This record will focus on Sri Lankan Advanced Technology Center (ATC) of Virtusa Corporation. Being a firm, functioning in a speedily changing, significantly competitive market, it is a superb challenge to gain competitive benefits when competitors are offering similar products and services. Thus Virtusa have to be wary of the changes influencing the business environment and really should come up with new ways of overcome these obstacles.
Macro environment factors were analyzed through the PESTEL framework and key driving forces were determined. These key motorists are federal government Support on the IT Sector, speedy technological change, expansion in the IT industry and popular for high quality products. Changes in these factors would immediately affect the businesses functioning in IT industry in Sri Lanka. Micro environment factors were analyzed through the Porter's five pushes model and the attractiveness of the IT market is discussed and the human relationships has been revealed. Hence the strategic teams will be categorized to identify the current competition in the IT industry.
Finally Main competencies of Virtusa are mentioned through Value chain and using VRIO construction and this record will further feedback on the tactical way of the Virtusa Corp. Sri Lankan ATC.
Overview
IT industry in Sri Lanka
IT industry in Sri Lanka experienced a rapid development over the last years, with highly literate, easily trainable and clever workforce. Using the latest technology available; the industry offers a variety of services such as consultancy, system integration, software systems design, support services and so forth.
The major marketplaces serviced by Sri Lankan IT companies are USA, UK, Singapore, the Netherlands, and the Philippines. For this report's purpose only Sri Lankan Software market and their local opponents will be considered.
The Company and SBU
Virtusa is a publicly-traded, rapidly-growing global IT services company with over 3, 700 consultants and 14-yr history of providing full lifecycle of software development. Kris Canekeratne as well as a little team of co-founders established Virtusa in 1996. Today, Virtusa is regarded as a technology thought innovator, having amassed an abundance of rising technology competence that spans Retail, Telecom, Storage and Financial Services. The company has the capacity to take benefit of its industry knowledge-base and guidelines to provide an unmatched ROI to its customers having deployed 400+ product produces for over 100 product creators, Virtusa has highly reputable clientele and also has partnerships with leading software companies to develop and test over 1000 software product produces.
While it is headquartered in Westborough, MA, its offshore development centers, known as Advanced Technology Centers (ATCs), are in 3 locations in Asia: Hyderabad & Chennai, India, and Colombo, Sri Lanka. For the existing competition in IT industry, Virtusa has made a decision to extend their wings to other growing market segments. With this intension Sri Lankan IT jobs being undertaken, this report is only going to concentrate on the Advanced Technology Centre in Sri Lanka as a SBU.
Macro Environmental / PESTLE Analysis
There are extensive factors in the macro environment that will affect the business of any organization. Tax changes, new laws and regulations, trade barriers, demographic change and authorities policy changes are all examples of macro change.
Political factors
Current Sri Lankan political environment known stable compared to other Asian neighbor countries. The end of the 30 plus year civil war has been advantageous for growing business, with new sectors like IT making significant financial contributions.
Recent developments show Asian areas attracting multinationals shifting their IT bases (outsourcing) into countries in the Asia, with the intention of exploiting the accessible cheap and highly skilled labor. Sri Lanka in addition has been able to attract significant assignments from FDIs such as Virtusa itself outsourcing their tasks to Sri Lankan and Indian ATCs.
These global tendencies in IT industry has subsequently increased the political attention on the industry, with federal concentrating on IT education to ensure very skilled labor force, including the introduction from it to school curriculum and the establishment of your ICT agency to train junior to ensure future development of the industry.
The government's role on the ICT sector
The government created the e-Sri Lanka platform in 2002 for the introduction of the ICT industry by making use of the Information Communication Technology Agency (ICTA). Under this construction the government introduced e-government insurance plan which pays to for new organizations to improve the ICT literacy rate and cost effective connectivity throughout the united states.
Figure 1: Elements of e-Sri Lanka Eye-sight (Hanna, 2003)
Government vision is to interconnect all the government offices in the united states through a single web portal. The idea of e-government is to permit citizen to take pleasure from services anytime, everywhere such as (Hanna, 2003): E-Parliament, E-Cabinet, Financial management, taxes, customs, payment and so on. Effective implementation of the platform will help to improve the computer literacy rate throughout the united states.
