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NEW AGE CAPABILITIES
Share of Cloud, Digital and Analytics increasing
Offshore firms are growing 11-13% despite ~10% depreciation in rupee
Larger firms will not be inclined to cannibalize their business. They often talk
about security concerns and the need for “private clouds”.
Almost everyone is a one eyed man, king of the blind
Mid sized firms do not have much to lose. They can use a set of existing
tools and methodologies to offer services to manage legacy IT like a
predictable supply chain. This will free up time and money for innovation
SEVERAL BUSINESSES ARE
INSOURCING
Shell
In-house delivery centre with c. 2000 employees to focus on project
delivery, software, and cloud capabilities
Astrazeneca
Replaced 7 major suppliers with in-house resources, achieving a cost
savings of US$ 350M (annualised)
General Motors
Bet big on insourcing, bringing back 10,000 IT jobs
Businesses still want to benefit from low cost delivery but don’t want to
necessarily accept the risk of outsourcing. Some recent examples include:
THE RESILIENCE OF
INDIAN IT Born during the license raj
Sustained during a period of massive domestic unrest (1990s) – terrorism,
political instability, and poor infrastructure
Benefited from the Y2K and survived the dot-com bust of 2000s
Enjoyed growth during relatively favourable years (2002 – 2007)
Continued significant growth since 2008 despite GFC, adverse visa regimes,
reduction in labour arbitrage
Reinvented itself multiple times – from body shopping to managed services
to automation
India Market has Leapfrogged West, and expects to continue
TIME IS THE FRIEND OF THE WONDERFUL
COMPANY, THE ENEMY OF THE MEDIOCRE
8
Search for vision and management quality:
Companies taking well-balanced risks in down cycles (e.g. HCL’s investment in
RIM post 2007)
Weak management living in perpetual fear of making errors of commission while
not paying attention to errors of omission – companies with huge amounts of
underutilised cash on balance sheets with no plan to utilise or return the
shareholder money
Opportunistic management behaviour focusing on short term gains while
compromising the long term (e.g. unnecessary cost reductions, massive layoffs)
THIS IS HOW YOU CAN DELIVER VALUE NOW
In any business, the greater the time taken between a business event and action taken, the greater
the value loss*. This loss is caused by 3 factors:
Technology has been able to address Data Latency to a significant extent
Address Analysis Latency and Decision Latency through proactive and timely research and insight solutions
Data Latency – the time taken to store
data related to the event
Analysis Latency – the time taken to
analyze the data related to the event
Decision Latency – the time taken to
take a decision based on the analysis
Reduce this time lagPrevent
this value
leakage
*Source: Paper on BI Latency by Richard Hackathorn
LEADING THE CHANGE
10
Call out the anti-pattern (Aggregator)
Failure is needed. Get up, dust off, move on
Opportunistic management behaviour - don’t
wait until perfect
UI and UX is everyone’s problem, not just IT’s
‘Me too’ does not work. Each business needs a
tailor made solution primed to its needs – e.g.
Zivame in retail
THOUGHTWORKS PRINCIPLES
23
To run a sustainablebusiness.
To champion software excellenceand revolutionize the IT industry.
To advocate passionately forsocial and economic justice.
We are passionate technologists. We
provide software delivery, pioneering
tools and consulting for organizations
with ambitious missions.
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