Saturday, March 24, 2007

India is both a market & supplier (part-1)

(MAGGY McClellan d)

With over 12,500 staff and about$500 million worth of work off shored, British Telecom is trying to make deeper inroads into India. In November 2006, BT applied/or NLD and ILD licenses, and established 4 JV company, BT Telecom India, with Jubilant Enpro. It recently received a letter of intent from DoT for the services. Shelley Singh met up with Maggy McClellan d, president, strategy & business development, BT Global services, to discuss BT’s strategy in India and the future of the fixed1ine phone. Excerpts of the interview:
What opportunity does BT see in India and what is the strategy to tap it?

The BT Global Services strategy is to become a world leader in the digital networked economy. It means that you can digitize anything. That revolution is being facilitated by convergence around IP technology, the communication protocol for many years. If you add the technology convergence around IP to what is happening around the world in terms of globalisation, customers then seek to exploit those benefits around globalisation. And that's where regions in Asia Pacific, particularly India and China contribute.

In the past, customers have placed their processes and run them from close to where they were located. But now, as organisations seek to relocate more of their processes, their business model potentially becomes fragmented. How do you glue your business model back together so that you can talk to your customers, employees, suppliers and others? That's really what we do. We enable globalisation and we enable our customers to take advantages of g1obalisation.

That has been happening for a while the digital networked economy. At what stage are we on this?

I think we are at a very early stage. I read a research paper and it was talking about how prepared MNCs are in terms of exploiting g1oba1isation and actually it was quite scary that we are probably just beginning to start.

What has been BT’s own experience?

This is where India comes in as a supplier. We actually look at it in two ways- India as both a market and a supplier. We have a substantial track record in utilising Indian capabilities. In total we have 12,500 people in India supporting our business. (BT outsourcing to India is to the tune of $500 million.) We are utilising resources in India. Subsequently, resources in the UK are freed up to work on customer billable tasks. So internally, our IT is increasingly being supported out of India. We have re-purposed (retrained and deployed) in excess of 2,500 internal IT resources in the UK into customer-facing activities and this has helped us reduce the number of contractors.

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