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The Quality Journey
Quality, innovation and security will continue to be the dominant themes for the IT and BPO sectors
Ganesh Natarajan
Thursday, October 11, 2007
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The Nasscom Quality summit held in Bangalore threw up inevitable debates about the definition of quality in the changing world of customer expectations, and the apparent paradox between innovation and quality. And, for the many hundreds present there, there was much to ponder over and implement in their organizations.

Kiran Karnik talked about the slow progress of infrastructure improvement in most of the cities which is coming in the way of the progress of the industry, which has to spend more time on managing these issues than on the core business of delivering quality products and services. This is indeed an issue which I realized when it took me more time to get the car out of the car park in Bangalore airport than it took to drive the seventy or so miles from Shanghai city to the Pudong international airport. And, the joke is that when the new airport finally arrives, the absence of proper approach roads may well add a couple of hours more to our plans each waya most unwelcome prospect!

A proper process for continuing innovation was more important for an industry than waiting for one breakthrough innovation

Lakshminarayanan of Cognizant, who is also the current chairman of Nasscom, struck an important chord when he suggested that meeting customer expectations has to be the main definition of good quality. The classical ISO definition of "fitness for purpose" also suggests clear definition of purpose, which has to be derived from what the customer expects.

An interesting CEO panel with two multinationals, Motorola and Phillips Software Center, indulged in an exciting debate on the innovation imperative. The issue that Kiran raised earlier in the day, that too much emphasis on process adherence and specification rigidity could come in the way of true unstructured creativity and innovation came up for much debate what emerged was that a proper process for continuing innovation was more important for an industry than waiting for one breakthrough innovation. As one young entrepreneur returned from Silicon Valley rightly remarked, it would be the availability of a support system that would enable innovation to receive its true rewards in the marketplace.

Quality, innovation, and security will continue to be the dominant themes for both the IT and BPO sectors of this industry and the rising input costs will put additional pressure on organizations to focus on cost of poor quality, eliminate rework, and substantially improve productivity of resources. The capabilities of young graduating engineers and computer applications graduates continues to be a matter of concern and the need to replace or supplement high cost manpower with younger talent will actually put the issue into even sharper focus. There are stirrings of life in the academic environment in our country with IIT Madras taking the lead with innovative ideas to build industry-academia partnerships and widen the base of quality student output. Hitherto localized institutions like Symbiosis are also expanding to an all India presence. The moves by many of the industry software firms to set up finishing schools for talent, some in partnership with key clients who provide the domain expertise, will make graduates ready for immediate deployment.

One remark that came out of the conference, and that the industry may well consider is reducing salaries a few notches in the coming year to cool down employment cost that is reaching unmanageable levels. It is interesting to see the number of solutions that companies are finding to maintain their profitability in an environment where not just costs but also the rupee value against all major currencies has been rising sharply. Whether it is salary reduction or wage freezes or strong utilization and performance focus as many of us have done, this is a difficult phase for the sector as it focuses on maintaining profitability levels. The volume demand continues to be strong and customers are obliging with better rates, so the growth story should continue!

The author is deputy chairman & MD of Zensar Technologies and an Executive Council member of NASSCOM for 2007-09.
He can be reached at ganesh@cybermedia.co.in

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