22
OFFSHORINGSUPPLEMENT
IN ASSOCIATION WITH
RETAILERS NET IT
VALUE OFFSHORE
The idea of outsourcing is not a new one. Just as technology has taken on greater
responsibility for automating key business processes, so the proposition of shifting that
responsibility and associated risk to a third party has become more attractive.
A
ny business with a retail-facing
operation has to ½ ght for value on
many fronts more than ever in the
current climate: value for shareholders, staff
and customers and, just as importantly, from its
assets. It’s no wonder then that different, global
IT sourcing options have grown in popularity.
RV Narasimham, Cognizant UK head of
retail agreed: “Outsourcing continues to play a
strategic role in the retail sector.” And he also
predicted: “2009 will also see the outsourcing
of ancillary support areas, such as human
resources (HR), ½ nance and accounting and
related back-of½ ce functions, continue to grow.
Retailers will look for strategic partners who
offer integrated application, infrastructure and
business process outsourcing solutions. They
will also continue to invest in multichannel ef½ ciencies gained from IT outsourcing could and marketing at payment services provider,
retailing, with a renewed focus on operational be augmented with a more global sourcing YESpay said Payment Card Industry (PCI)
cost reduction.” strategy. “We look at global sourcing to deliver standards compliance costs can be reduced by
Paul Mason, chief executive of specialist maximum value. A global delivery network as much as 65% by taking specialist IT services.
retail IT consultancy PMC, which is also this offers advantages around language, time “Outsourcing also eliminates costs and security
supplement’s sponsor said third-party providers differences, the skills sets available and a follow- problems associated with running in-house
were evolving to meet demand. He told Retail the-sun, 24-hour capability,” he said. systems. If a retailer decides to outsource
Technology: “In today’s global market, offshoring Referencing the strategic deal Wipro services they will see a much shorter time to
offers additional cost bene½ ts, as well as those recently signed with UK multiple Morrisons, compliance,” he said.
of speed of delivery and availability of skills. he added: “It’s not just about reducing Richard Goodall, PCMS Group sales and
“Like a lot of outsourcing, the most costs, but also increasing ef½ ciencies and marketing director commented that a common
common objectives of offshoring are about achieving business optimisation at the trend was for retail customers, like Krispy
retailers essentially looking to getting the same time. Effectively, it’s about ensuring Kreme to develop their engagement into a
same things done with their IT but at less cost. IT-based operations run smoothly, where complete outsourced IT package, offering
And because of that, offshoring has to be a we’ve always been strong in areas like software, fully managed services and even
consideration – particularly in this climate, application, infrastructure and business consultancy on implementing appropriate
where moving say, application development or process management. But, above that, it’s hardware and infrastructure elements to
support offshore could make the difference about delivering operational effectiveness, in support future expansion plans.
between a marginal business case for IT areas like loss prevention, store infrastructure Goodall added: “Many retailers out there
investment and a strong one. It pays for management and those related to the shy away from outsourcing, but they are missing
retailers to keep the domain expertise local, customer experience and maintaining a trick as it allows businesses to embrace and
while pushing the development work offshore,” consistency across multiple channels.” exploit the latest IT developments at much
Mason said. At the same time as retailers devolve lower cost. By looking to an IT specialist,
Bhanumurthy B M, Retail, Consumer responsibility for mission-critical systems for retailers can concentrate on their core
Packaged Goods (CPG) and Distribution strategic advantage, so outsourcing can take competencies and increase customer loyalty by
solutions senior vice president for Wipro on a tactical role in areas such as compliance. offering a streamlined and ef½ cient consumer
Technologies agreed that the savings and Rohit Patni, executive vice president of sales experience.”
RETAIL TECHNOLOGY MARCH 2009
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