Organic Food and Wild Oats Essay

Strong revenue growth Focused growth strategy Wide product portfolioWeak international operations Conservative international policy Increasing rental expenses OpportunitiesThreats Higher demand for organic products Expansion in the UK Growth in private label productsIncreasing competition Labeling and other regulations Slowdown in the US economy StrengthsWeaknesses Strong revenue growth Focused growth strategy Wide product portfolioWeak international operations Conservative international policy Increasing rental expenses OpportunitiesThreats Higher demand for organic products. Expansion in the UK Growth in private label productsIncreasing competition Labeling and other regulations Slowdown in the US economy AI Global Management. 8-26-14. INSTRUCTOR: Who wasn’t here last week? I’m looking at Michelle. So you are the only one that wasn’t here last week? Mrs. Johnson were you here last week. I’m going to pass out the assignments for next week for you. STUDENT: The PowerPoint one. INSTRUCTOR: Whole foods. So what you had to do just to remind everybody you have to take a look at those two companies, and do some research, did find out strategically what really happened? STUDENT: Do you have extra copies? I wasn’t here last week. INSTRUCTOR: I thought I asked who wasn’t here last week? Okay. We have to strategically do some research on both of these companies. You have your case study in front of you very thorough. You have to find out what kind of decision was made that created really an issue for Wild Oats — because initially when this company was put together, they were killing Whole Foods. They were Whole Foods before Whole Foods existed. They were doing wonderful. Growing, expanding in the same type of market. I know both cases, so I know a lot of answers, but all of a sudden some decision was made in their minds relatively strategic, but it turned out to be some pretty bad decisions. How many of you has heard of Wild Oats. All of us have heard of Whole Foods because they are in existence. So you have to run this as if you are the CEO of both take both sides. Compare and contrast and take a look at Wild Oats, and what happened to them. Take a look at the great decision, and then things started going south relatively quickly for them. Yet Whole Foods was the underdog. Now Whole Foods is doing. Well, I guess. Manufacture moving forward.

Foundations of Human Development Essay

Human development is based on biological development, psychological development, and social development, these three aspects of human development interact with each other, because it helps to create an individual’s identity and personality. Our development defines who we are, our interactions and how we view the environment around us. To understand bio-psycho-social dimensions of human development, having culture competency, and comprehending the general systems theory and how these theory systems works are crucial parts of being an effective human service professional Bio-Psycho-Social Dimensions of Human Development Various aspects of human development are combined together to make-up an individual’s growth and development. Human development contains three dimensions which are, biological development, psychological development, . Each theory differs in terms of the weight or importance it assigns to these biological, psychological, or social factors. Nonetheless, they each acknowledge there is an important inter-relationship between nature biology and temperament and nurture the social environment and life experience in the formation of personality experiences in the formation of personality. These aspects of human development or behavior can be developed by an individual’s culture, family, and community. During an individual’s life span, the foundation of human development begins to change, which is a direct result of an individual’s social environment. The diversity of the human population such as; a person’s cultural and ethnic background, can be understood by using the strength perspective. This method can help a human service professional to understand the client’s way of communicating, whether if they are using verbal and non-verbal gestures. As a human service professional develops and have an understanding of the client, they can become more skillful in the way that different cultures. The Bio-Psycho-Social Model of Human Behavior Simone Hoermann, Ph.D., Corinne E. Zupanick, Psy.D. & Mark Dombeck, Ph.D. The Connection between General Systems Theory and Social Order Systems theory  covers a broad range of theoretical and methodological practices across many disciplines. Generally, systems theory is concerned with the structure of complex systems, with a special emphasis about how parts relate to each other and to the whole system. In the social sciences, this usually means understanding how individuals relate to each other and to their society as a whole, and the effect that social pressures have on individuals. Social Work Social workers can hold a variety of different roles. What binds them together is a core concern for improving social conditions for individuals and promoting social justice. Applied Systems Theory Social workers employ systems theory in order to understand the dynamic interrelations between individuals, families, institutions and societies. Generally, they want to identify how a system functions, what aspects of that system have a negative impact on people and understand how they can cause positive change in that system. Individuals and Families On the micro level of social work, workers use systems theory to understand the dynamics, relationships and roles within families, and how these things affect individuals therein. For instance, they want to know that parents and children are taking upon their proper responsibilities, that parents are providing for the safety of their children and that these roles are stable and beneficial to everyone involved. General systems theory at a simple level can be defined as: elements, which are in exchange, and which are bounded. These components constitute a system, which functions or operates within a field or an environment. Elements can be virtually anything you wish to label as such, the exchanges are any relationships that exist between elements, and the boundary is what you can see, hear, feel, or sense that separates from the background or environment. â€Å"General Systems Theory: A Framework for Analysis and Social Change†Robert J. Gregory, Ph.D. School of Psychology by Smart, Barry 04/1999, ISBN 0761955178 Explain the concept of human diversity and cultural competence? One of the most predominant theories is Albert Bandura’s social learning theory, which assumes that. People learn through observing others’ behavior,  attitudes, and outcomes of those behaviors which is called observational learning, that is an indirect form of learning known as vicarious learning and indirect forms of reinforcement which is called vicarious reinforcement .Bandura renamed SLT as social cognitive theory to accommodate the ever increasing importance in his thinking of cognitive factors .SLT has also been enriched by Bandura with his views about the effects of a person’s belief in their own effectiveness in specific situations also known as self –efficacy. According to Bandura, social learning involves a few factors such as, attention where the individual must pay attention to the model and must be able to remember the behavior they have observed so basically retention per se. The observer must be able to replicate the action and must have the motivation to demonstrate what they have learnt .Although motivation to imitate behavior of a model is quite complex. As certain factors have to be taken into consideration, the observer or learner must like the model and identify with the model, as humans tend to imitate people who are like themselves. An observer is more likely to imitate a model that is consistent across situations than someone who behaves in different ways depending on the situation. Also it has been argued by Bandura that people can learn from observing others, not necessarily experiencing the consequences of these actions, themselves. Throughout this essay a detailed account with appropriate reasoning and causes of SLT will be given. What is the importance of equality, diversity and recognizing rights in early year’s services? 1. Legal – having proper policies and procedures in place should prevent successful compensation payouts for proven discrimination. 2. Ethical – it’s morally right to want to provide equal treatment to all stakeholders, especially children and parents/guardians. 3. Social – children can learn to be better citizens in a culturally diverse society, if given the right orientation from the beginning. Why is equality and diversity important in a mental health profession? One could argue it isn’t and that best person should always be chosen regardless as It is mainly a political ideal. However in this case there may in fact be an argument for it as follows. it may be important for those suffering mental issues to feel they are part of a wider community and having a wide selection of diversity etc. (2013, 02). Explain the Social Learning Theory. StudyMode.com. Retrieved 02, 2013, from http://www.studymode.com/essays/Explain-The-Social-Learning-Theory-1420930.html

J.M Coetzee Foe Paper

Then adds, â€Å"But perhaps it is the doing ot Providence that Friday tinds himselt on an island under a lenient master, rather than in Brazil, under the planter's lash, or in Africa, where the forests teem with cannibals† (24). Here, Cruso defends Friday and highlights the unfair ways of the slavery that removed Friday from his homeland. Cruso even calls himself a â€Å"lenient† master, demonstrating that he does care for Friday. This affection corroborates the idea that Cruso and Friday have a father-son relationship, but there is also strong evidence to prove that Cruso sees Friday as a lave.Coetzee portrays this relationship in a multifaceted way, that leads to the speculation of two conclusions; one conclusion being that Friday is like a slave to Cruso, another conclusion is that Friday is like a son to Crusoe. Coetzee creates Friday as a key narrative tool, which Coetzee uses to hammer home a broader motif: a connection between Fridays relationship with Cruso and apartheid. However, little is known about this central character except for his slave identity and speech deficiency.The reader is told that when Friday was a child, he was taken by the lavers, and that they cut off his tongue to â€Å"prevent him from ever telling his story: who he was, where his home lay, how it came about that he was taken† (23). Thus the mutilation of Friday's tongue ensures that his story remains buried within himself. The relationship between Cruso and Friday seems to strongly resemble the relationship between the oppressors and the oppressed in South Africa during apartheid.Friday, silenced by an unknown entity, represents the people that have no opportunity to speak out, but hold the stories that tell the tale of apartheid from a ifferent viewpoint. But these people cannot speak. They, like Friday, are silenced. They are the ones that need to be heard. Struck by the urgency of Friday's silence, Susan admits, â€Å"To tell my story and be silent on F riday's tongue is no better than offering a book for sale with pages in it quietly left empty† (67).Susan believes that her story is useless without input from Friday. This directly correlates to the story of South Africa, and it being useless without the moving stories of the oppressed people. Friday shows some sign of rebellion when Cruso becomes ill with the fever. Here, Friday makes no effort to help Susan take care of Cruso. Fridays motives are unclear here, but it could very well be his remorse finally rearing its ugly head, finding a way to fght the oppression that has chained him all of his life.Nevertheless, immediately after Cruso recovers, Friday is restored to being a servant mindlessly serving a master. In South Africa, the oppressed people were afraid to take a stand against the government, Just like how Friday is tentative to take a stand gainst Cruso. Friday waits until Cruso is week with the flu, and then makes a sly, seemingly accidental attempt at revenge. C oetzee views this inability to act out and stand up as a major detriment to both Friday and the oppressed people of South Africa.Fridays conformity and silence runs in tandem with the oppressed society of South Africa at the time that Coetzee wrote Foe. Cruso represents the oppressor, only teaching Friday what he needs to know, never more. The lack of disclosure and freedom that Friday experiences throughout the novel is characteristic of apartheid. Coetzee uses this relationship as a vessel to deliver the subtle yet powerful comparison of slavery to South Africa.