Tariff regulations
The Sri Lanka Telecom Regulatory Percentage (TLC) is accountable for rules of the tariffs of services provided by prominent players in the ICT industry. The TLC with federal government and ICTA also take part in growing IT facilities, IT infrastructure through execution of new federal government policies such National Telecommunication policy to keep stability on the market and continue to be competitive, while protecting the consumer from monopolists.
With these factors it is evident that the ICT industry in Sri Lanka is covered by government rules and policies. A lot of the private firms should undertake government tasks so they can earn income and grow their businesses. For samples Virtusa is working collaboratively with ICTA in order to build this e-government framework, assisting to create web portal for the automobile certificate renewal process which is called e-revenue permit. Post warfare condition of the country has shifted focus on reconstruction efforts in country, providing further expansion in all establishments. The increased government expenditure on infrastructure would appeal to FDIs resulting in knowledge and technological transfer leading to further high progress rates in the IT industry.
Economic Factors
Though a tiny open overall economy, the Sri Lankan economy has undergone major transformations in the past few decades, lately having experienced through the global financial meltdown. Therefore, the IT industry of Sri Lanka has been instrumental in the contributing to a sustainable monetary growth.
The reform process since 1977 works as the key driving a motor vehicle factor for the Sri Lankan economy to integrate in to the world economy. This enabled the economy to take pleasure from the great things about globalization, as a shape below shows the increased openness of the Sri Lankan economy since then. (Islam & Hossain, 2006)
Figure 2: Openness of Sri Lankan Current economic climate (Islam & Hossain, 2006, p. 176)
Being an open up market and fueled with the advantages of globalization, the Sri Lankan IT industry loved further progress potentials. Sri Lanka handles the key IT brands and IT educational institutes from about the world and is one of the key players in the IT education sector in the South-Asian region. The IT industry works as a service exporter contributing greatly to the growth of the market.
According to the entire world Bank economic update on Sri Lanka (2009), monetary activity decelerated sharply at the starting point of the global financial crisis. Currently with the continuous recovery of global economic problems, Sri Lankan overall economy will probably experience a growth through exports, increase in travel and leisure and possible higher FDI inflows. These monetary growth factors will effect on industry areas including IT by facilitating their expansion prospective simultaneously.
Most importantly exchange rate affects the IT industry generally. When coping with international suppliers in acquiring licenses and hardware components, exchange rate fluctuations have an impact on firms business in numerous ways, with licenses priced at large amounts of money due to high risk exchange fluctuations. For a good example settlements in US us dollars, would cause losses for the business if there's a higher volatility of the exchange rate of US us dollars against Sri Lankan rupees.
The increase of interest on borrowing can be considered as unfavorable tendency for the IT industry in general. When analyzing the interest rate on borrowings for the financial season of 2010, there has been a declining trend in the interest rate generally. So it's a positive indication for just about any industry which need heavy opportunities, providing development potentials on the IT industry sector allowing the companies to grow their business procedures.
Socio ethnic factors
As a multicultural community, the cities of the united states sharply compare with the rural area using its highly-skilled, educated and competitive British speaking workforce, and producing IT knowledge in the rural areas has continued to be a barrier for extending businesses and other investment funds in IT development for the companies
Cultural barriers
Below are a few of the cultural obstacles implemented from "The Impact on National Culture on E-Government Execution" (Ali, Vishanth, & El-Haddadeh, 2009)
Language & ICT literacy rate English is used only as another terms; many rural individuals have no understanding of English
Lack of Consciousness: residents' lack of knowing of e-services; citizens bored with e-government
Religion and values: Negative effect on the contemporary society and specially the youth utilized by leaders and the more aged era becomes a hurdle to expanding IT
Table 1: Computer recognition and Computer literacy of household
population (aged 5 - 69) by sector and province (DCS, 2009)
Though the country's literacy rate has increased to 31. 1% in the cities the rural results only 19. 3% which really is a slight increase compared to 2006/2007. The government is taking steps to educate individuals about the IT industry and increase literacy rate and words skills.
