International Services Marketing - Article Example

International Services Marketing Contents Contents 1 The Business Service Company 2 Offshore and Outsourcing Activities of Business 3 Infosys Technologies-Creating Offshore Call Centers 4 Strategic Insights in establishing Offshore Call Centers by Infosys 5 GAP Model of Service Marketing and Infosys Technologies 6 Blueprinting of Service Models and Infosys Technologies 8 Porter’s Diamond Model and Infosys Technologies 9 Value Chain Model and Infosys Technologies 11 Service Evaluation Models and Infosys Technologies 12 Marketing Magazines 14 Opinion 15 References 17 The Business Service Company The domain of services rendered by Infosys Technologies, a business service company encompasses a wide range of options ranging from consulting, outsourcing of business processes, providing needed solutions to industry and information technology related queries, and other allied products and services to customers located worldwide. Infosys Technologies in the paradigm of outsourcing business processes encompasses a large number of industries pertaining to banking and finance, health services, manufacturing operations, logistics and retail operations, entertainment and media industries and the like. The Business Service Company renders potential services to different industries along several functional areas like rendering services to the customers of these companies, performing the human resource functions for them, rendering services in the financial and legal domain and also renders support pertaining to sales and knowledge enhancement. The outsourcing arm of the Business Service Company renders the above services in an effective manner and performs in an interrelated fashion by combining the existing technological, knowledge and human resource skills. The company also modifies its existing methodologies to smoothen up the flow of services along its business sphere. This effectively enhances the service parameters of the company (Infosys, 2011). Offshore and Outsourcing Activities of Business Business Service companies like Infosys Technologies are increasingly availing the services of both offshore and outsource call centers to render effective services to the clients based on an international scale. Research made states that customers belonging to a particular geographical region generally adored the services of those customer service representatives who belonged to the same region. The customers reflected an affinity for the services of those service representatives pertaining to rendering effective solutions to business problems in mainly two cases. Firstly, as mentioned, the representatives should belong to the same geographical area as the customers to understand the latter in a better way. Secondly, the customers were also observed to consider the solutions of those representatives more effectively and they were hired by the business service company itself rather than being outsourced. The business service company often tends to conceal the location information of their service representatives through codification. However, with regard to the second option, the customers reflected that the ‘customer service representatives’ working inside the company periphery are better managed and controlled. This also shows that the business service company can also develop the service parameters of the representatives through the process of training and performance management activities. The training functions help in the development of performances of the representatives so that they render better services to the large number of customers (Bharadwaj & Roggeveen, 2006, pp.20-21). Infosys Technologies-Creating Offshore Call Centers The Business Services Company, Infosys Technologies is looking forward to launch offshore call centers operations in other countries of the world like China, Canada and Mexican regions. The management of the company views the opening up of offshore units as a strategic drive for the company. The international client base of the concern also desires to gain the services of customer service representatives hired from foreign nations. Infosys technologies take up strategic initiatives in setting up offshore call center units which has a lot of distinct advantages. Firstly, the business services company views that international markets like China, Japan and Australia would help it to expand both in the paradigm of revenue and operational standards. An estimate made during the 2007 period shows that the operations of the service company had expanded by around 30 percent as against the 2006 period owing to the internationalization of its operations. Again the focusing on the international markets also helped in enhancing the revenue parameters which during 2007 was found to cross the $ 1 billion mark in the final quarter of the year. Infosys Technologies in the course of its offshore operations has started recruiting its employees from the international base like United Kingdom and United States. These people recruited are deported to India during the probation period. On completion of the probation period, these people who are recruited and trained are placed at contact centers based on an international scale. The second advantage that the business services company, Infosys Technology gains through the opening up of offshore units is attracting the attention of the foreign nationals., After