Indian IT Service industry has been at cross roads for almost half a decade and it is still struggling to come to terms with the current reality in the market place. It has lost its inherent advantages that brought it to lime light in the global IT industry. During past few years organizations have tried various options to revive their performance. There have been attempts to change leadership style, organizational structures, market segmentation, value chain positioning, organizational diversity, locational ownership etc, but organizations have not met with much success. One by one, companies have been restating their growth numbers on the lower side.
Increasingly IT Service organizations realize that the days of high margins and locational advantages are over. They also feel that in order to deal with today’s complex and chaotic environment, they must improve their operational performance to return to their historical growth. Not for any other reason, more and more organizations are taking steps to make operational excellence central to their core strategy.
This caselet is an application of the concepts covered in the just released book ‘The Path : Leveraging Operations in a Complex and Chaotic World’. It the first part of a series of caselets aimed at revealing dramatic operational improvements in IT Industry without making too many trade-offs and without causing too much burn-outs. This caselet describes how an IT Service organization in the business of providing consultants, can promise better availability of consultants with a leaner bench. By doing so, it will be able to develop a decisive competitive edge that simultaneously improves Revenues and Profits even in an ever more complex and chaotic business environment (the New Normal).
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31 March 2014