Despite such ethnical barriers the federal government expects to build an e-society and create recognition about the IT industry. Increased recognition on IT within the culture can be viewed as as a favorable trend that could directly effect the industry growth generally. Increased Internet convenience has facilitated the IT understanding how to a great extend, thus providing many opportunities for progress in regions of E-business and E-commerce, as shown by the increased attractiveness of e-banking and e-shopping.
Technological Factors
Since the overdue 90s, Sri Lanka has discovered a major raise in IT industry. Especially in the area of software-engineering, the skill-base reaches a commendable level in comparison to some other Asian countries. The technological developments have positively added to the development in the IT sector creating many opportunities for the industry. Technology is speedily changing over time and businesses need to adopt latest technologies in order to stay in the business. The first version of latest solutions is an integral factor which would permit the firms to accomplish a relative advantages over their challengers. These technological breakthroughs will gas IT workforce through training and development as a means of equipping them with all the current latest technologies that could in turn help the businesses to provide more latest technological solutions because of their customers. The number of users of services like Internet Banking and Mobile Deals are increasing implying that individuals are at ease these services.
Environmental Factors
The natural environmental factors are contemporarily one of the main element trends for just about any business to consider to make strategic business decisions. Relative to the IT industry, the most relatable concern will be cost of energy in addition to other environment degradation factors which need to be considered maybe in a "social-responsibility" point of view. Most of the firms have designed "Go Green" concept which will aims at minimizing amount of vitality usage.
Sri Lanka already specializes in number of projects on sustaining environment management such as those ongoing and organized projects conducted through the assistance of ADB especially in transport, water supply energy, and rural development (ADB, 2008). Such projects provide various opportunities for the IT industry, such as stand-alone or web-based job management/monitoring applications.
Legal Factors
Given the infancy of the Sri Lankan IT industry, and the initiation of the e-government assignments, Sri Lankan legislative infrastructure requires more legal frameworks to govern and screen the technological challenges and relating issues.
The Customs Act states that all imported multimedia such as software CDs and hardware have to be declared at the Customs. Also there is certainly Intellectual Property Rights Act that may limit using other brands and logos with no proper contracts with these get-togethers.
The Sri Lankan Information Communications Technology Firm (ICTA) has strengthened its initiatives in broadening a common global standard like United Nations Percentage on International Trade Legislation (UNCITRAL) and could ratify some of the required contemporary ICT laws and regulations such as e-Transactions Take action and Computer Criminal offenses Act (UNPAN, 2009). This is an indication that the legislative framework is in the process of aligning itself to enhance the requirements of the immediate evolving IT industry.
Key traveling forces
Through the PESTEL examination, several key individuals of change that impact the IT industry in Sri Lanka can be produced.
Government Support on the IT Sector
Government has evidently identified the importance of the IT sector and helps the growth of the sector by giving concentration to IT education and increasing the IT infrastructure in the country. This might provide further opportunities for the IT companies to expand their business activities into many professional regions of the industry in future.
Rapid Technological Change
Rapid growth and change in technology will have an effect on the IT industry by facilitating high levels of competitiveness and differentiation among opponents for the ability to adopt new solutions.
Growth in the IT Industry
With the reconstruction initiatives, Administration has increased expenses on infrastructure that could attract FDIs resulting in high economic development, fueling expansion rate of the IT industry, by bringing in new entrants to the marketplace. .
High Demand for Quality Products
As malfunctioning of software is unacceptable, customers place importance on the grade of the product rather than the price of software; hence low priced does not differentiate competition in this industry. Hence, even the most cost-sensitive customers will consider quality over price, and it remains an integral area when identifying an appropriate technique for IT organization in Sri Lanka.
Changes in these key driving forces would straight affect the firms functioning in IT industry in Sri Lanka.
Micro Environmental Analysis
Five Makes Analysis
Michael Porter developed the five-forces model in the 1970s to examine the five main structural elements in virtually any industry; Figure 3 provides a summary of these causes (Bamford & West, 2010, p. 103).
