Competitive concept differentiators

The high-tech dynamic market of today demands continuous efforts from companies to sustain competitive advantage. IT companies involved in outsourcing seem to have beaten to death various principles of creating and sustaining competitive advantage. While cost differentiation has become an undistinguished factor in outsourcing, ‘focus on a particular niche’ has been provided a broader meaning. The communication emanating from IT companies and the activities carried out by them certanly points out stark dissonance. The message seems to conveniently broaden ‘niche’ and ‘focus’ to accommodate service offerings and target audience of these IT companies.

With the industry offering no more room for differentiation to outsourcing companies especially on the delivery, technology or cost front, there is increased activity on the communication initiatives undertaken by these companies. After all, isn’t it the media that provides a platform for creating differentiators? Be it advertisement or editorial, the increase in outsourcing various activities by businesses across the world has led to increased competition among firms for creating ‘competitive concept differentiators.’ Take a look at the various acronyms donning the pages of mainstream media – BPO, KPO, AMO, vBPO, ADM…to name a few. Is there a clear cut differentiation among these? Well, a lot depends on the context where it’s being spoken. For a person in the US, anything outsourced would come under the purview of BPO. Not in India where a burgeoning number of companies are trying to differentiate from each other for garnering a larger pie of the outsourcing market.

When the market is a clutter with companies operating in the same having no clear cut competitive differentiators, the industry will witness ‘competitive concept differentiators’ essentially aimed at gaining prominence in the clutter and establishing thought leadership. The objective, of these firms whose business models can easily be replicated, is solely to gain mindshare of target audience comprising customers, prospective customers, investors, analysts and talent. The number of concepts pervading the market will exemplify this fact. While the industry evolved with the concept of outsourcing, it gave rise to offshoring or offshore outsourcing. Then came best shoring, co-shoring, smart shoring, global development model, 4th generation outsourcing and a lot more expected soon. Communication professionals seems to be having a field day.

Political gimmick and technology progress

While I usually junk spam without even taking a look, there was one mail that recently popped in that instantaneously caught my attention. It was about the political gimmick in a boorish State in India that will probably impede proposed technology investments into the State.

At a time when there is intense competition, both within and outside India for attracting investors, this political rhetoric transcribed and sent by mail really bemused me. A lot to do with being a Keralite. A short holiday there after two years had brought to notice manifold changes for the better, however, the mindset or attitude of inhabitants seemed tethered. The little developments, I was to later learn, were primarily the efforts of NRKs, short for Non Resident Keralites. The mail with the subject Kerala initially brought to mind the people there and the little developments. And, it was in that context and inquisitiveness that I decioded to open the mail.

The proposed investment from Microsoft, IBM, Cisco and other majors had instilled enough faith in me about the progressive measures initiated by the present government. The State will attract the biggies through “smart city” a unique venture with strategic tie-up with Dubai Internet City. Just when the ground seems fertile for investments, unapprised and egotistical political leaders are overtly seen crafting ludicrous scenarios that might emerge post the development of the smart city. According to one, the smart city because of its association with Dubai could be a direct avenue for terrorists into India. Well, one wonders why he could not stretch his imagination on a positive note. Though, it is amply clear that the motive is to exert pressure on the initiators to accommodate his interest, the so called educated lay man in Kerala is increasingly seen swarming areas of such rhetoric. Wonder, who would expel the old political war horses and their acquaintances who are eager to dawn any role irrespective of initiatives.

Why is US uptight about the rising yuan?

The US seems to be quite uptight about the possibility of yuan rising in its value. And, they are decrying the currency policy of the Chinese government. Quite baffling for the layman who wouldn’t delve into the heavy dependency of US on China. Paul Krugman in his article published in New York Times explains the situation very well.

With trade surplus and rising foreign investment, the yuan is bound to rise in value, however, the government has been pumping money overseas to keep the value low. The Chinese government has been accumulating dollar assets in US, enabling US to lower possible budget deficits. And, the US has been relying on this for quite a while so to speak. Any increase in the value of yuan will bring to an end such inflows thereby adversely affecting the US economy.