Research Challenges Essay Example | Topics and Well Written Essays - 250 words

Research Challenges - Essay Example These factors identify my weakness in developing research questions. Data analysis is another key challenge that I would face because of the involved technical approach and tools. Qualitative data analysis’ subjective approach that relies on a researcher’s background knowledge towards rational opinions is particular problem that I would face. I also lack experience in the research method’s application of software for data analysis and this would limit my ability develop my conclusion and recommendations. I would address the challenge of constructing good research questions by researching on strategies for conducting literature reviews and understanding other researchers’ approach to developing problem statements. I would also share my reviewed literature and problem statement with peers and my supervisor for identification and correction of possible mistakes and inconsistencies. I would further review qualitative research articles to understand authors’ approach to subjective data analysis besides consulting with an experienced researcher on the qualitative analysis technique. I would also attend training on software applications for qualitative

Global strategy-individual report Essay Example | Topics and Well Written Essays - 2000 words

Global strategy-individual report - Essay Example Netflix is a popular on demand media which is based in California. The company serves most of the developed nations like the United States, Canada, UK, Ireland, Denmark, Netherlands and a few other European nations. The DVD of this company is sent to the public via mail. The company had been operating in the international market since 1997 and the services are mostly subscription based. The company provides digital distribution service to its viewers. The company has a subscriber base of 26 million world-wide and generates revenue of $1.5 billion. The main theme of the mission of Netflix is to be the best brand in the distribution of media and entertainment The values of the company include the following essential characteristics Intelligence Communication Reliability Judgment Creativity Honesty Passion Productivity Selflessness Part I External Analysis In order to analyse the various strategies taken by the company; it is important to incorporate the various tools that would help in the macroeconomic as well as macroeconomic scanning for the company. 1.1 Macro-Environmental Analysis First of all a PESTEL analysis has been conducted which would provide an idea about the macroeconomic environment of the company. Political: The markets in which the company operates are mostly capitalist free market economy. As a result there is not much governmental intervention in the ways in which the company conducts its business (Barney and Hesterly, 2011, pp. 75-82). There is no barrier to the company in form of government regulation and hence there is no requirement for the company to get into any tie ups with the government for fulfilling the bureaucratic needs. Economic The economic aspect which Netflix faces is slowing down. With the Eurozone crisis and current economic slowdown, the business will face stagnation in their subscription base as compared to other years. Social Since the social aspect of different countries is different hence Netflix has to align their marke ting strategy accordingly as per the countries in which they operate. Technological: The introduction of various new technologies in the global market has given rise to a demand among the consumers for a better experience of movie viewing. The opportunities for the consumers have widening as a result of this. Environmental The environmental forces which Netflix faces are constantly changing. They have to face new competitor and hence has to change their marketing strategy accordingly. Legal Each country has own legal aspect of video streaming. This facility is not available in all countries and also there are restrictions on the contents of the Online Streaming which they have to abide by. 1.2 Industry Analysis Porter’s 5 Forces of Competition According to Michael Porter there are 5 competitive forces that drive the competition in a particular industry. The model can be represented in a better way with the help of the diagram in

The Financial Crisis Essay Example | Topics and Well Written Essays - 1250 words

The Financial Crisis - Essay Example The valuable lessons learned from the crisis will also be discussed herein. Bear Stearns, AIG, Lehmann Brothers, Northern Rock, and Goldman Sachs are some elite names that suffered most because of the economic crisis also known as recession. Lehmann Brothers filed for bankruptcy while AIG and a few other elites just hung in there with the skin of their teeth. This economic crisis is still having repercussions on countries such as Greece and Spain; the whole of Euro Zone is facing a financial turmoil. There are a few other countries that have been not so severely affected by the same. The crisis was triggered off because of unchecked debt; banks kept issuing loans to people who invested heavily in buying assets; several things were taken for granted but when proved otherwise, there was hardly a place in the world to hide. Overvaluation in real estate is perhaps the biggest cause of the current economic crisis. It is better known as the subprime crisis in the US. The likes of Lehmann B rothers and other financial services went bust because they kept issuing credit to the people who thought the property price would increase and they would be easily able to pay off the debt that they are borrowing. It did not turn out that way and there was a short of equity. This is exactly why the financial institutions went bankrupt. The overvaluation is the biggest factor that caused the current economic crisis. Factors such as bad income tax practices have added insult to injury, bad mortgage lending also contributed heavily to this current economic crisis. â€Å"The way to address the root cause is to let house prices drop to where an average house is within the means of an average household.   (Or, alternatively, boost the income of the average household to the point that they can afford an average house.   But that's very hard.   Letting houses prices go on falling, although painful for everyone who owns a house or who has lent money to someone who owns a house, is ve ry easy)† (â€Å"Root Cause of the Financial Crisis†). Role of Monetary Policy Some of the main plausible reasons that caused the recent financial crisis have been identified in the above sections. According to Brunnermeie, cheap mortgage financing to sub-standard borrowers fuelled the boom in the U.S. housing market. Three factors were primarily responsible for the fall of the housing market in the U.S. (which, in essence, constituted a very small segment of the financial market in the country) transforming into a global contagion. First, the â€Å"originate and distribute† banking model, together with the high rate of securitization, led to declining lending standards and made it impossible to re-price the complex structured products. This significantly eroded the confidence level of banks, thereby disrupting the inter-bank markets and credit flow. Second, banks relied heavily on short-term funding sources, hence raising the risk of funding. Finally, the ever-g rowing integration of global financial systems and the increasing interest towards structured financial instruments quickly transmitted the crisis to all the major regions of the world. Gourinchas focused on the role of monetary policy in the recent financial contagion as well as the role played by exogenous influences, particularly the rising external deficits referred to as â€Å"Global Imbalances.† According to Gourinchas, both explanations are not satisfactory as the sole reason behind the crisis. This opinion has

Product and Pricing Strategy Essay Example | Topics and Well Written Essays - 1250 words

Product and Pricing Strategy - Essay Example te a variety of industrial and office-based computer and laptop solutions, along with state-of-the-art services, software collaborations and innovative accessories. EJ’s Innovations and More has a wide customer base for all of its electronic product offerings. This product will make full use of access to the existing customer base as they are all potential users of computers and laptops. Furthermore, they are already familiar with the brand name of EJ’s and have the trust relationship and faith in the product quality and service assurance of the company. With this product, the company is planning to target all computer and laptop users. The potential customers range from 14 year old girls and boys to aged, retired gentlemen and ladies. However, this plan outlines the target audience, described later, for this particular wave of marketing. The strategy of EJ’s Innovations and More is to offer customers a wide range of personal computers and laptops. These will be available in a variety of designs and colors, suiting the different needs and whims of the customer. They will be available in different varieties, starting with the basic computer or laptop, to the more advanced versions with greater memory capacity, RAM, accessories and additional features. The most important aspect of these computers will be that with registration, they will be ready for immediate use. They will work easily on all software platforms from other companies with minimal installation. To assist the customer, customer support teams will be available 6 days a week and helpline will be open 24/7 to answer any product related questions. The computers and laptops offered by the company will all carry the same brand promise of EJ’s which is one of complete innovation and convenience, designed to make the life of the customer easier and happier. The specific target audience of this plan includes the people aged between 40 to 70 years, especially those with some sort of impairments or

Global study 300 Case Example | Topics and Well Written Essays - 250 words

Global 300 - Case Study Example obalization, which has led to opening up of economies to global competition, giving room to ideas, goods, capital and people to interact and move freely between countries. Free market, justice to all people, and personal freedom are elements of neoliberalism. It relates to Washington consensus in the sense that it encourages economic policies that aimed to reform and repair the damaged economies of third world countries. He thinks so because via education and government accountability poverty can be eliminated but the movie End of Poverty disagrees because corruption and poor policies to eradicate poverty does not exists. In sum, government is not committed to eliminating poverty. Globalization has destabilized the economies of poor states and uncovered people to harmful competition. Their concern is rational and understandable especially since the gap between the poor and the rich has become more prevalent in recent ages. Poverty can be deliberated in various ways, for instance, relative to a nation’s individual average consumption level or in terms of well being of citizens It is a believe that nations that they have the responsibility to protect its population and resources. It is controversial because states have failed to protect their population which have resulted in murder and massive

Recovering from global warming Essay Example | Topics and Well Written Essays - 2250 words

Recovering from global warming - Essay Example This has caused the problem of global warming that has become an issue of major concern internationally. The consequences of global warming have adversely affected human life. It has caused immense changes in rainfall and temperature resulting in more water and food stress. The ice sheets of West Antarctic as well as Greenland have melted permanently. Oceans have become acidified and the global temperature circulation has been affected. Desertification is extending to regions that were previously habitable (Robertson 2006 pp.112-117). Pollution is a very serious problem for the environment, but there are many green and healthy ways to reduce CO2 emissions and create a more sustainable world to live in. Trees play a significant role in reducing carbon dioxide from the atmosphere while they use it in photosynthesis (carbon sequestration). In the process of photosynthesis, carbon dioxide is absorbed by the leaves from the atmosphere and converted in to molecules of carbon which combine with water to produce energy for growth. Oxygen molecules are released in to the environment. This continuous process is significant in ensuring that the free carbon dioxide released in to the atmosphere through anthropogenic processes does not have adverse impacts on the Ozone layer. It is one of the simplest methods of reducing the carbon dioxide in the environment. Research indicates that the tons of carbon dioxide from anthropogenic sources amount to more than 6 billion per year. It has also been established that the current tree biomass is capable of absorbing more than 30 percent of this carbon dioxide (Josphat 2003 pp. 46-51). Earthworks, (1990) established that â€Å"A single tree can clear ou t green house gases produced by a car over a distance of 11,000 kilometers in one year†. This is an indication of how planting more trees can be beneficial in reducing

