CIO (Chief Information officer) is the stakeholder that controls a major budget in an enterprise in the form of IT (Information technology) – traditionally CIO and his protégés in the form of infrastructure heads, datacenter manager etc. has been a key customer for a lot of service providers, as they are the one’s buying infrastructure services in the form of managed services, staff augmentation and other sourcing models.  In the last few years however the relevance of this stakeholder is on stake, as business users and communities have started shopping and exploring out of the enterprise boundaries to buy  infrastructure in the form of cloud (IAAS , SAAS or PAAS) , the urge primarily to increase speed in procurement, agility that is required today for businesses to build new digital applications and last but the most important , decreased cost in the form of cloud which in most scenarios is in the range of 2x or 3x less as compared to inside. There is no one else to blame in here other than its inability to fulfill the business user demands.

Essentially the 21st Century Enterprise CIO’s need to rise against the demands of the business in the form of adopting a new strategy against the traditional models. Below is a depiction of CIO-NOW and CIO-NXT

CIO-NOW and CIO-NXT

What it means for service providers

Service providers in the context of servicing the next gen CIO’s can’t afford to offer the same solutions or services which they got away with in the last decade. Last decade of service providers has primarily been around labor arbitrage and labor consolidation from low cost delivery zones where automation was considered a complementary feature in the operating model, cloud & automation is considered to be a threat for service providers as it means revenue cannibalization. CIO’s today are looking at service providers who can be partners in making their vision a reality, which includes cloud, operational automation, business process as a service etc. as included in the base solution and not as complementary services – this means service providers to run at extremely low margins and low profitability – which a lot of service providers are finding difficult to maintain, often this flexibility is shown when there is a push from the customer and not pro-actively

At Hexaware, we have taken the mission to empower CIO’s to be CIONxt in the way most of our solution offerings and products are evangelized and then created.

  • For us Automation is not a feature, it’s embedded in our Target Operating Model and is not charged separately to customer, Our RAISE IT platform powers our delivery framework
  • Our Cloud First strategy cloud ensures as a service based deployment viz-a-viz build based deployment architecture, Our Hybrid Cloud framework powers cloud first for enterprises
  • Our continued focus on creating integrated application & infrastructure services PAAS propositions on critical applications like SAP, Oracle, PeopleSoft enables enterprises to develop, build, deploy applications fast
  • Lastly our focus on enabling true business process as a service (BPaaS) with various industry verticals enables true outcome based service delivery model

Author Bio:- Saurabh Vadhera is the Director – Hybrid Cloud Practice of Infrastructure Management Services at Hexaware Technologies. He has more than 12 years of experience in product management for cloud & infrastructure practice.

Posted by Saurabh Vadhera
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March 22nd, 2016

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