Mdl Businss Rltinshis of irsft Srvis - Case Study Example

iсrоsоft Sеrviсеs – Mоdеl Businеss Rеlаtiоnshiрs Background Datacom, a company that started in 1965 and employs more than 450 people, has been in the business of providing information technology services to many organisations including major firms, state owned enterprises and government departments. With many companies across the world opting to outsource their customer service operations, Datacom is one of the many firms competing to offer such services notably through its contract with Microsoft Corporation. Through its subsidiary, Microsoft Services, Datacom provides a wide range of services to Microsoft Corporation’s customers, including customer service, internet, technical support, telemarketing, special offers and subscriptions, and switchboard. Datacom also offers services to other companies but has much put much focus on Microsoft Services. SWOT Analysis Strengths Experience: Having been in operation for more than 40 years, Datacom has a good understanding of its clients and the kinds of services that they require. Datacom utilizes leading edge technology in undertaking a wide range of information based customer services operations for different types of organisations. The company has a large, reliable and consistent client in the form of Microsoft Corporation. The use of the name ‘Microsoft Services’ offers Datacom an added advantage given that Microsoft is a giant corporation. Focus on four critical success factors (excellence, providing world class standards, growth, commitment to quality and staff, and performance management) gives the company a competitive advantage. Datacom offers a wide range of services, including customer service, internet, technical support, telemarketing, special offers and subscriptions, and switchboard. This makes it possible to offer services to many clients. Presence in Australia, New Zealand and East Asia gives Datacom a strong footing in terms of access to new customers in the respective regions. Weaknesses High staff turnover and burnout of staff in the customer service and help desk limits performance. Too much focus on Microsoft Services limits Datacom’s access to new opportunities from other companies. Lack of an up-to-date training program limits staff training and the benefits that come with training. Lack of defined qualifications for supervisors and telephone staff Lack of proper staffing for services provided to other companies since most good staff are directed to Microsoft Services 71 percent of Datacom’s former employees take similar roles in larger companies. This results in loss of knowledge, and constant need for recruitment, which limits Datacom’s competitiveness. Lack of knowledge among the middle management on why there is a high staff turnover Opportunities More and more companies are opting to outsource their non-core services; hence there is high potential for growth. The focus on growth as a key success factor makes Datacom well placed to come up with innovative solutions that companies that outsource their services need. The company already provides 50 functions to Microsoft Corporation and this presents an opportunity to offer similar services to other companies that are outsourcing their services. Threats The boom in outsourcing industry means that more rivals are entering the outsourcing market. Several clients that Datacom serves are dissatisfied with the company’s operations. Desired Outcome: To improve staff retention and improve service delivery to Microsoft Corporation and other companies. Action Plans Action Plan 1 – Develop new recruitment and training programs The company could come up with a new recruitment program that is based on identifying what new employees (especially supervisors and telephone staff) require. The recruitment programs should specify the qualifications and skills that are expected of each new employee in accordance with the nature of their job. Datacom could also overhaul its training program, which was designed many years ago, and replace it with a new one that reflects the training needs of the current operating environment. The company should incorporate the needs of each department and job in the new training program so that employees are well prepared to handle the challenges that come with their various jobs. Action Plan 2 – Invest in performance management With the focus on growth and quality, the company should invest more in performance management based on the various areas outlined by Anthony Seaegg of Microsoft services as affecting performance. These include employee focus groups, planning, adhering to standards, and managing staff that do not fit, among others. By measuring performance in these areas, the company will determine areas that need improvement. Datacom could also evaluate the impact of focusing too much on the services offered through Microsoft Services (their impact on overall performance in regard to new opportunities). Since most good employees are posted to Microsoft Services, the company (Datacom) could ask itself if this affects the provision of service to other outsourcing customers. Action Plan 3 – Invest more in technology (hardware and software) to reduce staff burnout Datacom can invest in technologies (both software and hardware) that help staff to be more efficient in their operations so as to reduce burnouts. The company could ask the companies to indicate the cause of their burnout; whether it is too much work or complicated work. It should invest in the right type of technologies to remedy the situation based on the needs identified. Evaluation of Action Plans Evaluation of Action Plan 1 Developing new recruitment and training programs is more practical and straightforward. Already, it is apparent that some employees are recruited without consideration of their qualifications. Since the job descriptions of staff such as supervisors and telephone staff are known, it is easy to identify the skills that they should possess on being recruited using the job descriptions as a benchmark. New recruitment and training programs will ensure that employees possess the knowledge and skills required for their tasks, are motivated, and hence more focused on their job. Evaluation of Action Plan 2 Investing in performance management will enable Datacom to evaluate a number of issues that are critical for the delivery of quality and hence growth. Performance management is however rather difficult to implement given the number of indicators to be measure and the time required to do so. But when carefully done, performance management will enable Datacom to evaluate its weaknesses such as the dissatisfaction by some clients with its services and hence introduce the appropriate measures to deal with the situation. Evaluation of Action Plan 3 Investment in technology will improve service delivery since it will complement staff operations, which is critical in aspects such as reducing burnout. Such investment will however have cost implications and necessitate restructuring of the company since the company has reduced spending on areas such as hardware since 1996. Too much reliance on technology can also reduce the human aspect of the company, which is detrimental for personal relationships with customers. Overall, use of automated services will greatly improve service delivery in departments like customer service. Proposed Action Action Plan 1 is preferred because it focuses on improving staff skills, which will help address the critical issues that affect Datacom, such as high staff turnover and burnouts. Conclusion The plan is based on the most pressing needs of the company, which are to reduce staff turnover and to ensure that employees are qualified and well trained. However, in the long-term, there is need to conduct detailed performance management so as to measure the outcomes of various initiatives and operations undertaken by the company. Read More