QRisk 2 - to use or not to use - that is the question Essay

QRisk 2 - to use or not to use - that is the question - Essay Example 2008)). Previously few other criterias like Framingham’s criteria to assess cardiovascular risk factors and QRISK1 are used so this new model is a point of discussion that either it has some significance in the developing era or not.(Brindle, 2011). This requires collection of data from several studies which have been conducted in the recent past to compare between these models.(Hippisley-Cox, Coupland, et all. 2008). Generally, they all pointed out that using QRISk 2 is not have similar effectiveness like the traditional previous criteria as the risk factors described in this score are not single most important risk factors for development of cardiovascular diseases but they have utmost importance.(Vogel, Bernitez, 2000). RATIONALE: Cardiovascular risk factors predict 5-10 year risk of development of cardiovascular disease as well as resulting mortality and morbidity from that. (Koenig, 2003). There are few cardiac risk factors which have been defined previously like increase age, male gender, smoking status, presence of Hypertension, Hyperlipidemias, Type 2 diabetes etc. presence of all or one of these factors leads to increase tendency towards development of cardiovascular disease.(Mola, Lloyd, 2002). There are few other factors which are recently developed. These include ethnicity of the patient, presence of rheumatoid arthritis, atrial fibrillation, chronic kidney disease and treated hypertension. Data shows that they also influence future prediction of cardiovascular morbidity and mortality. (Collins, Altman, 2010). CONS OF QRISK2: By using QRISK 2, we can find out some high risk persons who are at risk of developing disease(Hayman, Kamau, 2009) It also provides benefit by treating the patients who are labeled as low risk by traditional framinghom’s criteria.(Mayor, 2010) Advantage of this system is that traditionally larger numbers of data can be included in the database. (Hippisley, Coupland, 2008) It is also the first study which uses so many factors as a risk of cardiovascular disease.(Parkes, 2010) Inclusion of ethnicity is also found to be important by some people as few diseases are more popular in a specific population (Giampaoli, Palmieri, 2004) Stroke is more common in older ones and poor countries. (Scott, 2010). QRISK system also addresses the problem of different effects on risk factors of increasing age(Vanuzzu, Pilotto, 2008) so they have introduced interaction variables between age and other risk factors to overcome this problem. (Cooney, Dudina, Graham,2009) PROS OF QRISK2: It results in superior age estimation in older age group. (Weirzbicki, 2009) QRISK over predicted the patients in only 0.4% of cases but it under predicted in 12% of cases.(Dalton, Soljak, 2011). It measures blood pressure and BMI accurately but cholesterol measurement is poor. A study shows that it measured cholesterol of only 30% people who are at risk of developing disease.(Thomas, 2011). Also there is no validation of events and everything is based on computer records. Patients are included at different times in this system. Most of the patients do not follow ten years data. This score is not validated in population other than British.(Chia, 2011). It also has another disadvantage. As it is using age as a factor for cardiovascular disease risk, it is unable to identify those who are at risk but younger. As compare to some other trials

Capitalism Essay Example | Topics and Well Written Essays - 500 words - 3

Capitalism - Essay Example The present day Dubai is capitalist and this is because the profit motive controls all undertakings and the royal family enjoys most of the profits acquired from the production of various commodities. For example, the Dubai royal family controls most of the oil reserves in the country and they fund other sectors of the economy in order to gain from different areas and build up wealth. In my work environment, which is the court, capitalism exists and an example of this is that there are minorities who control the legal structures and they can get away with crimes through unethical practices. There are various aspects of welfare state in the UAE and these include the government providing free education and access to funds for development purposes. The country also engages in helping its neighbors all in the effort of providing benefits to people all over the world. The UAE was not capitalist 100 years ago, and this can be explained by the fact that people could help each other to survive and even at times for free. People traded with various items such as fish, and this was not for the profit motive, but to work together in order to survive. However, this has now changed and everything is done with the motive of earning a profit. I believe that despite capitalism being just in that one gets what they work for, it is evil and people should help each other to survive and not be greedy in order to accrue wealth as others suffer from poverty. Everyone has a right to survive and exploiting others to amass more wealth as others suffer in poverty is

Market Failures & Professional Dilemmas Essay Example for Free

Market Failures Professional Dilemmas Essay Based on the Edwards article which market failures or imperfections are present in the â€Å"Lobster Thermidor† case? And can you identify any in your professional life? Based on the Halbert Ingulli reading (â€Å"Making An Ethical Decision†) apply the methods of ethical reasoning to these situations. Two market failures can be observed in the â€Å"Lobster Thermidor† case, a tragedy of public goods and informational deficiencies. First of all, the divers have to dive deeper, to the limit of diving safety, since overfishing has made the lobsters rare and to catch the lobster less than 30 meter down is getting harder and harder. This is the very typical case of public goods, where the public resources such as the lobsters under the sea are usually over-consumed by the individuals who try to maximize one’s interest. Deforestation, which has destroyed the entire farming industry and forced Miskitos out to entirely rely on diving, was another tragedy caused by the overconsumption of the public goods, forest. Secondly, both the divers and the end-consumers make wrong, irrational decisions cause of the lack of information. Divers, who do not recognize the true market price of lobsters as well as the true price of potential risks, bargain away their goods with little danger pay allowances. Also, the consumers, who have no idea about the severe fishing environment in Honduras, are reluctant to pay more than current prices, formed lower than it should be at the cost of human lives. The company where I worked prior to school has always tried its best to remove any little elements of competition in its area. If there were a small but promising start-up with innovative idea and technology, that company used every means –most were legal or grey while a few were nearly illegal- to get rid of the potential threats. For instance, it quickly imitates the new technology of the start-up, take out the similar patent, scout the core human resources, block off the critical suppliers and seed funds, cut the price of competitive goods to the minimum level, and do hostile MA. This case also showed the issues related to public goods and informational deficiencies. The company attempted to minimize the production/dissemination of new technologies, which can be considered as public goods, and the newborn ventures could not protect themselves cause of the limited access to the information. From the utilitarianism perspective, these are reasonable and desirable attempts because the larger number of stakeholders can be satisfied. My company had more than 20,000 employees while the average start-ups have no more than 100 employees. Considering the families of employees, shareholders, subcontractors, and the related industries, maximizing profit of my company could bring higher utilities than the success of small ventures. Even in long-term, my company’s decision would not be wrong since the possibility of success of start-ups are extremely low compared to the global conglomerates. My company, which has the global network, huge infrastructure, and accumulated knowhow can exploit the new technology better and thereby encourage the social progress. In contrast, from the deontological view, it was absolutely wrong. My company not only hindered the fair competition but also committed illegal acts. Whether the result proved positive or negative is not important for the deontologists. Finally, it was not proper when applying the concept of virtue ethics since the motives of the actions of the company was not correct and contributes nearly nothing to the harmonious relationship with the community it belonged.

