As Flat World companies adopt a global sourcing strategy, business and IT leadership must manage the transition from staff augmentation to a strategic partner approach. This White Paper
... focuses on the "organizational and people" changes that optimize a global sourcing program. Infosys' experts discuss leadership competencies and identify challenges related to an enterprise and its people.
Outsourcing empowers companies to deal with economic uncertainty by improving their business models and developing strategies that are better aligned with market realities. IT and Business Process Outsourcing offer flexibility
... and scalability benefits that enhance an organization's efficiency and productivity. In this paper, our experts demonstrate how companies can leverage global sourcing to their advantage. They propose a framework for a global sourcing strategy to manage uncertainty in a downturn.
The role of IT service partners has transformed from technologists to strategic value contributors. Multi-sourcing enables clients to leverage the skills of each vendor, enhance efficiency and reduce risk. The emergence
... of virtualization and pay-per-use models has added to the complexity of outsourcing relationships. In this paper, Infosys' experts examine the evolution of IT services and demonstrate how Infosys addresses the emerging challenges of the Flat World.
Establishing captive centers is a key element in your outsourcing strategy. This research paper reveals valuable data about captives. It indicates that organizations both in India and China favor a portfolio approach to outsourcing, where captive centers
... are accompanied by strong third-party vendor relationships.
The IT outsourcing industry is witnessing an interesting phenomenon: While the number of sourcing contracts is on the rise, Total Contract Value (TCV) is steadily declining. As the industry moves into shorter contracts, lower value, multiple vendors and
... best-of-breed solutions, organizations need to redefine and reinvent their approach to outsourcing. This paper analyzes the evolution of outsourcing and discusses how companies can reap the benefits of best-of-breed sourcing through Infosys' Modular Global Sourcing approach.
The term 'offshore outsourcing' conjures images of work flowing from large corporations to outsourcing service providers halfway around the world. The rapidly growing Indian IT and BPO industry with annual revenues of US$ 35-40 billion makes it
... appear that projects are simply sent offshore. The facts of outsourcing, however, are different.
Changes driven by globalization, demographics, technology and regulation are leveling the business playing field and creating a Flat World. Competing in the flattening world requires companies to shift operational priorities in four areas defined as
... the four shifts required to win in the Flat World.
The capabilities to master the Flat World shifts require businesses to be not only efficient, but also nimble, flexible and innovative. An organization's sourcing strategy needs to enable and drive these, seemingly contradictory, suite of capabilities.
Modular Global Sourcing (MGS), an outsourcing approach pioneered by Infosys, provides the framework to use sourcing strategy as a lever to master the Flat World shifts
How High-Tech Companies are Disaggregating and Globalizing their Product Development Lifecycle
Part I: Trends, Drivers and BenefitsGlobal sourcing has become a change agent in high-technology manufacturing - causing dramatic shifts
... in how and where product components and capabilities are sourced, and where work gets done. High-technology companies are facing mounting pressure on basic R&D and product development operations, due to increasing consumer demand for innovative, feature-rich products accompanied by shrinking product lifecycles and declining price points. Global sourcing offers an increasingly attractive proposition for addressing these pressures. Globalization of product development is the inevitable next stage to enhance the competitiveness of high-technology companies in the Flat World
How High-Tech Companies are Disaggregating and Globalizing their Product Development Lifecycle Part II: Right Product, Right TimeHigh-tech companies achieve success not only when they bring their products to the market quickly, but
... also when they create and develop, at the right time, products that are well aligned with customer needs.
The need to achieve system performance in a way that reduces risk and improves cost-effectiveness and time-to-market for performance-critical systems is one of the principal goals of IS organizations. It requires a holistic and quantitative approach to
... performance, without compromising on other system qualities such as flexibility, maintainability, reliability, and usability. Infosys has put into practice such an approach by combining practices in performance engineering with client delivery experience. Adapted to ensure collaboration among globally distributed application development teams, it combines performance modeling with benchmarking, tuning, and optimization to deliver high-performance systems.
Given the importance of effective outsourcing relationships to the growth and profitability of large enterprises, it is essential to revisit relationships and consider elements that are essential to their success. One reason parties do not develop successful
... relationships is that they start on the wrong foot. A true outsourcing relationship is best seen as a long-term process in which parties develop increasing levels of trust and understanding of the customer's business goals and the value that the service provider can deliver.
As the business environment becomes more dynamic, organizations are looking beyond efficiency in their IT initiatives. Business-IT alignment and innovation have become key requirements. The application of Infosys' Modular Global Sourcing framework
... in a dynamic business environment clearly shows the effectiveness of outsourcing business processes, applications and infrastructure to a single vendor. Single point responsibility inherent in such an arrangement helps improve alignment between business goals and the IT effort. In addition, service providers that run the business process obtain the span of control necessary to invest in incremental innovation.
Organizations leveraging the latest model of IT outsourcing - Multi-Sourcing - benefit from the skills and efficiencies of multiple vendors, but are challenged with retaining a holistic view of the company's entire IT infrastructure, applications and
... processes. Infosys has refined the concept of Operational Level Agreements to balance the benefits and challenges of multi-sourcing. This metrics-based approach sets rules by demarcating responsibilities between vendors, defines interaction for delivery of services and provides incentives for adherence.
As global sourcing becomes mature, organizations are looking to leap from a short-term project view into assessing how they can leverage the benefits of global sourcing and build capabilities in partnership with their vendors. They are looking
... beyond annual agreements and evolving multiple ADM projects into multi-year strategic relationships with selected partners. This provides incentives for vendors to invest the knowledge gained through the relationship back into the client. It also pushes them to devise ideas that bring about sustainable improvements and business results.
Captive centers are being used by several players for offshoring work to India, primarily for control over assets, intellectual property and core business activities. To understand the evolution of captives in India, Infosys conducted a study covering
... large companies across industries. The results indicate a highly competitive industry dominated by a few, very large centers and populated with a large number of new entrants. Most captives in India are planning strong growth, but important questions remain over the future of a vast majority of small new captives that are trying to scale up alongside much larger competitors. Infosys' research underscores the need for a strategic approach to captives. A clear definition of the activities to be delivered by the captive unit, its size, and its understanding of the strategic importance of offshore operations are key factors for success.
Under pressure to deliver short-term quarter-to-quarter results, today's businesses are driven to manage operational efficiencies, making it a challenge to maintain strategic and innovation focus. To be world-class competitors in this environment,
... enterprises need to deliver breakthrough results by combining business alignment with continual operational efficiency.
With global sourcing gaining acceptance, business and IT executives are increasingly realizing the need for effective change management. So what makes organizational change management and global sourcing a winning combination?
... Today, the main challenges faced during organizational change management are time zone differences, different communication and cultural norms, retention of critical skills and motivational issues. These challenges, if not identified, could result in productivity losses and difficult transitions. The success of this transformation is dependent on its most critical asset - its people. Infosys offers a strategic and tactical solution to help clients manage change effectively by addressing the employee-related issues that arise during the multiple stages of a global sourcing initiative. Infosys' organizational change management suite understands your needs and helps you secure stakeholder commitment upfront by managing your clients' concerns on an ongoing basis.
Lack of scalability of the IT delivery organization has become a major impediment to achieving synergies across Energy Trading and Risk Management (ETRM) initiatives. Global sourcing can provide a solution to scale requirements.
... However, it needs to be undertaken in a modular fashion. CIOs need to collaborate with business and sourcing partners to devise a strategic approach to Modular Global Sourcing and must enforce enterprise-wide business-IT alignment.