SlideShare ist ein Scribd-Unternehmen logo
1 von 14
Convergence for an inclusive growth –
       The eSupport example




                      Krishna_
                     Muppavarapu
         Ravi_Med
               uri




                                   du
                                   Jaipal_Nai




                        Chaganti
                        Vinay_




                                            Page 1 of 14
Page 2 of 14
Introduction

Business process and knowledge service outsourcing to rural centers is fast catching
up. It is evident from the success of Satyam-promoted concept of GramIT – the rural
BPO.

Firstly, the concept by itself is a breakthrough in the history of Indian outsourcing
business. It has redefined the way businesses can be carried out. Traditionally rural
areas were seen as the supply grounds for agricultural products. In light of a rapid
evolution of the economy to being a service oriented one, there is a need for
bringing villages into the services fold very rapidly because real development of
India lies in the prosperity of her 600,000 villages. This objective can be achieved
by increasing the share of services in the notional GDP of Indian villages.

In this paper we propose a high-level and a conceptual design that explores the
potential of “convergence” that can bring about a sea-change in the rural economies
of India while impacting the way business is done. Subsequently we would go about
to explain how Satyam Computers, in collaboration with Byrraju Foundation
implemented this concept with amazing results. This paper takes an evolutionary
approach and explains the various business process improvements that were made
possible through convergence before extending the discussion to rural
transformation through technological convergence.

Convergence – A brief background

Convergence has traditionally been defined as “a multi-media environment and/or
network where signals regardless of type (i.e. voice, video, data, etc.) and encoding
methodology may be seamlessly exchanged between independent endpoints with
similar characteristics”. This is mainly from the point of view of the great strides
that humankind is making on the information technology front.

The phenomenon of convergence is defined in many other ways and contexts. For
example device convergence is the kind that is experienced by most of us. The
ubiquitous handheld PDA is an excellent example of device convergence. Figure 1
is an excellent depiction of device convergence.




                                                                        Page 3 of 14
Fig. 1 An illustration of device convergence


As much as physical devices converge, there is also a similar convergence
happening in other areas. Examples of this are functional convergence, economic
convergence, and geographic convergence1.

Convergence of the first order

Going by the discussion in the previous section, we see that convergence is
generally defined as coming together of homogeneous entities through some
technological, economic, sociological, political, or business process innovation. We
define this as “convergence of the first order”. It is the most primitive form of
convergence that has very limited or non-existent relation with convergence in other
fields. Figure 2 indicates some of the fields in which convergence can occur.
                 Technological




                                                                                         Geographic
                                                                           Functional
                                   Economic




                                                              Political
                                                 Social




1
    http://cbdd.wsu.edu/kewlcontent/cdoutput/TR501/page29.htm


                                                                                                 Page 4 of 14

                                 Fig. 2 Weak interactions between various convergences
Convergence of the higher order

These first order convergences are primitive in comparison to the more futuristic
“higher order convergence”. But that does not in any way undermine their
contribution to the great improvements in the way business is done.

In light of the rapidly changing market scenarios, there is a need to define a higher
order of convergence to arrive at a more sustained and inclusive growth for
organizations, countries and the world in general.

This calls for a realignment of the various convergences in a way that each one gets
the benefit of the technological convergence. Figure 3 illustrates this realignment.




                                                                     Geographic
                                                       Functional
               Economic




                                           Political
                             Social




                                      Technological
                                                                                        The
                                                                                        highest
        Fig. 3 Strong interactions between various convergences reinforced by the       order of
                                technological convergence
convergence is a conceptually enchanting proposition where convergences in
various fields reinforce each other creating the ultimate synergistic scenario.
Technological convergence would encompass and be the common factor even in the
highest order of convergence. We illustrate this in figure 4 by introducing “field X”
that represents all the fields in which convergence can happen. Represented in a
vector form, each field experiences some convergence within itself represented in
magnitude and direction by the inward looking arrows. But the true benefit of such
discrete convergences will arise only when the phenomenon of technological
convergence expands enough to encompass the scope of individual convergences.




