acilities. This
includes video conerencing, internet access, word
processing and more. Flexible arrangements or tem-
porary oce space, meeting rooms, secretarial and
translation services are also available.
Trade Education S ervices
WTCs organize practical, interactive international
trade workshops and seminars on key local and global
business issues.
Group Trade Missions
Includes taking part in outbound missions to ex-
plore new markets and receiving incoming business
groups.
WTC Clubs
Promote business networking by providing comort-
able lounge and dining services or members and their
guests. Oer private rooms with general oce services
or various types o business gatherings. Networking
orums are arranged on specialized subjects to acili-
tate business contacts.
A World Trade Center is a recognizable symbol
o locally ocused economic strength in world com-
merce. Anchored by a unique combination o tenantsand visitors, a World Trade Center is bustling hub o
export activity. Membership requirements and cost
vary according to each World Trade Center.
World Trade Center at Manesar
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Day 1 speakers
in s t the oreront ochnge n the technolog n
sness process otsorc-
ng spce. To or nstr
opertes ot o 75 contres;
we hve hnres o evel-
opment centers cross the
worl. Onshore, rght shore,ner shore- glol sorcng
hs come long w
Som Mittl
Present, NaSSCOM
"When we look t ths erstheme - imgneerng the
Ftre - people wol won-
er on t gven tht the entre
worl s tlkng ot reces-
son, recover etc. it s n tht
context ths theme mkes ll
the more relevnt. Moreoverthe opton o vros ke
technologes s hppenng
t rp pce. i we look
t the lst or ers, t hs
een spectclr rn wth
severl srptve technol-
og nnovtons
We hve seen how the worlhs een reene n n the
lst ew ers the scorse
hs een totll erent.
Erler tlets were mn-
stere to cre lments t
to tlets hve ecome
the ren o ever chl
iT s reenng lves. Con-serng the poplton o
stte tht toches n p-
proxmte gre o 100 ml-
lon ( gre tht s lmost
the sze o Mexco). in sch
scenro, the - projecton
o growth o 12-14% oers
hge opportntes
Compnes o the 21st cen-tr wll compete on ther
networks, not o evces or
strton, t on connect-
e pltorms tht llow ther
people n prtners to col-
lorte n crete vle. inorer to e erent n pro-
ctve, Wlsh lso sggests
enterprses on mplementng
nternl socl networks n
encorge est perormers
to se t to rve nnovton
n or emploee engge-ment n commncton
"There s cler move to-wrs cretng mnctr-
ng jos n the uS. innov-
ton s kckng n n there
re some goo sgns. There
s g opportnt to mx-
mze mpct n qlt nthe servce sectors lke ener-
g n hgher ecton wth
the se o technolog"
N ChndrsekrnChrmn NaSSCOM n
CEO o TCS
annd ShrmHonle unon Mnster o
Commerce n instr
Prithvirj ChvnHonle Che Mnster o
Mhrshtr
Mike WlshFtrst & athor
Ptrick T HrkerPresent, unverst o
delwre
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Julin Robinson
Mnster o Stte
Outsourcing Destinations
Jamaica AdvantageJamaicas unique positioning and resources allow or
several advantages to doing business. The most prom-
inent being:
n A large native English-speaking population,
o which Jamaica is the third largest in the Western
Hemisphere ollowing the United States and Canada.
nClose geographic proximity to U.S markets allows
or shorter travel times to key markets. For example it is
only 1.5 hours fying time rom Miami to Jamaica, and3.5 hours between New York and Jamaica
n Similar time zone with North America allows
or harmonised business hours. Jamaica is located at
GMT-5, which is the same as Eastern USA with the
time dierence between Jamaica and any other coun-
try in the Americas being no more than 3 hours.
n In terms o telecommunications, Jamaica has ad-
vanced, reliable on- and o-island networks with three
active submarine cable systems connecting us with the
rest o the world. Fibre optic networks are ully redun-
dant with low latency, and with up to 5 TB o unlit ca-
pacity and local providers oer a ull suite o bandwidth
IP services, including R1, DS3, MPLS and Ethernet.
nCompetitive wage rates or a call centre agent in Ja-maica are about a third lower than in the United States.
n Continuous and available electric supply rom
the grid is constant and continuous to both domestic
and commercial customers. Electricity generators are
not requirements but are only recommended in the
event o supply interruption rom a severe hurricane.
