India getting strong in SGO space

THIRUVANATHAPURAM, INDIA: Ecosystem-enabled delivery will assume special prominence for the convergence industry and is likely to become indispensable to service delivery, feels G B Prabhat, founder and CEO, Anantara Solutions, in an interview.

Please elaborate on the phenomenon of second generation outsourcing for convergence?

Convergence is the coming together of digital content forms, digital content purposes and hitherto compartmentalized industry players.

Second Generation Outsourcing (SGO) has two distinct implications for convergence while all the principles of the model are relevant.

Delivering solutions to the convergence sector will involve the successful assembly of many specialist skills, all of which cannot be found in any one service delivery organization. Ecosystem-enabled delivery, which is a collaborative service delivery model and a distinct marker of SGO, will assume special prominence for the convergence industry and may become indispensable to service delivery.

The second distinction of SGO applied to the convergence sector stems from the entertainment industry which is part of convergence. Revenues in entertainment (think movies and books) remain more speculative than predictable compared with other industry segments such as automotive. To reduce the risk of investments, Value-based Pricing, another marker of SGO will become more applicable to this sector where consulting and IT service providers would share the risks and rewards of investments by Convergence companies.

What, according to Anantara, are the opportunities for SGO in enabling and driving convergence?

Architecting solutions in the area of archival, syndication and royalty management based on ECM and DRM technologies are substantial opportunities. In addition, serving the companies which produce technology platforms for convergence can also be a significant opportunity.

What has Anantara lined up for a scenario that banks on convergence?

Anantara has lined up a comprehensive set of solution offerings to offshore/outsource using the SGO model targeted at convergence companies like movie studios, music publishers and book publishers. These focus on the themes alluded to under question 2 such as archival, syndication and so on.

Could you briefly tell us how Anantara would be tackling the challenges likely to be posed by the new scenario?

The challenges would be tackled by leveraging the markers of SGO, specifically, as earlier, ecosystem-enabled delivery and Value-based Pricing. The need to assemble diverse capabilities to produce integrated solutions will be resolved by working with multiple ecosystem partners as opposed to one firm trying to do everything according to the first generation outsourcing model. We have invested considerable time and effort to evolve a unique Value-based Pricing methodology which we will apply profitably to the convergence sector.

You are a pioneer of Second Generation Outsourcing (SGO). What strategies have you lined up to push things forward to a higher level?

Over the last 4 years nearly, we have succeeded in proving the robustness of SGO across all its distinguishing markers. The imperative now is to build scale very rapidly since the model no longer presents insurmountable risks.

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