                                                                                    Page 5 of 14
“Field X” Convergence




                    Fig. 4 The evolution of the highest order of convergence with technological
Convergence
                                         convergence cutting across others
from        an
organizational perspective

While the convergence model described in the previous sections has very broad
scope, it can be conveniently applied to organizations, which are essentially a
significant subset of that broad scope. As introduced early in this paper, we propose
a conceptual model that makes use of technological convergence to bring about
synergies of convergences across various business and business-related areas more


                                                                                Page 6 of 14
from an organizational point of view. Core to this model is the “convergence
processing unit” that essentially brings various organizational convergences on a
single platform. Some of these “input-convergences” are:

       Business experiences that have converged into a vast repository of tacit
        knowledge
       Process management expertise that has converged into documented forms of
        best practices and execution efficiencies
       Technological breakthroughs that have led to the availability of convergent
        devices and services, especially the Internet broadband
       Human convergence in the form of a dedicated army of like-minded and
        like-thinking employees and a suitable convergent platform to manage the
        valuable human capital

The outputs of the convergence processing unit are aimed at achieving the most
ideal scenario in which various stakeholders like the employees, investors,
customers and the society benefit from the existence of the organization. In the
absence of such a convergence processing unit, it becomes extremely difficult for an
organization to prove its necessity to exist in the first place. We illustrate the same
in figure 5. It applies to a wide range of businesses ranging from agriculture to
manufacturing to services.



                                   Business experience
                                   Process management expertise
           Inputs                  Technological breakthroughs
                                   Human convergence




                                                 Convergence
                                                processing unit




                                     Customer delight
           Outputs                   Employee delight
                                     Society delight
                                     Investor delight


             Fig. 5 A conceptual design of the convergence black box typical of organizations
                                                                                   Page 7 of 14
Page 8 of 14
Unraveling the Convergence Processor

Evolution of eSupport @ Satyam

From a tiny startup of 70 employees at the time of inception in 1988, Satyam grew
by leaps and bounds to about 30,000 employees by 2000 and currently it is hovering
at about 40,000. This was possible largely due to a convergent force called the
Internet and a mega convergence of human intellect in the form of the availability of
a large number of human resources qualified and trained on the nuances of
Information Technology.

At Satyam we were quick to understand and extrapolate the importance of
convergence at various levels and stages of our business processes. With a view to
enhance efficiencies in business processes, especially with a huge employee base, a
system or a platform for virtual delivery of services was envisaged and was named
eSupport.

The primary objective of eSupport is to bring about convergence in the various
business processes and service offerings. Within 4 years of instituting this initiative
almost 65% of business processes along with the associated service offerings were
brought under the fold of eSupport and were capable of being executed virtually
from anywhere.




                                       Quality                       Strategy



                           HR Function                        Finance Function



                                                                      Learning

                            Resource Mgmt            Procurement


                                                                               Page 9 of 14



               Fig. 6 Convergence of business processes encompassed by convergence of eSupport
While various functions were converging within themselves, eSupport acted as the
technological convergence force or the convergence processing unit that synergized
the individual convergences. A reference to this is given in an article published in
Human Capital magazine2. Creation of the convergent force called eSupport was
dependent largely on other convergent forces like the Internet, mobile computing,
highly standardized project management methodologies, innovative business
process management practices, software technologies with high integration
capabilities, etc. In other words eSupport transformed itself into a platform for
shared services with HR, Finance and other functions being the prime beneficiaries.
eSupport transformed the way business was carried out at Satyam. For example, an
employee can at a time apply for leave, order for the procurement of a capital item,
approve her subordinate’s travel plan, drop a grievance in the virtual suggestion box,
contribute a million dollar idea in the Idea Junction™, appraise the team’s
performance and get a real time report of her department’s spending, all at the same
time and almost from anywhere.

eSupport for a holistic convergence – The GramIT initiative

Expanding on the thought put forward in the introductory section of this article, we
try to showcase here how eSupport has been used to bring about the much
emphasized “rural transformation” in India.

