DATE: April 15th, 2010
Genpact announced a partnership with NetSuite to offer ERP, e-commerce and CRM business process management services around the Netsuite solutions in the cloud. Genpact will bring their process expertise and business domain knowledge and work with mid size firms to implement cloud based solutions. The sell to mid size firms is that these solutions don’t require expensive capital expenditure and offer similar capabilities as the industry leaders like SAP, Oracle financials. Netsuite also claims they are offering the ‘real cloud’ vs those fakes out there say Oracle, SAP, Microsoft. hmmm..
Genpact which has a limited IT practice , primarily driven by discretionary spending has seen ups and downs in their transformation, process consulting and IT consulting businesses around packaged implementation. Netsuite also signed up with Wipro as a system integration partner and Wipro will develop a practice around Netsuite product. With the focus on channel sales, a number of outsourcing providers don’t want to be left behind as they all figure out how to marry outsourcing benefits with cloud computing. The SI practice for a number of the outsourcing firms has seen limited growth as it is dependent on discretionary spending which has been slow to start. For a number of the offshore vendors like Wipro, Genpact this may open up additional opportunities in mid markets, give them the ’cloud leader’ batch of honor , plus mitigate risk of losing business to the cloud. A number of analysts have predicted that the cloud may actually be a threat to the outsourcing business as companies may leverage the cloud to gain the same cost benefits they are looking for in outsourcing arrangement. That combined with supposedly less transition time and upfront capital cost makes cloud computing a viable competitor to outsourcing.
So as a firm is cloud an alternative to outsourcing or an augmentation to your outsourcing strategy ?
Mohit Sharma is the CEO of Corrystone Global Partners. Corrystone is a specialized globalization firm providing advisory, training and staffing services to mid size companies in US and India. We work with firms in the US which are exploring low cost options for IT, Business Process work and looking at ways to further optimize cost, manage operational risk and setup presence in India. Contact us at info@corrystone.com to learn more about how we could make your journey more productive by leveraging our experience.
Press Release – Genpact, NetSuite
Genpact Limited (NYSE: G), a leader in managing business processes, and NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced a strategic partnership designed to leverage the growing power and popularity of cloud computing to transform and modernize business process management (BPM). Genpact and NetSuite will provide the industry’s first BPM solutions that take advantage of the dramatic cost savings and productivity benefits of cloud computing—solutions that will enable companies to quickly realize the benefits by abandoning archaic and expensive software infrastructure in favor of efficient, cost-effective, and nimble enterprise management.
The partnership brings together the strengths of the NetSuite cloud business management suite—enterprise resource planning (ERP), customer relationship management (CRM), e-commerce—and Genpact’s industry and process domain expertise and global operating model in managing business processes for clients. As a result, businesses will have access to unprecedented control, flexibility and visibility as they seek to cut IT costs and streamline key business processes.
Under the partnership, Genpact will employ its global IT program management and ERP consulting teams to provide NetSuite implementation services to mid-market companies and divisions of larger companies around the world. Genpact will also leverage NetSuite’s OneWorld solution to provide its world-class business process services to these clients. Genpact will draw on its extensive business process domain knowledge and understanding of clients’ key business processes to deliver best-in-class solutions, develop tools and build intellectual properties around pre-configured templates for the target market globally.
By using NetSuite’s cloud-based OneWorld solution to deliver their services, Genpact eliminates the need to buy, install and maintain the hardware, software and infrastructure that was previously required. This transition to the cloud will allow Genpact to configure the outsourced service more quickly, deliver the service more efficiently and reduce the costs and risks associated with delivering the service to clients. On average, Genpact and NetSuite expect that clients will be able to optimize their cost of running business processes and corresponding technology investments by up to 40 percent with this offering.
“Over the last few years, we have seen significant shifts in the business challenges facing mid- market companies as they manage their growth. To help address many of these challenges, mid-market companies are increasingly adopting cloud computing solutions that offer scalability and low acquisition costs,” said NV ‘Tiger’ Tyagarajan, COO, Genpact. “We believe that our alliance with NetSuite will combine our business process expertise and vast technology and industry experience with NetSuite’s robust on-demand delivery platform to set the industry standard for cloud-based business process solutions for this market segment. Likewise, we see many large enterprises embracing similar approaches for addressing their growth needs in emerging markets or to replace expensive and outdated legacy systems and processes”
“We are excited to have Genpact as the first partner utilizing NetSuite OneWorld to provide a world-class BPM solution,” said Zach Nelson, CEO of NetSuite. “Combining Genpact’s deep experience in business process management, proven program management and IT integration skills with NetSuite’s revolutionary cloud application creates a compelling solution that will allow companies of any size to cut costs, streamline their operations and increase the speed of their business. Genpact’s visionary adoption of a cloud infrastructure for BPM services is a model for “BPM 2.0″ that will generate substantial benefits for both Genpact and their clients.”