andrew Lewel
Project Mnger, Ken iCT bor
Kenya AdvantageThe size o the local ICT market is estimated at US$
500 million and it is o note that companies such as
Spanco, ollowed Airtel into Kenya to continue servic-
ing them. Statistics show that the current government
spends on ICT is just 1 percent and this is bound to
increase to reach global benchmark o 3 percent. Giv-
en Kenyas relative sophistication compared to neigh-
bouring markets, many more Multinational compa-
nies have invested in the country.
nStable pro-investment government: Our new Con-
stitution that became law on 1st Aug 2010 has cemented
the stability and guaranteed investors and citizens alike
rights that promote economic and social growth.
nAvailability o Skills: Country o about 40.5 mil-
lion people o which 47.5 percent constitute the work-
ing population. The country also has the highest 15 +
literacy rate in the region (90 percent). Investors have
access to a large pool o highly qualied proessionals
in diverse sectors at competitive rates within a very
fexible legal ramework.
nInnovative culture: The country has been identi-
ed in recent times as one o the countries to watch
in Arica as ar as technology and innovation goes.
Dubbed the Silicon Savanna, Kenya is rising ast as
a technology powerhouse on the Arican continent.
There are many incubation labs that have set up in the
recent past to precipitate growth. Areas covered are:
n Strategic location: We are at a strategic loca-
tion as a regional fnancial, communications and
transport hub - Our strategic location and well de-
veloped business inrastructure makes us a natural
choice o location as a base or your regional ofces
and operations.
Emerging Locations in 2013
"am crrenc evlton, bltc
sttes-Eston n Ltv moves p
n the preerre estnton lst. im-
provng nmentls helpe Egpt
n unte ar Emrtes (uaE) gn
promnence"
Krishn Bid
instr mnger,
aPaC, Frost &
Sllvn
Quotes
"Ltn amerc s mst hve n the
lst o emergng estntons, especl-
l or bPO. Phlppnes s lso growng
t st pce, n terms o voce se
processes
Mnoj PunjSenor Vce
Present & Glol
He, Wpro bPO
"The econom s expecte to remn
wek n the openng months o 2013.
Mesres eng tken govern-ment to strengthen Economc n
Monetr unon (EMu) shol reslt
to n mprovement n consmer n
sness conence n grl re-
cover n spenng n nvestment."
Michel Crowle
Senor Economst,
bnk o ireln,
Glol Mrkets
Expert Speak
Jamaic
a
Kenya
The Lure for New GeographiesLatin America is a must have in the list o emerging
destinations, especially or BPO. Its multi lingual capa-
bilities and cultural afnity with the West makes it apromising outsourcing destination.
Despite the economic volatility, European market
has been very good or us in the recent past. We have
grown our strengths there. says Shantanu Ghosh, Sen-
ior Vice President, Practices, Solutions and Transitions,
Genpact. According to ISG, hal o the mega deals signed
in 2012 happened to be in the European market whichshows revival o interest and confdence building up.
Service providers are also confdent about their perorm-
ance in the region. Romania, Poland and Bulgaria are the
promising locations.
Changing wage rates and currency fuctuations
will infuence location preerences. Krishna
Baidya, industry manager, APAC, Frost & Sul-livan, says, Amid currency devaluation, Baltic states
Estonia and Latvia moves up in the preerred des-
tination list. Improving undamentals helped Egypt
and United Arab Emirates (UAE) gain prominence.
emerging locations
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Reinventing the Wheel
A
ter years o outsourcing and pioneering
global delivery, Indian IT is at the thresh-
old o a major transition. And to make the
most out o the transition, the companiesneed to reinvent and innovate- this is the strong mes-
sage NILF 2013 is driving at
The 21st edition o the NASSCOM Leadership
Forum (NILF) 2013 started with the theme: Imagi-
neering the Future . Som Mittal, president, NASS-
COM set the tone by saying, How does the next US
$100 billion look like? In the last ew months much
has been written about the stagnant traditional out-
sourcing model and way orward or the industry to
scale up rom here. India is in the oreront o change
in the technology and business process outsourcing
space. Today our industry operates out o 75 coun-
tries; we have hundreds o development centers across
the world. Onshore, right shore, near shore- globalsourcing has come a long way. Today many trends
are changing the entire IT outsourcing landscape and
with ever changing dynamics, IT partnerships hence
assume critical proportions and NILF is getting bigger
and better with each passing year.
