We live in a world where technological innovations are disrupting the way we live, work and interact with each other. The new age of human experience - artificial intelligence, robotics, driverless cars, drones, wearables, 3D Printing and so on - are already on us. These disruptive technologies, services and platforms have the power to transform our everyday lives. Businesses need to respond quickly, as customers want a flexible, transparent contract with lot more savings.
The time to market has to be faster than ever before, to stay ahead of competition. This change is not going to happen overnight and will also come at a significant cost. It’s time for all IT service providers to help their customer’s shrink their IT expenditure and help in their digital transformation journey.
Shrink IT Expenditure
Shrink IT strategy is based on Hexaware’s decades of IT experience, industry predictions and firm belief that customer’s IT budget could be shrunk by 30% in the coming years. Customers spend on an average 30-40% more than they should on IT commodities, such as Application Support and Maintenance (ASM), testing, Infrastructure Management Services (IMS) and business process outsourcing services.
Hexaware’s Proposition is simple - ‘Help Customers SHRINK Commodity IT’
Now how do we go about doing it? If the total price a customer pays is unit price (P) times the quantity used (Q), our focus is on reduction/elimination of Q. We have identified and recommended specific set of levers for eliminating and reducing Q. Proactive problem management is one of the key elements in shrinking your IT.
How Hexaware Helps:
Hexaware’s SHRINK IT uses “combination” of key organizational disciplines like:
1. Robotic Process Automation:
Hexaware has been enabling its customers to embrace automation. This is one of the most important aspects of our Shrink IT strategy.
Hexaware has built a platform -Raise IT, with pre-built automation components for IMS and ASM such as discovery, monitoring, analysing, and self-healing, in addition to predictive analytics for proactive problem management.
Cannibalizing our Revenue for Automation: Traditional service providers actually find it hard to take up automation, as they would lose out in profit on T&M of resources. While automation would be catastrophic for them, we are willing to cannibalize our own revenue for mutual success and a lasting relationship.
Hexaware’s BPO division has been successfully using our Robotic Process Automation (RPA) solution to automate the presentation layer to work efficiently and thereby eliminate more than 30% of the labour required.
2. Application Modernization and Rationalization using Hyperconverged Technology:
The second set of levers for Q reduction in ASM is Application Modernization and Rationalization. Hexaware has been extensively using hyperconverged technology to change the underlying infrastructure components of IMS applications. Our fully digitized, platform based on hyperconverged technology delivers highly digitized and optimized processing for domain specific services.
3. Anti-Pyramid Engagement Approach:
As opposed to the traditional way of deploying fresh recruits for projects, Hexaware deploys only project managers and senior engineers for every engagement. This would result in leaner and decentralized team and help in faster decision making and lower training costs.
4. Design Thinking Ingrained in our Process:
We have been driving design thinking to meet our customers’ needs. Hexaware has been building on design thinking competencies that relooks at customer problems with new empathy, innovation and delivers value. These competencies have helped us in meeting operational needs and reduces cost.
These optimization measures described above- encompassing automation, hyperconverged technology, design thinking can help organization embark on a ‘SHRINK IT’ journey. Hexaware helps enterprises to reduce their spend on commodity IT services like application support, testing, infrastructure and BPO. We reiterate that our customer spends will definitely go lower under our ‘Shrink IT’ strategy; it will not be through unit price discounting but through elimination of work through automation and technology.