The article seems to highlight the precarious situation of US vis’a vis emerging powers from Asia. How else would one explain the stance of the US in trying to contain the value of yuan? The US seems to be overlooking the long term benefits such as reviving its glory in manufacturing. The rising yuan would certainly bring back the competitive edge back home and could probably put a lid to mass exodus of jobs shifting to low cost destinations (read Asia).

Always bright

Now PR through MMS/SMS. Movies hold promise too.

The burgeoning number of IT companies have raised the bar of advertising and PR in India, especially those targeted at recruitments. A quick glance at the number of career supplements and the garish ads/articles carried in the same epitomizes the transformation in advertising/PR over the years. With immense competition among IT companies for the elusive "quality professional," creative departments that have hitherto allowed their juices to flow slouching on chairs and puffing away cigars is now trying to strech their creativity beyond the print and electronic media. While the internet and hot websites were targeted for "eyeballs," the growing number of mobile users and value adds dished out by service providers became a turf for the creative departments.

Very soon the diminutive multifuntional device that over 5 crore Indians use will be effectively leveraged by advertsing professionals for exercising their creativity. What with database of diverse professionals across the IT spectrum available with the service provider - it's a question of who moves first. Well, do not complain if you get a one liner about who is hiring along with the SMS/MMS your friend sent you. If you think the buck stops there, have a look at the game that is installed in your phone. A careful look at it will throw up brands like cadburys, coke, pepsi etc. dexterously placed so as not to miss the eye. Hey, it isn't loud, ok? In a while the Nokia for India phone will probably have characters in the game utter names of Indian IT brands, say, "Am Neil, a system analyst from Infosys who doubles up as agent XZZ."

Another emerging platform for the creatively inclined is the movie world. Ha! The bollywood, tollywood, kollywood etc. We have seen institutions and manufacturing units being featured in movie flicks. How about IT companies? Just imagine Shah Rukh saying, "Am Raj, Marketing Head, Enterprise Solutions at Infosys(Wipro, Cognizant etc...). Won't existing employees beam with joy? It'll be like sunshine for them...

It happens only in India

It makes for a perfect bollywood masala. The rise of an orphan to meteoric heights.

The other day during lunch at office, one of my senior colleagues was showering his praises at an orphan who was proposing to immigrate to Canada. The catch is that he's only a sixth standard pass, yet holds a graduate degree. Not only did he obtain a passing certificate from a school that is shut down but he also managed to grease the palms of some educated babu and his clonies for a university certificate that will enable him to fly to Canada. And, after all those offences we have people who speak at length about his ability to manipulate his way thorugh success.

While we address people at the grassroot level, there is certainly an increasing need for educated people to stand up for the offences made in front of them.

Sustaining the competitive edge

Sustaining the competitive edge

The need to sustain competitive edge has become an imperative in today’s business environment. A result driven momentum in the market place ensures survival and perhaps provides key to the future. As the old African proverb says, “when the sun goes up, the gazelle wakes up knowing it must outrun the fastest lion or it will be eaten. The lion wakes up knowing it must outrun the slowest gazelle or it will starve to death. It doesn’t matter, whether you are a lion or a gazelle, when the sun goes up, you better be running.”

Having said that, for an organization to maintain the momentum is not very easy. Any initiative to increase the momentum is interjected, often by the organization’s culture that is used to complacency and inefficiency. Pace-setters often stumble upon bureaucracy, rules and more importantly the culture that has embraced complacency. Now, consider work where time is money - every second, minute and hour billed. For what? Complacency? The competitive edge that needs to be garnered every second, instead spreads complacency.

What is required to gain the much needed impetus? The table below provides an indication of the situation now and the much needed change.
Current Situation
Required Change


Processes: Emphasis on enhancing existing processes.
Market Knowledge: Lack of competitors and market knowledge
Reactive: Act on complaints; not otherwise
Averse to risk: Culture is rigid and doesn’t allow chances
Time: Complacency reflects even in decision making. Long processes.


Flexibility: Need to adapt to demands.

Market Focus: Learn to quickly analyze situations in the market
Anticipation: Think 6 months in advance

Confidence:“Do whatever it takes” attitude to prevail

Efficiency: Focus on continuous improvement