Case Solution for East Solutions: Transforming a BPO Provider in India

Complete Case details are given below :
Case Name :      East Solutions: Transforming a BPO Provider in India
Authors :           Scott Walsworth
Source :             Ivey Publishing
Case ID :            W13172
Discipline :        General Management
Case Length :    08 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
East Solutions was a successful business process outsourcing (BPO) provider based in Bangalore, India. Although salaries for Indian IT professionals were about half of those of their counterparts in the United States, the board of directors at East Solutions recognized a worrying trend: if salaries in India continued to grow at a fast rate, they would soon erode the cost advantage of sending work to India and potentially threaten the entire Indian BPO industry. As a solution, East Solutions repositioned itself by leveraging technical, industry and process expertise to form a partnership with clients based on value added in addition to cost savings. This plan required East Solutions to refocus on fewer geographic and sector groups. It also required transforming the role of the company’s IT managers, who needed extensive training, additional resources and a new compensation strategy. On an average year, the new compensation plan increased the IT managers’ incomes by 4 per cent, so it was expected to be popular, but IT managers rejected the new compensation plan and it was abandoned after 18 months. The chief executive officer (CEO) in charge of the new plan for East Solutions was unsure why it had failed.
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