For this year, I have taken a resolution to share my thoughts, view points and analysis on topics that are related to IT Industry and specifically in the domain of outsourcing, productivity and service improvements. I may also jump into topics that are social & political in nature and may impact the IT sector. The opinions I write here is my own & I wish to state that neither my employer nor clients that I have associated with has anything to do with this opinions.
To start with I am keying in my thoughts & the outlook of the IT industry for the year 2009.
I was able to just put thought on some of the issues that came to my mind immediately and what I see is a very hazy outlook for year 2009 specifically for IT outsourcing Industry. My take for the IT outsourcing industry is that major clients will cut spending and preserve capital thus affecting new projects/extending existing projects. There will also be renegotiation in billing rates for ongoing projects and some of the non performing/non critical projects will be terminated. The federal government, as a policy of providing more government jobs will go slow on outsourcing contracts and rather do the same in house. The devalued US dollar will impact the cost advantage & profitability of outsourcing vendors.
So how can the outsourcing provider overcome these critical issues and navigate without major operational & existential crisis?
Some of the key areas that the IT outsourcer could do include:
· Act as a partner and share the ups and down associated with this cycle.
· Leverage on the vast experienced resource pool available at US (on account of retrenchment) and build the near site capabilities
· Retool and invest in existing resource base and enable multi task as a key skill differentiator
· Leverage on the know how developed in implementing different IT initiatives and provide value to the clients
· Always listen to the client and work towards addressing their concerns
· Identify additional growth areas and diversify into other countries/industries
· Weed out the accumulated fat and make process more agile & customer specific
· And finally make sure that the blind run for short term benefits (QoQ profit &growth) will not affect the long term benefits of the organization
To start with I am keying in my thoughts & the outlook of the IT industry for the year 2009.
I was able to just put thought on some of the issues that came to my mind immediately and what I see is a very hazy outlook for year 2009 specifically for IT outsourcing Industry. My take for the IT outsourcing industry is that major clients will cut spending and preserve capital thus affecting new projects/extending existing projects. There will also be renegotiation in billing rates for ongoing projects and some of the non performing/non critical projects will be terminated. The federal government, as a policy of providing more government jobs will go slow on outsourcing contracts and rather do the same in house. The devalued US dollar will impact the cost advantage & profitability of outsourcing vendors.
So how can the outsourcing provider overcome these critical issues and navigate without major operational & existential crisis?
Some of the key areas that the IT outsourcer could do include:
· Act as a partner and share the ups and down associated with this cycle.
· Leverage on the vast experienced resource pool available at US (on account of retrenchment) and build the near site capabilities
· Retool and invest in existing resource base and enable multi task as a key skill differentiator
· Leverage on the know how developed in implementing different IT initiatives and provide value to the clients
· Always listen to the client and work towards addressing their concerns
· Identify additional growth areas and diversify into other countries/industries
· Weed out the accumulated fat and make process more agile & customer specific
· And finally make sure that the blind run for short term benefits (QoQ profit &growth) will not affect the long term benefits of the organization
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