Figure 3: Five Forces of Industry Framework (Bamford & Western, 2010, p. 104)
Based on five forces, the attractiveness from it industry in Sri Lanka is evaluated as follows:
Threat of New Entrants
The competition in an industry will be higher if it is easier for other organizations to go into this industry. The threat of new entrants will depend to the magnitude to which there are obstacles to entrance. When analyzing the IT industry, there are several factors that impose certain obstacles for entry. The most frequent obstacles are economies of size, high original and investment costs, brand commitment of customers, protected intellectual property rights like patents, high turning costs for customers and legislation policies and government actions.
Since the IT industry in Sri Lanka is in growth stage the impact of economies of level on this industry is little. Government continuous support onto it industry will favour the new entrance to the market. Government regulations and guidelines are aligned to aid the emerging firms coming into the industry. Despite the fact that, admittance to the IT industry is not easy as it requires partnership payment and latest infrastructure, making admittance costs high. As the original capital requirement is higher it's harder for new enters. Also provided that the IT solutions require the acquisition and maintenance of partnerships with different players such as Sun, Oracle and Microsoft, difficulty in obtaining such partnerships acts as a barrier.
Customer loyalty is another aspect that threatens the new accessibility. Most of the key players currently in the market have differentiated their products and services. And their brands are well known and the client loyalty is high in this industry because the switching cost is high. The need of a tech support team teams to assimilate and maintain IT systems is also subsequently create a hurdle for most of the new entrants. Taking care of highly technical labor force is costly and therefore, most organizations to develop a competent workforce are competitive edge over their opponents.
Most of the dominant firms in the market has already been having highly skilled technical support clubs and possessing a good customer conception and enhanced romantic relationships, thus reducing the number of new entrants to the industry.
Rivalry among Groups
With the industry starting fast growth rate, and within an uphill development, the industry is still attracting competition, regardless of the dominant players in the market accompanied by the middle-sized organizations. Your competition between these players is high. The level of differentiation of product is another factor that may determine the position of the competition. Early adaptation to new technology allows the organizations to identify their products and services using their competitors. This enables the reduction of competition somewhat since the switching cost is higher for customers. So most IT organizations focus on field of expertise on certain specific areas rather than concentrating on the whole IT market.
The quality of the program products and services is more significant than price, hence most companies work at building customer confidence and human relationships to ensure resilient business relationships, in addition to value added services such as alternatives and support because of their customer base. Exit barriers for the IT industry are extremely high because the original investment is high and businesses need to put whole lot of resources, and competition remains high, as some firms are trapped with the business despite attempting to exit.
Although a low rates strategy helps competition in other establishments, for IT it's the quality of the product that is significant for the clients. Even though the IT industry in Sri Lanka is growth stage as a whole, generally we can say that competition among rivalries is low due to above facts.
Threat of Substitutes
A danger from substitute exists when there are substitute products with lower prices and of better performance for the same purpose. The competition from substitutes can be afflicted by the decrease which customer can move and if transitioning costs are low or insignificant. In this case, the turning cost in this industry is high we can easily see that the threat of alternative is bit low for IT industry than in other business.
So many solutions and languages are being used in the process of any software development. Competing firms might use one of these technology or mixture of technologies. So it's important to have highly skilled technical engineers in these divergence technologies to have an border over other companies. Also many of the customers prefer improving existing software rather than build it from the scratch for cost success. So the propensity to start a project from the beginning is low where in fact the IT firms might well have earned more revenue. Moving one product in one vendor to another is costly. Hence the threat of substitute is low if the firms are working in continuous development tasks.
Pirated software freely available on internet can be viewed as as another form of replacement. These unlawful copies of original software made by different sellers can be downloaded from internet for a minor cost and configured accordingly to provide the customer's need. However, substitutes may create impact on new smaller tasks especially in conditions of cost when such solutions are risk free and don't have an effect on the business continuity in better scale. Yet due to the lack of references, tech support team and self-assurance like performance, expandability of the merchandise of these substitutes, the impact would be little.
