The continued economic viability of software development in India, whether by independent software vendors (ISVs) or “captive” business units, depends less on pure labor arbitrage and more on delivering time-to-market advantage for clients. The pressure of meeting business expectations demands that software firms harness creative capability wherever they can find it. The increased focus on Business Technology innovation and customer experience over mere cost savings presents both a threat and an opportunity to software configuration and development business units (BUs) in India.This is the key finding from my just-published report.
Forrester developed its software innovation assessment workbook to assess software innovation capability of firms. We provided this tool to members of NASSCOM (the industry association for the IT BPO sector in India), comprising both ISVs and captive development BUs in India, and surveyed them to assess the most important process, organizational, cultural, geographical, and staffing practices that promote software innovation. We also interviewed a dozen selected respondents in greater depth to better understand how innovation capability contributes to business success in India. We found evidence of widespread adoption of the practices correlated with software innovation capability, helping to drive a rapidly changing role for Indian business in the global software supply chain.
Innovators in India that were engaged in software development and configuration received high scores for many of the practices that drive effective innovation. They demonstrated strength in:
Listening to the voice of the customer
Making the development process more iterative and responsive
“Hello, I’m J. P. Gownder, and I serve Infrastructure and Operations professionals!” That’s my new greeting to Forrester’s clients. (I borrowed – aka “stole” – this opening line from my excellent colleague, Laura Ramos, who recently rejoined the Forrester analyst ranks herself).
After eight years in a variety of roles at Forrester, I’ve joined the Infrastructure and Operations (I&O) team as a Vice President and Principal Analyst. I’ll be collaborating with analyst colleagues (please see below) on I&O’s forthcoming Workforce Enablement Playbook. I&O pros face the constant challenge of empowering their companies’ workers with devices and services to make them successful in their jobs… as well as navigating the growing challenge of employees who choose to bring their own technology to work instead.
More specifically, I’ll be researching at least five issues pertinent to I&O pros:
Business leaders have revenue growth first and foremost on their minds. On average, 70% of these business leaders place a high or critical priority on revenue growth, customer acquisition and retention, and addressing rising customer experience expectations for 2013. Our data suggests business leaders are 50% more likely to identify these as critical initiatives than they do margin improvement or reducing operating costs. Growth and customer experience improvement take business priority.
Thirty software product members of NASSCOM, the industry association for the IT BPO sector in India, announced that they would form a group to expand the software ecosystem in India: the Indian Software Product Industry Round Table, or iSPIRT. The key driver behind this development appears to be NASSCOM’s limited focus on software product companies in India. iSPIRT plans to:
Convert ideas into policy proposals to take to government stakeholders
Enable product startups to discuss issues through a dedicated platform (productnation.in)
Create awareness for the adoption of software products within the Indian SMB sector
Work with NASSCOM and other industry associations to provide a platform for product start-ups
The changing business and IT landscapes bring increased demand for IT (or IT services) AND increasing complexity. The slide below (a tweaked version of a genuine Glenn O’Donnell original) paints a picture of increasing complexity and an impending capability gulf; if it isn’t already here.
So can IT organizations cope by increasing their manual ability, usually by employing or buying in more people resource?
Even if they could get suitable resource (availability and recruitment can be issues), could the parent business afford the jump in labor costs as these continue to be a highly-visible element of overall IT service delivery costs? Adding more people doesn’t necessarily fit in with the now oft-quoted mantra of “do (or deliver) more with less.”
A recent webinar with ServiceNow looked at drivers for and opportunities from automation, and how to approach building the business case for service management AND automation. Where Forrester defines automation as:
“Tools that perform functions otherwise done by humans.”
If you want to cut to the chase (i.e. don’t want to read the blog) …
The 2013 New Year has begun with the removal from the global tech market outlook of one risk, that of the US economy going over the fiscal cliff. On New Year's day, the US House of Representatives followed the lead of the US Senate and passed a bill that extends existing tax rates for households with $450,000 or less in income, extends unemployment insurance benefits for 2 million Americans, and renews tax credits for child care, college tuition, and renewable energy production, as well as delaying for two months the automatic spending cuts. While it also allowed Social Security payroll taxes to rise by 2 percentage points — thereby raising the tax burden on poor and middle class people — and did not increase the federal debt ceiling or address entitlement spending, the last-minute compromise does mean that the US tech market no longer has to worry, for now, about big increases in taxes and cuts in spending pushing the US economy into recession.
Forrester cloud computing expert James Staten recently published 10 Cloud Predictions For 2013 with contributions from nine other analysts, including myself. The prediction that is near and dear to my heart is #10: "Developers will awaken to: development isn't all that different in the cloud," That's right, it ain't different. Not much anyway. Sure. It can be single-click-easy to provision infrastructure, spin up an application platform stack, and deploy your code. Cloud is great for developers. And Forrester's cloud developer survey shows that the majority of programming languages, frameworks, and development methodologies used for enterprise application development are also used in the cloud.
Forget Programming Language Charlatans
Forget the vendors and programming language charlatans that want you to think the cloud development is different. You already have the skills and design sensibility to make it work. In some cases, you may have to learn some new APIs just like you have had to for years. As James aptly points out in the post: "What's different isn't the coding but the services orientation and the need to configure the application to provide its own availability and performance. And, frankly this isn't all that new either. Developers had to worry about these aspects with websites since 2000." The best cloud vendors make your life easier, not different.
Jon Hall, of BMC, published an IT asset management (ITAM)-related blog (Let’s work together to fix ITAM’s image problem) in which he shares not only his insights but also what I would call “BMC IP” – what Jon calls an asset management benchmarking worksheet.
Yesterday BMC announced MyIT, which it describes as a “new enterprise software solution that empowers employees to take personal control over the delivery of the IT services and information they need — anytime, anywhere, from any device.” I was demoed it prior to the announcement, and it definitely does provide employees with greater insight into, and control over, the IT services they consume.
My initial reaction?
Once I had got the initial thoughts of “I don’t like the name” — because it seemed “dated,” and because something like this is about more than IT — out of my mind, the jigsaw pieces that make up my opinion started to fall into place:
It is embracing so many of the challenges faced by IT organizations (and their customers), such as increasing customer expectations of IT per se, mobility, personal hardware (corporate and BYOD), customer service and support … and I could go on.
It picks up and runs with, not so much social as many would expect, but the consumer-led penchant for self-service (both for service delivery and support).
It starts to leverage the capabilities of our “gadgets” that are often neglected in the corporate (software) environment.
It makes service catalog more relevant and more accessible — service catalog is really about self-service from the customer interface POV. This could be self-service on steroids.