‘Lift and shift outsourcing model is now over’

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: technology and deliver them as a service.

How well does Daksh fit into this model?

Daksh is a key initiative in IBM’s managed business process services business. IBM acquired Daksh in 2004 to serve as a global hub to manage business processes, and deliver improved operational and business results.

In just three years, Daksh has grown to 20,000 employees, up 234% from 5,000 employees at the time of acquisition. With its network of 17 delivery centres, it offers expertise in customer relationship management, human resource management, finance and administration and industry specific processes.

A key factor fuelling client demand for Daksh services is the ability to integrate the complete spectrum of IBM capabilities across research, development and consulting, distilled into high-value solutions and replicable tools.

For example, IBM Daksh has successfully leveraged IBM’s research capabilities to develop a text-analytics tool called ProACT that automates the analytics of customer satisfaction surveys to improve the real-time effectiveness of an email based customer help desk operations. The tool, currently being piloted by several companies in the telecom industry, has been deployed at IBM Daksh to automate 30-50% of the workload of 120 subject matter experts. Daksh is focused on helping clients go beyond the basic ‘lift and shift’ outsourcing model.

Today, it is well integrated with our global delivery network. In fact, Daksh does twice the work under the IBM name than under Daksh.

Can India continue to be an attractive offshoring location as the rupee continues to move up against the dollar? Could IBM consider relocating jobs from India?

Given the direction of dollar, India will not be the only place impacted. Currency is an important factor but not the only one. Besides cost savings, we look at time zone, risk arbitration and talent available so that we can create scale. India will have to find a way to deal with currency.

One needs to be innovative and use technology that allows you to scale. Work at IBM goes to wherever it can be done best. India scores very high on customer relationship management and finance and accounting skills, while Philippines, Costa Rica and Hungary are very good with HR.

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