In Focus

Anshuman Tiwari

Global Head of Delivery Excellence
DXC Technology

A process-excellence lens could enable businesses to get better every day and come back faster in the game.

Globally, the last few months have been tough for most of the organizations and their employees. During the lockdown, people’s movements were limited by various governments, and many were confined to their homes. Even though the stay-at-home guidelines are no longer active, many people are still apprehensive about venturing out. Age-old habits and operating models are getting changed because of measures such as social distancing that are in place to contain the spread of the crisis.

Today, enterprises are faced with the task to navigate the business challenges in the wake of the crisis and stay put in the market marred with subdued economic sentiments.

Technology and business leaders are in search for the best ways to address issues such as sluggish customer demand, changing behavioral patterns of consumers, and raw material supply challenges.

One such way is to accelerate the adoption of digital technologies, amidst a rising focus on reimagining the business models and adopting a multi-pronged approach.

In a recent interaction with Jatinder Singh of Better World, Anshuman Tiwari, Global Head of Delivery Excellence, DXC Technology, elucidates the critical role of process excellence services in helping enterprises fast-track their digital transformation journey, improve customer experiences, and achieve better returns on investment.

Excerpts of the interview:

Better World: As economies try to get back to normal, many businesses are gasping for survival. In such a scenario, how critical is the role of process improvement to outsmart the uncertainty?

Anshuman Tiwari: Before we go into the criticality of process excellence for the industry, let’s take a step backward and examine how continuous improvement works out in our daily lives.  For over six months, we have been living with stay-at-home guidelines. Many habits and operating models have been transformed because of social distancing measures that are in place to contain the spread of the crisis. We call it the new normal where businesses are often functioning by enabling every part of their process digitally.

Despite disruption during the lockdown, most of us were able to receive essential services such as groceries, milk, and fruits, mainly because of a set of processes. There may have been delays or interruptions initially, but digital services helped us collaborate and get all the necessities delivered at our doorsteps. This success is a prime example of process refinement or process excellence. Processes are nothing but a set of activities repeated multiple times for an excellent outcome. So, the process techniques are essentially developed to operate better every week and every month, leveraging whatever opportunity we get from time to time.

Processes are integral to every industry and even more to an IT industry where most customers are global and have already been exposed to robust techniques. Moreover, in the IT industry, margins are always under pressure, and end-users want to get the same thing at a cheaper cost. However, one cannot compromise with quality to reduce the cost. It would be best to discover a way to operate efficiently to save costs. Process excellence techniques such as Lean, Six Sigma, and automation come handy to enable businesses to improve cash flows without impacting the customer experience.

The current economic environment has compelled organizations to revisit their business models and include the digitization aspect in every part of their business. Enhancing processes is a critical aspect of digital transformation. Due to slow market demand and wafer-thin margins, organizations require massive efforts to strengthen their operations, improve supply chains, and reach out to their customers in new ways.

There have been growing technological advances in helping enterprises automate specific parts of their operations. An in-depth process lens can enable businesses to get better every day. It allows companies to break down and analyze processes that can be automated to deliver the same or better quality at a lesser cost. For instance, process improvement techniques can help an organization to take the robotic process automation (RPA) route to accomplish the same job with fewer people.

Across industries, efforts are being made to eliminate inadequacies and deliver exceptional services to clients.

Better World: You mentioned that process excellence is a stepping stone to digital transformation. Could you please elaborate how these two are correlated?

Anshuman Tiwari: I would like to answer this question in two parts. First, digital transformation is a fancy name. Many organizations have already stopped using the word digital transformation because they feel that every organizational shift is in some or the other way connected with digital technologies. Digital transformation is all about bringing new and advanced technologies to help you perform better, faster, and more effectively. Second, it’s not a new concept; technological change is happening all the time. For instance, fifteen to twenty years ago, we were not ready for full-scale web conferencing. Most of the collaboration tools were still emerging or were primarily limited to text chat. Internet speed was limited. Today, we are getting high-quality education and medical consulting through various web meeting and conferencing tools.

