Get documents about "Dr Ganesh Natarajan Industry Indicators Growth Trends • Captive centers driving growth with a CAGR of 45 50 followed by the BPO sectors at 44 • Top 5 Indian
Description
Bfsi Industry in Europe and Leading Companies It Sales Opportunities document sample
Document Sample
Dr. Ganesh Natarajan
Industry Indicators
Growth Trends
• Captive centers driving growth with a CAGR of 45-50% followed by the BPO
sectors at 44%
• Top 5 Indian IT players growing at 35% CAGR, followed by the next 20 at 25-
30% and the rest at 15-20%
• Inorganic growth through acquisitions and alliances is a predominant growth
strategy
• Revenue growth is expected to be volume led
- Rapid volume growth of engagement sizes for leading vendors
– Over 660 $1m clients and WITS alone accounting for 440 of these
Geography Dominance
- US, UK remain dominant markets
- All top IT players expanding footprint in Japan, C. Europe and China
Vertical Industry Focus
Dominant verticals continue to be BFSI and Telecom followed by Retail and
Utilities
Services
New service offerings include Testing, IMS, Consulting, BPM and Engineering
Services
Contd…
Industry Indicators
• Top tier – focused on vertical growth & scale, building
marquee clientele, better client transition rates, higher growth
in new service offerings and key beneficiaries of large deal
wins
• The gap between the Tier 1 and the rest is only widening
• The Indian IT billion $ club has expanded to 5 and is set to
grow
• Business Process Outsourcing being redefined (Architecture,
Design, Internal communications, knowledge services, domain
specific transaction processing…….)
Mid Tier Trends
• Mid Tiers building niche capabilities to avoid being
marginalized
• Mid-Tiers increasingly pursuing inorganic growth through
acquisitions
• Mid-tiers emphasizing on market positioning through front
end/strategic alliances
• Demand on domain skills even from small deal size customers
• Cost factor as the key deal clincher rapidly eroding
• High cost of sales due to continued dependency on small deal
sizes
• Key challenges will be
– Scale management
– Availability of people with right skill sets & talent retention
– Dependence on few customers and verticals
A strategy for sustained growth
Create a portfolio of
Business growth ------
services for future
growth
Develop new business
for volume growth
Drive core
business for profit Specialized
growth
New
Core
Timeline ------
New Portfolio of Services - Zensar
Core Services New Services Specialized Services
Businesses currently driving Incubating businesses
Businesses new customer acquisition and
that drive growth and that will provide
expected to drive significant differentiation over the next
profitability today profits within 2-5 yrs 3-5 yrs
•Appln Modernization •Embedded Systems
•Testing Services •Infrastructure Mgmt
•Appln Development
•ERP (SAP) Services •SBP led solution
Services
•Product Engg Services development
•ERP Services
•Non-voice BPO •Process & IT Strategy
(Oracle)
•Enterprise Information Consulting
Mgmt Consulting
2001-2006 2004-2009 2006-20012
VGDC Model…. @ Hyderabad
SBP Server Web-Portal Server
• Code-generator Service 1. Registered modelers:
• Design Versioning Server • can update data
• Clustered Model repository • can view allotted
Service projects, deadlines and
other relevant project
metrics
BPF Interface server • Publish their calendar
• Manages Repository-Client GDM Datacenter 2. Project Managers:
interaction • can publish project
• Proxies SBP and Pune-Mumbai metrics
Collaboration services • Grant/Revoke
privileges, restrictions
• Can query for resources
3. Customers:
• Transparently view
progress
• Seek design Updates
Customer
• Initiate change
requisition
• Seek automated reports
4. Manage BPF roles, model
repository, model versioning,
design templates and
patterns.
Zensar HQ - 750 Km
Pune- LAN (Geographically)
Legend:
BPF Client and Modeler
Collaboration Server
• Identity server
Web-browser communication • Collaboration server
BPF Client -BPF Interface Server Zensar
Communication over Internet Hyderabad
Server-Server Communication Center- LAN
LAN Communication
Industry Challenges 2010
• Retention of High Quality Low Cost Image
that has taken us to Star status
• Unleashing the Innovation wave that will
position India as a sustainable partner for
competitive advantage
• Moving companies and the industry itself up
the value chain.
• Keeping competition at bay…..