Here we define an important term called “economic convergence”. According to a
definition in Wikipedia3, economic convergence refers to “the phenomena in which
lesser developed countries supposedly catch up to developed countries in terms of
economic productivity and growth”. Extending this to the Indian context, broadly
the lesser developed countries equate to rural areas and the developed ones to urban
areas. A definitive need for transforming rural areas is pronounced in many forums.
Governments, organizations, policy makers, NGOs and politicians have realized that
real growth for India would mean an inclusive growth where rural areas also benefit
from and contribute to the overall growth of economy.

Urban areas that were the key beneficiaries of the IT revolution were using up a
valuable resource provided by rural areas in the form of people migrating from
villages to towns and cities in search of meaningful jobs. Satyam realized that with
every job created in the IT sector, the creation of about 4 ancillary jobs was adding
to the “brain drain” from rural India. Satyam Computers as one of the pioneers to
have the vision of rural transformation and having established a highly convergent
2
  Leveraging technology for an integrated human capital management, pp 38-45, Human Capital
magazine, Vol.11 No.2, July 2007
3
  http://en.wikipedia.org/wiki/Convergence


                                                                                Page 10 of 14
technological platform in the form of eSupport, realized that the same platform can
be used to bring about rural transformation. This was the onset of a shift in the
paradigm that rural India has been a largely ignored stakeholder when it came to the
distribution of the wealth created by the Information Technology revolution.

With the IT sector heading towards a phenomenal growth, introduction of the Rural
BPO (named GramIT) initiative by Satyam in close partnership with Byrraju
Foundation marked an inflection point in the rural-urban migration dynamics, as
shown in figure 7. In the absence of a path breaking initiative like GramIT, the rural
to urban migration would continue unabated with quite a few undesirable results, the
primary being a lack of economic convergence and in fact a more dangerous
economic divergence with urban areas getting richer and the rural areas getting
poorer. That would in turn hamper the scope for other convergences like the social,
political, etc.




                                                                        Page 11 of 14
Migration from rural to urban areas




                                                           The undesired effect of a rapid
                                                           migration leading to undue
                                                           stress on urban policy making


                                                                                                 The desired effect of a reverse
                                                                                                 migration leading to equitable
                                                                                                 distribution of wealth

                                                                                      Introduction of the GramIT
                                                                                      initiative – the inflection
                                                                                      point




                                                                                    Time
                                          Fig. 7 GramIT – An inflection point created by the phenomenon of technological convergence


In eSupport, Satyam found an excellent way of using technological convergence to
bring about the urban-rural economic convergence. This would in turn redefine the
way businesses were going to be carried out in India with more and more corporates
realizing the need to include rural areas in their scheme of things.

Referring to figure 6, a lot of non core activities from various business functions of
Satyam were identified during the convergence of those individual functions over a
period of time. As each converging function found its way onto the eSupport
platform, the non-core activities lent themselves to outsourcing. The expanding
convergence of eSupport boosted the scope of outsourcing such activities further.


                                                                                                                     Page 12 of 14
As a first step, employees in GramIT centers located in 3 villages were made a part
of a “workflow engine” that got converged onto the eSupport platform by being
given “role-based accesses” to relevant components of eSupport. GramIT associates
in turn would use the Internet to log on to eSupport and carry out activities like
invoice processing, travel bookings for employees, handholding new entrants on the
joining formalities, etc. Byrraju Foundation (partners for Satyam in the GramIT
initiative) has ensured a high level of internet connectivity by subscribing to
broadband from a reputed service provider. The last-mile connectivity where laying
of physical cables was not possible was achieved by using Wi-Fi technology based
on the IEEE 802.11 standards. These convergent devices are being used effectively
to impart trainings through video conferences and setting up audio calls apart from
being used for connecting to the Internet. Telephone connectivity using this
convergence is also being explored for its legal viability.