Communicative Language Teaching And Communicative Competence

Communicative Language Teaching And Communicative Competence Hymes pointed out that those rules are the knowledge of the rules of socio-cultural communication with others; how, what, where, when and in what aspect language is spoken in a proposed society. Therefore, according to Chomsky it can be described as the knowledge of the grammatical and speech rules of a language and the ability to use these rules in the away that does not deviate from the native-speakers style to use the language. Hymes, however declared that this definition is not appropriate and, instead, he suggested that effective performance is not the result of linguistic competence given by Chomsky, but by knowledge of the rules of the socio-cultural communication too, and hence communicative competence is actually what results in appropriate performance. Hymes theory took the attention of many syllabus designers to adopt on communicative competence. For instance, Canale and Swain, suggested models for classroom teaching using Hymes views. Van Ek and Alexander (1975), and Wilkins (1976) presented the Notional Syllabus. This syllabus is distinguished by its attention to functions and notions as applications of Hymes views. Curriculum writers like Widdowson (1978,1979), Munby (1978), Breen and Candlin (1980), Littlewood (1981), Brumfit and Johnson (1983), Yalden (1983) Johnson, applied Hymes views and devised communicative teaching materials based on these views (Richards and Rodgers, 2001). The CLT has been widespread based on Hymes views occurred in the 1970s. It has established as an approach in the field of language teaching, in which the four language skills (reading, listening, writing and speaking) are correlated appropriately, comprehensively and communicatively. This way of teaching defers it from the other teaching methods as for it engages the teachers and students, along with and the materials working as one component towards the use of language as one unit. Lindsay (2006: 21) points out that it could be said that the communicative method is a result of linguists satisfactory with the traditional methods as these methods put little, if any, emphasis on the ability to communicate or interact. However, Richards Rogers (1986: 50) pointed out that Communicative Language Teaching is best considered as an approach rather than a method. Also, Rogers (2001: 9- 10) made a distinction between methods and approaches: methods are teaching systems with prescribed techniques and practices, but approaches deal with language teaching philosophies that can be implemented in the classroom in different styles. Widdowson (1990: 159) explained that the communicative approach concentrates on getting learners to do things with language, to express concepts and to carry out communicative acts of various kinds. The content of a language course is now defined not in terms of forms, words and sentence patterns, but in terms of concepts, or notions, which such forms are used to express, and the communicative functions which they are used to perform. Richards Rogers (1986: 49) stated that the theory of teaching underlying the Communicative Approach is holistic rather than behaviouristic. It starts from a theory of language as communication, which implies knowledge of the grammatical system as well as performance. Also, Aqel (2006) pointed out that the aim of this Communicative approach is to prepare students for meaningful communication, where errors are tolerated. The amount of exercises and activities involved with a communicative approach is not restricted and connected with the constructivist theory of learning. George (1999: 16-17) pointed out that Constructivism is basically a theory based on observation and scientific study about how people learn. It says that people construct their own understanding and knowledge of the world, through experiencing things and reflecting on those experiences. This means that the students effectively create their own subjective representations of objective reality. In addition, the teacher in communicative approach is not the centre of all classroom activities as the focus is mainly directed towards the learners (p. 22). Lantolf (2000) called the communicative methodology and constructivist theory of learning activity theories. It means that teachers and students have to interact and reconstruct socially with ideas and knowledge. (pp. 12-13). 2.2 Communicative Language Teaching (CLT) Communicative Competence (CC) The difference between CLT and traditional teaching methods, like the grammar translation method (GTM) and the audio- lingual method (ALM), is that the CLT approach mainly focuses in teaching and learning a language. The basic goals of teaching using the CLT approach is not rather its structure but communicative function (Littlewood, 1981; 1998). That is, the main goal of teaching and learning a language is to improve students communicative competence (Li, 1998). Thus, theoretically, it is useful to understand and introduce what is communicative competence, before understanding CLT. 2.2.1 Communicative Competence: In the 1970s, many researchers distinguished between linguistic and communicative competence (Hymes, 1967; Paulston, 1974) to point out the difference between the knowledge of the language forms and knowledge that help learners communicate functionally and interactionally. According to Savignon (1997: 272) Communicative Competence is: functional language proficiency; the expression, interpretation, and negotiation of meaning involving interaction between two or more persons belonging to the same (or different) speech community. In addition, Savignon divided communicative competence as having the following elements; 1) communicative competence is a dynamic, but not a static concept. It depends on the negotiation of meaning between two or more learners who share to some extent the same symbolic system; 2) communicative competence involved in both written and spoken language, as well as to many other symbolic systems; 3) communicative competence is context specific. Communication takes place in an infinite variety of situations, and success in a particular role depends on ones knowledge of the context; 4) competence and performance defers theoretically. Competence is defined as a presumed underlying ability whereas performance as the overt manifestation of that ability. Competence is what one knows. Performance is what one does and 5) communicative competence is relative, not absolute, and depends on the cooperation of all the participants (p. 14-15). Savignon has worked on communicative competence, and her work is known and considered in the field. However, Canale and Swain (1980) presented the four- area framework of knowledge and skill regarding communicative competence. They declared that communicative competence involves grammatical competence, sociolinguistic competence, discourse competence, and strategic competence. Then Canale (1983: 7) pointed that grammatical competence focuses directly on the knowledge and skill required to understand and express accurately the literal meaning of utterances. Sociolinguistic competence refers to the learners ability to use the language appropriately in social contexts. Therefore sociolinguistic competence shows the learners ability to go beyond the literal meaning of utterances and recognize what is the intent of such utterances in particular social situations. In addition, Canale (1983: 8) says that sociolinguistic competence is important in explaining utterances for their social meaning. It is important to acknowledge that communicative competence is a major aspect of CLT, and teachers are said to understand its many aspects. 2.2.2 Communicative Language Teaching: Researchers and linguistics have focused on the shift from the language to communication. Brumfit (1988) referred to communication as a task to be performed,

