While there is still a lot of steam left in Offshoring growth, it is the changing cost expectations that is a cause for concern. In a new world, where all the organizations have access to low cost talent pool and IT companies are giving never before competition to attract talent, where do IT Captives look for competitive advantage? Here is the number of strategic and operational questions Captive setup Leadership is asking:
- What is my competitive advantage over third party IT vendors. What I can offer to my parent organization that vendors cannot.
- In a competitive landscape where IT margins have gone southwards and talent acquisition cost is all time high, how can I justify my cost structures over other available options.
- How can I rapidly reduce cost and align it to market benchmarks? How I distinguish my more productive, less productive and counterproductive assets and how can I rationalize that?
- What is my people value proposition? What can I do to attract and retain high quality talent?
- Am I ready for demand shocks? Do I have sufficient variability in my cost structure to align myself with rapidly changing organizational expectations?
Over the next few years, senior executives in IT captives will have to remain focused on reducing operational costs while investing in differentiation which continue to justify their growth over third party vendor options. They must do all this while keeping an eye on changing organizational expectations.
Orcapod can provide strategic and operational support to its clients in the following areas to meet commoditization challenges and unrelenting cost reduction goals.
Demand Driven Talent Acquisition: To build strategies that goes beyond on-demand hiring. Develop cost efficient channels, tools and processes for aligning talent supply chain to business demand.
Value Driven Talent On-boarding: To develop data driven approach to shorten supply chains for fast response and lower talent inventory loss. Develop tools, rearrange HR policies and build methodology for planned on-boarding, productive utilization of benched resources and faster staffing.
Vendor Development for Cost Reduction: Develop vendors and alliances for faster turnaround and reduced cost of operations. Build approaches for profitable outsourcing of non-core activities.
Activity Based Service Costing: Data driven analysis of service cost for ensuring accurate cost allocation, right pricing and improved competitiveness.
Demand Shock Absorbers: Planned approach for converting your capital expenses to operational expense. This leads to flexibility in cost structures and better preparation to deal with demand variability.
Optimizing Investment in Talent Retention: Structured and data driven analysis of the various layers of organizational hierarchy to distinguish between value adding and value eroding layers. This is to ensure that organization investments are going to the right places.
Building Tools, Methodology & Processes for Delivery Excellence: To develop intellectual property around proprietary tools, methodologies and processes helping in the much needed differentiation and improved certainty.
Cost Optimization & Asset Sweating: Benchmarking and finding opportunities of cost optimization across cost heads and strategies to improve asset sweating. Implementing process improvement initiatives like lean management.