Conclusion

Using technological convergence, Satyam has been able to bring about radical
changes in the way business processes are carried out. Most importantly
convergence has helped Satyam to connect to the society in a much efficient
manner. The rural outsourcing standards established by Satyam will go a long way
in impacting the notional GDP of rural India through a more equitable distribution
of wealth. The end result of using convergence to the best its capability has actually
given Satyam Computers much of its stated objectives in terms of its key
stakeholders. With rapid proliferation and convergence of technologies, it is
imminent that there will be more and more synergies setting in.



End of article




                                                                        Page 13 of 14
Page 14 of 14

Weitere ähnliche Inhalte

Ähnlich wie Technological Convergence And Rural Outsourcing

La trame business vccm english
La trame business vccm englishLa trame business vccm english
La trame business vccm english
René MANDEL
 
Digital Transformation Iniciative
Digital Transformation IniciativeDigital Transformation Iniciative
Digital Transformation Iniciative
Miguel Mello
 
Delivering stakeholder centric services: from strategy to execution
Delivering stakeholder centric services: from strategy to executionDelivering stakeholder centric services: from strategy to execution
Delivering stakeholder centric services: from strategy to execution
IBM Rational software
 
DUP_1048-Business-ecosystems-come-of-age_MASTER_FINAL
DUP_1048-Business-ecosystems-come-of-age_MASTER_FINALDUP_1048-Business-ecosystems-come-of-age_MASTER_FINAL
DUP_1048-Business-ecosystems-come-of-age_MASTER_FINAL
Tyler Logigian
 

Ähnlich wie Technological Convergence And Rural Outsourcing (20)

C0452022313
C0452022313C0452022313
C0452022313
 
WEF_Navigating_the_Industrial_Metaverse_A_Blueprint_2024.pdf
WEF_Navigating_the_Industrial_Metaverse_A_Blueprint_2024.pdfWEF_Navigating_the_Industrial_Metaverse_A_Blueprint_2024.pdf
WEF_Navigating_the_Industrial_Metaverse_A_Blueprint_2024.pdf
 
Social licence and digitisation require new thinking aus imm bulletin
Social licence and digitisation require new thinking   aus imm bulletinSocial licence and digitisation require new thinking   aus imm bulletin
Social licence and digitisation require new thinking aus imm bulletin
 
A dual management operating system to improve digitalisation and automation o...
A dual management operating system to improve digitalisation and automation o...A dual management operating system to improve digitalisation and automation o...
A dual management operating system to improve digitalisation and automation o...
 
Enterprise Architecture
Enterprise ArchitectureEnterprise Architecture
Enterprise Architecture
 
Enterprise Architecture – A Tool for Business Innovation Realization in the E...
Enterprise Architecture – A Tool for Business Innovation Realization in the E...Enterprise Architecture – A Tool for Business Innovation Realization in the E...
Enterprise Architecture – A Tool for Business Innovation Realization in the E...
 
What should a CIO think about?
What should a CIO think about?What should a CIO think about?
What should a CIO think about?
 
Bc Digital Business Ecosystems 20081012
Bc Digital Business Ecosystems 20081012Bc Digital Business Ecosystems 20081012
Bc Digital Business Ecosystems 20081012
 
Model of Innovation for Organizations in the IT Software Services Industry
Model of Innovation for Organizations in the IT Software Services IndustryModel of Innovation for Organizations in the IT Software Services Industry
Model of Innovation for Organizations in the IT Software Services Industry
 
Making the Shift to the Next-Generation Enterprise
Making the Shift to the Next-Generation EnterpriseMaking the Shift to the Next-Generation Enterprise
Making the Shift to the Next-Generation Enterprise
 
