Transcending Borders With the Global Delivery Network Model

As the Indian market matures and diversifies, a new breed on numerous qualified specialist players has emerged. Most organizations are resorting to the Global Delivery Network Model to trim down costs, accelerate growth, and gain access to qualified human resources. In the past couple of years, this industry has shown tremendous growth. A robust demand from customers, and companies are focused on delivering best-in-class solutions to their global customers. Deep industry and business process knowledge, a partnership approach, comprehensive service offering, and a proven track record enable BPOs to deliver business value to leading companies in the world.

From a bilateral offshoring model, companies are moving towards evaluating different attributes of a location, depending on what their IT and business needs are. For some firms, the need is to cut costs, while for others it is to transform their business. Organizations are thinking carefully about which countries they should source from. Some who always chase low costs may opt for Vietnam. At the other end of the spectrum, some may opt for Canada, which doesn’t offer a very big cost incentive but is attractive in the context of the skills maturity it offers in terms of the legal system, political and economic environment, language skills and other factors. The change in the environment is significant.

One has to be present in a country for a long time to be able to understand the market dynamics, be able to leverage the domain expertise and communicate at all levels of an organisation. Some of the top Indian companies like Satyam have already established their base in quite a few countries. They are locating in university towns and bringing in good graduates to develop delivery capability within the buyer’s own market. The software delivery model is moving from an offshore model to a Global Delivery Network Model since IT has the ability to dynamically allocate resources between different global delivery locations. A journey, that both the multinationals and top Indian firms have started and are approaching from different directions but which neither have completed. In such a Global Delivery Network Model, the front-end or the sales end, will be as important as the backend or the delivery end. It’s not just about delivering the right types of skills in the right volume. It is about having the right volume of skills and the right skills mix in the right place at the right time and the right price.