This Case is about LEADERSHIP
PUBLICATION DATE: May 02, 2013 PRODUCT #: W13172-HCB-ENG
East Solutions was a thriving business progression outsourcing (BPO) supplier located in Bangalore, India. Even though salary for Indian IT professionals was approximately half of those of their equivalent in the United States, the board of directors at the East Solutions familiarized a disturbing trend: if salaries in India sustained to develop at a swift rate, they would speedily wear away the cost advantage of reassigning work to India and significantly threatening the whole Indian BPO industry. As a remedy, East Solutions repositioned itself by leveraging process, business and specialized expertise to form a partnership with customers predicated on value added in addition to cost savings.
This strategy required East Solutions to refocus on fewer geographical and sector groups. Additionally, it demanded transforming the function of the organization’s IT managers, who wanted additional resources, extensive training as well as a fresh settlement strategy.
On an average year, the IT managers’ incomes raised by 4 per cent, so IT managers rejected the brand new settlement strategy, although it was anticipated to be popular and it was left after 18 months. The chief executive officer (CEO) in charge of the brand new strategy for East Solutions was uncertain why it had failed.