SGO to drive IT companies’ growth
Jaideep Billa, Chief Technology Officer Polaris Software Lab Ltd, predicted that progressive modernisation of framework and intellectual property driven SGO would drive IT companies growth for the next 10 years, particularly in consulting and technology fields. Thereafter, third generation outsourcing including sub-assemblies and complete opening up of the market place with an industry standard framework and services oriented architecture would predominate.
Meanwhile, first generation outsourcing would continue and would be gracefully phased out. Billa explained that the second generation outsourcing model was present in manufacturing and ultimately the manufacturing model would be adopted for software services as well.
G.B.Prabhat, founder and CEO of Anantara Solutions Pvt Ltd, told that the new model would enable integration of consulting and technology services for the company. He said that the components for software solutions like Java coding, software testing services, performance management systems, and infrastructure management solutions would be outsourced by Anantara from China, Russia, India and Singapore and assembled by the company for further outsourcing to clients in nine countries.
Billa said that the IT companies had not adopted a uniform framework. He predicted that the new model would lead to incremental reuse of existing software components, bringing down costs. Polaris has started working with its banking customers on the SGO while TCS made a move in that direction with its subsidiary on banking products.
Calsoft has evolved a differentiation strategy through focused offerings and specialisation that allows vendors to offer increased business value to their customers. COO at Calsoft J.K.Nair said that specialisation empowers vendors to offer different engagement models and pricing mechanisms such as risk-reward engagements and value-based pricing.
