Tag: locations

Work from Home: 3 Underrated Impacts We Should Be Talking About | Blog

When COVID-19 pushed millions around the world to work from home, little focus was given at the time of urgency to the longer-term impacts if the practice continued post-pandemic. Work from Home (WFH) is here to stay, but what effect is it truly having on the environment, society and families, and individuals? To learn more about the less obvious repercussions of this new work model, read on.

COVID-19 impetus   

COVID-19 accelerated a workplace experiment that had struggled to gain traction before the pandemic. As we emerge from the immediate crisis, global companies are increasingly clarifying their stance on the future of WFH.

Some are more bullish about sustaining a scaled WFH model than others. Many organizations are contemplating hybrid delivery models for the long term. Google CEO Sundar Pichai agrees on the importance of incorporating remote working. But other sectors such as the financial industry have a different take, with Goldman Sachs CEO David Solomon calling WFH “an aberration.”

While some organizations flourished during WFH with reported cost savings and productivity increases, others had issues below the surface as we previously reported in our blog post on Future of Work From Home in GBS Organizations – Separating Hype from Reality.

Impacts to pay attention to

The indelible impact of WFH on the environment, society and families, and individuals cannot be downplayed as it affects not only the current workforce but also future generations. Let’s take a look at how these three critical areas have been altered – both positively and negatively.

  • The environment

Transportation, especially business travel and commuting, plays an oversized role when we talk about the environmental impact of remote working models. The lack of commuting reduces fossil fuel usage, leading to reductions in greenhouse emissions, air pollution, and the Scope 3 carbon footprint. Another positive for the environment is the significant reduction of paper and plastic usage in offices.

On the other hand, as we previously reported, virtual meetings require large amounts of data that need greater power. This puts huge energy demands on data centers that power the internet and could partially offset the positives.

Other aspects are a mixed bag of positive and negative impacts. Before the pandemic, the lighting, cooling, or heating generally ran at all times in an office building. Individuals working at home will likely use less energy as they tend to be responsible about energy usage as the onus of power bills is on them.

However, one can argue that the power used by individual homes could be collectively higher than offices using well-designed zonal heating and cooling. Another impact to consider is that the WFH model could duplicate enabling equipment (such as external monitors, keyboards, and printers, etc.), which could offset the positives to some extent.

  • Society and families

 WFH has opened up employment opportunities for those who have challenges working in traditional environments, directly improving diversity and inclusivity in organizations and potentially reducing social inequalities in the long term.

Remote working, for example, has enabled organizations that have not yet made their workplaces accessible for people with disabilities to hire these individuals. It also has allowed companies to improve inclusivity by providing opportunities for individuals from disadvantaged backgrounds for whom office location and delivery models have been obstacles.

Further, WFH can help organizations retain workers who have young children they are caring for at home, as household responsibilities are more redistributed today and both partners play a greater role in upbringing children. The flexibility of work from home also can benefit employees in single-parent households in juggling competing priorities of work and child care.

WFH has also allowed employees living in expensive tier-1 cities to move to lower-cost areas and return to their hometowns, providing the benefits of more time with family and social circles along with cost savings. With the pandemic impacting older adults more severely, work from home has allowed adult children to provide much needed support.

On the other hand, remote working has led many people, particularly the marginalized, to feel excluded and left out. A majority of women have reported a negative impact of WFH due to increased household responsibilities and disruption of work-life balance attributed to traditional gender roles.

The social aspects of interacting at work with many different individuals also have been diminished, limiting the development of employee’s social skills and organizational culture. The virtual environment has made it more difficult for people from under-represented groups to be visible and have their voices heard.

Online networking in discussion groups and forums has been a positive social outlet but tends to favor employees with digital skills and an existing large network base.

Another challenge is the increasing numbers of individuals hired during the pandemic who have never met their colleagues in person. While companies are taking new initiatives to solidify peer connections and foster team collaboration with remote workforces, this is a difficult road that will need concerted, ongoing efforts.

  • Individuals

Of all the aspects addressed so far, the impact on an individual is, by far, the most understated. While employees found the WFH model flexible and enjoyable during its early days, most of them have now reported fatigue and tiredness with the model.