having a conversation with the customer service representatives of Indian origin, the foreign nationals often complained of pressurized English accent which was hard for the nationals to understand. Thus, Infosys Technologies by hiring people from foreign countries helps the foreign nationals to understand the communication in a better manner. Hence, the foreign nationals can communicate with the service representatives in a much effective manner than previously (Weier, 2007). Strategic Insights in establishing Offshore Call Centers by Infosys The Business Services Company, Infosys Technologies focused on the understanding that management of labor forces in the international firms was different from the management of international call centers. The business services company strongly emphasized on the management and synchronization of the foreign employees in an effective manner in order to fulfill organizational objectives. Optimal utilization of the labor force is essential through the maintenance of effective communication. Further, the establishment of offshore call centres also helps the concern, Infosys Technologies to reduce the financial and operating costs in serving international customers. Infosys Technologies also eyes the expansion of the company to newer and untapped markets through the process of setting up offshore call centers. However, the business service company also understands that the effective utilization of the foreign labor force depends on the conduction of extensive training programs and the need to conduct extensive tours to the foreign nations in order to closely monitor the activities of the foreign nationals recruited. These activities enhance the cost of the concern. Hence the need for making proper investment arises (Infosys, 2007). GAP Model of Service Marketing and Infosys Technologies The GAP Model of Service Marketing analyses the effectiveness of the services rendered by the company in the light of the expectations of the consumers. Eventually, the GAP Model of Service Marketing is observed as the function of mainly four customer gaps. In total the differences between the customers’ perceptions and the magnitude of the service deliverables is the sum of four gaps which can be enumerated as follows. The first gap occurred owing to the differences between the expectations of the consumers from the company and the perceptions of the management about the customer’s expectations. Second gap occurs from the implementation of the management perceptions about the customer’s expectations through the formulation of service delivery models. The service delivery methods formulated by the company are evaluated till the extent to which they are able to satisfy consumer needs. The Business Service companies maintain some set standards through which the services delivered are measured or evaluated. This function gives birth to the third gap. Finally, the fourth gap occurs owing to the differences between the promised quality and the actual quality of service delivered (Nguyen, n.d.). The model can be illustrated as under. Figure 1: GAP Model of Service Marketing (Source: Nguyen, n.d.). A survey of the clients made of Infosys Technologies shows that clients are quite satisfied with the quality of service delivered by the business service firm. Further, the clients also expressed delight in the pattern of quality and timely service deliverables by Infosys Technologies. The clients also expressed interest on the note that Infosys Technologies takes special care in enhancing the service parameters through the conduction of extensive training for its staffs. The above discussion shows that Infosys Technologies, through the pattern of service generation based on set standards and continuous monitoring endeavours to reduce the gap with the perception of the final consumers (Infosys, 2011). Blueprinting of Service Models and Infosys Technologies The Blueprinting Model in Service Management is concerned with outlining the different components of the service generated by a potential business service company. The different models are interlinked with each other through the preparation of a flowchart. The creation of the blueprinting model helps the managers of the service companies to monitor the process of service deliverables and hence, enhance the relationship with the final consumers in effectively satisfying them. Effective blueprinting activities help in encompassing the roles of both the operations and marketing teams of the company to enhance the service generation process. The Blueprinting Model of service management operates based on the following components. Firstly, it effectively highlights the points of direct contact with the customers. Secondly, the blueprinting model focuses the points where the mode of service generation is directly visible by the customers. The third component highlights on the development of the internal component of the organizations depending on changing consumer expectations. The management team of the services management companies continually develops the performance parameters of the staff members to help in the better delivery of service. Finally, the fourth component of the blueprinting model concerns the invisible forces present in the organization which help in the effective delivery of the service functions (Andrus, n.d.). Infosys Technologies operates on a particular blueprinting