Increasing Relevance of New Engagement Models
Business priorities have changed enormously with the advent of downturn. Now there is an increased focus on improving efficiency and getting more from every dollar spent without compromising on quality. Business now demands better predictability of expenditure, better forecast and better control on dollars spent. New Engagement Models (NEM) help achieve these areas and some more by aligning clients’ and vendor’s stakes and interests. More specifically it creates an environment where both client and vendor staffs have direct encouragement to work together towards the common goal of improving efficiency and bringing in predictability.
The new engagement models are essentially about linking the cost of service to values derived from them. They are flexible enough to take various shapes and forms depending on the client’s unique situation and the nature of project. We, at Infosys, have proven repeatedly that technology and IT services can be delivered through these New Engagement Models and its increasing popularity amongst our clients is a testimony to that.
Primary drivers for adopting New Engagement Models:
1. Align IT costs with business volumes or value delivered
2. Better visibility to IT spend
3. Better way to cater to fluctuating business demands
4. Share the project risks with vendor and focus on business instead
5. Reduce operational overheads
6. Optimized staffing
7. Difficulties starting projects with high initial Cap-Ex, etc
The New Engagement Models achieve reduced TCO by helping in some or all of the area’s highlighted above.
Do look out for more on New Engagement Models on Sapphire...!
Author: Satish K. Srivastava, NEM Deal Consultant, Infosys Technologies[satish.kumar@infosys.com]
