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May - 2011 - issue > CEO Spotlight
Offer-Niche-Domain-Expertise-to-Sustain
Saurabh Sinha
Friday, April 29, 2011
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A lot has changed in the global sourcing industry in the past fifteen years. While customers are increasingly relying on the partner for complex processes and are demanding higher levels of performance; concerns regarding quality are still as live as they were a decade ago. It is fair to say that the unprecedented success of the global sourcing industry, evident from the large deal sizes seen in IT and BPO industry, is also limiting its ability to go to the next level.

Business is itself changing rapidly these days with industry trends, regulations, cloud computing, information mobility, analytics and social media being strong influencers of these changes. One major trend we are seeing is the demand for increased ‘specialization’ i.e. deep domain expertise. Global sourcing buyers are depending on their partners for complex projects and processes and are consequently demanding much higher levels of specialization than ever before.

We believe that to unlock the next level of value from a partnership, the partner (i.e. vendor) has to make certain choices. It has to choose where to be the best. Creating a highly specialized organization that focuses on just one or two industries is an opportunity that is still green. Entrepreneurs would do well to assemble a team of specialists and begin with consulting opportunities in their domain of expertise. This can then be extended to downstream and sustained revenue by building domain-centric execution capabilities. The value differentiation in showing superior quality due to specialization will go a long way in helping such a service provider scale. Brand recognition, access to customers, and hiring talent would be some obvious challenges that an entrepreneur would face. All of these are surmountable because with sharp focus, the dimensions of these problems are fewer and a lot more manageable.
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Reader's comments(1)
1:I quite agree with this view. Most of the problems with creating value comes from very intangible yet niche cultural as well as behavioural gaps Specialists might well be better adapted at dealing with these issues and therefore be able to create or offer better value. Furthermore, with focused training these gaps can be reduced to a very high level.
This in itself will go a long way in creating a win-win partnership. Better brand value as well as a more structured and focused training based career progression for the specialists.
Posted by: Caleb Andrew - 18th May 2011
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