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Moving Up the Value Chain: Transitioning From a Cost Center to a Profit Center R Ramkumar.

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Presentation on theme: "Moving Up the Value Chain: Transitioning From a Cost Center to a Profit Center R Ramkumar."— Presentation transcript:

1 Moving Up the Value Chain: Transitioning From a Cost Center to a Profit Center R Ramkumar

2 2 4 generations of offshore outsourcing Complexity Impact 3 rd Generation Onsite/Offshore High-Complexity Systems Low Business Impact 4 th Generation Partnership Seamless Integration High-Complexity Systems High Business Impact 1 st Generation Onsite Staff Augmentation Low Complexity Systems Low Business Impact 2 nd Generation Offshore Production Low-Complexity Systems High Business Impact

3 3 Parallels in technical communication Impact Complexity 3 rd Generation Onsite/Offshore High-Complexity Systems Low Business Impact 4 th Generation Partnership Seamless Integration High-Complexity Systems High Business Impact 1 st Generation Onsite Staff Augmentation Low Complexity Systems Low Business Impact 2 nd Generation Offshore Production Low-Complexity Systems High Business Impact Staffing Resource Augmentation at Customer Locations Offshore Production Extensional Documentation [Legacy-to-Web] Exploratory Documentation [System Documentation] Onsite/Offshore Synergistic Documentation [Developmental Documentation] Partnership Extending Traditional Domains of Documentation Usability Engineering, e- learning, Content Management

4 4 Potential bottlenecks  To what extent do these guys know the subject? Do they really know what we are doing?  If these guys botch up, would I not botch up the relationship and lose a $20 million customer for a 200K or 500K business opportunity?  Would we want to see ourselves as a documentation, e-learning, content studio or a design kitchen as opposed to be seen as a high-end business- technology consulting shop?  How do I sell and to whom do I sell? CIO, Project Manager, Training Manager, Quality Manager? Credibility Issue Inhibitors Efficacy Issue Marketing Issue Branding Issue

5 5 How did we go about it (sales and marketing)  Identified potential accounts where our solutions could be sold (product oriented customers, developmental work, slouching accounts with target run-rate mismatch, steady accounts where the impact would be minimal even if we botch up)  Got good marketing collateral and did a global roadshow  Embedded sleek flash-based presentations that could be installed as dynamic screen savers on the desktops of folks  Struck alliances and partnerships with leading e-learning and content management shops  Included this component as a part of all proposals

6 6 How did we go about it (people and processes)  Identified a heterogeneous team, picked up experts from across worthy organizations  Made the documentation process mandatory for run-off-the- mill projects: played the consulting partner role  Built our own dedicated technical team; resourcing from the common pool had issues of dedicated support and availability: ran like a dedicated company Sustained capabilities in products (Vignette, Interwoven, Documentum, etc.), platforms (LMS and LCMS such as Docent, Saba, Centra, Placeware, Evolution, and Web city) standards and processes (AICC, SCORM, ADA)

7 7 Benefits  Corporate  Good revenue streams, higher gross margins and net income; tapped under-penetrated or subcontracted segments of business  Brought in newer customers to Cognizant, of which about 4 are Fortune 500 for whom we are doing a good amount of business- technology consulting, high-end technology consulting, application development and application management work  Provided end-to-end solutions to customers with adequate innovation (hard-copy documentation transitioned into interactive tutorials or e- learning material)  Gained very high visibility for work products resulting in high customer satisfaction scores

8 8 Benefits  Individual  Seen as more than mainstream and not support  Participation in all organizational strategies and a part of the senior management  Working on bleeding-edge areas  Good onsite opportunities: Realization of onsite opportunities in anywhere between 6 and 12 months of joining. Folks who have been with us for more than two years have been onsite on at least three occasions  Higher compensation and benefits  Improved pride and commitment

9 Thank You www.cognizant.com ramkumar@cognizant.com


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