Thus, you are bringing technologies to improve a process, which is resulting in rendering the earlier process primitive. The erstwhile snail mail or even telegram services, for example, may look archaic to various instant communication services such as WhatsApp.

Anshuman Tiwari

Global Head of Delivery Excellence, DXC Technology

Anshuman is a process transformation professional with experience across multiple industries, including banking, professional services, information technology, manufacturing, and consulting. He specializes in setting up and scaling world-class operations excellence programs. In the last few years, he has also managed large RPA and digital initiatives.

Before DXC Technology, he had worked for global multinationals such as EY, HSBC, and Infosys. He is also a fellow member of American Society for Quality (ASQ), formerly the American Society for Quality Control, a knowledge-based global community of quality professionals.

Besides work, Anshuman is a fitness fanatic and has participated in several marathons across India.

Top skills

  • Process improvement
  • Digital transformation initiatives
  • Six Sigma, Lean, automation, robotics process automation (RPA) and maturity frameworks
  • Agile project management

Education

  • Post Graduate Diploma in Management (MBA) in Operations Management, K.J. Somaiya Institute Of Management Studies and Research
  • B.E. Industrial Engineering, Nagpur University

Now, let’s understand how a process or service excellence enables organizations to drive continuous change. It is imperative to know what we want to improve and why we wish to invest in making that improvement? Is it service delivery, resource optimization, customer experience, or all three? Any process enhancement may involve some investment or technology implementation. However, for any organization or entity, financial resources are limited. Process excellence teams help businesses determine the problem, suggest a solution, and showcase how the solution will help. Through process enhancement initiatives, organizations identify an opportunity and attain the final state of operational excellence through continuous improvement. This entire effort makes a process more effective and intelligent to deliver positive outcomes consistently, with minimal waste.

While there may be several ways to transform operations digitally, process testing can help accomplish which method is best and more suited to achieve a definitive outcome. Many transformation journeys end in suboptimal benefits, i.e., they don’t give the results they promise. That’s why you need a ‘method’ to transformation. Process excellence efforts give you a holistic outlook for your transformation efforts.

Better World: How do you engage with different business leaders for a service-excellence initiative? What are some of the best practices that you adhere to while proposing a given solution?

Anshuman Tiwari: There are two parts of the spectrum. On one end, nobody wants to improve. Some leaders wish for a status quo. They don’t desire to change or iterate a set of technological processes for getting satisfactory results. On the other extreme, some executives look to continuously change everything. Both approaches are detrimental.

If you don’t want to change and respond to the transitions happening around you, you will not grow or begin losing market share. Many erstwhile leaders failed because they did not respond to market needs or transformed their products and processes to improve their market positions. In the end, it resulted in their ruin.

On the other side of the spectrum, there are executives who wish to change everything all the time. It can be very costly and confusing for people. By the time people get to know about the new process, it would have already got changed. The probabilities are high that in such a condition, there will be a lot of unhappy employees and dissatisfied customers.

Then some people and executives who are in the middle of the spectrum. I believe that most of them are either in this category or are slowly moving toward it. There is a growing awareness around the worth of testing different processes that can impact the end customer. But it would be best if you demonstrate the inefficiency and merits of enhancing a process.

Let me give you an example. A few years ago, in an insurance process review meeting in Hong Kong, we discovered that one of our insurance-sector clients was taking one to two weeks in delivering an insurance policy. In that market, we found several other leading insurance players were taking a maximum of one week in issuing insurance policies. We examined their case and gave them an overview of how this delay could hamper their prospects. They were initially reluctant to accept, but when we explicated that their process was broken and had too much inefficiency compared to three other banks and insurance providers, they bought our idea and immediately sanctioned the process enhancement project.

So, even if your processes are working all right but failing to give you market competitive results, it’s time to evaluate. It may happen that your customers do not see it because of your past success or goodwill, but you should invest in it for long-term market advantage to scale down your error rates. Continuous improvement of a process improves not only the lives of employees but also customers. On top of that, organizations get the benefits of cost savings. You would not want to utilize the efficiency of your quality employees by giving them a task to reconcile and match data. This kind of job can be performed with the help of some software programs quite quickly.