model for the efficient delivery of business processes in the outsourcing function. The blueprinting model of Infosys Technology mainly operates on three paradigms. The first point aims at developing the points of contact with the clients. Herein, the company makes analysis of the demand patterns of the consumers in the market to better develop the products and services. Through this the company rightly strategizes the product development functions to meet changing market needs. In the contact point the company also endeavors to rightly negotiate with the final clients to arrive at a feasible deal that would help enhance the firm’s profitability. In the second point of the blueprinting model Infosys Technologies effectively manages the procurement network. Herein, the company endeavours to effectively design the purchase orders so as to provide the customers with the right service and products at the right time. The second stage helps the company to make time requisitions to fulfill customer needs. Finally, in the third stage Infosys Technologies focuses on the effective utilization of the given resources to help enhance the interactive sphere with the customers. This process also helps in enhancing the effectiveness of the business process outsourcing operations of the company as a whole (Infosys, 2009, pp.13-14). Porter’s Diamond Model and Infosys Technologies The Diamond Model devised by Michael Porter is basically based on four determinants which can be outlined as follows. This model focuses on the competitive advantage which a nation or industries operating within a particular nation have over others. The four determinants of Porter’s Diamond Model also act as the significant factors which help the above to gain the advantage of global competition. The first determinant reflects the potential resources of the nation like the prime availability of the potential workforce and also the abundance of raw materials and other operational resources. The second factor focuses on the demand position of the goods and services produced by the company in the local or regional market. It is observed that where the local demand for the goods and services produced by the firm was great enough, the firm or the industry got the advantage of potential competition over others operating in another nation. The third factor highlights on the strength of the supplier base and allied industries with regard to the stated industry or firm. It states that firms and industries which can avail the power of effective suppliers and raw material generating industries can perform much efficiently than others. Finally, the fourth factor stresses on the existence of a strong hierarchical system within the organization which would help in the effective performance of the organization as a whole (Porter, 2009). The model can be illustrated as under. Figure 2: Porter’s Diamond Model (Source: Porter, 2009) Keeping with the Porter’s Diamond Model, the business service company Infosys Technologies reflects earning a strong position in the country of Singapore. The government of Singapore has helped the staffs of the information technology firm to avail visas at any point of time. The above event has helped the company to gain utmost flexibility in terms of gaining more number of contracts and a large pool of skilled and efficient work force. Moreover, the company also avails the benefit of large number of resources and sustainable help from the government to perform effectively in foreign environments. The region of Singapore also has an abundance of human and other capital resources to help business service companies like Infosys Technologies to flourish (Polishetty, 2007, p.14). Value Chain Model and Infosys Technologies The Value Chain Model which gets associated with the services marketing concept is defined as the ‘Value Shop’ model. The ‘Value Shop’ Model in relevance to services marketing companies helps in the effective mobilization of resources viz. human, technological, financial and others for providing solutions to complex business problems. The value chain model for service firms is give as under. This model works on five main components. Firstly, it endeavours to highlight a specific problem. Secondly, it probes to find specific alternatives to help solve the identified problem. Thirdly, the model endeavours to track the most feasible alternative among those found in the second one. Fourthly, the model focuses on effective communication to help solve the problem. Finally, in the fifth case the model aims at successful implementation of the evaluated alternatives to fulfill the business objective (Hollensen, 2009, pp.31-32). Figure 3: Value Chain Model (Source: Hollensen, 2009, p.32). Infosys Technologies also operates on a specific value chain model to arrive at efficient business solutions for its large client base. The company aims to render service to its customers through a defined process in first endeavoring to understand the industrial features of the client firms and their consulting needs. Secondly, the information technology firm plans the effective allocation of the existing resource base and infrastructural elements to generate needed solutions. Finally, in the third stage the specific alternatives evaluated in the second phase are further screened in terms of cost and economic feasibility before being rightly implemented (Infosys, 2011, p.3). Service