Information Technology Enabled Services (ITeS)

IT enabled Services (ITeS), also called web-enabled services or remote services, or Teleworking cover the entire gamut of operations that exploit information technology for improving the efficiency of an organization. These services provide a wide range of career options that include opportunities in a call center, medical transcription, medical billing and coding, back office operations, revenue claims processing, legal databases, content development, payrolls, logistics management, GIS (Geographical Information System), HR services, web services, etc.

Information Technology that enables the business by improving the quality of service is IT-enabled services. The most important aspect is the Value addition of IT-enabled service. The value addition could be in the form of - Customer relationship management, improved database, improved look and feel, etc. The outcome of an IT-enabled service is in two forms:

• Direct Improved Service
• Indirect Benefits.

Whereas direct benefits can be realized immediately, indirect benefits can accrue over a period of time and can be harnessed very effectively, if planned well upfront.

source: IT Info

Information Technology Enabled Services (ITeS) Processes and Services
ITeS provide a range of IT-intensive processes and services, which includes business process outsourcing (BPO) and knowledge process outsourcing (KPO), provided from a distant location and delivered over telecom networks. ITeS focus on verticals such as content management, finance and accounts, research, and analytics segment. ITeS includes:

• Customer Interaction services -including call center facilities with adequate telecom infrastructure, trained consultants, access to requisite databases, Internet, and other online information infrastructure to provide information and support to customers
• Back office operations -data entry, data conversion including finance and accounting and HR services.
• Transcription/Translation services
• Content development/animation/engineering/design and GIS
• Other services including remote education, data search, market research, network consultancy, and management

The favored application areas are areas where there is a huge amount of data that needs to be processed and utilized for delivering the results, or the data is the outcome of the service. In all cases, without the use of IT the task would otherwise be unmanageable. Some of the most important areas where IT-enabled services can be deployed are:

• Telemarketing
• Helpdesk
• Customer Support Centers
• Data Ware House
• Transcription Centers
• GIS Mapping for Transport tracking
• Electronic Distribution.

Opportunities and Challenges of Information Technology Enabled Services (ITES)
The changing economic and business conditions, rapid technological innovation, the proliferation of the internet, and globalization are creating an increasingly competitive environment. The role of technology has evolved from supporting corporations to transforming them. Global companies are increasingly turning to offshore technology service providers in order to meet their need for high-quality and cost-competitive technology solutions. As such a company can encounter a wide variety of risks and challenges in its endeavor to create and maintain a seamless, successful, sustainable, and scalable business. Some of the challenges faced include:

• Ability to create and maintain a truly world-class proven global delivery model which would allow your organization to provide services to customers on the best shore basis. This would require round-the-clock execution capabilities across multiple time zones, access to a large pool of highly skilled technology professionals, and a knowledge management system to reuse solutions where appropriate
• Develop and expand strong, comprehensive, best in class-end to end solutions and service offerings in order to help your clients gain market differentiation or competitive advantage and thus capture a greater share of your client’s technology budgets
• Ability to scale when the opportunity arises. This would require constant investment in infrastructure and rapidly recruiting, training, and deploying new professionals
• Manage revenue and expenses during the economic downturn, enhance your organization’s capacity to withstand pricing pressures, commoditization of services, and decreased utilization rates
• Manage exchange rate volatility and counterparty risk in treasury operations
• Expand your client list across business verticals to reduce over-dependency and risk of losing substantial market share
• Maintain superior and sophisticated project management methodology in line with global quality standards and ensure timely, consistent, and accurate execution to achieve the highest client satisfaction
• Ensuring successful integration of inorganic growth opportunities that your organization may undertake from time to time across geographies

12 Factors Which Have Propelled the Growth of the Indian ITES Sector
India is regarded as the back office of the world owing mainly to its IT and ITES industry. The sector in India grew at a Compound Annual Growth rate (CAGR) of 15 percent over 2010-15, which is 3-4 times higher than the global IT-ITES spend, and is estimated to expand at a CAGR of 9.5 percent to US$ 300 bn by 2020. India is also the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 percent of the US$ 124-130 bn market. With the rising influence of online shopping, social media and cloud computing, this trend will only further increase. Some of the most important factors behind India's rise as an IT information technology services giant include -

• Newly emerging verticals, such as retail, healthcare, utilities, etc.
• A revival in the demand for IT services from both US and Europe
• Focused government initiatives leading to increased adoption of technology and telecom, eventually leading to increased ICT adoption
• Growth in the number of high-value clients (> $ 1 million)
• A spurt in the SMAC market (social, mobility, analytics, cloud) to support ITES services
• Growing R&D expenditure across the globe
• Rising costs to train new workforce ($1.6 billion in 2016)
• Plan of the Indian government to lay down a large-scale optical fiber network connecting the whole country
• Partial privatization of telecommunication
• Low operating costs as compared to most other developed and developing nations
• Tax breaks and SOPs offered by the government
• Development of multiple SEZs in tier-2 cities across the country

