‘Lift and shift outsourcing model is now over’

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: India is clearly key to IBM’s managed business process portfolio. As its general manager, Erich Clementi takes clients beyond the traditional ‘lift and shift’ outsourcing model, Daksh operations acquired in 2004 are crucial to its vast global network. Employing 20,000 people at last count, Daksh today boasts of a network of 17 delivery centres spread across seven cities in India and Philippines. Armed with its global delivery network of 36 BTO centres across the world, Clementi calls the Indian offshoring giants “formidable”, but is confident they “can’t match up IBM’s global delivery network”. General manager of IBM system’s Z division till 2003, he has more recently started leading small and midmarket accounts of the business systems segment. In an interview with Pragati Verma, he describes the changing landscape of the business transformation services and the future of India as an offshoring location. Excerpts:

Changing business environment seems to be morphing the way BPO and BTO (business transformation) services are delivered. How is it impacting your business?

The approach today is very different as we are not just taking over their process but transforming their business. Companies are burdened with inefficiently high pain points, increasing costs and pressure to deliver differentiated business value. As the pressures increase, traditional business process outsourcing that relies on labour arbitrage is not enough. Businesses are looking to derive a new kind of value from their service providers. Organisations are seeking a partner who can help them rethink their business models and business operations, optimise those operations and drive new innovative kinds of business processes. They want continuous strategic change to transform existing processes. Clearly, the traditional BPO approach of lift and shift is over. Our value proposition is much more than labour arbitrage. We run our client’s process to transform their operations. We bring in our experience of doing it for multiple clients. Our strategy of providing higher value services is resonating with clients as they seek a partner to help them solve these complex business requirements.