La trame business vccm english
La trame business vccm englishLa trame business vccm english
La trame business vccm english
 
Tl Techno Vision 2012
Tl Techno Vision 2012Tl Techno Vision 2012
Tl Techno Vision 2012
 
See discussions, stats, and author profiles for this publicati
See discussions, stats, and author profiles for this publicatiSee discussions, stats, and author profiles for this publicati
See discussions, stats, and author profiles for this publicati
 
How digital can enable continuous innovation 2nd edition 130520
How digital can enable continuous innovation 2nd edition 130520How digital can enable continuous innovation 2nd edition 130520
How digital can enable continuous innovation 2nd edition 130520
 
Digital Transformation Iniciative
Digital Transformation IniciativeDigital Transformation Iniciative
Digital Transformation Iniciative
 
Delivering stakeholder centric services: from strategy to execution
Delivering stakeholder centric services: from strategy to executionDelivering stakeholder centric services: from strategy to execution
Delivering stakeholder centric services: from strategy to execution
 
DUP_1048-Business-ecosystems-come-of-age_MASTER_FINAL
DUP_1048-Business-ecosystems-come-of-age_MASTER_FINALDUP_1048-Business-ecosystems-come-of-age_MASTER_FINAL
DUP_1048-Business-ecosystems-come-of-age_MASTER_FINAL
 
Service automation and organisational structure an application example based ...
Service automation and organisational structure an application example based ...Service automation and organisational structure an application example based ...
Service automation and organisational structure an application example based ...
 
A roadmap to build future workforce towards vision 2041
A roadmap to build future workforce towards vision 2041A roadmap to build future workforce towards vision 2041
A roadmap to build future workforce towards vision 2041
 
Lean Digital Enterprise Evolution in a Hyper Connected World
Lean Digital Enterprise Evolution in a Hyper Connected World Lean Digital Enterprise Evolution in a Hyper Connected World
Lean Digital Enterprise Evolution in a Hyper Connected World
 

Mehr von Krishna Muppavarapu

CUSTARD - a complete product suite for effective management of disparate data
CUSTARD - a complete product suite for effective management of disparate dataCUSTARD - a complete product suite for effective management of disparate data
CUSTARD - a complete product suite for effective management of disparate data
Krishna Muppavarapu
 

Mehr von Krishna Muppavarapu (7)

CUSTARD - a complete product suite for effective management of disparate data
CUSTARD - a complete product suite for effective management of disparate dataCUSTARD - a complete product suite for effective management of disparate data
CUSTARD - a complete product suite for effective management of disparate data
 
GramIT Business Presentation
GramIT Business PresentationGramIT Business Presentation
GramIT Business Presentation
 
Rural Bpo Extending The Cost Arbitrage
Rural Bpo Extending The Cost ArbitrageRural Bpo Extending The Cost Arbitrage
Rural Bpo Extending The Cost Arbitrage
 
GramIT Service Offerings
GramIT Service OfferingsGramIT Service Offerings
GramIT Service Offerings
 
Technology For Enterprise Human Resource Management
Technology For Enterprise Human Resource ManagementTechnology For Enterprise Human Resource Management
Technology For Enterprise Human Resource Management
 
Corporate Social Responsibility Creating Synergies
Corporate Social Responsibility  Creating SynergiesCorporate Social Responsibility  Creating Synergies
Corporate Social Responsibility Creating Synergies
 
Contemporary Practices In Project Management Km
Contemporary Practices In Project Management KmContemporary Practices In Project Management Km
Contemporary Practices In Project Management Km
 

Kürzlich hochgeladen

Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al MizharAl Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
allensay1
 
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in OmanMifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
instagramfab782445
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
daisycvs
 

Kürzlich hochgeladen (20)

Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
 
Buy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From SeosmmearthBuy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From Seosmmearth
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
Cannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 UpdatedCannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 Updated
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 MonthsSEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
BeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfBeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdf
 