Employees feel a negative impact of remote working on their physical well-being, including weight gain and musculoskeletal problems. Those who walked or biked to their jobs or during breaks are no longer getting this exercise. Lockdowns also restricted other physical activities they may have done outside work. Using non-ergonomic furniture like sofas and beds to work also has had negative health consequences.

WFH has had a profound impact on the mental well-being of employees who have difficulties separating work-home boundaries and managing their workloads with irregular long hours. Microsoft CEO Satya Nadella has commented that online meetings can make employees tired as well as make the transition from work to private life hard, saying, “Work from home feels like sleeping at work.”

Employees are increasingly complaining of sluggish cognitive performance, commonly dubbed as “pandemic brain,” which arises from long periods in isolation. Increasingly, more employees are facing changes in sleep patterns, difficulty in stopping working, increased distractions, and greater work anxiety.

The negative impact of WFH varies across groups but seems to have disproportionately affected the disadvantaged, although a certain amount of this could be attributed to the pandemic and lockdown isolation.

The ability of each individual to cope with the changes has largely depended on the degree of their social and peer connections and support from their organizations. Employees of proactive organizations who have actively supported their mental health have adapted well to their new WFH environment, with improved performance and productivity.

Future of work  

While WFH has been a big success out of necessity, organizations need to adopt a pragmatic approach as they strategically re-think the future of work. WFH is not going away. We expect companies to use different variations and combinations to create their own version of a WFA – Work from Anywhere model.

By going beyond a mere tactical approach and getting their hybrid model right, organizations will realize the benefits that WFH can bring of higher productivity, optimized costs, a loyal and diversified workforce, and a stronger cultural fabric.

How are you dealing with these softer, yet unignorable, impacts of WFH? Reach out to [email protected], [email protected] or [email protected] to share perspectives.

Surprising Sub-saharan Africa and the Continent’s Growing Relevance for Service Delivery: What You Need to Know to Select Your Next Offshore Location | Blog

Looking at offshore destinations for service delivery, Sub-Saharan Africa – particularly Nigeria – is emerging as a surprising location with the potential for forward-looking providers and customers to seize. But what risks come along with the opportunities for doing business in this part of the world? To learn what you need to know to make the right site selection, read on.   

Africa does not immediately come to mind as an offshore destination for service delivery. In the past, the main destinations for low-cost offshore centers, both in-house and outsourced, have been India (for broad BPS operations including customer-facing CXM) and the Philippines (for CXM), particularly when the operation requires a good level of English language proficiency.

However, in recent years, the level of interest in Africa as a destination has been growing as enterprises look for cost-effective alternatives to traditional locations and to balance their risk from too much activity in one country/region.

Within Africa, South Africa has been strong for several years, especially for CXM. North African locations such as Egypt, Tunisia, and Morocco have also experienced growth for IT, back office, and language support for French and other EMEA languages. Up until now, there has been less activity in Sub-Saharan Africa (outside of South Africa), but this is starting to change.

Advantages of Africa

Enterprises are now starting to seriously look at Africa as a destination for outsourcing for many reasons, including:

  • Population – Its huge and youthful population of 1 billion, with over half of the talent pool projected to be under the age of 25 by 2050, makes it a great resource for BPS activities
  • Government support – In many countries, the government helps to enable global services delivery
  • Market potential – Many of the large service providers are yet to enter the market or have small scale operations supporting the local market
  • Infrastructure – Internet and other capabilities are improving. For example, CSquared (a Google subsidiary) announced a four-way partnership in 2017 to build out the shared fiber networks in sub-Saharan Africa
  • Spending growth – The latest African consumer trends show that consumer spending growth in Africa is projected to rise to $2.1 trillion by 2025 and $2.5 trillion by 2030, according to market forecasts

While interest in the continent is growing, enterprises also should be aware of the following risks:

  • Talent – Companies will need to invest in growing and developing talent locally by training recent graduates, building a recruitment engine from the ground up, and other activities to create an experienced talent pool. The low talent availability, limited language support beyond English, and high premiums commands also are concerns
  • Business environment – In comparison to other nearshore European locations, the quality of infrastructure, digital readiness, and safety and security are among the concerns for East and West African countries
  • Low market congestion – While key players supporting global services in most African countries is currently limited, the entry of a few large companies could easily congest the market and quickly increase costs
  • Delivery enablers – Limitations with utilities, transportation, meals/catering, stationery providers, office infrastructure quality, and poorer connectivity to domestic and international locations all present risks

Location selection is key

If an enterprise can balance the opportunities with the risks, we believe sub-Saharan Africa could be a wise choice. But selecting the right location is key. In our report from 2020 Africa: Emerging IT-BP Delivery Force, we reviewed ten of the most mature locations assessing talent availability with the financial attractiveness.

The key takeaway: Egypt and South Africa, the two most mature markets, scored well in terms of both talent availability and financial attractiveness. But a surprising entrant in the top right of the chart was Nigeria. While still relatively immature when it comes to BPS, Nigeria’s high level of talent availability makes it a financially attractive destination.

As an example of recent investments in the region, Microsoft invested $100 million to open a technology development center with sites in Kenya and Nigeria in 2018. Three years later, it released a joint announcement with the Government of Nigeria, detailing several projects aimed at intensifying the nation’s move to become a more digital economy.

Other locations driving conversations with enterprises are Ghana and Kenya, both presenting a high level of financial attractiveness but scoring lower than the leaders in terms of talent availability.

locations

        1    Reflects market average annual costs for English language delivery for steady state of operations blended across the delivery pyramid and excludes capital expenses related to set-up, transition, expat costs, and of economies of scale for large-scale operations

          2    Represents presence of entry level and experienced resources for specific functions blended in a 60:40 ratio

          3    Combination of maturity for services delivery, presence of global / regional GBS and service providers, scaled operations, and other related aspects

Source:   Country-/city-level investment promotion agencies and global services organizations

All the other locations we assessed, apart from Tunisia and Morocco, rated well in terms of financial attractiveness but were less strong when it comes to talent availability, presenting an issue for any enterprise looking to scale.

Talent forecasts

We believe the level of talent available in Africa, particularly in sub-Saharan Africa, will improve over the next few years as global service providers and enterprises begin operations there, and talent from local operators accelerate their development by working for experienced operators. But it may take several more years to reach similar levels to those seen in North Africa or the country of South Africa.

In summary, sub-Saharan Africa is likely to grow in relevance as an offshoring destination for BPS, and forward-thinking service providers are already investing. As an enterprise, if you are considering the use of sub-Saharan Africa as an offshore delivery location, we would recommend several approaches:

  • Undertake a detailed assessment of the location to better understand talent availability and how it aligns with your future business and talent needs
    • Assess talent scalability as well as the capabilities needed to deliver process or skill-specific requirements
  • Understand how it aligns with your corporate strategy and CSR commitments
    • Africa is the main source of impact sourced workers, a growing area of interest for many enterprises
    • Understand how the potential location aligns to target markets for business development. Consider whether the potential location is a key target to grow your business
  • Conduct a detailed review of the service providers with delivery locations in the region to ensure they meet your requirements, especially in terms of talent and skills availability, cost, and business continuity

For more findings from our recent report, 2020 Africa: Emerging IT-BP Delivery Force, and to discuss Africa as a service delivery destination, please reach out to David Rickard ([email protected]) or Anurag  Srivastava ([email protected]).

Future of Work from Home in GBS Organizations – Separating Hype from Reality | Blog

 

COVID-19 has fundamentally altered the Work From Home (WFH) proposition for global organizations, prompting a shift from opportunistic leverage in 2020 to rapid integration of WFH within the future delivery model strategy. Now that the dust is settling a bit from the global health crisis, WFH strategy design and implementation will be critical to ensuring global business services (GBS) organizations’ future success. And WFH will look far different than it did in 2020.

Key learnings from 2020

Most organizations successfully transitioned to scaled remote delivery models with minimal service delivery disruptions in response to COVID-19. This experience has served as a critical proof of concept, and exposed key learnings and opportunity areas associated with scaled WFH delivery.

