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World's top management guru on innovation
April 09, 2008
At a superficial level, this configuration of resources looks likes "business as usual." What is new here is that these configurations are constantly changing, even within a firm and within a project as it evolves:
Many of these tasks and/or projects are implemented in multiple locations and around the world.
Expertise is geographically distributed (the IBM example) and can be distributed across firms (as in the TCS-Ferrari and TCS-BT examples).
The composition of teams is task specific, and the nature of tasks evolves over times from new and complex activities to routine. (This was the case in the BT-TCS example in which the task related to the migration of the network started with a complex task codeveloped with BT first and implemented on site in the United Kingdom till the process was well understood. It then moved to India.)
That there are no fixed patterns in the migration of jobs. It is not the movement of jobs from United States or other locations to India. The configurations of teams differ based on the tasks and the availability of appropriate talent for specific projects.
The common theme is about talent arbitrage, not just cost arbitrage.
Image: The IBM (International Business Machine) logo. | Photograph: Chung Sung-Jun/Getty Images
Also read: Top NRI CEOs of global firms
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