Effect of Globalization on IT Service Providers in Europe

Effect of Globalization on IT Service Providers in Europe Opportunities and challenges presented by Globalization: IT Service providers in Continental Europe EXECUTIVE SUMMARY Enterprises within Europe are increasingly trying to seek the advantages of global sourcing. Unlike enterprises in U.S. or U.K., continental European countries have historically been reluctant to engage with offshore providers. The reasons were far stretched, ranging from political sensitivity, labor laws, cultural compatibility and language requirements. Globalization, however, is creating new avenues that European companies can not ignore. A recent report by Gartner shows the potential IT Offshoring market to be in the range of about $ 200 to 240 Billion. The market is expected to register double digit growth for years to come. The current offshore spending by firms amounts to just $17 Billion worldwide. This clearly shows a big gap, a huge market potential which is yet to be exploited. The huge demand has also led to emergence and growth of several new players in the field of IT Outsourcing/ Offshoring services, this is leading to ever increasing competition in the marketplace. In order to cope up with this increased competition and to provide better services, these service providers are increasingly adopting Global delivery models. By selecting an advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In Europe, nearshore models still dominate the market. But these models are continuously being updated, with more and more providers setting up Offshore Development Centers in locations like India. A framework for building an optimal combination of onsite, nearshore, and offshore delivery capabilities is provided by Capgeminis Rightshore ® model. A recent Gartner report has suggested that, the current US economic slowdown is expected to lead buyers of IT services to consider increasing the percentage of their labor in offshore locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers. INTRODUCTION: EUROPEAN IT MARKET The European market remains a highly complex and competitive market with a large number of providers. Mergers and acquisitions will continue but will be balanced by new market entrants Outsourcing adoption in Europe is increasing for both infrastructure and applications; the widespread lack of well defined sourcing strategies among buyers and the realities of ever-changing business requirements will generate frequent deal negotiations and renegotiations Global delivery and utility services are irreversible trends evolving at different speeds among various European countries. The European multi country, multi language/culture composition increases the evolutionary complexity of these trends Selective outsourcing with multiple providers will remain the preferred model of engagement for European buyers. Governance and end-to-end integration/management of different providers/solutions are the most challenging aspects of it ITO market maturity varies: UK is the most matured IT market in Europe. The other European markets are maturing at different speeds. An acceleration in ITO adoption is now apparent in countries such as France and Germany A focus on achieving service delivery excellence and the best value/quality balance is increasingly driving European organizations (especially those beyond the first generation deal) to consider selecting multiple providers for an outsourcing contract. For example, in the IT Telecom sector, the most common division is by service tower, with customers opting to choose different providers for their network, desktop, data center and application competencies. At the moment, however, providers tend to join forces in an opportunistic manner, as a response to customer demands. This is the cause behind the ever-changing composition of the providers teams; as a consequence, consolidating best practices to manage IT service spin offs between different providers in an effort to guarantee end-to-end service delivery excellence remains challenging. As the number of providers engaged is set to increase, this challenge is likely to intensify. It will also be driven by other market characteristics, which include a persistent tactical use of outsourcing by European customers, insufficient process maturity, and lack of clarity in the definition of roles and responsibilities. As we look at global delivery, it is fair to say that there are two major misconceptions that still exist among the European market: 1) Global delivery is often considered as a synonym of offshore, and 2) IT services delivered through global delivery capabilities are application services. In reality, in the past few years, the European market has witnessed a considerable expansion in terms of both geographical location options (in areas such as Eastern Europe or North Africa, for example) and portfolio of services offered (now including, for example, help desk and remote infrastructure management services). Global delivery and offshore, however, remain the key deal characteristics that need to be treated with extra care in many European geographies, and as a consequence, many deals remain confidential. Traditional providers investment will be directed toward enhancing existing capabilities (especially near shore in Eastern Europe) and ensuring process solidity. Offshore providers inv estment on the other side will be centered on creating front-end capabilities with a focus on specific country and vertical-oriented competencies. While these global delivery models mature and are refined/ optimized, customers satisfaction will remain a challenge. KEY TRENDS SHAPING IT OUTSOURCING MARKET IN EUROPE TRENDS CHARACTERISTICS Selective Outsourcing With Multiple Providers * Embraced by majority of European companies * Objectives: IT excellence and cost optimization * Integration and governance challenges Global Sourcing and Global Delivery Models * Near shore proximity key for European market * Expanding portfolio of outsourcing services * Key area of investment for providers and buyers IT Utility * Industrialization is accelerating * Convergence of IT utility and global delivery * Key drivers: flexibility, efficiency, optimized cost, speed Aggressive ESP Competitive Landscape * National, global and offshore ESPs converging * Mergers, acquisitions and divestitures to continue * Providers are implementing new business models * New offshore market entrants Application Outsourcing to Grow * Drivers: portfolio rationalization, legacy modernization * Global delivery will gain acceptance * Multitude of providers competing Source: Gartner The U.K., Netherlands, Sweden and Finland are examples of countries more attracted by the global delivery model. However, in the meantime, the impact of global competition has started to drive countries such as Germany and France to consider global delivery as a viable option to be considered strategically, rather than when all other options have been exhausted. Despite a slower gestation and the fact that a complete infrastructure utility (IU) offering has not yet been developed, the IU model is continuing to attract new offerings and/or new providers. In the meantime, European customers, attracted by the idea of being able to access IT services in a flexible way, remain cautious as they expect further clarity on issues such as unit definition, pricing mechanisms, integration to existing systems, and security portability In the near future, we expect that the IU for ERP platforms will remain the most common battleground for providers; other providers are expected to instead mask their IU offering behind a package that includes product and support services. The concept of software as a service (SaaS) or ready-to-use applications will continue to generate lot of interest. Expectations for a solid delivery and specific functionalities will drive providers to specialize their offerings. Finally, gains in terms of process efficiency will be seen as crucial to deliver enhanced competitiveness, flexibility, agility and cost optimization. GLOBAL TRENDS: IT OUTSOURCING and OFFSHORING MARKET IT Outsourcing market is showing an average growth of 9% p.a. IT Outsourcing Worldwide forecast (Million $) Source : Gartner Dataquest In terms of volume, North America continues to be the leader in IT outsourcing. Latin America and APAC have shown good growth Europe has fast emerged as a big IT outsourcer Global offshore spending is continuing to register double digit growth. Worldwide Offshore IT Services Spending by Importing Region (million $) Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast In terms of volume, the North America continues to be the leader in IT offshoring. Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy Global offshore spending is projected to increase to 29400 $ Million in 2010 The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited. IT and BPO market Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008 Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *) According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency Different Sourcing Models In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy Captive Offshoring: Sourcing from an affiliated firm located abroad Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad REGIONAL DYNAMICS ACROSS EUROPE The following section will describe the regional ITO trends and local dynamics across different European locations. UK and IRELAND 2005: â‚ ¬17.2B 2010: â‚ ¬25.7B 2005-2010 CAGR: 8.3% ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP Key trends: †¢ Most mature market in Europe with wider number of mega deals (public sector) †¢ Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared services †¢ More selective sourcing and global delivery †¢ Areas such as Scotland and Ireland feeling pressure of Indian and Eastern European operations †¢ Wide potential for application engagements to mature from project engagements into outsourcing based engagements Despite being the largest and most mature market in Europe, the U.K. remains also one of the fast-growing ones. Here organizations seem to have moved away from the equation of outsourcing = cost reduction. While cost remains a key component, other objectives seem more important, such as improving IT service delivery, gaining specific skills, especially for application outsourcing deals, and becoming a more flexible organization. (See Appendix F) Inhibitions remain related to a general lack of trust in the ability to join forces with the providers to manage security, control over IT operations and IP. The U.K. market is characterized by a large number of mega deals, especially in the public sector. These outsourcing deals often include initiatives that have classically been carried out through project engagements and now are increasingly being performed in the initial phases of an IT outsourcing or BPO deal. This change reflects the growing desire of customers for a tighter link between investment and results (for which the outsourcer is responsible during the duration of the contract) and the important shift in role for the internal IT department. Rather than focusing on assembling and managing all of the necessary skills and capabilities to meet a certain objective, IT organizations, in this scenario, are responsible for coordinating the objectives of the Business Unit and the internal and external providers engaged to support them. Often infrastructure outsourcing is at the core of these complex relationships. At the same time, the U.K. is also the largest market in terms of adoption of IT services delivered through a network of global delivery capabilities (which include nearshore and offshore locations). From this point of view, areas that used to be considered as low cost for outsourcing operations (Scotland and Ireland) continue to feel the pressure of Indian and Eastern European capabilities. Finally, organizations that have engaged for a long period of time in project-based application deals are planning to elevate them into more-strategic, long-term application management engagements. This will allow them to gain a longer-term commitment from the service provider and the relevant support to re-evaluate their application portfolio. NORDIC COUNTRIES 2005: â‚ ¬5.2B 2010: â‚ ¬7.6B 2005-2010 CAGR: 8.2% Drivers: Cost reduction, access to technical skills (especially in application outsourcing engagements), support in global operations, focus on core business Inhibitors: Loss of control, security/privacy, lack of trust Key trends: †¢ Nordic market generally mature. Many large deals are in second or third generation. Some likely to evolve toward multi sourcing †¢ Large corporations see global delivery as a viable option. SMBs see nearshore option more favorably †¢ Consolidation drives specialization by geography, vertical market or horizontal service †¢ Increased competition between regional and global ESPs †¢ Cultural affinity seen as crucial to guarantee deal success/longevity Each of the four country markets that compose the Nordic region has its own distinct characteristics and buying behaviors in IT services. However, if we look at the forecast growth between 2005 and 2010, we expect the region to grow at a similar speed (despite size differences) of about 8%. Denmark: Sometimes seen as the entry point for the global service providers to the Nordics. Expected growth is from â‚ ¬856 million in 2005 to â‚ ¬1.2 billion in 2010 (CAGR of 7.8%). Finland: Unique in the Nordic region as buyers focus much more on business value of an outsourcing deal rather than just cost. Expected growth is from â‚ ¬1 billion in 2005 to â‚ ¬1.45 billion in 2010 (CAGR of 7.5%) Norway: Remains the smallest outsourcing market in the region. Expected growth is from â‚ ¬1.2 billion in 2005 to â‚ ¬1.8 billion in 2010 (CAGR of 8.1%) Sweden: Largest market and very cost-competitive. Probably the Nordic country targeted most by offshore providers currently. Expected growth is from â‚ ¬2 billion in 2005 to â‚ ¬3.1 billion in 2010 (CGR of 8.7%) From a client perspective, the Nordic region market is generally mature, with many large corporations in second- or third-generation outsourcing deals. Global delivery is widely accepted as an option. Competition between regional providers and global providers is increasing; this was initiated by the inability of local providers to support the operations of key Nordic organizations around the globe. However, recent acquisitions and divestitures