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talent management

Why is Leadership Changing in India’s Service Provider Firms? | Blog

By | Blog, Talent

Leading service providers in India are going through substantial change due to executive leadership churn. The question is: is this bad? To answer, let’s look at what’s driving the churn and how long it’s likely to continue, and why.

Take Cognizant, for example. The firm has gone through leadership change for some time. First, it changed the chairman of the board and a few board members. Then it changed the CEO. With the recent resignations of Debashis Chaterjee, EVP and President, Global Delivery, and Prasad Chintamaneni, EVP and President, Global Industries and Consulting, we’re now seeing turnover in the next level down in executive leadership. And I believe we can expect more turnover.

Similar churn has been happening at other services companies given the fact that each of the top five India heritage companies announced a new CEO in the past three years.

What’s Driving the Executive Churn?

Underpinning the leadership turnover is the providers’ move to a new business model. They shifted away from struggling with the issues of the labor arbitrage model and moved to the digital platform model. As companies move down this path, I think it’s natural for their leadership to evolve.

Evolving the executive leadership is natural because the old guard must give way to the new guard – firms must bring in fresh thinking. The prejudices, paradigm and old rules of thumb don’t work in the new digital model (or, at least, only a few of them work). To succeed in this transition, the firms must change their thinking. One way to do that is changing the leadership.

The offshore services majors have extraordinarily deep talent benches. To keep their deep talent pools, they need to provide opportunities for them to progress and move on to more senior roles. When the senior teams move on, it opens opportunities for this talent. And it’s an opportunity to being in some new blood from the outside. That talent combination can be quite healthy, particularly at a time where companies are no longer scaling the known, existing model. Instead, they are moving into uncharted waters with a new business model that is evolving and being defined.

Another manifestation of the executive leadership churn is taking place at TCS, which is handling the digital shift differently. The firm reorganized to give its deep talent pool opportunities and new responsibilities. Instead of executives leaving TCS, we see a substantial reorganization that opens opportunities for the young blood, new talent, to take on more executive responsibilities. TCS handled this in a different mechanism to achieve the same goals as Cognizant – bringing new blood through. TCS retained its old blood by giving them different responsibilities and by shaking things up and moving people around.

This is what’s happening, and it affects pretty much all the service industry’s firms.

How Long Will the Leadership Churn Continue?

The executive leadership churn is predicated upon the fundamental industry shift into a new business model, which naturally causes this turnover. The turnover is healthy and inevitable, given the degree of organizational change going on.

I think it’s prudent to watch for too much of a good thing. However, the turnover is inevitable. I believe we’ll see more change as companies navigate and embrace the new digital future and move deliberately into that future.

CRO-to-CRO Video Series: Episode 4 Grapples with Contingent Workforce & Talent Management Challenges | In the News

By | In The News

Think about this: A decade ago in the U.S., statistically there were about 700 people looking for 100 jobs. Today, by comparison, there are only about 90 people looking for 100 jobs.
Meanwhile, in India, over 25 million people are applying for just 90,000 positions with India’s state-run railways.

Those vastly divergent scenarios, shared by Michel Janssen, chief research guru of Everest Group, a research and management consulting firm based in Dallas, Texas, paint a fascinating picture of global talent markets — and the need to effectively manage them.

Read more in Spend Matters

CRO-to-CRO Video Series: Episode 4 Grapples with Contingent Workforce & Talent Management Challenges | In the News

By | In The News
Think about this: A decade ago in the U.S., statistically there were about 700 people looking for 100 jobs. Today, by comparison, there are only about 90 people looking for 100 jobs.
Meanwhile, in India, over 25 million people are applying for just 90,000 positions with India’s state-run railways.
Those vastly divergent scenarios, shared by Michel Janssen, chief research guru of Everest Group, a research and management consulting firm based in Dallas, Texas, paint a fascinating picture of global talent markets — and the need to effectively manage them.
Read more in Spend Matters

Video: Shared Services Talent Priorities – Three Takeaways | Blog

By | Blog, Shared Services/Global In-house Centers

Chief Research Guru Michel Janssen shares a recap below of three takeaways from our recent webinar, “Is Your Shared Services Strategy Future Ready? 5 Differentiating Talent Capabilities“.  

Full script: 

We just completed our webinar on our shared services or GIC Talent Pinnacle Model. And what were trying to there is understand, what are those key business issues.

So the first thing we looked at is how the talent shortage is becoming chronic. And one of the statistics I used here with clients – I talk about how it used to be that executives were just concerned about the top talent – “how do I get the best talent in the organization” – so they can have an impact on the rest of the organization. But now, as we become more chronic in the numbers – and what I mean by the number is ten years ago, in the US, it used to be 700 people looking for 100 jobs. And right now in the U.S., we have 90 people looking for those same 100 jobs.

And so, what you’re finding is that there is more demand than there is supply in that conversation. But it’s a bit of a tale of two worlds. While you have shortages in the U.S. and Europe you’ve got a very different thing going on in low-cost locations, especially like India. And there, there’s not a shortage of talent, it’s finding the right talent – they’re concerned with, “how do I take the existing pool of people in and upskill them or reskill them into the needed skills for the organization to go forward.