Growth Challenge
Growth strategies can be disrupted by non availability of
manpower in the right quality and quantity.
Growth implies an evolution of resource requirements –
numbers change, needs change and quality changes
The right people are always in limited supply
High turnover disrupts growth
The development and execution of a corporate
strategy depends on effective management of
human capital acquisition and retention
Human Capital
Source: Industry Research
49% of leaders agree that Human Capital represents the „employee
asset value of an organisation‟ (49%).
Why organizations do not Measure Human Capital?
52% due to lack of time/resource
41% feel it is not a priority for the business
37% lack the clarity as to what the benefits for the business would be
31% lack the clarity as to what exactly should be measured
Companies that significantly improve their human-capital
management have experienced a 30% increase in market value
Important measurement approaches include:
Appraisals
Cost benefit analysis
Employee surveys
General statistics on turnover/retention
Unspecified performance measures
EFQM/Quality leadership program
Annual Reviews
Attendance measures
Recruitment Challenges
• Working with fewer partners and developing a
quality image for new talent
• Partnering with academic institutions to build
future manpower pools.
• Building industry wide skills certifications to
reduce costs of hiring and training.
• Building a better culture in the workplace
Talent War Shifts to Battle for Retention
Current Scenario
‣ 80 % of global business leaders believe that "people issues" are
more important today than they were
‣ Less than half (44%) of workers believe their company is taking
steps to retain its employees
‣ Most companies continue to struggle with retention because they
are relying on salary increases and bonuses to prevent turnover
The Reality
‣ Recruiters Try to Shorten Hiring Process
Companies are speeding things up by simplifying background
checks and doing away with extraneous paperwork and
requisitions.
‣ 73% of the IT companies admit that they reviewed their
employee benefits strategy within the past year
‣ 50% of those companies were prompted by staff retention issues.
‣ 33% reviewed their benefits strategy in a bid to get better value
for their budget.
Top Drivers for Retention
‣ Regardless of the type of company, the majority of changes are
compensation-related
‣ Only, 27 % companies have adjusted their companies' policies to
provide employees with advancement opportunities within their
organizations.
Addressing the Future Challenge
Establish Motivational Factors
Source: Industry Research
Addressing the Future Challenge
Monitor Progress and Adapt
Source: Industry Research
Recognition is Vital
Source: Industry Research
Only 44% of non-management employees, and just
56% of managers, report that their contributions
are typically recognized when they perform well.
Retaining Talent - Recommendations
Show Them You Care
Perceptions of opportunities for advancement and growth are among the top drivers of
retention
Be Lean—But Not Mean
Nurture good people, keep them around, and the strategies will be executed, the tasks will
get done
Walk the Talk
Companies need to communicate strategies to all employees
Measure “Soft” Skills
Managers and employees alike get the message that “people don‟t matter.”
Fight Attrition with Smart Training
If training is not applicable to their jobs, employees are likely view it as a waste of time
and a signal that management doesn‟t “get it.”
Weed out Poor Managers
Ensure you have managers who can craft a compelling game plan and communicate it and
execute it effectively. Good employees expect nothing less
Deal with Employees who Perform Poorly
Employees who are making strong contributions are typically resentful when others are
not required to carry their weight
Leading Companies in Talent Retention
Using an inclusive approach to firm-wide strategy development by involving
employees in company decision-making processes. In fact, 60 percent of
executives who described their companies as "leaders" in change said they use
an inclusive strategy-development method.
Moving to project-oriented approaches, in which all employees can work on
diverse, limited-term assignments, rather than being sequestered within a
single department or function.
Developing "talent exchanges," which connect employees and other
resources with appropriate projects, roles and positions across the company.
Instituting "real-time" goal setting, performance measurement, and skills-
development programs to ensure that people always know where they stand
and to address performance issues and skills gaps before they become a
problem.
Embracing a wide range of emerging information technologies -
including personalized employee Web portals, business simulation, and
relearning - to increase the efficiency and effectiveness of their training and
development efforts.
Addressing the Future Challenge
Plan for Long Term
Source: Industry Research
Thank You
Related docs
Other docs by rob14866
Beyond Budgeting an Implementation Guide for Small and Medium Size of Enterprise Pdf
Views: 56 | Downloads: 1