Let us take a closer look at several key things we learned while conducting the research for our recently published report, Future of Work-From-Home in GBS – Separating Hype from Reality:

  • Employee preferences have evolved as the pandemic unfolded, from a strong preference for full-time/partial WFH to a choice between WFH/WFO in a hybrid delivery modelPicture1 2
  • Overall productivity has either sustained or increased for most organizations. That said, there are issues building below the surface and concerns around false positives, i.e., increase in productivity driven by higher efficiency or higher throughput
  • WFH can drive the next wave of cost optimization across locations for GBS organizations, though true savings will depend on their ability to exploit underlying levers such as real estate, technology, and talent
  • WFH has opened new opportunity areas, like accessing new talent markets, improving retention, and enhancing the employee experience, for improving the GBS talent model
  • WFH is prompting a shift toward a more holistic hub, spoke, and satellite model to enable hybrid delivery models and enhance employee choice and internal workforce mobility
  • Regulatory environment is still an unknown, though governments are taking a proactive approach to define policies such as taxation and labor laws to enable hybrid delivery going forward
  • The WFH model is lucrative but comes with complexities like employee fatigue, potential loss of productivity, work-life balance, and loss of organizational culture that cannot be downplayed

Our interactions with leading GBS organizations over the last 12 months revealed multiple key themes that will determine the success of a hybrid WFH model going forward:

  • Determining roles adjacency, and how they fit into a hybrid delivery model. This is about understanding implications on office design, real estate right sizing, and the technology interventions needed to enable this shift
  • Training employees, especially front-line managers and new employees, on key aspects of virtual delivery, such as target setting, self-time management, and stress management
  • Clear articulation and understanding of organizational culture, managing the employee experience, and driving collaboration in a virtual environment
  • Managing the contingent/extended workforce, including safeguarding intellectual property, monitoring performance, and sustaining productivity

While many GBS organizations are addressing key WFH-related challenges in an agile manner, they must proactively design their WFH strategy and align it with their parent organization’s needs and objectives.

Building a future proof WFH strategy

As GBS organizations build their future WFH strategy, they need to solve for six key elements.

Picture2 1

  • Work portfolio – GBS organizations must utilize a structured and fact-based approach to identifying the best fit work-types and employees for remote delivery, while ensuring a balance between organizational imperatives and employee choice
  • Talent model – GBS organizations must address multiple talent model changes – including the evolving role of the human workforce, workforce engagement models, talent implications of remote working, and leadership development models – with a focus on adapting the workforce to future delivery models
  • Locations portfolio – As a holistic hub, spoke, and satellite delivery model gains traction, GBS organizations must evaluate the role of nearshore/offshore locations based on feasibility and cost savings offered by the WFH model across locations. As organizations evaluate new markets with attractive talent cost propositions, especially offshore locations, location optimization will likely happen over the next 6 – 12 months
  • Technology and real estate infrastructure – GBS organizations must leverage technology to achieve key organizational objectives, such as enhancing productivity, ensuring security and compliance, and improving the employee experience, and to reimagine the workspace, like floor layout, seat allocation, and office safety equipment, to adapt to the unique demands of a hybrid delivery model
  • Performance management – GBS organizations must identify the right levers and leverage best practices – such as adopting an outcome-driven culture, setting clear goals, and realigning the expectations with remote workers – to drive productivity improvements in a sustained WFH environment
  • Risk management – GBS organizations must proactively identify business, talent, data, and regulatory risks related to the WFH model and mitigate the potential impacts.

The way forward

COVID-19 has presented organizations with a unique opportunity to re-strategize their priorities, optimize their operating models, and develop a robust future-proof WFH strategy. We believe GBS organizations that proactively seize this opportunity will emerge resilient and stronger.

Read our report, Future of Work-From-Home in GBS – Separating Hype from Reality, to gain insights on global organizations’ outlook on the WFH model, the extent of adoption, key design elements and approaches, emerging trends and best practices, and key challenges and success factors to enable a scaled WFH model.

We’d love to hear about your WFH experience and approach to designing a WFH strategy for your GBS organization. Please share with us at: [email protected] or [email protected].

