10 Minutes With HP's Alex Weigl on how to make nearshore work for you

SSON sits down with Alexander Weigl, Director of Marketing Transformationat Hewlett-Packard, to ask why "nearshore" plays such a prominent role in global service delivery SSON: Why would a European operation opt for a nearshore centre in their SSO model? AW: Nearshore operations offer an excellent mix of competitive operational cost, cultural proximity and language capabilities required for the EU market. SSON: What’s the value proposition of nearshore compared to onshore or offshore? AW: The value proposition is based on the best balance between excellent skills and a highly educated young and dynamic workforce. For most nearshore countries in Central and Eastern Europe, the fact that they are EU members simplifies legal and data protection issues. In addition the cultural proximity, large variety of language skills and easy access weighs in favour of nearshore. And while nearshore operations are still more expensive than offshore operations in the Asia Pacific and Japan region, there are lower levels of complexity in the implementation of operations as compared to APJ. The value proposition also comes into play as centres drive better insights into business-relevant data and analysis that address not only the bottom line but also the top line. SSON: How are shifting client demands being met by nearshore solutions? AW; Clients are demanding increased business acumen, better integration, proactive process optimisation and help in addressing business, not only operational, excellence. Nearshore operations often provide better capabilities and lower cost than onshore. SSON: How can you scale business nearshore? AW: It requires the right buy-in and support from clients and senior management, as well as the right leadership skills and infrastructure to ramp up operations. If you don’t get the basics right, nearshore will never be trusted enough to move up the value chain and be trusted with more complex activities. By building business acumen and optimisation, centres will gain that trust. SSON: How do you mitigate nearshore risk? AW: Analyse your risks well and don’t underestimate any aspects. Running a nearshore centre instead of multiple in-country onshore centres means putting all your eggs in one basket, with a totally different risk profile. Put robust mitigation plans into place from the start. Also, allow for the management of change impact.. SSON: How can you reduce the implementation cycle to speed up break-even? AW: There are a few ways to shorten the cycle. One is to have the right support and resources in place to accelerate break even. Another approach is a hybrid model that mixes captive operations with BPO to leverage the latter’s capabilities. SSON: How do you build a business partnership that pays off? AW: Just like in a marriage, a business partnership often starts with enthusiasm and high expectations. It's important to know as much as possible about a potential partner. For example Needs & interests: look for a partner who brings something different to the table. If you have money to invest in the business, you may want to look for access to a market, or great connections. Complementary contributions tend to work better. Commitment: Get onto the same page as to each other's expected commitments in terms of time, financial contribution and overall contribution to business results. Equally important is to have a certain level of chemistry, to understand the character of your partner; that is valuable in times of crisis or difficult situations. The best way to discover this is to look at what the partner has done in past business ventures. External perception: How does the market perceive your potential partner’s business? What reputation are they bringing along? Which connections do they have that can be turned into business opportunity? SSON: How can you drive innovation from nearshore? AW: There’s quite a big buzz around innovation and how nearshore can actively drive it. Everyone has to be innovative in order to survive in the market, regardless of nearshore or onshore or offshore. Leadership should remain informed of developing trends and techniques within operations through benchmarking, industry white papers and research, and software solution conventions. This is critical to spotting emerging opportunities specific to one’s organisation. It’s also important to be smart in identifying what is possible and what is not, and selecting the right areas for innovation – those that build on the company’s strengths and competitive advantages. Likewise, to develop a culture that is "thirsty" for innovation and has the right mechanisms, capabilities and structures to make it happen. [inlinead] Alexander Weigl is also President of the Management Board of the Association of Service Business Leaders in Romania.

10 Minutes With HP's Alex Weigl on how to make nearshore work for you

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