Benefits and Threats of ITeS

• BENEFITS: Increases company’s flexibility: Through Business Process Outsourcing (BPO) which is a part of ITeS the companies will increase their flexibility. Most services provided by ITeS vendors are offered on a fee-for-service basis. This helps the company to change its structure of cost from Fixed to Variable cost. A variable cost helps a company to respond to changes very quickly and makes the firm more flexible through outsourcing. One more way in which ITeS contributes to a company’s flexibility is that a company focuses on its core competencies, without any burdens from bureaucratic restraints. With this main employees are released from performing non-core operations or administrative processes and can spend more time and energy in building the firm’s main businesses. Another way in which ITeS increases organizational flexibility is by increasing the speed of business processes. Using techniques such as linear programming we can decrease the production time and inventory levels, which can increase effectiveness and controls or decreases cost. Supply chain management (SCM) the effective use of chain partners and business process outsourcing increases the speed of several business processes. Lastly, flexibility is one of the stages of the organizational life cycle. ITeS helped to convert Nortel from a bureaucratic organization to a very reliable competitor. ITeS, therefore, helps the firms to retain their speed and ability, which they have to otherwise sacrifice in order to become efficient. A company grows at a faster rate as it will be less constrained by large capital expenditures for people or equipment which may take years together to gradually write off the cost. Though the above-mentioned arguments are in favor of ITeS and increase the flexibility of organizations, management needs to be very careful with its implementation of it. The company has to look into the challenges before it decides to engage in business process outsourcing. Another issue is that in many cases there is less scope to differentiate BPO from others in size. They provide the same services, have the same geographic footprints, the same technology stacks, and have the same Quality Improvement approaches.
• THREATS: Risk is the major threat with ITeS. Outsourcing an Information system can cause security risks in both parts of communication and privacy. The Security of North American or European company data is very difficult when accessed or controlled in the Sub-Continent. From the perspective of knowledge, a change in attitude in employees, underestimation of present costs, and the major risk of losing independence, outsourcing leads to a different relationship between organizations. Risks and threats of outsourcing can be managed, to achieve any benefits. If we are able to manage outsourcing in a structured way, maximizing positive outcomes, minimizing risks, and avoiding any threats, a Business Continuity Management (BCM) model arises.

See Also

Information Technology Enabled Services (ITeS) refer to the outsourcing of processes that involve IT for delivering services that could be performed in-house but are instead chosen to be operated by a third party due to cost, efficiency, or expertise considerations. ITeS covers a broad range of operations that utilize information technology to improve efficiency, streamline processes, and provide value-added services. These services often include back-office operations, customer support, data processing, and other forms of process outsourcing where IT is a critical enabler.

• Business Process Outsourcing (BPO) is the practice of contracting standard business functions to be handled by a third-party service provider. Many BPO operations fall under the category of ITeS, as they frequently rely on IT systems and software.
• Knowledge Process Outsourcing (KPO) is a form of outsourcing in which knowledge—and information-related work is carried out by workers in a different company or by a subsidiary of the same organization. KPO services, which include R&D, financial consultancy, and technical analysis, rely heavily on the expertise of the workers and IT systems.
• Customer Relationship Management (CRM): Strategies and technologies used by companies to manage and analyze customer interactions and data throughout the customer lifecycle. ITeS providers offer CRM services to help businesses improve customer service and retention using IT tools.
• Data Processing: Collecting and manipulating data items to produce meaningful information. Data processing services are a key part of ITeS, including data entry, processing, and data mining services.
• Call Centers are facilities that handle large volumes of telephone calls for customer service, support, telemarketing, and other communications. Call centers are often outsourced as part of ITeS to provide cost-effective customer support.
• Back Office Operations: Administrative and support tasks necessary for running a company but do not directly generate revenue, such as accounting, HR, and compliance. These operations are frequently outsourced through ITeS for efficiency and cost savings.
• Legal Process Outsourcing (LPO) is the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company. LPO is a specialized subset of ITeS that relies on IT for tasks like legal research, document review, and compliance work.
• Cloud Services: Internet-based computing services that provide shared processing resources and data to computers and other devices on demand. ITeS providers leverage cloud services to offer scalable solutions to their clients.
• IT Consulting: Advisory services that help clients assess different technology strategies and align their technology strategies with their business or process strategies. IT consulting is often a component of ITeS, providing expertise to optimize IT infrastructure and processes.
• Digital Transformation Services: Services designed to help businesses integrate digital technology into all areas of their operations, fundamentally changing how they operate and deliver value to customers. ITeS is critical in facilitating digital transformation through outsourcing and technology solutions.

ITeS has become a critical component of the global outsourcing industry, enabling organizations to achieve greater efficiency, access specialized skills, and focus on their core competencies while leveraging the advantages of information technology.

• IT Strategy (Information Technology Strategy)
• IT Sourcing (Information Technology Sourcing)
• Outsourcing
• IT Governance
• E-Business
• Enterprise Architecture
• IT Operations (Information Technology Operations)
• Shadow IT
• Chief Information Officer (CIO)

Further Reading

• The Global Opportunity in IT-Based Services: Assessing and Enhancing Country Competitiveness Randeep Sudan, Seth Ayers et al.
• Information Technology Enabled Services in Promoting Services Marketing Archna G
• Information Technology Enabled Services (ITES) Sector Industries Might be Cut Down to Size, but Globalization Will Continue: An IISD Commentary IISD