by both local and international providers prove that the market has still got room for further maturation and consolidation. NETHERLANDS 2005: â‚ ¬3.4B 2010:â‚ ¬5B 2005-2010 CAGR: 8% Drivers: Cost reduction above all, agility/flexibility, improving service to end users Inhibitors: Loss of IP and control, security/privacy, high cost Key trends: Market shows mixed signs of maturity (organizations accept global delivery) and immaturity (sourcing strategy is often neglected) Market split between large global corporations and wide portion of SMBs Increased competition for local/national champions Application under scrutiny for externalization The market in the Netherlands is one of the more modern IT outsourcing environments in Europe, closely following the U.K. in many trends. A focus on global delivery and the expansion of many deals into the application or business process layer points to more market maturity. This maturity is driven primarily by the relatively high proportion of large (and often multinational) enterprises headquartered in the Netherlands and competing in major markets such as financial services. But there are some contradictory characteristics that point to an immature market (cost cutting is by far the major driver, and sourcing strategy is often neglected); this, as a consequence, often inhibits the potential success of outsourcing initiatives. The market remains very challenging and competitive. This is due to the high presence of small and midsize businesses (SMBs), which traditionally tend to consider outsourcing as a threat more than an opportunity and require a higher level of customization, which tests the profitability model of service providers. Competition remains strong for national champions as global and offshore providers continue to target opportunities in the country. Increasingly, application outsourcing opportunities are emerging as organizations look at portfolio rationalization, legacy system transformation, and custom application software development initiatives and accessing application utility solutions. FRANCE 2005: â‚ ¬6.6B 2010: â‚ ¬10B CAGR: 8.4 % Drivers: Cost reduction, refocus internal IT, speed/flexibility Inhibitors: Loss of control, lack of trust, security/privacy Key trends: Beyond its reliance on staff augmentation, Frances outsourcing market shows opportunities in all facets of outsourcing: infrastructure, applications and BPO Selective outsourcing has gained acceptance, and organizations show cautious interest in global service delivery National champions remain under competitive pressure from the global and multinational providers France has long been considered behind in the outsourcing trend. Now, however, the French outsourcing market is consolidating and growing, while the long-standing reliance on staff augmentation is losing strength. The major driver that will support a CAGR of over 8% between 2005 and 2010 is the need for French organizations to reduce cost and enhance their level of competitiveness in the market by refocusing their internal IT skills on more-strategic tasks while gaining flexibility. On the other side, it is interesting to see that challenges related to HR management have lost strength, compared with the traditional fears related to loss of control and security and lack of trust. Large organizations have recently moved toward the adoption of selective outsourcing with multiple providers. This model has gained acceptance as organizations look at maximizing the balance between cost and service delivery excellence. There is also a new focus on application outsourcing. This trend is important not only because it signals an acceleration in the growth of outsourcing in France overall, but because it signals a major change in the way French organizations use different kinds of IT services. Increase in application outsourcing deals also touches on one of the major taboos of IT services in France: offshore outsourcing. As such, although offshore remains a word to be used with extra care in the French market, many organizations would consider that access to global delivery models is an appealing part of outsourcing, especially when delivered by traditional players. In this case, North Africa (Morocco, for example) is emerging as a viable near shore location. National champions, the providers that focus on a specific region or country, remain under competitive pressure from the global and multinational providers. GERMANY 2005: â‚ ¬10.6B 2010: â‚ ¬16B 2005-2010 CAGR: 8.6% Drivers: Cost reduction above all, focus on core business, refocus internal IT Inhibitors: Security/privacy, lack of trust, loss of control Key trends: Global economic pressures have forced many organizations to look at outsourcing as a viable option In the short term, objectives such as flexibility and agility are secondary Pressure to divest internal IT departments or internal shared service organizations remains strong Global delivery gaining ground especially toward Eastern Europe Intensifying competition between strong German players and global ones Legacy system modernization will remain a key objective The German market is â€Å"federated† in several ways: government responsibilities, industrial centers, buying centers within enterprises, and management structures in place. All of this makes doing business in Germany (and negotiating significant IT service deals) unique. Decision processes tend to be longer, require more consensus building and often entail more travel than in other parts of Europe. For a long time, the majority of German organizations have considered IT operations as a key component to maintain or enhance their level of competitiveness in the market. This has, as a consequence, slowed the outsourcing growth. In the past two years, however, economic pressures have forced many organizations to look at outsourcing tactically to cut cost. While in the short term, achieving flexibility is a secondary objective, organizations look at outsourcing as a way to refocus their internal capabilities while focusing on their core business. The traditional inhibitors around security, trust and loss of control apply. While non-German external service providers (ESPs) still find it difficult to position themselves in Germany (exceptions are IBM Germany, which established itself early on as a â€Å"German† ESP, and HP, based on its early SAP hosting business and penetration as a technology provider), German providers maintain strong domestic positions and are starting to focus on expanding their international presence (through T-Systems). In the short term, German organizations will still consider selling their own IT capabilities, while global providers will see these as viable targets to build capabilities as long as they provide financial support through a long-term outsourcing deal. Finally, beyond potential healthy growth for ERP application outsourcing initiatives (especially SAP), as many organizations look at legacy system modernization, it is likely that many projects will evolve and deploy model to include the long-term management of applications. EASTERN EUROPE 2005: â‚ ¬1.1B 2010: â‚ ¬1.6B 2005-2010 CAGR: 7.9% Drivers: Acquisitions made by large Western European organizations, increased competition, need to revamp obsolete IT environments (leap-frog) Inhibitors: Low expertise to manage OS deals, high cost of OS, loss of control Key trends: Slow internal consumption of outsourcing Key nearshore delivery hub for providers supporting operations of European organizations Local Eastern European service providers will remain target for acquisitions Long-term growth will be supported by increasing competition, acquisitions made by Western companies and the penetration of Western ESPs in the region The region has become a strong global delivery hub Recent admission to the European Union has transformed countries such as Poland, Romania and the Czech Republic into attractive locations to establish global delivery capabilities designed to deliver IT services to European or global customers. Eastern Europe has been identified as an ideal region to establish a service delivery hub by U.S.-based providers (IBM, Accenture and EDS), European ones (Atos Origin, Capgemini, T-Systems, SIS and ST) and offshore ones (Ness, TCS, Satyam, Infosys and Wipro). When necessary, providers are openly seeking acquisitions to gain scale; it is the case for SIS, which acquired ELAS, HT Computers in Slovakia, and Ibis-Sys in Serbia (February 2005). Others, like Austrian-based ST, are pursuing a strategy of becoming the provider of choice in Eastern Europe through a combination of organic development and local acquisitions. ST acquired Computacenter Austria to strengthen its product resale capabilities. Although internal consumption of outsourcing has been slow, it is expected to grow rapidly, thanks to increasing competition driven by the fact that private-sector companies and public-sector organizations are now focusing on bringing their systems into line with market standards. This is leading to some â€Å"leapfrogging† effects — the IT utility approach, for example, holds significant appeal without posing the same transition challenges as elsewhere — but because these markets are fairly immature, there is still a strong focus on products and product support services rather than more-sophisticated IT service engagements. Italy and Spain are two other major countries with an expected ITO market size of about 5 Billion $ each by the year 2010. GLOBAL DELIVERY MODEL GDM is a unique approach to outsourcing and off shoring, which offers the best of both worlds by blending onsite, onshore and offshore resources and locations. By using a far-reaching network of onsite, onshore, and offshore resources, GDM aims to cuts across geographies to access the right resources, in the right place, at the right cost. By selecting the most advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In this section we would discuss in detail, the key drivers to a successful GDM. Source: Capgemini, 2008 KEY DRIVERS OF A SUCCESSFUL GDM STRONG PROCESSES Strong processes are the backbone of a successful Global Delivery Model. There is a strong need for detailed, documented and time-tested processes for all the activities and interfaces. Strong quality and project management processes ensure delivery excellence. World class processes for knowledge management and sharing resources encourage improved learning among teams. Processes for managing talent ensure that the projects get the best and most motivated people. Strong processes for interaction and communication within team make it possible for globally distributed groups to interface and collaborate in an effective manner while delivering excellence on a continuous basis. On the other hand, processes, while strong, should leave ample space for creativity and flexibility. It is only then that the Global Delivery Model (GDM) can create far more value than the traditional sourcing models. Here is what it will translate into: Quicker, seamless transitions, and early project ownership Optimum onsite/ offshore mixes through intelligent allocation of the available resources High degree of predictability through processes, sharing and reuse A strong relationship approach to ensure continuity and business focus Sharing of best practices and tools across the enterprise Depth and quality of resources, continuously trained and retrained to suit project needs Adherence to SLA based pricing models to ensure good Return on Investment (ROI) and drive customer satisfaction PROCESS ARCHITECTURE Companies rely on processes to consistently deliver high quality solutions while executing a number of engagements from multiple locations. According to the policies adopted by a leading IT services provider: values, vision and policies should form the first level of the three-tiered process architecture. These are then implemented through process execution at the next level. These processes are defined with clear ownership and clearly defined roles and responsibilities. Quality System Documentation Quality System Documentation defines clearly all the processes that should be put into place. These documents provide the engineers and consultations with a vast repository of detailed procedures, templates, standards, guidelines and checklists. The comprehensiveness of these documents supports all tasks from higher-level information abstraction and definition to tasks such as coding and documentation. This is crucial to assure clients with the delivery of high quality and predictable IT solutions that meet their business needs. These documents should also be monitored and updated regularly. Knowledge Sharing Employees are given a forum like a website portal, to share knowledge gained from their experience at the organization. It is meant to be a central repository of the knowledge that can be tapped by peers and as sometimes external clients as well. The collection of documents on this portal is reviewed and classified into different areas: Software development life-cycle activities such as requirements specification, design, build and testing documentation. Software-related topics such as tools and quality documentation. Topics of general or operational interest such as travel or HR policies, etc. Process Assets This is a repository to facilitate sharing and giving out of engagement learning across the organization. The user has the facility to submit to the repository, retrieve from the repository and obtain information on the status of the repository. A process asset can be any information ranging from an engagement, which can be re-used by future engagements. Typically these include project plans, configuration management plans, requirements documents, standards, checklists, design documents, test plans, causal analysis reports and utilities used in the engagement, etc. Process Database The Process Database is a software engineering database to study the processes at the organization with respect to productivity and quality. More specifically, its purpose areas are as follows: To aid estimation of effort and project defects To get the productivity and quality data on different types of projects To aid in creating of a process capability baseline Process Capability Baseline (PCB) Process Capability baseline is used to specify, what the performance of the process is, i.e. what a project can expect when following the process. This estimation is done based on the past data. The performance factors of the process are