IT Services Industry Landscape 9

s development of both business methods and the technology that supports it. For
discipline is needed that is called services science. It is nccessary therefore
that IT
SI
by
this a new
Servi
i
the services science philosophy se certainty of delivery is maintain
Challenges Faced by IT Services Enterprises
y to start an IT Services company withwu any significant capital expenditure
Rut scaling i up to a critical mass and growing o a significant level has been an
eluding
dream for many of them. As author has mentioned in some of his lectures most IT
Companies
It is very eas
n bonsai2 companies perpetually and never scale upto a self standing. weather proof
and fruit producing full fledged tree. as they are not able to manage the growth
challenges
successfully
remain
Growth challenges can be categorized into the following major heads:
) Customer acquisiion and retention
(ii) Capital and infrastructure woes
(iii) People continuity
(iv) Dilemma between strategic focus vs opportunistic billing
Let us discuss each one of them in detail
Customer acquisition and retentiorn
Sma and emerging ITS companies will find it difficult
bigger pro
a contract they find it difficult to successfully execute due lack of experience,
quality issue or
manpower attrition. Larger ITS firms though able to win large deals run into rough
whether of
continuous push from competition who offer reduced prices and win over the customer
mer to award
jects for want for any past track record of successful execution. Once having
secured
to convince the custo
Capital and infrastructure woes
Managing a healthy pipeline and order book is important, so that the utilization
levels of the
team remains high. As the ITS company's size grows it requires larger space and
infrastructure
to provide working space for the team. All this calls for capital investment to
start with and
maintenance cost thereafter
People continuity
ITS companies face major issue of people retention. This dynamic industry with
opportunities
and growth induces experienced and skilled people to change jobs. All this impacts
the quality
and delivery ability of the ITS firm
Dilemma between strategic focus us opportunistic bilting
ITS
easy to execute commodity services. The former requires strategy. planning and
patience to
be
companies face a unique dilemma between preparing for deep skilled projects or run
after
Successful, whereas the later will give easy billing, but with no differentiation
whatsoever
pots or trays
12. Bonsai: The
art of growing dwarfed, ornamentally shaped trees or shrubs in small shallow
Scanned by CamScanner