Typical IT/ITES Business Transformation Initiative

Objective

Launch transformation engagement in large IT/ITES projects with team size >=25 and reduce the y-o-y cost of service by 25-30%.

Key challenges

o Ability to maintaining cost competitiveness amidst rupee appreciation and wage increase

o Paradox of resource constraints for new engagements while having resource utilization issues

Benefits to IT/ITES engagements

o Increasing the revenue potential (to be benchmarked or baselined for improvement goal)

o Reduced cost of service for the engagement in the range of 25-30%

o Productivity improvement on the engagement by minimum 30%

o Better utilization of resources within engagement (>90%)

o Better management & control of the engagement (appropriate improvement in realized risks metric)

Key business levers

o Process improvements

o Skill development

o Workforce scheduling & allocation

o Ideal team sizing

o Onshore-Offshore management

o Pyramid management

o Demand-Supply management

Frameworks or technologies

o Work distribution and allocation modelling

o Server & Queue modelling

o Value stream mapping

o Concurrent enginnering

Required support to run the initiative

o Initiative sponsorship by top management and a team of 2-3 people

o Leadership time

o 5% of management time to evangelize the initiative

o 5% of management time to review progress of the initiative

o Management time: Dedication of 20-30% of Project managers time to run the initiative

o Access to systems and metrics to enable running the initiative successfully