“We are concentrating on overseas markets (USA/UK/Middle East) in particular to get the projects from potential clients and perform their product development in India utilising the available resources at lower price.”
Nagesh Kumar ( CEO )
Semantix is ready to introduce “Hybrid Business Model or Dual Shore Model” drawn on the following key recommendations:
 IT offshore outsourcing is here to stay and Semantix will eventually have to adopt “Hybrid Business Model or Dual Shore Model” to explore the international market.
- Semantix done business plan, considering major International marketing factors and tasks within realistic allocated budget.
Semantix is establishing the contacts with offshore intermediaries and it should look forward to join as a partner with established domestic or overseas companies, to gain knowledge and experience in the area of IT outsourcing business as a strategic direction.
Semantix should adopt differentiation focus strategy and cost leadership strategy to remain competitive in current fast growing global IT market.
Semantix has every opportunity to enter into IT Outsourcing business as a prospective vendor, serving globally and locally provided if it reacts to the current situation and implement the recommendations which will enable Semantix to fetch potential global clients; and also help them grow and remain competitive in the field of IT Outsourcing business both domestically and globally.
Hybrid Delivery Model
(Picture adopted from: IT Out Sourcing and Outsourcing to a Global Workforce b Erran Carmel and Paul Tjia Cambridge University 2005).
Form of Business Operations
Semantix in this scenario will be using a variant of the pure onsite model and the offshore model to enable the bulk of the work to be done offshore. In this model, the onsite staff members are managed by the Semantix, who are responsible for smooth knowledge transfer, as well as the integration and execution of the undertaking.
This model is the most successful and widely used. In this model, the client project manager relies on the vendor’s manager to control and coordinate all activities conducted by the vendor, including onsite and offshore team; the onsite team works closely with the client and send work to be implemented by the offshore team.
The advantages of Hybrid Delivery Model are summarised as follows:
- Hybrid Delivery Model provides the greatest value for the money, as the success ratio is high.
- The time zone overlap will not be an issue for Semantix, as the onsite staff will assume the responsibility of communicating with the offshore team.
Cultural differences are bridged as communication is done via defined channels with close presence to the clients place.
Higher visibility is created by Semantix presence at client’s place, as the onsite team will constantly be showing progress.
Apart from the Hybrid Business Model, successful execution of knowledge transfer concept will be essential for the Semantix’s success as offshore service provider. How ever, author believes that if Semantix has to achieve and establish as itself as Offshore Development centre, it is vital for semantix to implement and refine the current model and look in to the recommended ‘Hybrid Delivery Model’ with appropriate marketing strategies explained in next phase.
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