So, in a nutshell, evaluating a process is critical to ensure that a company performs well. And all process-efficiency projects are either related to customer benefits or your people’s benefits or both.

Better World: Given the growing focus of enterprises on digital transformation, how do you see the year 2021 evolving from a process-excellence lens?

Anshuman Tiwari: Nobody knows for how long the current situation will last. The impact of the current crisis is likely to be felt for a long time, according to many experts. If there is any evidence, the last similar event (Spanish flu) occurred in 1918, which was more than a hundred years ago. It lasted for three to five years in different geographies. Of course, the situation is different in that the medical science has progressed and there are various forms of connectivity today. However, it is also true that there were no large cities back then, and population density was not that high. So, while there has been progress on some fronts, there also are counterbalancing factors that tend to neutralize those improvements. Today, we are transforming and changing fast due to this sudden disruption. Like every other practice, process excellence will also change. Priorities for large businesses will be very different for some time. Enterprises will look for rebuilding businesses. There will be a strategic focus on renewing processes in such a way that companies can come back faster.

While it is difficult to predict things, given the unprecedented nature of change, I believe there will be a reasonable investment in technologies such as RPA and internet of things (IoT). Customer centricity will continue to push organizations to innovate and develop new products and services. That’s where most of the processes will be built.

Organizations that follow a smart approach to transformation by leveraging their people, diverse processes, and technologies will be way ahead. Like any other area, process excellence will need to adapt to newer developments and focus on innovation so that as the opportunities arise, we can take advantage of those.

MORE FROM BETTER WORLD

It’s time to invest in a Chief Transformation Officer!

It’s time to invest in a Chief Transformation Officer!

In the current VUCA (Volatile, uncertain, complex and ambiguous) times, most organizations are under constant pressure to innovate and transform themselves to compete well and offer exceptional client service. This has intensified the importance of employing a specialist executive, Chief Transformation Officer, who can supervise the change in real-time and enable organizations to deal with the shift and changing dynamics.

Any transformation program entails risk around existing processes, technology and culture. A well-supported transformation leader at the executive table can play a pivotal role in reducing the risks and successfully executing a digital transformation initiative.  (See: How is digital transformation shaping the new future?)

While such roles have been in existence for some time, their demand has grown recently. This may be primarily due to the massive expansion of digital transformation programs by various organizations at all levels.

Chief Transformation Officer

According to a recent report by EY , the CEO and Chief Strategy Officer are traditionally charged with formulating strategy. But executives now indicate that a broader group is joining them, including the Chief Growth Officer, Chief Transformation Officer, and Chief Sustainability Officer. The report notes that this may sign the pace of change and the importance of non-financial measures, such as environmental and regulatory factors in a company’s market value.

Why do firms need transformative leaders?

When the coronavirus pandemic confronted enterprises, not many were well-equipped to manage the crisis. The pandemic’s outbreak pushed enterprises of all scales to control cost, find a workaround for business continuity, integrate various digital technologies in their business ecosystem, and remain innovative.

At the beginning of the pandemic, several organizations had a hard time managing the turbulent business environment and sought expert advice to drive change. After all, creating healthy balance sheets and maintaining relevance in an ecosystem of significant change requires a targeted approach that can only be carried out by a specialist. The disruptions caused by the pandemic were no different from a global war-like situation. And events like these have far-reaching economic repercussions than we think. (See: Online project management tools: Top office suite analysis)

Tech leaders were trying to catch up with the growing uncertainty and interrupted cash flows. In addition to allowing a thriving remote work environment and protecting their workforce from the pandemic’s impacts, there was also a blur around political and economic agendas, testing the mettle of businesses, and technology leaders. Most small- and medium-sized businesses were concerned about shutting down soon.

In this context, the importance of Transformation Leader or Chief Transformation Officer has been widely relayed through numerous leading companies’ executive committees. Businesses have increasingly realized that someone must take responsibility for leading change because transformation requires strength, attention, collaboration, and clear accountability.