Since the customers are quality conscious than the purchase price the threat from alternative products gets lower, and hence the impact from the substitutes for IT industry is insignificant.
Bargaining Ability of Buyers
As every organization is participating in a brutal competition by product differentiation and value added services the potential buyers has a higher bargaining power in IT market. That is because of the fact that the clients are provided with the chance to choose between numbers of organizations, such as demand for extended payment strategies on interest free basis.
Customers are willing to sacrifice cost for high quality implementations specially when the proposed solution is a earnings generator or a crucial system. Customers hence generally do not have much bargaining vitality over purchasing of product and support services mainly due to the quality awareness and the fewer range of prominent providers.
Bargaining Ability of suppliers
This analyzes how easy it for suppliers to drive up their prices and exactly how it will have an effect on the industry. Companies in IT industry includes in a number of categories of jobs, and therefore, here we take a few categories and investigate further who the suppliers of these categories are and the power of the suppliers. Mainly we can consider suppliers who allow IT businesses to use their solutions and obtaining a loyalty fee from them as suppliers. These suppliers charge plenty of money and it's really hard to obtain a collaboration with them. Also there are only few dominant distributors such as Microsoft, Sunlight and Oracle. Since the expense of moving over between these suppliers is higher, the bargaining power of the suppliers boosts to a great amount. Sometimes it may reduce because of the availability of large numbers of suppliers providing homogenous products and technologies.
Different technologies used by different firms in order to provide software solutions. To use many of these technologies firms need to pay devotion payment for the copyrighted company. For an example JAVA technology is owned or operated by Sun Microsystems. To utilize these technologies organizations should have contracts or partnerships with these suppliers. Also the IT industry is the sole customer of these suppliers. Hence the bargaining electric power from suppliers is significantly saturated in IT industry.
Conclusion of the Industry Analysis
With the five causes analysis, it is for certain that the IT industry in Sri Lanka is very attractive. This is due to the fact that the industry is currently experiencing positive federal support. However, high entrance barriers in regards to to high capital opportunities in conditions of training and development and buyer devotion discourage new access. Also it's hard for new entrants to earn the partnerships from the prominent technologies providers. Furthermore, fewer distributors as suppliers won't provide a variety of choices for the IT companies that would improve the bargaining power of suppliers to a great scope. The industry rivalry is low credited to customer loyalty and quality concerns. Risk of substitutes is low because of the facts, that the turning cost is high and customers will be more quality centric than the purchase price. Bargaining electric power of buyers is less since there are just few major players on the market and the switching cost is also high.
Overall the IT market in Sri Lanka is very beneficial for the dominating firms which has already resolved down however, not for the tiny firms that happen to be entering the marketplace now.
With research we can identify romantic relationships between some of the key driving a vehicle causes and environmental pushes. In the current context the federal government support for IT industry is high. Hence the federal government policies and polices will be aligned to aid the industry. This will favour the new entry to the marketplace and then market competition could be higher.
Micro forces will probably change relative to activities in the macro environment. Low interest levels on borrowings would lower financial barriers result in appealing to new entrants. Furthermore, the drive towards acquiring low priced solutions would further entice more SMEs intensifying competition within the industry and would further lead to price competition. Again if the exchange rate fluctuation is higher, the risk of new entry will be lower due to the high risk and will reduce the market competition.
Enhancements in IT technologies and infrastructure will have an impact on the existing competition on the market. Since the solutions are changing quickly the customers will proceed to different organizations who are capable of adapting to these changes. Therefore the buyers bargaining vitality will increase and the substitutes on the market will can also increase. Finally popular for quality products will certainly reduce the market competition. Good deal competition will reduce the bargaining electricity of buyers. Increased customer devotion for companies providing high quality products will become a barrier for new entrants.
Strategic Groups
When analyzing the Srilankan IT industry in general, there are quantity of players with different features competing on different bases.
Table 2: Competition in the IT market and their core areas
When examining the rivals for Virtusa corp. in terms of the degree of product variety and how big is the business, we could actually find following strategic groups.
