IT Services Provider
Not so long ago, presence at a low cost delivery location was good enough for a company to penetrate and succeed in the IT outsourcing arena. Faster adoption of Offshoring was taking care of top-line growth and labor arbitrage was sufficient to protect healthy bottom lines.
While there is still some steam left on demand side growth, it is bottom line and long term business viability that are causes for concern. In a new world, where large multinationals accessing low cost talent pool are fast eroding cost advantage
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Effective IT Management in today’s context is not primarily around surmounting technology challenges. Many of those battles have been won. Current challenges are around rationalization of IT spend, building value driven governance structures, determining what the organization should spend on running the business as opposed to changing the business, and preparing a realistic road map for the organization’s IT and business initiatives.
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Most of the IT Captives have helped their parent organization in harvesting offshore benefits without compromising on IP concerns and proprietary knowledge. However, as most of the application landscape is becoming industry knowledge, it is increasingly difficult for IT captives to justify exclusivity in providing IT services to its parent organization. Additionally, as margin expectations of third party vendors are reducing, it is becoming tricky for IT captives to provide substantial savings over other sourcing options. The questions that IT Captive leadership is asking today
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