NILF has gained signicant prominence and has
become a global orum o coming together o the in-
dustry, says Natarajan Chandrasekaran, Chairman
NASSCOM and CEO o TCS. This year delegates had
come rom across 35 dierent countries. When we
getting more prominent. However one o the most
important trends is the impact o IT on the society, it
is not CSR - it is the actual benets o IT percolating to
the masses. Initiatives like UID are the ones that willimpact the society in a big way.
Refecting on how IT can make a dierence, Anand
Sharma, Honble Union Minister o Commerce and
Industry said, We have seen how the world has been
redened and in the last ew years the discourse has
been totally dierent. Earlier tablets were adminis-
tered to cure ailments but today tablets have become
the riend o every child. Having set the tone or the
day, he urther added that key developments have the
ability to disrupt production cycles, rom which stems
the belie that this journey is a continuous travel. And
this becomes equally important as most pronounced
changes have been witnessed in the last three years.
Right TimeEchoing Anand Sharmas optimism Honble Chie
Minister o Maharashtra, Prithviraj Chavan said
Maharashtra has been a major destination or attract-
ing IT investments all these years. He said, This is
important in an age where IT is redening lives and
making a plethora o a dierence and also consider-
ing the population o a state that touches an approxi-
mate gure o 100 million (a gure that is almost the
ment systems are now ready to accept the change and
internalize services that the IT industry oers. These
services are aimed at using it in sectors that will help
to improve the lives o the common man. Togetherthe government (both state and national), civil serv-
ices, and the IT industry can make a huge dierence.
Advantage MaharashtraThis comes at a time when the Maharashtra state is be-
ginning to open its doors or IT adoption. In act the
state has been ranked as numero uno on the scale o e-
readiness in the words o the CM. On the Adhaar ront,
the state has already enrolled 52 million citizens and has
already rolled out the Direct Benefciary Transer Sys-
tem. The eorts o the state in the ace o State Resident
Data Hub, have received praises alike. Approximately,
60% o key citizen services amounting to 80% in volume
have been rolled out marking a huge dierence. Ma-harashtra has become the frst state to implement cloud
services apart rom the act that the state with the joint
eorts o NIC has implemented eofce.
Invest RightThe State CM also emphasized that the IT indus-
try can invest in new emerging locations that oer
more scope. Cities like Nasik, Nagpur, Aurangabad,
Kolhapur, among others. With the joint eorts o the
industry and the government, the industry can capi-
look at this years theme, people would wonder on it
given that the entire world was talking about recession,
recovery etc. It is in that context this theme makes all
the more relevant. Moreover the adoption o various
key technologies is happening at a rapid pace. I we
look at the last our years it has been a spectacular run
with several disruptive technology innovations.
Chandrasekaran averred that the key trends likethe rapid escalation o tablets, consumerization o IT ,
emergence o new technology inrastructures, and or-
ganizations trying to create a new base line or IT in-
vestments with an aim to uture proo themselves are
size o Mexico). In such a scenario, the projection o a
growth o 12-14% oers huge opportunities.
Chavan elaborated, About 25 years ago, there was
a choice to make between products versus services and
local versus exports. Today, we are at a stage where a
quarter o Indias exports revenues are generated rom
the IT industry. The Indian market is opening and o-
ering huge opportunities and the time has come orthe larger players to make renewed eorts in conjunc-
tion with the state governments and play an instru-
mental role in taking the nation to new heights.
This is important considering the act that govern-
talize on the abundance o technocrats, huge number
o educational institutes, etc. The government o Ma-
harashtra is keen to invest in an ecosystem that will
support the manpower industry culture. Take the in-
stance o Mumbai that has crossed the mark o $10
billion in investments in inrastructure. We were be-
hind time on investing in the direction o inrastruc-
ture and now it has been plugged. We have pulled ourstrings and are in the right direction. And hence, we
need the support o the industry in terms o invest-
ments to paint a better picture o Maharashtra that
today is the important part o the Indian economy.
annd Shrm
Hon'le unon Mnster o Commerce
& instr
Ntrjn Chndrsekrn
Chrmn, NaSSCOM
Krishnkumr Ntrjn
Vce Chrmn, NaSSCOM
spot light
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Outsourcing 2013: Top 3 Trends
2i lso expect tht we wll
wtness the contne
sht to mltsorcng moel.
