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Captive v/s Cybage Session with Paramjeet [3-Apr-23] - Coggle Diagram
Captive v/s Cybage Session with Paramjeet [3-Apr-23]
Greet
Great to connect with you again, Paramjeet
We spoke last when you were in GNR in 2019
So much has happened around us since then
IF HE ASKS
Professionally my role has changed a few times, from sales and client relations in Europe, and later APAC; and now I am heading presales for one of the verticals at Cybage where we work with domain agnostic ISVs
Personally, me and my wife have had 2 kids - so while we are figuring things out as parents, we are in happy place :smiley:
At Cybage level there have been changes - in our business team, our leadership etc. you must have met Gopi at Cybond
WFH, Hybrid, the huge demand-supply mismatch
Context
Rajendra may have given you some context, please allow me a few minutes to give you a quick background
There is an uptick we are seeing in companies setting up their captives in India, which is a potential risk
We are looking at ways we can position ourselves, our differentiator, our different engagement models where we could be an alternative or we could co-exist, or we could transition the work from the captive
You have worked with Cybage for so many years, and you know us inside out
There was a brainstorming session I had with Rajesh Kurup's delivery team on this topic, since there are various large accounts we have like FB, GroupM/WPP, Dentsu etc. where there is Captive presence but we are still holding our ground.
So here we are, wanting to hear from you about where you see Captives making more sense, where do you see Cybage adding more value, what have you found to be our differentiator, where we need to pull up our socks
I connected with Rajendra after the session where the idea of seeking your guidance came up
His Thoughts
He's no Expert
i-Crossing was open to low cost outsourcing regions
JellyFish was not open to outsourcing 6-7 years ago. Not even contractors
When they were building a new product, Paramjeet spoke to his CEO explaining that we need a team that works on the internal product without the need of exposing them to Jellyfish clients - that became a lower risk opportunity to consider outsourcing
Internal projects that don't generate revenue take lower priority, but for Cybage Jellyfish is their client and that ipacts it's revenue. So Cybage will treat it as a higher priority
CEO liked that idea, and that success lead to other projects
There is still a huge market that wants to contain all the work and IP within their resource
However, since last 3 years - the use of people in remote locations, and collaborating with them has become normal
It has lead to companies opening up to nearshore, offshore operations
Some companies are taking it to an extreme, when the lose people they don't hire in the main region, they build a setup in India, Latin America or anywhere where cost optimization is possible
Others like Jellyfish have opened small offices here and there but it is struggle - infra, hr, managing resources, culture everything is different in each country
They wanted to have the captive was to appease google, they are partner with Google, and Google wanted a local team in Mumbai who could work with their executives
Other teams they added in India were due to the acquistions they did that had small teams in India
The Model we have is still very attractive; for companies like Jellyfish who need scale, speed etc.
The threat is the rate pressure - with all increases our rates are at level where they can hire someone in UK. or 2 people in India vs 1 in UK. If the role is short term they will come to us, else they will think of UK rates
One thing that surprised Paramjeet - like NOW and other services are ridiculously priced - since they don't pay that to their employees the same
The other threat is having resources with less experience, that require lot more hand holding by clients, or resources who are unable to communicate
Good that we are brainstorming, since the landscape is changing continuously and we need to think of creative ways to grow. Can we manage captives?
Shared how JF attacked enterprises who wanted to build their own marketing teams - they started with asking them if they know how to do it, then offering them training, helping them with their access to google, helping them with niche services, solving problems and hence increasing stickiness. The still have a minimum tickets size to ensure biz viability
Focus on how you are doing than what you are doing?
Great feedback from Paramjeet
Conclude
Summarize what he shared
Remote work changed everything
Our model is still attractive, for people who are in middle
Threat is rates and quality of people, communciation
Overall he is very happy with Cybage and considers the relationship more like friendship
Thanks a ton for your valuable time and guidance, it will help us build out positioning accordingly
We can talk all we want about our differentiators, but it is of no value if it doesn't resonate with our clients and prospects.
Hearing from an industry veteran like you who has been on the other side of the table, is of immense value