New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck Template
 
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al MizharAl Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in OmanMifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Buy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail AccountsBuy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail Accounts
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfTVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
 
Over the Top (OTT) Market Size & Growth Outlook 2024-2030
Over the Top (OTT) Market Size & Growth Outlook 2024-2030Over the Top (OTT) Market Size & Growth Outlook 2024-2030
Over the Top (OTT) Market Size & Growth Outlook 2024-2030
 

Technological Convergence And Rural Outsourcing

  • 1. Convergence for an inclusive growth – The eSupport example Krishna_ Muppavarapu Ravi_Med uri du Jaipal_Nai Chaganti Vinay_ Page 1 of 14
  • 3. Introduction Business process and knowledge service outsourcing to rural centers is fast catching up. It is evident from the success of Satyam-promoted concept of GramIT – the rural BPO. Firstly, the concept by itself is a breakthrough in the history of Indian outsourcing business. It has redefined the way businesses can be carried out. Traditionally rural areas were seen as the supply grounds for agricultural products. In light of a rapid evolution of the economy to being a service oriented one, there is a need for bringing villages into the services fold very rapidly because real development of India lies in the prosperity of her 600,000 villages. This objective can be achieved by increasing the share of services in the notional GDP of Indian villages. In this paper we propose a high-level and a conceptual design that explores the potential of “convergence” that can bring about a sea-change in the rural economies of India while impacting the way business is done. Subsequently we would go about to explain how Satyam Computers, in collaboration with Byrraju Foundation implemented this concept with amazing results. This paper takes an evolutionary approach and explains the various business process improvements that were made possible through convergence before extending the discussion to rural transformation through technological convergence. Convergence – A brief background Convergence has traditionally been defined as “a multi-media environment and/or network where signals regardless of type (i.e. voice, video, data, etc.) and encoding methodology may be seamlessly exchanged between independent endpoints with similar characteristics”. This is mainly from the point of view of the great strides that humankind is making on the information technology front. The phenomenon of convergence is defined in many other ways and contexts. For example device convergence is the kind that is experienced by most of us. The ubiquitous handheld PDA is an excellent example of device convergence. Figure 1 is an excellent depiction of device convergence. Page 3 of 14
  • 4. Fig. 1 An illustration of device convergence As much as physical devices converge, there is also a similar convergence happening in other areas. Examples of this are functional convergence, economic convergence, and geographic convergence1. Convergence of the first order Going by the discussion in the previous section, we see that convergence is generally defined as coming together of homogeneous entities through some technological, economic, sociological, political, or business process innovation. We define this as “convergence of the first order”. It is the most primitive form of convergence that has very limited or non-existent relation with convergence in other fields. Figure 2 indicates some of the fields in which convergence can occur. Technological Geographic Functional Economic Political Social 1 http://cbdd.wsu.edu/kewlcontent/cdoutput/TR501/page29.htm Page 4 of 14 Fig. 2 Weak interactions between various convergences
  • 5. Convergence of the higher order These first order convergences are primitive in comparison to the more futuristic “higher order convergence”. But that does not in any way undermine their contribution to the great improvements in the way business is done. In light of the rapidly changing market scenarios, there is a need to define a higher order of convergence to arrive at a more sustained and inclusive growth for organizations, countries and the world in general. This calls for a realignment of the various convergences in a way that each one gets the benefit of the technological convergence. Figure 3 illustrates this realignment. Geographic Functional Economic Political Social Technological The highest Fig. 3 Strong interactions between various convergences reinforced by the order of technological convergence convergence is a conceptually enchanting proposition where convergences in various fields reinforce each other creating the ultimate synergistic scenario. Technological convergence would encompass and be the common factor even in the highest order of convergence. We illustrate this in figure 4 by introducing “field X” that represents all the fields in which convergence can happen. Represented in a vector form, each field experiences some convergence within itself represented in magnitude and direction by the inward looking arrows. But the true benefit of such discrete convergences will arise only when the phenomenon of technological convergence expands enough to encompass the scope of individual convergences. Page 5 of 14
