Integrated Technology and Operations (iTOPS)
iGATE iTOPS framework is a way to deliver standardized IT / BPO services to customers. It is similar to how a manufacturer produces standardized products. The key to a good iTOPS model is to define the right parameters for the service and develop the right combination of technology, process and people to consistently meet the quality and cost specifications.
Many times, companies find it difficult to invest in new technology and process improvements either due to high costs or due to a lack of scale to justify the investments. These customers realize limited benefits from outsourcing or offshoring business process. This is where iTOPS solutions deliver dramatically improved results. All the upfront investment in building the technology and process platform is already made by iGATE. The customers pay only for using this infrastructure much like we pay for using electricity or gas in our homes.
Although the iTOPS concept is the same across all solutions, its implementation varies across solutions. The iTOPS framework for a process consists of best in class
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The iTOPS solutions eliminate the need for upfront capital investments by our customers which greatly reduces the risk while delivering significantly better results. The solutions are typically charged on the basis of usage results delivered to our customers.
For example, our mortgage customers typically pay us for the number of loans funded. This ensures that the customer pays us only when it gets the desired result- in this case a funded loan.
This unique combination of iTOPS framework and Pay for Results Only pricing model delivers significant benefits to our customers:
- Reduces Risk from Demand Variation – All enterprises carry a certain degree of risk inherent in the business due to demand variation. This variability can lead to too much or too little capacity to match demand. While excess capacity leads to higher costs, a lack of capacity can result in a loss of business. The iTOPS solutions can be ramped up or down based on market demand. The flexibility means that our customers never lose an order due to a lack of capacity but also do not overpay for excess capacity.
- Reduces Technology Risk – In a typical outsourcing arrangement, the customer carries significant risks associated with investment in right technology, its implementation and Management. With the iTOPS based solutions, this risk is borne by us. We have already invested in and perfected the best-in-class technology and process. This means that the customer does not need to carry the risks associated with technology.
- Delivers predictable results and cost with Pay for Results Only model – Our customers pay us only when we deliver results or business outcomes to them. What it means is that we make money only when our customers make money. This ensures that our incentives are aligned with our customers’ incentives. Hence it is in our own interest to deliver predictable and desired outcomes to our customers.
- Delivers a Truly Variable Cost Structure to better manage your business – Every business manager worries about how much capacity and what skills are needed to meet the market demand. This includes number of employees, Technology resources and infrastructure. This capacity, while meeting the demand, also results in a fixed cost for the company.
For example, a mortgage company may plan to fund 100 new loans in a month. However, it may end up funding fewer loans depending upon the actual demand. In a typical in-house or outsourced model, the company will have to incur a fixed cost for 100 loans, even if the actual number of loans funded is lower than planned.
With iTOPS, the customer pays only for the actual number of loans funded, not a fixed carrying cost needed for 100 loans thus delivering a truly variable cost structure for our customers.
- Eliminates Management Overhead and Headaches in managing the outsourced relationship- Our customer no longer have to spend enormous time and energy ensuring they get value for the money paid to the vendor since they no longer need to worry about all the effort and resources required to run the process. That responsibility is now shifted to iGATE with the customer executives only tracking the business outcomes they want from the process. This eliminates the overheads and headaches in managing the outsourced relationship.