COVID and India’s Viability as a Third-party Services Destination | Blog

India is going through a new COVID-19 wave that is truly horrific. On May 19, India set the world record for the most COVID-19 deaths in a single day (4,529 deaths and 267,334 new cases in the prior 24 hours). In the past month, its COVID-19 fatalities increased by sixfold. A huge percentage of the nation’s workforce is affected (either sick or caring for family who are sick). Businesses in the US and Europe have questions about whether India is still viable as the primary destination for third-party services. Read this blog for my answer.

Read more in my blog on Forbes

High Spike in COVID-19 in India Affecting Workforce for Third-party Services in the US | Blog

India is experiencing a COVID-19 spike that started in April and is worse than the original outbreak months ago. Not only are more people infected, but more are also hospitalized this time. It is particularly difficult because the variant that seems to drive this spike is more infectious and affects young people as well as elderly people. It clearly affects offshore services work performed for US companies.

Read more in my blog on Forbes

Which Call Center Agent Model Is Right for Your Business during and after COVID-19? | Blog

Today, most companies have staff working from home due to the pandemic. Although customer experience management (CXM) agents aren’t essential workers in the truest sense, consumers sheltering in the safety of their homes for months on end have relied on them so heavily for wide-ranging reasons that they might as well have considered them so. What those consumers probably don’t know is that the call center agents assisting them are most likely working from home. In fact, our recent research report, Customer Experience Management (CXM) State of the Market Report 2021, found that the percentage of CXM FTEs working at home grew from less than 10 percent in 2019 to as much as 80 percent during the health crisis. While we expect that there will be some movement back towards the brick and mortar model in the coming months and years, many service providers and in-house contact centers will continue to utilize Work at Home Agents (WAHA) as a key component of their service delivery strategy.

Two WAHA models are currently in use. One is employee-based (E-WAHA), wherein the agents are on the service provider’s or company’s payroll. The other is contract-based (C-WAHA), wherein contractors are leveraged and only paid for the time they work for the organization.

In recent years, GigCX has emerged as an alternate approach to CXM staffing and is being utilized by the likes of organizations such as eBay and Microsoft. GigCX includes the use of freelance or self-employed workers to handle specific interaction types, leveraging an AI-powered technology platform. They are recruited for their existing knowledge and passion for the product and service.

Initially, GigCX was utilized for very simple work; however, those interactions are increasingly being eliminated or automated. Now, growing use of this model is for more complex query types that require a level of brand affinity and awareness, which can be a differentiator many GigCX providers are publicizing.

GigCX, which is often seen as another strain of the WAHA model, should not be confused with WAHA, as there are some fundamental differences in how the models operate.

When considering which approach is best to meet a set of business requirements, organizations should understand the following differences in the two models:

GigCX

While we have seen both WAHA and GigCX being effective models for handling customer interactions, there are some stark differences in their operation. Any company considering using either model should assess the positives and negatives of the approaches and factor them into their operating model design. Both models are highly effective when utilized appropriately to handle the right interaction types, especially if all the limitations and dependencies are considered early in the design process.

For more information, please feel free to contact me at [email protected].

 

New India Department of Telecom (DoT) Guidelines for Remote Delivery Are a Game Changer | Blog

One of the key factors that has helped maintain service delivery levels in India – even during the peak of the COVID-19 lockdown – has been the government’s temporary relaxation of various legal, regulatory, and compliance frameworks to allow remote delivery via a Work From Home (WFH) model. In an effort to continue to increase the ease of doing business, especially with a remote workforce model, India’s Department of Telecom (DoT) has issued new guidelines for the IT-business process (BP) industry.

These guidelines should significantly reduce obstacles for companies adopting a WFH delivery model. In the post-COVID-19 era, scaled WFH adoption will be inevitable for IT-BP organizations as we highlighted in our previous blog.  In our conversations with industry stakeholders, organizations have called out uncertainties around long-term legal and regulatory support to WFH as a key challenge to sustainable and scaled adoption. The new guidelines can be the steppingstone to assuaging some key business concerns, making these organizations truly bullish on WFH adoption.