The Transformation Leader’s role is to lead the transformation program and enable all employees, external stakeholders, or customers to drive change. This is about guiding the organization through the disruption and getting buy-in from all stakeholders.

A paradigm shift

A few years ago, not many organizations had this role, and it was also short-lived. The main reason was that the transformations were relatively infrequent and that companies were afraid of investing money in a temporary role. However, today, in growing complicated circumstances, businesses realize the importance of developing a consistent goal-oriented transformative strategy that can bring both short- and long-term value to their stakeholders while keeping operational costs under check.

The Chief Transformation Officer is responsible for analyzing the customers changing behavioral patterns and continually look at the market dynamics to help organizations stay competitive. They work in partnership with the company’s technology, human resources, and financial leadership, improving processes and metrics.

As transformation programs move forward, the Chief Transformation Officer will focus on the evidence-based perspective and a managing behavior resistant to change. They play a crucial role in enabling employees to embrace new changes through training and necessary information sharing.

Given that in 2021, technologies such as robotic process automation and the internet of things (IoT) will take center stage to drive productivity, new age models, and standardization, investing in the role of Chief Transformation Officer will help enterprises accelerate their business strategy. (See: RPA-led tools helping enterprises sail safely through a storm)

 

AWS pumps $2.77 bn in India to retain cloud supremacy

AWS pumps $2.77 bn in India to retain cloud supremacy

Amazon Web Services (AWS) has committed US $2.77 billion (INR 20,761 Crores) to strengthen its cloud infrastructure services in India. Amazon’s cloud computing arm will use this money to launch a new cluster of data centers in Telangana, Hyderabad.

“Happy to announce the largest Foreign Direct Investment (FDI) in the history of Telangana! After a series of meetings, AWS has finalized an investment of Rs 207.61 bn ($ 2.77 bn) to set up multiple data centers in Telangana. The @AWSCloud Hyderabad Region is expected to be launched by mid-2022,” tweeted Telangana state minister for information technology and industries, KT Rama Rao (KTR).

Within its lexicon, AWS identifies its data centers cluster as Availability Zones. AWS set-up two data centers in Mumbai in 2016. It added another data center in Mumbai last year. Across the Asia Pacific, AWS already has 26 Availability Zones spanning India, Australia, Greater China, Japan, Korea, and Singapore.  

The investment will further enable AWS’s position as a leader in India. AWS currently has around 30% market share of India’s cloud service market, followed by Microsoft’s Azure.

AWS leases server space and bandwidth to enterprises of all sizes with cloud computing capabilities. This allows businesses to accelerate their digital transformation goals without building up their in-house servers or data centers.

Growing cloud services market in India

Over the last few years, Indian enterprises are quickly embracing cloud computing services to upsurge agility, deliver innovations, and modernize their infrastructure. With businesses focusing on well-carved out cloud strategy in the wake of the digital transformation rush, there is a bigger emphasis on getting experts on-board who have the experience to help organizations prepare for a new tomorrow. (See: Bharti Airtel gears up for digital transformation opportunities and IBM to split into two companies for better cloud opportunity)

The pandemic-induced work-from-environment has made the market even more lucrative, and cloud players are taking strong initiatives to strengthen their presence in India. These fast-evolving dynamics have made India one of the biggest and fastest-growing cloud services markets in the Asia Pacific, which is likely to touch $10 billion in another five years. Industry body NASSCOM projects that the market will grow to $7.1 billion by even 2022. (See: Technology trends for businesses in 2020)

The top players dominating the Indian market include Microsoft, Amazon, IBM, Google Cloud, and Nutanix. Amongst all, Amazon and Microsoft are leading the market and intensely vying to be the market leader in India’s cloud services market. While AWS’s position at the top is indisputable, both Azure and Google are growing at a remarkable rate, posing a threat to Amazon’s dominance in the cloud services space.

Early this year, Amazon and Bharti Airtel, India’s leading telecom player, entered into a strategic collaboration to deliver cloud computing solutions to enterprises. The partnership was formed to combat a similar engagement announced by Microsoft and Reliance Jio to provide enterprise cloud solutions powered by Microsoft Azure.

