I have been pondering about the offshore IT service providers “as is” strategy canvas and the ways to improve the strategy canvas so as to improve the value and reach.
Below is the “as is” strategy canvas as I see it.
In the current scenario, the top tier Indian IT service providers equal or better their global MNC peers in the spheres of offshore delivery capability, process maturity, resource/skill availability and pricing. However, the global IT service providers exceed Indian IT service providers in almost all other spheres as outlined in the above diagram. These include average resource quality, service offering range, consulting and domain experience, relationship management and project management maturity, employee diversity, employee longevity(.i.e less attrition) and cultural compatibility.
Below is the “to be” strategy canvas that I envisage for the Indian IT service providers.
Indian IT service providers need not mimic the global IT service providers as it is, since it would negate some of the inherent advantages of Indian players(for e.g. pricing advantage). I would like the capability in domain experience, relationship management maturity, project management maturity and service offerings to be drastically improved to match or exceed the global peers. However, I recommend only marginal improvements in other areas like employee diversity, employee longevity and cultural compatibility as these are non-compelling factors in the overall decision making. One area that I would like to emphasize is the deal structuring where Indian IT providers need to be more open to try new pricing models including utility pricing models(pay per use, transaction volume, user count, resource used etc) and outcome based pricing models(like SLA based pricing).