Fewer n ewer ers re
lookng or one-stop shop
to sppl ll ther iT nees.
The re trnng to provers
tht oer omn-ocse so-
ltons n the eep sklls n
knowlege reqre to crete
rell compellng vle.
1Frst wol hve to e the
mpct o gtzton n
molt, whch hs crete
new opportntes or enter-
prses to nterct wth ther
cstomers n reene the
trtonl workplce, s well
s new ws or ther otsorc-
ng prtners to vle.
in nmc sness en-
vronment, the lt to
evelop n eplo new en-
terprse pplctons cn e
gme chnger. Compnes
tht re le to rng new pps
to mrket qcker wll hve the
vntge, so look or enter-
prses to trn to n agle moel
n mlt-sklle workorce
to mke tht relt.
Prshnt Rnde
CEO n Present,
Sntel, inc.
2The role o the CiO orgn-
zton wll sht rom eng
jst servce provers to ther
snesses to tht o technolo-
g rokers who rng n the est
tlent n technolog rom
mltple sorcng prtners n
enle collorton etween
these provers or explotng
iT to ts ll potentl.
1The pce o externl-
zton n nstr-
lzton o pplctons,
sness processes n
nrstrctre wll con-
tne to ncrese n 2013.
Clo n SS wll c-
celerte ths tren r-
ther.
Oshorng wll contne to
expn not onl e to n-
crese clent cceptnce n
cost svngs t lso to rve or-
gnztonl fexlt throgh
next generton iT servces
rven nstr sklls, con-
sltng, gle methoologes,
pltorms, ssets, tools, ccel-
ertors n most mportntl,
ccess to nche sklls n emerg-
ng technologes.
Bhskr Ghosh
glol le o applcton
Otsorcng, accentre
2Trnsormtonl p-
proch: in generl, cs-
tomer experence wol e
one o the mportnt trnsor-
mtonl themes or orgn-
ztons prt rom revene
growth n cost recton
gols.
1Cstomer insghts/an-
ltcs- Orgnztons
wnt ther prtners n ven-
ors to leverge power o
cstomer nltcs n pro-
ve ctonle nsghts. Ths
s n emergng tren we re
oservng n ths wll see
lot o trcton n 2013.
Home se gents: Or-
gnztons wol nvest
nto ths re conserng cost
ctors, fexlt n mnge
fcttons n cll/cht vol-
mes. Orgnztons nee to
look t soter spects (trnng,
tem lng etc) s well s
hrer spects (secrt, rsk
n complnce, fctton
ptterns etc) o the sness.
Rjesh Subrmnim
Md & CEO, Frstsorce
Contact Center Innovations
The shtng prgms nexpecttons rom cstom-ers re rvng lot o nnov-
tons n the contct center spce.Some o the recent nnovtonstht hve hppene n the recentpst n re nerw re:
nExperience portal: The l-
t to crete personlze iVRor ech cstomer ths rvngcstomer experence, eng leto rech ot to cstomers proc-tvel cross mltple chnnels,provng cll ck sssts rnglong wt tmes re some nqennovtons n ths re.
n Multi-channel: The optonsor cstomer to e le to hnle cstomer reqestsn the orm o not onl voce, t lso eml, cht, sms,veo n pplctons on smrt phones to nterct wththe cstomer servce center ths rvng cstomer ex-perence.
nAnalytics: The lt to cptre cstomer ee-ck n nlze cstomer ntercton n lmost nerrel-tme ths gvng the orgnzton the lt to m-prove cstomer experence
Rjeev Mittl
Mngng drector
in & SaaRC
av
Transforming Customer Service
experts speak
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As the hype and conusion over co-mingled public and private cloud
starts to dissipate, more CIOs are joining the cloud computing party.
This will have an impact on the IT outsourcing service providers, who
will see their business models and customer value propositions dis-
rupted. Service providers in the IT outsourcing space have, ater all, proted sig-
nicantly by taking on their customers highly complex, one-o collections o IT
assets and nding ways to manage them more eciently than their customers can.
But the essence o cloud computing is a move towards highly standardised racks
o commodity servers and a sotware environment that together make or a highly
ecient use o resources. Cloud computing, when done right, has the potential to
actually replace, and not just augment, legacy environments while adding value by
reducing costs and increasing agility.