Effect of Globalization on IT Service Providers in Europe Effect of Globalization on IT Service Providers in Europe Opportunities and challenges presented by Globalization: IT Service providers in Continental Europe EXECUTIVE SUMMARY Enterprises within Europe are increasingly trying to seek the advantages of global sourcing. Unlike enterprises in U.S. or U.K., continental European countries have historically been reluctant to engage with offshore providers. The reasons were far stretched, ranging from political sensitivity, labor laws, cultural compatibility and language requirements. Globalization, however, is creating new avenues that European companies can not ignore. A recent report by Gartner shows the potential IT Offshoring market to be in the range of about $ 200 to 240 Billion. The market is expected to register double digit growth for years to come. The current offshore spending by firms amounts to just $17 Billion worldwide. This clearly shows a big gap, a huge market potential which is yet to be exploited. The huge demand has also led to emergence and growth of several new players in the field of IT Outsourcing/ Offshoring services, this is leading to ever increasing competition in the marketplace. In order to cope up with this increased competition and to provide better services, these service providers are increasingly adopting Global delivery models. By selecting an advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In Europe, nearshore models still dominate the market. But these models are continuously being updated, with more and more providers setting up Offshore Development Centers in locations like India. A framework for building an optimal combination of onsite, nearshore, and offshore delivery capabilities is provided by Capgeminis Rightshore ® model. A recent Gartner report has suggested that, the current US economic slowdown is expected to lead buyers of IT services to consider increasing the percentage of their labor in offshore locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers. INTRODUCTION: EUROPEAN IT MARKET The European market remains a highly complex and competitive market with a large number of providers. Mergers and acquisitions will continue but will be balanced by new market entrants Outsourcing adoption in Europe is increasing for both infrastructure and applications; the widespread lack of well defined sourcing strategies among buyers and the realities of ever-changing business requirements will generate frequent deal negotiations and renegotiations Global delivery and utility services are irreversible trends evolving at different speeds among various European countries. The European multi country, multi language/culture composition increases the evolutionary complexity of these trends Selective outsourcing with multiple providers will remain the preferred model of engagement for European buyers. Governance and end-to-end integration/management of different providers/solutions are the most challenging aspects of it ITO market maturity varies: UK is the most matured IT market in Europe. The other European markets are maturing at different speeds. An acceleration in ITO adoption is now apparent in countries such as France and Germany A focus on achieving service delivery excellence and the best value/quality balance is increasingly driving European organizations (especially those beyond the first generation deal) to consider selecting multiple providers for an outsourcing contract. For example, in the IT Telecom sector, the most common division is by service tower, with customers opting to choose different providers for their network, desktop, data center and application competencies. At the moment, however, providers tend to join forces in an opportunistic manner, as a response to customer demands. This is the cause behind the ever-changing composition of the providers teams; as a consequence, consolidating best practices to manage IT service spin offs between different providers in an effort to guarantee end-to-end service delivery excellence remains challenging. As the number of providers engaged is set to increase, this challenge is likely to intensify. It will also be driven by other market characteristics, which include a persistent tactical use of outsourcing by European customers, insufficient process maturity, and lack of clarity in the definition of roles and responsibilities. As we look at global delivery, it is fair to say that there are two major misconceptions that still exist among the European market: 1) Global delivery is often considered as a synonym of offshore, and 2) IT services delivered through global delivery capabilities are application services. In reality, in the past few years, the European market has witnessed a considerable expansion in terms of both geographical location options (in areas such as Eastern Europe or North Africa, for example) and portfolio of services offered (now including, for example, help desk and remote infrastructure management services). Global delivery and offshore, however, remain the key deal characteristics that need to be treated with extra care in many European geographies, and as a consequence, many deals remain confidential. Traditional providers investment will be directed toward enhancing existing capabilities (especially near shore in Eastern Europe) and ensuring process solidity. Offshore providers inv estment on the other side will be centered on creating front-end capabilities with a focus on specific country and vertical-oriented competencies. While these global delivery models mature and are refined/ optimized, customers satisfaction will remain a challenge. KEY TRENDS SHAPING IT OUTSOURCING MARKET IN EUROPE TRENDS CHARACTERISTICS Selective Outsourcing With Multiple Providers * Embraced by majority of European companies * Objectives: IT excellence and cost optimization * Integration and governance challenges Global Sourcing and Global Delivery Models * Near shore proximity key for European market * Expanding portfolio of outsourcing services * Key area of investment for providers and buyers IT Utility * Industrialization is accelerating * Convergence of IT utility and global delivery * Key drivers: flexibility, efficiency, optimized cost, speed Aggressive ESP Competitive Landscape * National, global and offshore ESPs converging * Mergers, acquisitions and divestitures to continue * Providers are implementing new business models * New offshore market entrants Application Outsourcing to Grow * Drivers: portfolio rationalization, legacy modernization * Global delivery will gain acceptance * Multitude of providers competing Source: Gartner The U.K., Netherlands, Sweden and Finland are examples of countries more attracted by the global delivery model. However, in the meantime, the impact of global competition has started to drive countries such as Germany and France to consider global delivery as a viable option to be considered strategically, rather than when all other options have been exhausted. Despite a slower gestation and the fact that a complete infrastructure utility (IU) offering has not yet been developed, the IU model is continuing to attract new offerings and/or new providers. In the meantime, European customers, attracted by the idea of being able to access IT services in a flexible way, remain cautious as they expect further clarity on issues such as unit definition, pricing mechanisms, integration to existing systems, and security portability In the near future, we expect that the IU for ERP platforms will remain the most common battleground for providers; other providers are expected to instead mask their IU offering behind a package that includes product and support services. The concept of software as a service (SaaS) or ready-to-use applications will continue to generate lot of interest. Expectations for a solid delivery and specific functionalities will drive providers to specialize their offerings. Finally, gains in terms of process efficiency will be seen as crucial to deliver enhanced competitiveness, flexibility, agility and cost optimization. GLOBAL TRENDS: IT OUTSOURCING and OFFSHORING MARKET IT Outsourcing market is showing an average growth of 9% p.a. IT Outsourcing Worldwide forecast (Million $) Source : Gartner Dataquest In terms of volume, North America continues to be the leader in IT outsourcing. Latin America and APAC have shown good growth Europe has fast emerged as a big IT outsourcer Global offshore spending is continuing to register double digit growth. Worldwide Offshore IT Services Spending by Importing Region (million $) Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast In terms of volume, the North America continues to be the leader in IT offshoring. Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy Global offshore spending is projected to increase to 29400 $ Million in 2010 The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited. IT and BPO market Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008 Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *) According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency Different Sourcing Models In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy Captive Offshoring: Sourcing from an affiliated firm located abroad Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad REGIONAL DYNAMICS ACROSS EUROPE The following section will describe the regional ITO trends and local dynamics across different European locations. UK and IRELAND 2005: â‚ ¬17.2B 2010: â‚ ¬25.7B 2005-2010 CAGR: 8.3% ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP Key trends: †¢ Most mature market in Europe with wider number of mega deals (public sector) †¢ Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared services †¢ More selective sourcing and global delivery †¢ Areas such as Scotland and Ireland feeling pressure of Indian and Eastern European operations †¢ Wide potential for application engagements to mature from project engagements into outsourcing based engagements Despite being the largest and most mature market in Europe, the U.K. remains also one of the fast-growing ones. Here organizations seem to have moved away from the equation of outsourcing = cost reduction. While cost remains a key component, other objectives seem more important, such as improving IT service delivery, gaining specific skills, especially for application outsourcing deals, and becoming a more flexible organization. (See Appendix F) Inhibitions remain related to a general lack of trust in the ability to join forces with the providers to manage security, control over IT operations and IP. The U.K. market is characterized by a large number of mega deals, especially in the public sector. These outsourcing deals often include initiatives that have classically been carried out through project engagements and now are increasingly being performed in the initial phases of an IT outsourcing or BPO deal. This change reflects the growing desire of customers for a tighter link between investment and results (for which the outsourcer is responsible during the duration of the contract) and the important shift in role for the internal IT department. Rather than focusing on assembling and managing all of the necessary skills and capabilities to meet a certain objective, IT organizations, in this scenario, are responsible for coordinating the objectives of the Business Unit and the internal and external providers engaged to support them. Often infrastructure outsourcing is at the core of these complex relationships. At the same time, the U.K. is also the largest market in terms of adoption of IT services delivered through a network of global delivery capabilities (which include nearshore and offshore locations). From this point of view, areas that used to be considered as low cost for outsourcing operations (Scotland and Ireland) continue to feel the pressure of Indian and Eastern European capabilities. Finally, organizations that have engaged for a long period of time in project-based application deals are planning to elevate them into more-strategic, long-term application management engagements. This will allow them to gain a longer-term commitment from the service provider and the relevant support to re-evaluate their application portfolio. NORDIC COUNTRIES 2005: â‚ ¬5.2B 2010: â‚ ¬7.6B 2005-2010 CAGR: 8.2% Drivers: Cost reduction, access to technical skills (especially in application outsourcing engagements), support in global operations, focus on core business Inhibitors: Loss of control, security/privacy, lack of trust Key trends: †¢ Nordic market generally mature. Many large deals are in second or third generation. Some likely to evolve toward multi sourcing †¢ Large corporations see global delivery as a viable option. SMBs see nearshore option more favorably †¢ Consolidation drives specialization by geography, vertical market or horizontal service †¢ Increased competition between regional and global ESPs †¢ Cultural affinity seen as crucial to guarantee deal success/longevity Each of the four country markets that compose the Nordic region has its own distinct characteristics and buying behaviors in IT services. However, if we look at the forecast growth between 2005 and 2010, we expect the region to grow at a similar speed (despite size differences) of about 8%. Denmark: Sometimes seen as the entry point for the global service providers to the Nordics. Expected growth is from â‚ ¬856 million in 2005 to â‚ ¬1.2 billion in 2010 (CAGR of 7.8%). Finland: Unique in the Nordic region as buyers focus much more on business value of an outsourcing deal rather than just cost. Expected growth is from â‚ ¬1 billion in 2005 to â‚ ¬1.45 billion in 2010 (CAGR of 7.5%) Norway: Remains the smallest outsourcing market in the region. Expected growth is from â‚ ¬1.2 billion in 2005 to â‚ ¬1.8 billion in 2010 (CAGR of 8.1%) Sweden: Largest market and very cost-competitive. Probably the Nordic country targeted most by offshore providers currently. Expected growth is from â‚ ¬2 billion in 2005 to â‚ ¬3.1 billion in 2010 (CGR of 8.7%) From a client perspective, the Nordic region market is generally mature, with many large corporations in second- or third-generation outsourcing deals. Global delivery is widely accepted as an option. Competition between regional providers and global providers is increasing; this was initiated by the inability of local providers to support the operations of key Nordic organizations around the globe. However, recent acquisitions and divestitures