The new guidelines allow IT-BP companies in India to use a “Work From Home (WFH) facility” to deliver global services as an “International OSP” (other service providers) for a period of three years (with provisions for further extensions). Provisions within the new guidelines that will make it easier for companies to adopt the WFH model include:

  • Freedom to set up remote centers anywhere in India: This allowance supersedes various local restrictions and empowers companies to hire and operationalize employees independent of their current/future location
  • Clearer legal status for WFH employees: This provision treats WFH roles as extended / remote agent positions with rights and responsibilities better demarcated than before, effectively treating employees’ home offices as extensions of the organization’s office, easing regulatory and security hurdles to access data outside office premises
  • Relaxed registration and financial requirements: Eased restrictions include the removal of the lengthy registration process and a bank guarantee to set up a facility
  • Reduced reporting burden: The new guidelines offer more streamlined and less stringent regulatory and compliance reporting obligations for organizations
  • Relaxed tech and infrastructure requirements: These changes include the relaxation of technology and connectivity infrastructure requirements to enable WFH, as well as the easing of the requirement on static IPs and pre-defined locations-based networks

The intention behind the changes is to remove the unnecessary bureaucratic restrictions that were preventing organizations from exploring the full potential of WFH. Beyond some of these relaxations, there are provisions to retain security-related obligations to protect against unlawful content and usage, for example, empowering organizations to set up their own security mechanisms. These guidelines balance the key trade-off that organizations need to contemplate when they consider integrating WFH in the delivery model: the feasibility/ease of remote delivery versus the additional risk assumed when moving work from the office to employees’ homes. We expect these changes to be a win-win-win situation for IT-BP organizations, employees, and the overall India delivery market.

For IT-BP organizations, beyond reducing the compliance burden, these guidelines will:

  • Expand their access within the talent market, as they can hire the best-fit talent regardless of location
  • Increase access to new talent pools; for example, they can hire talent from tier-2 cities without setting up new physical offices (pre-COVID-19, 75-85% of IT-BP employees worked out of tier-1 locations, with a vast majority of them having migrated from non-tier-1 locations)
  • Drive a next wave of cost optimization. Refer to our playbook for details on the business case of WFH adoption

For remote employees, these guidelines will strengthen their rights, lay the foundation for the legal status of WFH in India’s labor laws, and ease concerns relating to health and safety in the workplace.

With various countries still struggling to ease remote delivery, we expect India’s overall competitiveness to improve (especially for organizations that are bullish on the WFH model), push growth and job creation in non-tier 1 location, and improve the overall ease of doing business.

All of this is likely to result in greater efficiency in the service delivery model by removing restrictions that allow a desirable level of WFH model adoption. A recent Everest Group survey found that adoption of WFH (complete WFH or hybrid) within India based IT-BP players will be significantly higher (65-75% FTE equivalent) than pre-COVID (less than 10% FTE equivalent), but lower than the adoption rate at the peak of the COVID-19 lockdown (80-90% FTE equivalent).

These are all welcome changes. However, it is important to understand the limits of these guidelines in pushing sustainable and scalable WFH adoption. Beyond the domain of the DoT, there are various other regulatory and compliance bodies that need to make similar forward-looking policies. For instance, there are still uncertainties related to:

  • Labor laws for WFH employees: WFH-specific regulations within India’s labor laws still do not give official status to WFH, creating uncertainties around various employee benefits and rights
  • Tax regulations: Tax incentives and deductions for employers/employees remain unclear
  • Free trade zone-related regulations: Most of India’s IT-BP organizations are based in Special
    Economic Zones or software technology parks. There is still no long-term view on temporary relaxation on import duty and mobility across these zones

We continue to track this market and expect many of these uncertainties to clear up soon. Be sure to look for updates from us soon.

If you have any questions or comments on the WFH model, reach out to Akshay Pandita.

 

Biden Impacts On H-1B Visas And Outsourcing | Blog

From a services industry perspective, the main impact of a change from the Trump Administration to a Biden Administration in January 2021 will be the allowed degree of movement of global talent to meet the huge talent deficit in the US. As US businesses eventually come out of the COVID-19 crisis, we will see a more frantic appetite for IT modernization and digital transformation programs, but the US lacks enough talent pools with the skills necessary to deliver those outcomes.

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