{"id":1656,"date":"2010-06-23T16:40:00","date_gmt":"2010-06-23T16:40:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/pramod-bhasin-partiii-062310\/"},"modified":"2010-06-23T16:40:00","modified_gmt":"2010-06-23T16:40:00","slug":"pramod-bhasin-partiii-062310","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/pramod-bhasin-partiii-062310\/","title":{"rendered":"Preaching Process with Pramod, Part III: What if you can build a true back-office-in-the-box, based on the Cloud and ERP platforms, which costs a fraction of what it used to?"},"content":{"rendered":"
\"\"<\/p>\n

Pramod Bhasin, President and CEO of Genpact<\/p>\n<\/div>\n

At long\u00a0last,\u00a0we come to the final part of our interview with Genpact’s President and CEO, Pramod Bhasin.<\/strong>\u00a0 \u00a0<\/p>\n

In Part II, Pramod talked about “integrating IT and BPO and not getting blown up into small pieces<\/a>“, where we discussed the convergence of SaaS, BPO and Cloud Computing.\u00a0 In our final chapter, we discuss the future of process consulting, where labor arbitrage is heading, more about the Cloud (of course),\u00a0and a little piece of advice for today’s budding sourcing masochists, er, I mean executives.<\/p>\n

Phil Fersht (PF):\u00a0 <\/strong>There’s no doubting Genpact as a great business process expertise company, but when we get into the mid-market and these more “leveraged” solutions, there’s clearly a lot more\u00a0need for consultative support.\u00a0 How’s Genpact,\u00a0moving forward,\u00a0going to build out\u00a0its consultative capabilities? Are you going to develop a consultative arm, or are you going to bed\u00a0more consultative\u00a0expertise into your managed services offerings – how are you going to tackle this?<\/span><\/em><\/p>\n

Pramod Bhasin (PB):<\/strong>\u00a0 We have a very strong re-engineering focus, so I try to stay away from calling myself a consultant, because people see us differently, and\u00a0I worry about that being a label that attaches to us, when clients don\u2019t recognize us as that.\u00a0 We have a very strong re-engineering team with all of the black belts and Six Sigma people, and we are adding, in terms of\u00a0domain expertise, as well as relationship managers, We are hiring people with much better consultative skills.\u00a0 That is a clear roadmap that we have put into place.\u00a0 Our relationship managers need to be significantly upgraded in many cases, so they are part of the consulting skills-setting. That is an ongoing process that we have put into place and it will take some time.\u00a0 We probably have300 master black belts at this time and we will go above that.\u00a0 We need to change the DNA in many of our cases, though.\u00a0 We have very strong operating backgrounds, but now we need to find people who can\u00a0provide solutions. The re-engineering folks\u00a0are fantastic, the black belts are fantastic, but I still think that we need to add another layer of skill to our people, particularly\u00a0focused on\u00a0industries, such as\u00a0healthcare, pharma,\u00a0or whatever it may be.<\/p>\n

PF:<\/strong>\u00a0 We’re seeing several providers almost\u00a0using BPO as a loss leading tool to sell consulting and IT services, and this seems to be accelerating.\u00a0 Especially when you get them pushing all their resources into their IT services and not BPO, because of the way they are structured.\u00a0 Do you see these guys waking up and realizing they need to invest more in their BPO capabilities?\u00a0 Where do you see this going?<\/span><\/em><\/p>\n

PB:\u00a0 <\/strong>When I look at the big guys like the Accentures and IBMs of the world, they lead with it separately. \u00a0It is not a loss leader, it is a stand alone business.\u00a0 They do business with it.\u00a0 They use it to get into business and to cross-sell.\u00a0 But, \u00a0I agree with you.\u00a0 I think that people are saying, \u201cLet me get in here and\u00a0gain an entry point. \u00a0Let me show you skills, let me show you experience.\u201d\u00a0 But honestly, it\u2019s working.\u00a0 These guys are doing work pretty well for customers.\u00a0 And to that extent, they are able to\u00a0build up businesses\u00a0and get more customers. Some of that will happen. \u00a0One, because the world is big enough, so I don\u2019t think we always have to worry about competing against each other as the marketplace is big enough for plenty of us.\u00a0<\/p>\n

At the end of the day, Phil, I think that we believe that one thing will be clear: we as organization think about business processes from top to toe. It makes a difference.\u00a0 I, single-handedly, designed smart enterprise processes, the entire framework, from start to finish. \u00a0Why?\u00a0 Because, this is what I do for a living. \u00a0At some point in time, this stuff starts playing itself out. \u00a0You must have a core competency,\u00a0and there are very few companies in the world that have been able to have demonstrated that they can do three or four different things really well. I think that at some point in time that will also come back to us. \u00a0I also think that as Cloud Computing takes over, applications become more generic, and application development becomes more widespread, so that people are building applications to go onto the Cloud that you use and can subscribe to more easily, and\u00a0leverage for your customers. I think that\u00a0this will play out better and better.\u00a0 Because you can\u2019t put business processes on the Cloud, not today anyway. You can\u2019t not\u00a0know Sarbanes Oxley and its rules, and US\u00a0GAAP, unless you\u00a0have been in the finance profession.\u00a0 You can\u2019t say, because you are a technology company supporting these processes, that you really know this.\u00a0 Therefore, that focus will really\u00a0play out to our benefit.<\/p>\n

PF:\u00a0 <\/strong>Isn’t Cloud making ITO more nimble and proctizeable, and creating so many more intersection points for the industry?<\/span>\u00a0 <\/em><\/p>\n

