GS- Budgetary cuts: IT- In what areas would you expect budgetary cuts with your customers in 2012? How would these cuts impact IT outsourcing? Or is there a scope for increased spends? Where and why?

Vikram- Happiest Minds Technologies being an IT services start up is not impacted by budgetary cuts. On the contrary, we see a higher scope for customer buy-in as we offer services that are ahead of the curve.
We offer solutions & services in areas of Cloud computing, Analytics, Social CRM, Mobility and Security. In a shifting paradigm, it is these services that are a value add to customers that help them stay ahead of the competition and we are increasingly experiencing a positive outlook.  In the short span of our operations we have secured clients in the US, UK and India.  We are seeing our customers move from cutting to reprioritization and instead of focusing on cost efficiencies focusing on value effectiveness.

GS- What are some of the shifts in the dynamics of global services (include global sourcing of services, outsourcing, offshoring, IT services) you would expect in 2012? 

Vikram- In a shifting technology landscape, many organizations lack the IT asset management and financial processes to analyze variances properly and determine their budgetary impact. In this scenario, IT is being asked to increase its productivity and this often means doing ‘less with less’.  Enterprises are looking to achieve more for less and this means conventional IT services model will see a shift.

a) Customers/ organizations will now have focused demand and it is up to providers to scale up. This will include a change in the very fundamentals. Therefore vendors will have to bill at ‘cost per consumption’ model for services and products.

b) It will also mean staying ahead of the curve with product/ service offerings. Moving forward, as every dollar will count and with increasing competition, innovation will be the key to success.

c) Making optimum use of available resources will also count. Available technologies will have to e used to their fullest potential.

d) Emerging technologies like Cloud, Social CRM and Mobility will define the next era of IT services as ‘convergence of IT’ is a huge trend that the industry is waking up to.

GS- If you are a service provider, how have your customer’s expectations of you changed?

Vikram- Happiest Minds Technologies started with a clear intention and focus to provide next-generation disruptive technologies and services to our customers. Since, we are a start up and carry no past baggage, we are agile and can adapt to a shifting landscape with comparative ease.
Certainly, customers are now expecting more for less (as previously mentioned). Also as mentioned since budgets are tight there is a shift in the billing model. The biggest change we are seeing with customers expectations is that they are no longer looking for efficient doers of IT projects but are looking for co-innovators of IT led business.

GS- Which are some of the most promising verticals in ITO for 2012?

Vikram- With the advent of FDI in retail in India, this could pose to be a huge opportunity for IT companies as there is a host of services that can be offered. Media and entertainment is also a space where there is increased traction. We also see huge opportunities in the BFSI space. Basically, since the focus is shifting to a more customer focused strategy, anything to do with analyzing customer conversations is gaining priority.
We are seeing the newer technologies being deployed in verticals where there is a strong B 2 C orientation.  Verticals like Travel, Entertainment, Media, Retail, CPG.  These vertical benefit from the effective use of the consumerization of IT and will be the most promising verticals for us.

GS- If you were to give three pointers for ITO in 2012, what would they be? How should service providers align themselves to these? How would enterprise buyers of services align themselves to these?

Vikram- According to an IDC research, 'the cloud' as a marketing label will cease to exist in the next 24 months.
a) In the coming months, the cloud services will become successful if they permeate the sourcing strategies of both the chief information officer (CIO) and business unit manager. Cloud services to become an everyday sourcing option for the CIO by 2015 and this will drive changes on both the vendors and users of cloud services and technologies. The findings from the report indicate that less than half of the end-users across APEJ will complete their private cloud projects by 2014 and 20 percent of enterprise application spending will be cloud-sourced by 2015.
b) Also, infrastructure-as-a-service (IaaS) will become verticalised by 2013, and 90 percent of telecom service providers (SPs) in the APEJ region will have brought a broad portfolio of cloud services to market by the end of 2012.
c) Also, CIOs will have to work more closely with the CMOs to improve outreach to customers.

GS- Any specific comments on specific emerging areas?

Vikram- As mentioned, disruptive technologies are to be the next big thing as organizations have re-aligned their expectations from IT services.

Happiest Minds is a new generation IT services company. Over the last few years, the market has seen certain unique, emerging technologies and IT paradigms. These include cloud computing, social media, mobility solutions, unified communications, business intelligence and analytics.  Although, each of these technologies is making its impact in the way IT is consumed, it is a combination of all these that will completely change the IT landscape, as we know it today. Happiest Minds will focus on these disruptive technologies as its core functioning area.