Evaluation Models and Infosys Technologies There are mainly four service evaluation models in practice with respect to services marketing industry which focuses on certain specific parameters. In one model, the parameter of value of a specific service is rendered more importance than other variables. Another model renders more importance to the parameter of quality of the service rendered. Service Evaluation models of another type gives special focus to the parameter of satisfaction obtained in deciding the efficacy of such to the ultimate consumers. Finally, the fourth model makes a comprehensive outlook of the factors like value, quality and satisfaction in making it attractive to the consumers (Brady, Knight, Cronin, Tomas, Hult & Keillor, 2005, p.218). The models can be represented as under. Figure 4: Service Evaluation Model (Source: Brady, Knight, Cronin, Tomas, Hult & Keillor, 2005, p.218). In the light of the service evaluation models given above, Infosys Technologies renders special focus to the paradigm of value enhancement through the incorporation of refined technologies and better infrastructural facilities. Further, through the setting of high standards the company aims to vitalize its contact centers. This renders better efficiency to the customer service processes (Infosys, 2008, p.3). Marketing Magazines Some of the popular marketing magazines in United Kingdom which cater to the publications for the service marketing companies are ‘At Your Service-The Marketer Magazine’, ‘Business Insight Magazine’, ‘A Distinctive Style Magazine’, and ‘The Marketer’. These service marketing magazines cater to different aspects of services which are marketed in United Kingdom. The ‘Marketer Magazine’ published by the Chartered Institute of Marketing in United Kingdom helps in analysing and justifying the needs for the existence of a marketing unit in an organization and its interrelation with other departments (themarketer, 2011). The ‘Business Insight Magazine’ is published in a quarterly manner which encourages new entrants in the private business arena by rendering useful tips and needful analysis from business heads (Forum of Private Business, 2011). ‘A Distinctive Style Magazine’ specially focuses on promoting a greener environment. This magazine helps in rendering services which would help the buyers to purchase products which are environment safer. (EcoFirms.org, 2011). ‘The Marketer’ is another successful publication in United Kingdom which helps in creating a platform for the marketing professionals to better communicate with each other and enhances their professional parameter. (APA, 2011). From the study of the above service marketing magazines published in United Kingdom it can be inferred that the above article can rightly be placed in the ‘Marketer Magazine’ or ‘The Marketer’. The referred magazines would help to highlight the efficacy for internationalisation of service marketing and would also help develop the professional platform. Opinion The Business Service Company, Infosys Technology through its Business Process Outsourcing unit renders quality service to its client base spread along the international context. However, in order to better compete in the field of online service deliverables, Infosys Technologies is also focusing on offshore areas. The company views that focusing on offshore areas would help to gain newer markets which in turn would help augment the revenue position of the firm. Again the opening up of contact centers in foreign locations through the employment of people belonging to foreign nationalities is also considered to be helpful in gaining the appreciation of foreign customers. People belonging to foreign nations reflected that they felt comfortable in communicating with people of international origin or from their own country than with Indian counterparts. Infosys Technologies in this account recruited people from foreign origin and had to train them extensively in terms of organizational culture to get the best out of them. Thus, though it increased the training cost of the concern it made the organization competitive in the international arena. The service parameters of Infosys Technologies measured and evaluated through separate marketing models also reflect that Infosys Technologies turns out to be one of the most efficient companies in the field of service generation. It is observed that Infosys Technologies through the sustaining of interactive sphere with its client base focuses on reduction of the Gaps between the expected and obtained service. The clients feel that the company through its extensive research and development paradigm helps in fulfilling the day to day needs of the customers. Further, the value chain model of the company also helps in rendering of efficient and effective solutions for the different business queries of the customers. Thus, Infosys Technologies through the strategic use of potential resources operates to compete effectively in the business sphere. References Infosys. (2011). Offerings. [Online]. Available At: http://www.infosys.com/offerings/pages/index.aspx. [Accessed on March 31, 2011]. Bharadwaj, N. & A. Roggeveen. (2007). The impact of offshored and outsourced call service centers on customer appraisals. [Pdf]. Available At: http://www3.babson.edu/Academics/faculty/upload/BharadwajRoggeveen_ML08_1-2.pdf. 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