by both local and international providers prove that the market has still got room for further maturation and consolidation. NETHERLANDS 2005: â‚ ¬3.4B 2010:â‚ ¬5B 2005-2010 CAGR: 8% Drivers: Cost reduction above all, agility/flexibility, improving service to end users Inhibitors: Loss of IP and control, security/privacy, high cost Key trends: Market shows mixed signs of maturity (organizations accept global delivery) and immaturity (sourcing strategy is often neglected) Market split between large global corporations and wide portion of SMBs Increased competition for local/national champions Application under scrutiny for externalization The market in the Netherlands is one of the more modern IT outsourcing environments in Europe, closely following the U.K. in many trends. A focus on global delivery and the expansion of many deals into the application or business process layer points to more market maturity. This maturity is driven primarily by the relatively high proportion of large (and often multinational) enterprises headquartered in the Netherlands and competing in major markets such as financial services. But there are some contradictory characteristics that point to an immature market (cost cutting is by far the major driver, and sourcing strategy is often neglected); this, as a consequence, often inhibits the potential success of outsourcing initiatives. The market remains very challenging and competitive. This is due to the high presence of small and midsize businesses (SMBs), which traditionally tend to consider outsourcing as a threat more than an opportunity and require a higher level of customization, which tests the profitability model of service providers. Competition remains strong for national champions as global and offshore providers continue to target opportunities in the country. Increasingly, application outsourcing opportunities are emerging as organizations look at portfolio rationalization, legacy system transformation, and custom application software development initiatives and accessing application utility solutions. FRANCE 2005: â‚ ¬6.6B 2010: â‚ ¬10B CAGR: 8.4 % Drivers: Cost reduction, refocus internal IT, speed/flexibility Inhibitors: Loss of control, lack of trust, security/privacy Key trends: Beyond its reliance on staff augmentation, Frances outsourcing market shows opportunities in all facets of outsourcing: infrastructure, applications and BPO Selective outsourcing has gained acceptance, and organizations show cautious interest in global service delivery National champions remain under competitive pressure from the global and multinational providers France has long been considered behind in the outsourcing trend. Now, however, the French outsourcing market is consolidating and growing, while the long-standing reliance on staff augmentation is losing strength. The major driver that will support a CAGR of over 8% between 2005 and 2010 is the need for French organizations to reduce cost and enhance their level of competitiveness in the market by refocusing their internal IT skills on more-strategic tasks while gaining flexibility. On the other side, it is interesting to see that challenges related to HR management have lost strength, compared with the traditional fears related to loss of control and security and lack of trust. Large organizations have recently moved toward the adoption of selective outsourcing with multiple providers. This model has gained acceptance as organizations look at maximizing the balance between cost and service delivery excellence. There is also a new focus on application outsourcing. This trend is important not only because it signals an acceleration in the growth of outsourcing in France overall, but because it signals a major change in the way French organizations use different kinds of IT services. Increase in application outsourcing deals also touches on one of the major taboos of IT services in France: offshore outsourcing. As such, although offshore remains a word to be used with extra care in the French market, many organizations would consider that access to global delivery models is an appealing part of outsourcing, especially when delivered by traditional players. In this case, North Africa (Morocco, for example) is emerging as a viable near shore location. National champions, the providers that focus on a specific region or country, remain under competitive pressure from the global and multinational providers. GERMANY 2005: â‚ ¬10.6B 2010: â‚ ¬16B 2005-2010 CAGR: 8.6% Drivers: Cost reduction above all, focus on core business, refocus internal IT Inhibitors: Security/privacy, lack of trust, loss of control Key trends: Global economic pressures have forced many organizations to look at outsourcing as a viable option In the short term, objectives such as flexibility and agility are secondary Pressure to divest internal IT departments or internal shared service organizations remains strong Global delivery gaining ground especially toward Eastern Europe Intensifying competition between strong German players and global ones Legacy system modernization will remain a key objective The German market is â€Å"federated† in several ways: government responsibilities, industrial centers, buying centers within enterprises, and management structures in place. All of this makes doing business in Germany (and negotiating significant IT service deals) unique. Decision processes tend to be longer, require more consensus building and often entail more travel than in other parts of Europe. For a long time, the majority of German organizations have considered IT operations as a key component to maintain or enhance their level of competitiveness in the market. This has, as a consequence, slowed the outsourcing growth. In the past two years, however, economic pressures have forced many organizations to look at outsourcing tactically to cut cost. While in the short term, achieving flexibility is a secondary objective, organizations look at outsourcing as a way to refocus their internal capabilities while focusing on their core business. The traditional inhibitors around security, trust and loss of control apply. While non-German external service providers (ESPs) still find it difficult to position themselves in Germany (exceptions are IBM Germany, which established itself early on as a â€Å"German† ESP, and HP, based on its early SAP hosting business and penetration as a technology provider), German providers maintain strong domestic positions and are starting to focus on expanding their international presence (through T-Systems). In the short term, German organizations will still consider selling their own IT capabilities, while global providers will see these as viable targets to build capabilities as long as they provide financial support through a long-term outsourcing deal. Finally, beyond potential healthy growth for ERP application outsourcing initiatives (especially SAP), as many organizations look at legacy system modernization, it is likely that many projects will evolve and deploy model to include the long-term management of applications. EASTERN EUROPE 2005: â‚ ¬1.1B 2010: â‚ ¬1.6B 2005-2010 CAGR: 7.9% Drivers: Acquisitions made by large Western European organizations, increased competition, need to revamp obsolete IT environments (leap-frog) Inhibitors: Low expertise to manage OS deals, high cost of OS, loss of control Key trends: Slow internal consumption of outsourcing Key nearshore delivery hub for providers supporting operations of European organizations Local Eastern European service providers will remain target for acquisitions Long-term growth will be supported by increasing competition, acquisitions made by Western companies and the penetration of Western ESPs in the region The region has become a strong global delivery hub Recent admission to the European Union has transformed countries such as Poland, Romania and the Czech Republic into attractive locations to establish global delivery capabilities designed to deliver IT services to European or global customers. Eastern Europe has been identified as an ideal region to establish a service delivery hub by U.S.-based providers (IBM, Accenture and EDS), European ones (Atos Origin, Capgemini, T-Systems, SIS and ST) and offshore ones (Ness, TCS, Satyam, Infosys and Wipro). When necessary, providers are openly seeking acquisitions to gain scale; it is the case for SIS, which acquired ELAS, HT Computers in Slovakia, and Ibis-Sys in Serbia (February 2005). Others, like Austrian-based ST, are pursuing a strategy of becoming the provider of choice in Eastern Europe through a combination of organic development and local acquisitions. ST acquired Computacenter Austria to strengthen its product resale capabilities. Although internal consumption of outsourcing has been slow, it is expected to grow rapidly, thanks to increasing competition driven by the fact that private-sector companies and public-sector organizations are now focusing on bringing their systems into line with market standards. This is leading to some â€Å"leapfrogging† effects — the IT utility approach, for example, holds significant appeal without posing the same transition challenges as elsewhere — but because these markets are fairly immature, there is still a strong focus on products and product support services rather than more-sophisticated IT service engagements. Italy and Spain are two other major countries with an expected ITO market size of about 5 Billion $ each by the year 2010. GLOBAL DELIVERY MODEL GDM is a unique approach to outsourcing and off shoring, which offers the best of both worlds by blending onsite, onshore and offshore resources and locations. By using a far-reaching network of onsite, onshore, and offshore resources, GDM aims to cuts across geographies to access the right resources, in the right place, at the right cost. By selecting the most advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In this section we would discuss in detail, the key drivers to a successful GDM. Source: Capgemini, 2008 KEY DRIVERS OF A SUCCESSFUL GDM STRONG PROCESSES Strong processes are the backbone of a successful Global Delivery Model. There is a strong need for detailed, documented and time-tested processes for all the activities and interfaces. Strong quality and project management processes ensure delivery excellence. World class processes for knowledge management and sharing resources encourage improved learning among teams. Processes for managing talent ensure that the projects get the best and most motivated people. Strong processes for interaction and communication within team make it possible for globally distributed groups to interface and collaborate in an effective manner while delivering excellence on a continuous basis. On the other hand, processes, while strong, should leave ample space for creativity and flexibility. It is only then that the Global Delivery Model (GDM) can create far more value than the traditional sourcing models. Here is what it will translate into: Quicker, seamless transitions, and early project ownership Optimum onsite/ offshore mixes through intelligent allocation of the available resources High degree of predictability through processes, sharing and reuse A strong relationship approach to ensure continuity and business focus Sharing of best practices and tools across the enterprise Depth and quality of resources, continuously trained and retrained to suit project needs Adherence to SLA based pricing models to ensure good Return on Investment (ROI) and drive customer satisfaction PROCESS ARCHITECTURE Companies rely on processes to consistently deliver high quality solutions while executing a number of engagements from multiple locations. According to the policies adopted by a leading IT services provider: values, vision and policies should form the first level of the three-tiered process architecture. These are then implemented through process execution at the next level. These processes are defined with clear ownership and clearly defined roles and responsibilities. Quality System Documentation Quality System Documentation defines clearly all the processes that should be put into place. These documents provide the engineers and consultations with a vast repository of detailed procedures, templates, standards, guidelines and checklists. The comprehensiveness of these documents supports all tasks from higher-level information abstraction and definition to tasks such as coding and documentation. This is crucial to assure clients with the delivery of high quality and predictable IT solutions that meet their business needs. These documents should also be monitored and updated regularly. Knowledge Sharing Employees are given a forum like a website portal, to share knowledge gained from their experience at the organization. It is meant to be a central repository of the knowledge that can be tapped by peers and as sometimes external clients as well. The collection of documents on this portal is reviewed and classified into different areas: Software development life-cycle activities such as requirements specification, design, build and testing documentation. Software-related topics such as tools and quality documentation. Topics of general or operational interest such as travel or HR policies, etc. Process Assets This is a repository to facilitate sharing and giving out of engagement learning across the organization. The user has the facility to submit to the repository, retrieve from the repository and obtain information on the status of the repository. A process asset can be any information ranging from an engagement, which can be re-used by future engagements. Typically these include project plans, configuration management plans, requirements documents, standards, checklists, design documents, test plans, causal analysis reports and utilities used in the engagement, etc. Process Database The Process Database is a software engineering database to study the processes at the organization with respect to productivity and quality. More specifically, its purpose areas are as follows: To aid estimation of effort and project defects To get the productivity and quality data on different types of projects To aid in creating of a process capability baseline Process Capability Baseline (PCB) Process Capability baseline is used to specify, what the performance of the process is, i.e. what a project can expect when following the process. This estimation is done based on the past data. The performance factors of the process are