PB:\u00a0 <\/strong>Cloud is making everything more nimble, more productive. It is almost a safety net. \u00a0I don\u2019t know what it is going to do for application work. There are many more points of intersection and we have to be alive to that. I do think that the quality of applications that come out will be\u00a0so good that the guys who do that the best may not be the current IT services companies. I am not so sure the next generation will be born inside a TCS or an Accenture. I don\u2019t know which of those would be the winner, but it\u2019s not going to both, I don\u2019t think.<\/p>\n

The world has changed so dramatically, that all our people need to be much savvier. \u00a0Our focus on business processes is constant because I\u2019ve got a lot of bankers, financial services people, and people like that, who understand processes and operations very well.\u00a0 Equally now, we need people now who understand technology and the convergence at the points that they connect. \u00a0So I think that there is a lot that we will also need to retool. I think that the NetSuites of the world are radically different animals from the IT services companies of the world. That is where the rubber will meet the road in terms of how adaptable\/inflexible are these new applications and how can we wrap what we do around them,\u00a0which\u00a0is more customized.\u00a0 And\u00a0why will IT services also\u00a0be able to do that, if applications really become so prolific?<\/p>\n

PF:\u00a0 <\/strong>It’s not really the products and services that are changing, though, it’s the speed and ability they can be delivered to market…<\/span><\/em><\/p>\n

PB: <\/strong>\u00a0They are saying, \u201cIf you made bank branches more efficient, come on and tell us how. Here is an open deck. If you can make hospitals run better at a base experience, come on in and tell us how. I don\u2019t want to\u00a0buy a big ERP system, for me, I\u2019m not interested. Teach me how to fish. Teach me how to manage my processes better. Don\u2019t just say that you will “come in and fix them”, but\u00a0teach me how to do it.\u201d There is an\u00a0increasing realization around how important managing your processes as a single minded science, can be a huge competitive advantage, or a disadvantage, as the case may be. We have got to spend the next 12 months makes sure that we do this properly. We have our unique\u00a0place and we need to make sure that we stay there and increase our lead and increase our position.\u00a0 Again, that is where our single minded focus will help, but I guess we will find out in 12 months.<\/p>\n

PF:\u00a0 <\/strong>What advice would you give to young executives today on both the practitioner-side and the service provider side?<\/span><\/em><\/p>\n

PB: <\/strong>\u00a0I think more and more, Phil, the thing that we are missing in broad parts, amazingly, is what I call “operating skills”. \u00a0I don\u2019t want to get too\u00a0grundy on this or too detailed, but for a 25 year old, I’m saying, get a\u00a0domain expertise, understand an industry\u00a0whether it is\u00a0pharma, banking, something else. Build\u00a0up your own research, understand how it works, understand the problems it faces. Use the Internet for information, use virtual exchange, use networks of\u00a0experts that we can tap into to solve problems for customers. Really get into the guts of the industry that you work with. \u00a0And understand operations as a science. This is not flying by the seat of your pants. This is not “wake up in the morning and decide what you are going to do today”. It is a science: invest in it, think about it, think about how you can make it more efficient. But behind that, is that domain expertise of saying, \u201cI know this industry really well and I\u00a0undstand\u00a0its ins and outs”. I understand how it works in China and I understand how it works in the US – and this is how I can help.\u00a0 Build that up, it will take years, but that is what the world is built on.<\/p>\n

PF:\u00a0 <\/strong>The speed of this industry is relentless, Pramod – is this the place to be right now?<\/span><\/em><\/p>\n

PB:<\/strong> I am now finding this whole debate on Cloud and what it may do, the flexibility it may provide, and how applications may be developed,\u00a0absolutely fascinating.\u00a0\u00a0 And to that extent, there is no industry moving at a faster speed than this one.\u00a0 It is frightening, and you are somewhat scared.\u00a0 You hope that you get it right.\u00a0 You hope that you don\u2019t make mistakes. \u00a0You don\u2019t know where you can go wrong and you won\u2019t find out for years. \u00a0But at the same time, it is fantastic with the opportunity. \u00a0What if you can build a true back-office-in-the-box based on the Cloud and ERP platforms,\u00a0which costs a fraction of what they used to in the past, and really start doing this across the board.\u00a0 It could be a huge winner.\u00a0 Things like that are fantastic in fact and that is part of the joy of our business.<\/p>\n

PF:<\/strong>\u00a0 Pramod, thanks so much for all your time, this evening – I know our readers will really appreciate your vision for the industry.<\/span><\/em><\/p>\n

Pramod Bhasin (pictured above) is President & CEO, Genpact.\u00a0 Pramod established Genpact (formerly GE Capital International Services) in 1997. Pramod was earlier an Officer of General Electric (GE). His career with GE and RCA spanned 25 years across the US, Europe and Asia. He was most recently the head of GE Capital in India and in Asia, having earlier worked with GE Capital’s Corporate and Finance Group in Stamford, Connecticut, USA.\u00a0 You can read his full bio <\/em>here<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Pramod Bhasin, President and CEO of Genpact At long\u00a0last,\u00a0we come to the final part of our interview with Genpact’s President…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,51,835,61,81,838,88,91],"tags":[630],"organization":[],"ppma_author":[19],"class_list":["post-1656","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-cloud-computing","category-f-a","category-financial-services-sourcing-strategies","category-it-outsourcing-it-services","category-kpo-analytics","category-outsourcing-heros","category-saas","tag-pramod-phasin"],"yoast_head":"\nPreaching Process with Pramod, Part III: What if you can build a true back-office-in-the-box, based on the Cloud and ERP platforms, which costs a fraction of what it used to? - Horses for Sources | No Boundaries<\/title>\n<meta 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