AWS had the first-mover advantage as it started its operations seven years earlier than many of its competitors. It gave Amazon an opportunity to get its offerings tested and make it more functionally rich as compared to the others.

In August 2019, Amazon inaugurated its biggest campus globally in Hyderabad, which supports 15000 employees. Through its AWS Academy and AWS Educate initiatives, AWS has also been providing ready-to-teach curriculum to higher universities in India to upskill local developers, students young IT professionals.

AWS’s client in India includes Ashok Leyland, Aditya Birla Capital, Axis Bank, Bajaj Capital, ClearTax, Dream11, Druva, Edelweiss, Edunext, Extramarks, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, Quantela, RBL Bank, redBus, Sharda University, Swiggy, Tata Sky, YuppTV, Zerodha, and several others.

AWS registered a 29% year-on-year growth in revenue to posting $10.8 billion in revenue in the second quarter of 2020.

 

 

 

RPA-led tools helping enterprises sail safely through a storm

RPA-led tools helping enterprises sail safely through a storm

The unprecedented COVID-19 environment has thrown up several challenges for industries across the globe. The growing distributed workforce environment is pushing businesses to deploy new-age digital operational methodologies to deliver a tailored and personalized experience to their customers.

Amidst the digital transformation wave, a technology that has been swiftly gaining ground worldwide to enable businesses to revolutionize their conventional processes is Robotic Process Automation (RPA). The pandemic has made organizations rethink their operational models and integrate artificial intelligence and automation in their processes to ensure that there is no pause.

Incorporating AI and machine learning capabilities, RPA uses software robots that allow organizations to automate multiple high-volume, repeatable tasks. It includes calculations, approvals, invoice creation, server maintenance, merging data from other sources, and copying and pasting data.

There is a growing emphasis on deploying digital bots to reduce employee workloads and accelerate business transformation. Through the RPA bots, organizations are able to empower their employees to concentrate on productive tasks and respond to new challenges more effectively.

Customer centricity driving new automated models

Business process management solutions are widely adopted to streamline processes and transforming enterprise value propositions. Customer-centricity is a highly discussed subject today across the CXO boardrooms, and businesses are rapidly exploring the best ways to cut down on time lost on repetitive tasks.

By automating a business process, organizations can minimize work as it enables them to provide round the clock support to their clients from the bots.

At Better World, our recent interactions with several technology leaders and senior executives suggest that approximately 15 to 20 percent of all human hours are unexploited across industries due to repetitive tasks. The ratio is even higher in the IT sector, where about 25 percent of working hours are lost due to repetitive transactional tasks. With RPA enabled tools, companies can let employees focus on high-quality tasks with better efficiency and productivity. (See: Anshuman Tiwari, Global Head of Delivery Excellence, DXC Technology)

The RPA workforce comprises different software robot levels, performing monotonous and admin-driven tasks at an exceptional speed with minimal human intervention. Take the case of German automaker Volkswagon in India. Its Indian arm has substantially leveraged the capability of RPA to transform several of its processes. From its finance department to the customer service department, the company has automated over 80 processes successfully through RPA tools. Amongst the highlights, it deployed a bot to help its customer service team fetch real-time data that can be utilized to address customer queries.

A similar case in point is Thomas Cook India, a leading travel management firm. To navigate the lockdown-induced disruption, the company partnered with an RPA solution provider, ‘Automation Anywhere,’ to support its virtual workforce and drive automation in several of its processes.

Sectors such as BFSI, healthcare, and travel are aggressively exploring the best ways to implement software bots to improve their bottom lines and automate back-end operations.

Mushrooming market          

In India, RPA growth has been primarily driven by the need to optimize various back-end processes in accounting, IT operations, and human resource management. Many companies are finding it tough to keep up with the increasing demand for services in an environment filled with anxiety. And this is where technologies like RPA are creating a strong impact.

According to several industry estimates, in the next four years, the RPA market is expected to reach around $80 million in the country, helping organizations manage growth in a sustainable manner. 