PwC surveyed 489 business executives to understand the real state o data
center management today, how ast business executives expect to move to cloud
inrastructures in the uture and who they will turn totraditional IT outsourc-
ing providers, new cloud-oriented providers or internal stato make the shit.
Individual interviews with vendors oering traditional IT outsourcing and new
cloud-based oerings, including inrastructure-as-a-service (IaaS), complement-
ed the survey.
The PwC IT Outsourcing and Cloud Computing Survey suggested that many,
i not most, unctions o the traditional data centerinternal or outsourcedwill
gradually migrate to the cloud. The survey revealed a growing interest among IT
outsourcing customers and non-customers or inrastructure in the cloud, espe-
cially private cloud; and a slight preerence or new cloud-ocused service provid-
ers over traditional IT outsourcing vendors to manage the private clouds.
As a result or the next several years, IT outsourcing providers will ace the
dual challenge o delivering traditional IT inrastructure services while trying to
meet the growing demand rom their own customers to migrate to cloud comput-
ing, including IaaS. IT outsourcing providers not ready or able to move with their
customers could put the entire relationship at risk. This provides an opportunity
or younger cloud-based IT inrastructure providers to aim at the enterprise mar-
ket or IaaS.
The survey indicated that the migration to cloud will be gradual and the cloud
will coexist with traditional inrastructure or a long time. In the near uture there
is likely to be enough demand or both traditional IT outsourcing and cloud serv-ices to keep everyone busy. However, besides deep pockets and trusted brands,
one major dierentiator or established IT outsourcing providers is the vast experience many o them have with
consulting services. Since the IT resource landscape will be a mix o traditional inrastructure, private cloud, and
public cloud, customers will need help to determine the when, what, where and how o migration.
Redefning outsourcingthe cloud way
Changing insid-
er threats in a
cloud environ-
ment. When
assessing the risk associated
with migrating applications
to cloud services, buyer
should ocus rst on how
the insider threat environ-
ment changes, as ollows:
The most privileged us-ers with the power to wreak
the most harm are no longer
your employees. The cloud
providers IT sta are now
the ones with unimpeded
access to applications,
their sensitive data, and the systems they run on. They
may be endowed with ar-reaching access and power-
ul privileges in order to do their jobs. And they are by
denition more highly skilled and knowledgeable o
system vulnerabilities.
Your applications will likely be part o a much larg-
er-scale, more complex IT operation. The typi-
cal cloud provider operates
in a multi-tenancy
e nv i r o nm e nt
with many
c u s to m -
ers. I
they have
not taken
a d e q u a t e
steps to ensure tenant
isolation, your applications and data
may be exposed to security threats
rom other co-tenants. The cloud envi-
ronment embodies new technologies that may present
new attack suraces. For example some buyers may be
unamiliar with emerging threats like virtual machine
breakout exploits attacks, in which malware is able to
break the containment o the virtual operating system
to attack the host environment or adjacent virtual ma-
chines.
Questions o jurisdiction may arise based on where
IT insiders reside. A potential inside attacker may be
operating in a physical location where the legal sanc-
tions against criminal activities are weaker than in
your own jurisdiction. This can remove some o their
disincentives to criminal behavior and make court
injunctions more dicult to obtain. Cloud security
measures may confict with some o your native threat
mitigation systems. For example, the use o end-to-
end encryption to protect sensitive data in transit toand rom the cloud may render some o your own
security countermeasures inoperable, e.g., network-
based intrusion detection and prevention systems and
data loss prevention systems.
How insider threats
change when
applications move
to the cloud?
Jmes R. SlbReserch drector,
Sorcng Secrt
& Rsk Strteges,
HS Reserch
Rjesh Rjn
Leer, Emergng
Technologes,
PwC in
Ritesh Pl
Senor
Consltnt, PwC
in
clouD
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Over the last couple o years the uncertain-
ty element has been a constant or the
outsourcing industry. The volatile eco-
nomic environment, political uncertain-
ties and shit in regulatory policies is has been weighing
down heavily on the minds o CEOs.
So as we have stepped into a new year, can the in-
dustry breathe a sigh o relie?
The answer is no. It will continue to be a rough
ride but one with interesting opportunities. A change
has already started refecting in the way enterprises are
realigning their IT strategies in line with the new reali-
ties. While it is a good change , it will also create new
challenges or the industry. Service
providers that are able to proac-tively deliver innovative technolo-
gies through advanced sourcing
models will be able to sustain and
those stuck in the old world will be
wiped out.
