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Cognizant Business Model

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Analysis of Cognizant business model and the next generation technology for growth

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Cognizant Business Model

  1. 1. Business Process Outsourcing A Management Process arising out of the pressure in a ‘boundary less’ global economy It helps in saving costs, providing flexibility and improving operational performance No longer a short term tool but a long term competitive advantage The market can be broadly classified into-  Business administration  Supply Chain Management  Sales, Marketing and Customer Care
  2. 2. BPO Functional Operations
  3. 3. BPO in India Amex and GE pioneered outsourcing in India in 1990s Major advantages – Cost and Labour Growth of the industry has been more concentrated in the major cities Large BPOs are now focusing on a ‘verticalized’ approach
  4. 4. BPO in India The growth of BPO in India can be classified into four phases-  Company owned units pioneered BPO in India  Venture funded new companies  Leading IT services companies enter BPO  Domain/Industry Specialized BPO
  5. 5. Future Outlook Domestic segment to grow by 17% to reach Rs. 149bn Exports to increase at 12% to reach USD 16bn Data analytics is growing fastest at 19% Direct employment in the industry to cross 6 lakhs growing at 7%
  6. 6. INFOSYS: Augmented outsourcing Augmented outsourcing presents the opportunity to outsource adjacent processes of the value chain. This augmentation could be upstream or downstream as desired and beneficial by both parties. Effects:  Impact on the cost of revenue side  Helps client to co-create innovation  Provides a pool of business experts who are have cross- functional analytical expertise.
  7. 7. BENEFITS - Analytical and judgmental improvements - Skill and capacity -Real world outcomes and augmentation solutions rather than modular solutions -Support s adjacent processes - Learning curve comes into rather than a niche process picture.-Develops new links to support -As the same provider works the current structure on the processes, it can improve upon the process.
  8. 8. Example: Sales support The provider has been contracted for:  Sales support of the value chain. Support for market research and telemarketing Augmented outsourcing benefits:  Improvements in channel partner assessment.
  9. 9. TCS: Business-Process-as-a-Service This process uses private cloud to host application needed by the client. Useful for small and medium businesses. Optimum cost solutions supported by best-in-class technology are the key to success of this model.
  10. 10. Benefits Use of a variable pay-as-you-use pricing model that helps to maintain minimum capital expenditure. Services available for both industry specific functions and cross industry specific functions Customized technology environments creating efficiencies Standardized business processes with state-of-the-art applications and technology
  11. 11. CTS and Business Process Outsourcing: A horizontal group spreading across all the verticals. USP Factors: • Customer satisfaction • Operational productivity • Strategic value • Transformation "higher-end" services BPO, IT Infrastructure Services & business consulting contributed to 15% of revenue in 2012
  12. 12. Business Delivery Model: Two-in-a-box • Customer relationships Manager • India-based managers - oversee offshore delivery Services Three-in-a-box • Adding a business consulting layer to its "two-in-a-box" model Organized into several verticals and horizontal units
  13. 13. Redefining Business ProcessOutsourcing: BPO as a simple cost play Infuses key business activities with technology levers • Better skills and industry knowledge • New technology and re-engineered processes • Knowledge-intensive and industry-specific processes • Increasing process effectiveness and efficiency.
  14. 14. CASE: CTS Client and Solutions in BPOCognizant was engaged by a Fortune 500 pharmaceutical client to provide end-to-end clinical data management services, for all its global R&D sites. The execution of this complex transition involved: 350+ FTEs ramped up in less than 6 months; 7 R&D sites in 4 countries; Re-badging of client employees onshore;
  15. 15. CASE: CTS Client and Solutions in BPO Transition to two offshore locations (Mumbai and Chennai) and one nearshore location (Budapest); Diverse set of processes, and more than 50 global applications, centralized in a single Data Management Center (DMC) High customer satisfaction scores from a survey, carried out during transition.
  16. 16. CASE: CTS Client and Solutions in BPO
  17. 17. Future Challenges New technologies which are driving new ways of organizing and operating  More collaboration  More flexible business processes and technology infrastructure  Ability to make (and dissolve) spontaneous connections with customers and suppliers Megatrends pushing companies from traditional business models (enterprise 1.0) to the next-generation enterprise  global  asset-light  virtual in its operations  skilled at leveraging flexible technologies
  18. 18. Future Trends The businesses will need to overcome multiple challenges,  Securing data  Nurturing an adaptive culture  Developing strong change management program to sustain momentum Cognizant offers various products and services to cater to the needs of business partners and help them in the process of:  Reinventing the business model to be more collaborative and less hierarchical  Rethinking which activities are core to their competitive edge versus which would be better handled by a third-party with deeper and more scalable expertise  Rewiring the technology architecture to be more virtual, agile, and Web 2.0-based
  19. 19. Services @ Future Future of Work Business Assessment Model: To help businesses reach its full potential Benchmarking and Metrics Analysis: Cognizant’s Index for Future Readiness is utilized to help change the way client work. This index is a unique repository of client and non-client survey data from top executives at approximately 200 leading enterprises and spanning 125 metrics.
  20. 20. Shortfall of existing business model Increasingly complex projects Reason for failure of complex projects  Poor Understanding of clients requirement  Changing requirements during the project development phase due to complex nature of the project  Decision making process of the client is not known to the provider
  21. 21. Cognizant 2.0 Focus on “intellectual arbitrage” rather that “labour arbitrage” It is the ability to bring all the expertise a global services firm has around the world to bear on a client’s critical business requirements Cognizant 2.0 is a Web 2.0-based platform that enables Cognizant associates (and eventually business partners and clients) worldwide to collaborate virtually and deliver significant time-to-market, cost and IT transformational value to clients
  22. 22. Component of Cognizant 2.0 A high-powered knowledge management system A standardized project and workflow management system 21st-century tools to help solve their clients 21st-century challenges
  23. 23. THANK YOU

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