The RPA vendors are expanding their presence in India, and 2021 will be a crucial year for this technology to thrive in the domestic market. The industry onlookers expect several rounds of consolidations and collaborations that will strengthen the RPA models in the country.

Besides top vendors like UiPath, Automation Anywhere, Blue Prism, and WorkFusion, several exciting startups are gearing up to make a mark in the RPA space. Most of the vendors are investing heavily in research and development efforts. There is an increased push to launch ready to deploy bot solutions that can quickly take on human-intensive transactional work.

 

 

 

Intel’s AI investments in India have these strategic goals

Intel’s AI investments in India have these strategic goals

Intel is taking strategic steps in the Indian market to build a competitive advantage through artificial intelligence (AI) investments. The US-based semiconductor giant has been taking a holistic approach to developing an AI ecosystem by partnering with several leading academic institutions and governments on national AI programs. The company intends to develop a rich pool of AI talent that can help it achieve greater efficiencies and act as a catalyst to fast-track India’s AI vision.

Artificial intelligence has intrigued everyone with its vast capacity to propel a transformative new world. The concept includes deep learning, machine learning, and predictive analytics technologies that enable organizations to gather more data, analyze it, and automate processes. (See: AI in banking now geared for a takeoff and CIOs to focus on network transformation for business continuity)

Amidst the digital transformation wave, AI holds a huge potential to address several challenges of the Indian economy, comprising, healthcare, disaster management, and smart mobility. (See: AI is a must now to speed up digital transformation)

Taking an all-inclusive AI approach in India

Intel has been at the cutting edge of the AI revolution. As AI is becoming mainstream, it has been widely used in developing technologies and apps in speech recognition, virtual agents, machine learning platforms, cyber defense, biometrics, and facial recognition. (See: India gears up for AI leap in post-Covid-19 era)

With 5G technology at the doorstep, Intel, through its initiatives, preparing coders, data researchers, and analysts for the future of artificial intelligence-based technologies.

More emphasis has been given to increasing the computing power of diverse processors while simplifying their architectures. And none of this can happen without a solid talent pipeline. The company has launched programs such as AI for Youth, an initiative to prepare India’s young talent on AI-skills and Intel AI academy.

Last July, Intel invested US$253.5 million in India’s Reliance Jio platform. It is expected that this investment will support Jio’s future university projects. The next university will likely offer programs about future technologies, such as artificial intelligence, data science, and digital media.

Last month, Intel teamed up with IIIT Hyderabad, the Public Health Foundation of India, and the Telangana government to launch an applied research center in artificial intelligence. AI-powered solutions need significant capacity and power to match application demands. Intel is rapidly developing capabilities to meet the scope of AI’s future workloads.

Thanks to its AI developer education program, Intel has already trained Indian professionals on AI platforms like Machine Learning and Deep Learning. Another key initiative run by the global tech major is “Responsible AI for Youth,” which focuses on promoting artificial intelligence among Indian school students.

Attempt to win the AI race

In the post-COVID-19 world, a robust ecosystem supported by powerful computing capabilities is needed to speed up the technological change in all companies. This is where the technology company like Intel is attempting to make a difference.

Amidst growing digital transformation focus, data analysis, and innovation based on artificial intelligence have been used extensively by India’s growing e-commerce and research sectors. The tools are being rapidly deployed to understand the new digital behavior and demand trends. Besides, manufacturing firms have started to use the benefits of AI tools to control quality, reduce the size of the design team, and build predictive models for supply chains. Then, there is the healthcare sector, where AI-based tools are being used to improve diagnosis, treatment, and patient monitoring. (See: How artificial intelligence is transforming Indian retail sector)

Throughout the world, Intel has been making aggressive investments spanning technology, research and development, and collaborations with enterprises and governments, enabling efficient decision making based on algorithms. Early in May this year, Intel’s funding arm parked aside $500 million for investments in several startups that operate in business data and analytics.