  • 6. “Field X” Convergence Fig. 4 The evolution of the highest order of convergence with technological Convergence convergence cutting across others from an organizational perspective While the convergence model described in the previous sections has very broad scope, it can be conveniently applied to organizations, which are essentially a significant subset of that broad scope. As introduced early in this paper, we propose a conceptual model that makes use of technological convergence to bring about synergies of convergences across various business and business-related areas more Page 6 of 14
  • 7. from an organizational point of view. Core to this model is the “convergence processing unit” that essentially brings various organizational convergences on a single platform. Some of these “input-convergences” are:  Business experiences that have converged into a vast repository of tacit knowledge  Process management expertise that has converged into documented forms of best practices and execution efficiencies  Technological breakthroughs that have led to the availability of convergent devices and services, especially the Internet broadband  Human convergence in the form of a dedicated army of like-minded and like-thinking employees and a suitable convergent platform to manage the valuable human capital The outputs of the convergence processing unit are aimed at achieving the most ideal scenario in which various stakeholders like the employees, investors, customers and the society benefit from the existence of the organization. In the absence of such a convergence processing unit, it becomes extremely difficult for an organization to prove its necessity to exist in the first place. We illustrate the same in figure 5. It applies to a wide range of businesses ranging from agriculture to manufacturing to services. Business experience Process management expertise Inputs Technological breakthroughs Human convergence Convergence processing unit Customer delight Outputs Employee delight Society delight Investor delight Fig. 5 A conceptual design of the convergence black box typical of organizations Page 7 of 14
  • 9. Unraveling the Convergence Processor Evolution of eSupport @ Satyam From a tiny startup of 70 employees at the time of inception in 1988, Satyam grew by leaps and bounds to about 30,000 employees by 2000 and currently it is hovering at about 40,000. This was possible largely due to a convergent force called the Internet and a mega convergence of human intellect in the form of the availability of a large number of human resources qualified and trained on the nuances of Information Technology. At Satyam we were quick to understand and extrapolate the importance of convergence at various levels and stages of our business processes. With a view to enhance efficiencies in business processes, especially with a huge employee base, a system or a platform for virtual delivery of services was envisaged and was named eSupport. The primary objective of eSupport is to bring about convergence in the various business processes and service offerings. Within 4 years of instituting this initiative almost 65% of business processes along with the associated service offerings were brought under the fold of eSupport and were capable of being executed virtually from anywhere. Quality Strategy HR Function Finance Function Learning Resource Mgmt Procurement Page 9 of 14 Fig. 6 Convergence of business processes encompassed by convergence of eSupport
  • 10. While various functions were converging within themselves, eSupport acted as the technological convergence force or the convergence processing unit that synergized the individual convergences. A reference to this is given in an article published in Human Capital magazine2. Creation of the convergent force called eSupport was dependent largely on other convergent forces like the Internet, mobile computing, highly standardized project management methodologies, innovative business process management practices, software technologies with high integration capabilities, etc. In other words eSupport transformed itself into a platform for shared services with HR, Finance and other functions being the prime beneficiaries. eSupport transformed the way business was carried out at Satyam. For example, an employee can at a time apply for leave, order for the procurement of a capital item, approve her subordinate’s travel plan, drop a grievance in the virtual suggestion box, contribute a million dollar idea in the Idea Junction™, appraise the team’s performance and get a real time report of her department’s spending, all at the same time and almost from anywhere. eSupport for a holistic convergence – The GramIT initiative Expanding on the thought put forward in the introductory section of this article, we try to showcase here how eSupport has been used to bring about the much emphasized “rural transformation” in India. Here we define an important term called “economic convergence”. According to a definition in Wikipedia3, economic convergence refers to “the phenomena in which lesser developed countries supposedly catch up to developed countries in terms of economic productivity and growth”. Extending this to the Indian context, broadly the lesser developed countries equate to rural areas and the developed ones to urban areas. A definitive need for transforming rural areas is pronounced in many forums. Governments, organizations, policy makers, NGOs and politicians have realized that real growth for India would mean an inclusive growth where rural areas also benefit from and contribute to the overall growth of economy. Urban areas that were the key beneficiaries of the IT revolution were using up a valuable resource provided by rural areas in the form of people migrating from villages to towns and cities in search of meaningful jobs. Satyam realized that with every job created in the IT sector, the creation of about 4 ancillary jobs was adding to the “brain drain” from rural India. Satyam Computers as one of the pioneers to have the vision of rural transformation and having established a highly convergent 2 Leveraging technology for an integrated human capital management, pp 38-45, Human Capital magazine, Vol.11 No.2, July 2007 3 http://en.wikipedia.org/wiki/Convergence Page 10 of 14
  • 11. technological platform in the form of eSupport, realized that the same platform can be used to bring about rural transformation. This was the onset of a shift in the paradigm that rural India has been a largely ignored stakeholder when it came to the distribution of the wealth created by the Information Technology revolution. With the IT sector heading towards a phenomenal growth, introduction of the Rural BPO (named GramIT) initiative by Satyam in close partnership with Byrraju Foundation marked an inflection point in the rural-urban migration dynamics, as shown in figure 7. In the absence of a path breaking initiative like GramIT, the rural to urban migration would continue unabated with quite a few undesirable results, the primary being a lack of economic convergence and in fact a more dangerous economic divergence with urban areas getting richer and the rural areas getting poorer. That would in turn hamper the scope for other convergences like the social, political, etc. Page 11 of 14
  • 12. Migration from rural to urban areas The undesired effect of a rapid migration leading to undue stress on urban policy making The desired effect of a reverse migration leading to equitable distribution of wealth Introduction of the GramIT initiative – the inflection point Time Fig. 7 GramIT – An inflection point created by the phenomenon of technological convergence In eSupport, Satyam found an excellent way of using technological convergence to bring about the urban-rural economic convergence. This would in turn redefine the way businesses were going to be carried out in India with more and more corporates realizing the need to include rural areas in their scheme of things. Referring to figure 6, a lot of non core activities from various business functions of Satyam were identified during the convergence of those individual functions over a period of time. As each converging function found its way onto the eSupport platform, the non-core activities lent themselves to outsourcing. The expanding convergence of eSupport boosted the scope of outsourcing such activities further. Page 12 of 14
  • 13. As a first step, employees in GramIT centers located in 3 villages were made a part of a “workflow engine” that got converged onto the eSupport platform by being given “role-based accesses” to relevant components of eSupport. GramIT associates in turn would use the Internet to log on to eSupport and carry out activities like invoice processing, travel bookings for employees, handholding new entrants on the joining formalities, etc. Byrraju Foundation (partners for Satyam in the GramIT initiative) has ensured a high level of internet connectivity by subscribing to broadband from a reputed service provider. The last-mile connectivity where laying of physical cables was not possible was achieved by using Wi-Fi technology based on the IEEE 802.11 standards. These convergent devices are being used effectively to impart trainings through video conferences and setting up audio calls apart from being used for connecting to the Internet. Telephone connectivity using this convergence is also being explored for its legal viability. Conclusion Using technological convergence, Satyam has been able to bring about radical changes in the way business processes are carried out. Most importantly convergence has helped Satyam to connect to the society in a much efficient manner. The rural outsourcing standards established by Satyam will go a long way in impacting the notional GDP of rural India through a more equitable distribution of wealth. The end result of using convergence to the best its capability has actually given Satyam Computers much of its stated objectives in terms of its key stakeholders. With rapid proliferation and convergence of technologies, it is imminent that there will be more and more synergies setting in. End of article Page 13 of 14