Synthesis on low cost IT service:
“Economic fluctuations and business uncertainty, accelerated service globalization, and increasing competition of IT services are major factors that could force businesses to move further toward low-cost IT, according to Gartner, Inc.” (From blog 1)
- No one wants to break the price barriers because of the mindset that low price means low margins.
-Higher in the value chain is the a good lever to get more margins and customer stickiness.
- When customers have the choice between faceless options, they pick the cheapest, fastest, more direct option. If you want customers to opt you, it’s tempting to race to the bottom of the price chart.
- innovations and new services would drive revenue growth.
“China does not talk. They have demonstrated by becoming more and more indispensable to global economy order. Talk can take you only that far. Why don’t we learn from China? “ (from blog 3)
-When organization becomes more human(a face to relate to), more remarkable(strive for the best services), faster on its feet, and connect directly with customers, it becomes indispensable.
- Only few organizations are going beyond thinking up new technologies, products and services and, through comprehensive organizational change, are achieving the deep customer focus that is nearly impossible to imitate.
Comments?
-Cheers
Agree, Hard work is definitely something to learn from china as Chinese man can survive and can be seen anywhere around the globe without complaints.
ReplyDeleteSocialist china can implement/enforce things at the blink of an eye, enforcing something in elsewhere is trouble.
Only because of that Apple could setup “Foxconn” with 12hr a day 6 days a week working hours, no social life, always inside cage, and suicide rate 4 times higher thn national numbers on top of that government is encouraging them to build some more of those. Remember This was not possible even to TATA in his own country while building nano.
About pricing fully agree, sometimes they can drive price so.. down that its almost unbeatable e.g. Boston-NY ticket fare for Greyhound in year 2003 was $80 round trip Vs. Fung wah bus $20 round trip, this was beyond imagination as bus type, route, facilities are same and same time etc off course no one would choose 80$ bus.
One more aspect, government is the only religion lot of them believe in, Obviously one who opposes the government is evil, I understand each country has to go through this at least one generation has to work extra hard… and be forward-looking.