In October this year, Intel purchased SigOpt, a San Francisco-based provider of a cutting-edge platform to optimize Artificial Intelligence (AI) software models at scale. Intel announced its intention to use SigOpt software technologies across Intel Artificial Intelligence hardware products to accelerate, amplify and extend Intel Artificial Intelligence software solution offerings to developers.

Intel’s latest efforts are in line with developing production-ready solutions for various enterprise-wide deployments. The company recently introduced its 3rd Gen Xeon Scalable processors and additions to its hardware and software AI portfolio to help its customers accelerate artificial intelligence (AI) and analytics workloads running in the data center, network and intelligent-edge environments.

In 2019, Intel gained over US$3.8 billion through AI-based solutions. With the AI market expected to become worth more than $30 billion in the next 3-4 years, Intel seems to be going in the right direction to capitalize on the opportunity.

Salary hikes at IT firms on cards as COVID disruption eases

Salary hikes at IT firms on cards as COVID disruption eases

Buoyed by the early signs of enormous digital transformation opportunities and demand for cloud-based solutions, salary hikes at IT firms in India appear to be returning ever since the COVID-19 disruption had made an adverse impact.

The COVID-19 led economic slowdown resulted in a monumental setback for many tech companies across the world. Low visibility of revenue growth and market gloom resulting from the pandemic forced India’s IT majors to suspend employee salary increases and promotions earlier this year. The decision was taken to control operational costs and provide business continuity, even during the crisis.

However, with optimism returning to the sector, salary hikes at IT firms, along with promotions across all grades are being considered by top Indian tech majors such as TCS, Infosys, HCL, Wipro, and Tech Mahindra. 

Timeline considered for salary hike at IT firms in India

Company               

Revenue in Rs crore (FY2020)

Current headcount

Salary hike effective from

TCS

1.62 lakh

453,540

1 October 2020

Infosys

93,594

240,208

1 January 2021

HCL

71,265

150,000

1 October 2020 (Junior staff)

1 January 2021

(Senior staff)

Wipro

63,862

180,000

1 December 2020

Tech Mahindra

38,060

125,000

Early 2021

Transitioning to the new normal

At the beginning of the year, most businesses put their energies on deploying a thriving remote work environment and delivering consistent services.  However, beginning in the second quarter, companies have accelerated the implementation of digital transformation solutions and increased spending to meet customer expectations to remain competitive in the current environment.

These evolutionary dynamics are having a positive impact on these tech majors. Tata Consultancy Services (TCS) was the first Indian IT major to announce a salary increase for its 453,540 employees as of October 1, 2020. Quickly after the nationwide lockdown announcement, TCS rolled-out Secure Borderless Workspaces Framework, which instantly enabled 90% of its employees to work effectively and meet client expectations remotely. TCS’s consolidated revenue from operations for Q2 stood at Rs 40,135 crores, clocking a 3% year-on-year growth.

The IT Major deferred salary increases in April this year to ensure that employees are not laid off.

For over 2,400,000 Infosys employees, salary hikes are expected to stay the same as in previous years. In recent years, Infosys has rapidly increased its digital and cloud capabilities that have helped it reach 2.2% revenue growth year-on-year, even in challenging times. The company is banking big on the large-scale digital transformation deal wins that materialized recently to accomplish higher than the average growth in the upcoming quarters. (See: Infosys buys GuideVision to boost Dx capabilities)

HCL tech joined the list recently by announcing salary hikes for its junior staff from October 2020 and senior staff from January 2021. The company’s net profit stood at Rs 3,142 crore for the September quarter, up 7.4% sequentially, and 18.5% year-on-year.

India’s fourth-largest IT Services provider, Wipro, witnessed a strong second quarter, which resulted in better margins and robust revenue growth. It celebrated the performance by announcing salary increases from December this year for 80% of its 1.85 lakh workforce. Throughout 2020, the company made a significant investment in acquisitions that could lead to substantial gains in the fiscal year 2022. (See: With Encore buy, Wipro eyes DX edge in fintech)

Tech Mahindra has announced that its employees’ salary increases will begin next year on a phased basis. The company states that the hikes for junior-most employees will be implemented first, followed by senior employees.