Decisions are still made with an
inherent cost saving objective, but
at least enterprises are more open
to new alternatives like business
outcome-based and revenue shar-
ing models, and greater inclusion
o cloud-based services or more
fexibility. As Shantanu Ghosh,
Senior Vice President - Practices,Solutions and Transitions, Gen-
pact, puts it, What will matter to customers, especially
in back oce unctions, is how do you create fex-
ible capability and Scale scale up/capacity in a variable
model.
2012 was an interesting year or the industry as it laid
the oundations or some disruptive changes. Organi-
zations went a step ahead in making their outsourcing
relationships more strategic. Cloud and IT outsourcing
convergence was another important trend that started
shaping up this year. One o the big trends in 2012 will
be the movement o Inrastructure to the Cloud largely
private but some public as well.
Outsourcing LessonsFrom 2012
Last year was interesting and challenging or the
sourcing industry. What is the impact that is like-
ly to be carried orward into 2013?
2012 was a year o infexion or the Outsourcing in-
dustry. With the economy showing signs o recovery,
companies moved ahead with their strategic plans. The
impending US Presidential elections may have been a
cause or some pause, but did not materially impact
any decision-making. However other Technology and
Market actors did infuence the industry.
What was the biggest trend that the industry witnessed
in 2012?
One o the big trends in 2012 that has gathered mo-
mentum is that o movement o Inrastructure to
the Cloud (largely Private but some Public as well).
Accordingly, outsourcing transactions have become
less asset intensive and also shorter duration (3 to
5 years). Vendor Delivery and Pricing models have
been shiting and trying to align with the new mar-
ket realities. One o the main lessons learnt in 2012
is that as the market nds a new equilibrium, it is
prudent to keep your options open and not be locked
into very long term contracts with vendors.
As organizations are visibly becoming more hesitant in
taking risks, what will be the role o geographic diversi-
fcation in the sourcing industry?
The other major learning rom 2012 is that geo-
graphic diversication is now an essential part o
Outsourcing. While Oshoring continues to gain
steam, its growth (especially in India) has been tem-
pered by concerns o rising costs and attrition. With
growing maturity in the Nearshore region and emer-
gence o lower cost onshore options, organizations
have started to re-balance their sourcing portolio.
Whilst there is no large scale pull-back rom major
oshore destinations, many rms are allocating new-
er projects to providers with nearshore/onshore ca-pabilities. Some o this is also driven by the growth in
sotware requiring agile development methodologies
and mobile skills, which are more naturally aligned
with nearshoring.
Geographic
diversifcation
now an essential
part o outsourcing
anupm Govil
Prtner, avsnt
The Search For NewnessWill Continue
New TechnologiesThe three big orces Big Data, Cloud, Mobility are ex-
pected to transorm the industry in a big way. There
is a lot o hype around these technologies but is adop-
tion really picking up?
Despite a lot o hype around it, right now there
isnt much happening on the analytics part right now.
Clients are not asking or it much, says Partha De
Sarkar, CEO, Hinduja Global Solutions.In the BPO space, the way organizations are in-
teracting with their customers is giving way to new
technologies. Customers are interacting in multiple
ways-email, web, chat, voice and so on. The use o so-
cial media and mobile devices is surging like never be-
ore. By monitoring key search terms related to their
industry, brand, products and services, organizations
can engage their customers to create buzz, build loyal-
ty and resolve issues proactively, says, Andrew kokes,
Vice President, Global Product Management & Mar-
keting, & Mandy Edwards, CIO, Sitel.
New Sourcing ModelsThe industry is clearly moving away rom the conven-
tional oshore-centric model to a more balanced and
geographically dispersed sourcing model.
Oshore locations are visibly acing pressure as
political anti-oshoring interests and the rising at-
tractiveness o onshore and nearshore locations are
coming up as a big threat. With some Indian IT ma-
jors like Inosys and Wipro also going through a chal-
lenging phase, the pure-play oshore model seems to
be losing its charm.
Organizations are looking or the right-shoring
approach that gives them fexibility and cuts down
risk. Service providers will have to strike the right bal-ance between onshore and oshore. Firstsource has
rightshore model with 65% o revenues coming rom
onshore, says, Rajesh Subramaniam, MD & CEO,
Firstsource.
lessons 2012
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