A prominent business process outsourcing supplier, East Solutions was located in Bangalore, India. Although wages for Indian IT professionals were about half of those of their counterparts in the United States, the board of directors at East Solutions comprehended a distressing tendency: if wages in India continued to grow at a fast speed, they had soon erode the price advantage of sending work to India and possibly endanger the whole Indian BPO sector.
As a solution, East Solutions repositioned itself by leveraging industry, specialized and the process expertise to develop a partnership along with clients predicated on value in addition to the cost savings. The plan needed East Solutions to reconsider on fewer geographic and sector groups. Additionally, it demanded transforming the role of the organization’s IT managers, who needed additional resources, extensive training and a fresh compensation strategy. On an average year, the IT managers' incomes raised by 4 per cent, so it was expected to be popular, but the new compensation plan was rejected by IT managers and it was left over subsequent to 18 months. The CEO in charge of the brand new strategy for East Solutions was uncertain why it had failed.
PUBLICATION DATE: May 02, 2013 PRODUCT #: W13172-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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