Big boost from fast-track digital transformation roadmaps

The sudden spike of COVID-19 cases compelled organizations to enforce fully work-from-home environments. To minimize the impact and support customers virtually within the new standard, organizations have stepped up their digital engagement strategies. The pandemic’s complex challenges are placing large and small businesses in a delicate situation that can only be solved by redefining work and developing agile business models.

During COVID-19, organizations’ dependence on digital solutions, has peaked at new heights, and at BM NXT research, we do not see the interest in digital technologies waning even when the pandemic ends. Businesses worldwide are expected to harness digital channels and continue modernizing their IT infrastructure to innovate faster and reimagine the business landscape. (See: AI-driven analytics is CIOs’ mantra in the new normal)

Going ahead, there will be a continuous rise in the adoption of cloud-based solutions and new-age technologies such as machine to machine (M2M),  artificial intelligence, Robotic Process Automation (RPA), and data analytics amongst enterprises. Almost every industry and sector will need to identify new seamless digital communication channels to interact with their customers. This will further open up new revenue and growth opportunities for the IT Services firm to help enterprises build their digital resilience for any such future incident.

 

With Encore buy, Wipro eyes DX edge in fintech

With Encore buy, Wipro eyes DX edge in fintech

Indian IT Services major Wipro continues its acquisition run this year to strengthen its digital transformation and cloud capabilities. After acquiring 4 companies earlier this year,  Wipro has now entered into a decisive agreement to buy Encore Theme Technologies, a SaaS and Cloud solutions provider in financial services, for INR 95 crores.

Headquartered in Chennai, Encore Theme implements a broad suite of Trade Finance solutions, developed by Finastra, one of the world’s largest fintechs to bolster digital transformation support for financial institutions across the globe. The purchase will enable Wipro to further fortify its capabilities to modernize the IT and digital infrastructure of financial institutions.

Encore buy

The acquisition of Encore Theme is subject to customary closing conditions and likely to close in the quarter ending December 31, 2020, Wipro mentioned in a statement. This transaction represents Wipro’s fifth buyback this year, with an overall investment of INR 18 bn in purchases in 2020.

Businesses are taking rapid transformation routes toward next-Gen integrated cloud technologies such as artificial intelligence, the internet of things (IoT), and analytics. To successfully overcome the ongoing crisis and emerge stronger in the growing virtual ecosystem, enterprises seek smarter IT environments and accelerating their digital transformation efforts.

IT services companies realize the importance of network transformation-related investments that can help meet growing clients’ needs to construct agile, integrated, and insights-based network architectures. This brings a unique opportunity for the IT Services firm to bring more value to businesses.

Along with Wipro, several other IT Services firms such as Infosys and HCL are on an acquisition spree this year, utilizing their cash reserves to fortify their digital transformation and cloud offerings. (See: Infosys buys GuideVision to boost Dx capabilities)

Supporting networks modernization

Wipro’s aggressive push toward acquisitions is also likely to lead to increased investor confidence in the future. Wipro is now having much more capacity and packaged offerings to deliver its services to enormously investing in IT infrastructure modernization.

This year, Wipro’s notable acquisitions include 4C, IVIA Serviços de Informática Ltd, and Eximus Design. (See: Wipro’s 4C buy to firm up its Europe presence)

Along with the latest Encore buy, Wipro also announced its plan to expand its strategic relationship with IBM to strengthen its Hybrid Cloud Practice. The practice is an initiative led by IBM to support global system integrators and independent software vendors to enable their clients to modernize workloads for any cloud environment.

In its Q2 results announced last month, Wipro posted a 3.2 percent sequential growth in consolidated profits and 3.7 percent QoQ growth in IT services revenue, ahead of the previous industry estimates. The results reflected strong growth across all its verticals.

At BM NXT research, we expect Wipro’s revenues to get a significant boost in the next two to three years because of its strategic investments this year and the organization’s continuous efforts to build capacities for remote working. Wipro, however, will need concrete execution efforts to gain a larger market share than its peers in the industry.

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