So, what we’ve done is look at the Pinnacle Model, and we have found that there is a very dramatic cause and effect. And what we’re looking at in the Pinnacle Model – the way it works is you’ve got capabilities on the X axis, and you’ve got outcomes on the Y axis. And what you’re looking for is a nice correlation that goes from lower left to upper right. And what we’re trying to do there is establish the things that make a difference. And so, what we did in the rest of the video was talk about those capabilities that made that difference.

So we think those are impactful items, and if people were endeavoring to execute on those items, they got the results they were looking for. So click the link, and take a look.

Talent Management in Global In-house Centers: Are You Future-Ready? | Sherpas in Blue Shirts

By | Blog, Shared Services/Global In-house Centers, Talent

There’s no question that digital technological advancements, evolving business requirements such as changing consumer needs and faster time to market, and a heightened focus on customer experience are significantly changing the profile of skills needed to deliver services. As most global in-house centers (GIC) are already facing challenges in hiring people with the right skills for the future, it is concerning that their talent-related preparation for such a tectonic shift is lacking.

Talent Management GIC_1

Here are four talent management imperatives for GICs to develop the workforce of the future.

1. Identification of Skills Gap

As automation and other technological advancements kick in, human skills, such as innovation, design thinking, problem solving, empathy, and ethical thinking will become more critical. Identification of skills gap will be pivotal for GICs’ talent acquisition and development strategy. A recent Everest Group study of 80+ GICs across India, Philippines, and Poland identified multiple, and difficult to hire, skills that are likely to become more important in the future.

Talent Management GIC_2

2. Upskill/Reskill Current Workforce

Firms’ talent challenges will intensify with the automation of transactional services. They will face the dual risks of a large existing workforce with many skills that are likely to become redundant, while struggling to find talent with the right skills for their future needs. Upskilling/reskilling existing talent is an important lever for GICs to address these challenges while preserving their trained workforce with string domain/industry know-how. (See our detailed report on upskilling/reskilling in GICs for additional perspectives.)

3. Evolve Talent Acquisition and Development Strategy

As GICs look to develop a future-proof talent strategy, they will need to think outside the box to tap into alternative sources of talent. Opportunities include hackathons, hiring from startups and other industries, project-based partnerships with specialist agencies, and flexible resourcing. From an L&D perspective, traditional classroom model needs to evolve as learning is becoming more real-time, customized, and digitized, e.g., MOOCs, simulation, and gamification.

4. Agile Human Capital Planning

With a dramatic decline in skills’ half-life, particularly in the technical space, GICs need to identify and focus on skills that are more likely to be critical for their growth. A more frequent approach to human capital planning might be essential to account for rapid changes in these skills.

While many GICs are still taking a wait and watch approach to the talent management issue, some have already embarked on this transformational journey. And those that are proactively addressing it are reaping big rewards.

Watch this space for more insights and success stories. And if you’d like to share your challenges, successes, or questions with us, please feel free to write us at [email protected] or [email protected].

ProcureCon Total Talent Management — September 20-21 | Event

By | Events

Vice President of Research Julian Herbert will be a key speaker at ProcureCon’s Total Talent Management event held on September 20-21 in Amsterdam.

In Julian’s presentation, How to Ensure Your Talent Acquisition Model is Ready for the Future, he will discuss how this future-readiness can be achieved through benchmarking and how the process involves:

  • Looking beyond cost to focus on talent through assessment of solution elements, leverage of technology, SLA/KPI comparison around adequacy and stringency, future orientation, and the ability to innovate
  • Assessment of the ability to deliver total talent acquisition from a process, people, and technology perspective, both from enterprise and service provider readiness angles
  • A comprehensive, multi-dimensional assessment that looks at partnerships holistically
  • Contextualized assessment instead of a one-size-fits-all approach

Attendees will learn the importance of looking beyond the cost of services delivered by MSP and RPO providers, if they want to have a talent acquisition model which is in-tune with the latest economic, demographic, and technological changes.

When
September 20-21, 2017

Where
Novotel Amsterdam City

Speaker
Julian Herbert, Research Vice President, Everest Group

Learn more and register

Impact Sourcing Testimonials

By | Uncategorized

Impact Sourcing Testimonials

See how impact sourcing has benefited organizations

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Impact Sourcing Delivers

Organizations laud the positive effects that impact sourcing has delivered to their companies and their employees, while also benefiting society

Accenture: Manish Sharma, Senior Managing Director

“We are not doing impact sourcing to get more profits. We pay similar salaries to our impact workers and charge same rates from our clients. We are in this [impact sourcing] because we, as an organization and our employees, want to do this for the social welfare…”

DOWNLOAD TESTIMONIAL
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stages of butterfly metamorphosis

Aegis: SM Gupta, Chief People Officer

“It’s a win-win-win situation for Aegis as a company, our employees, and our clients.”

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Infosys: Mr. Raghavendra K, Vice President & Head of Human Resources

“…they [impact workers] adhere to similar performance standards as other employees. Some of them have show outstanding performance…”

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Microsoft: Tim Hopper, Responsible Sourcing Manager

“Microsoft’s mission is to help businesses and people reach their full potential. We at Microsoft believe that economic and social benefits should be accessible to all individuals.”

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Quattro: Raman Ray, Chairman and Managing Director

“…impact sourcing can help dramatically reduce costs, lower attrition, while providing similar, if not better, levels of performance as our normal agents.”

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Valeo InterBranch Automotive: Wael Abou El Maaty, General Manager

“…attrition rate for differently-abled employees and women employees tend to be on the lower side than that of the other employees.”

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