Large organizations with high product diversity : Virtusa, Millennium IT, JKCS
Small organizations with high product variety: Creative Solutions, Aepona
Small organizations with considerable product variety: Navantis, Zillion
Small organizations with low product diversity: Informatics
Figure 4: Examination of Industry Competition
IT industry in Sri Lanka is highly fragmented in terms of the area of competition. Once we can see there is absolutely no large firm in size which has low product variety. Which means when firms are growing they have a tendency to diverse their products to become competitive. It really is clear that your competition among these companies is high provided that their area of competition is similar to others. Only few firms offers an array of products and services that permit them to provide more involved and complete business solutions when compared with other firms in the market. The high assets on these alternatives would encourage the clients to look into factors such as industry references and commitment factors in determining the credibility of a firm, thus performing as a barrier for the ability to move between groups. This provides them the chance to distinguish their products and services from the rest and thus, allow them to stick out from the competition.
Strategic capability analysis
Core Competencies
Core competencies are groupings of individual competencies that establish uniqueness for a business (Kaufman, Oakley-Browne, Watkins, & Leigh, 2003, p. 306).
Table 3: Strategic Functions and Competitive Advantage
(Johnson, Scholes, & Whittington, 2008, p. 118)
Table 4: Recognition of Strategic Capacities and Completive Gain for Virtusa
Threshold Capabilities
Threshold Resources
Tangible
Latest technologies and option of advanced technology centres, IT equipments and latest systems, sufficient capital to meet requirements, skilled workforce, large base of dedicated customers
Intangible
Knowledge & experience in the ICT industry & long set up client and provider relationships
Threshold Competences
Maintenance of company resources such as latest IT systems
Management of skilled engineers and business processes
Maintaining good company marriage with satisfied self-assured customers
Maintaining high quality of services such as consulting, program development and quality executive services
Educating and training the labor force on software development, technology and equipment used and total quality management (TQM)
Capabilities for Competitive advantage
Unique Resources
Tangible
Unique technologies such as BPM, Cloud Computing, SAAS, and technological centres such as Virtusa Business Process Competency Centre, strong fiscal expansion rate, strong leadership
Intangible
Brand image and reputation
Strategic partnerships with IT giants all around the world
E. g. : SAP, ORACLE, Extra fat Line etc.
Core Competencies
Business model that the Virtusa has gained through experience and constant learning
E. g. : Unique Global delivery model
Unique expert skills with creativeness and ability to innovate
E. g. : New innovative methods to software development life cycle
Ability to keep and train very skilled professionals
Focuses on business results and bettering IT efficiencies within business business operations creates tremendous competitive advantage for the business clients
Ability to provide high quality end products through the unique quality assurance section.
People powered culture - Committed to best HR tactics and aligning HR strategies with business strategies.
Virtusa should ensure in satisfying customer requirements through ongoing improvement of proper capabilities for sustainability and competitive gain over its challengers. Strong leadership helps the process of fabricating competitive benefits to the company with original services, infrastructure and skilled resources. Most companies lack strong control. Customers and skilled technicians are cared for as belongings for the company and long-term marriage with customers create a positive image to the company and keep maintaining its reputation in the heads of customers which creates success. Strong financial growth rate also helps company's growth. Employees and Top management's awareness of the external environment is required for the businesses development. Also with rapid change in the IT industry continuous training of employees with latest technology, equipment etc for adaptability are needed along with, maintenance of resources, skilled designers, and unique solutions.
The company's value proposition, industry know-how with skilled technicians and superior client delight index permits it to increase their interactions with key clients, which is distinct from its competition. Company's core power is based on its capability to collaborate effectively with customers, identify their needs, apply company's experience and insights and build products and alternatives better, faster, and more cost effectively.
Value Chain Analysis
Michael Porter discusses an important tool you can use to investigate and understand the activities (Main & Support) of an organization and link them to organizations competitive position thought as the "Value String. " (Recklies, 2001)
Figure 5: Basic model of Porter's Value String is illustrated below (Recklies, 2001)
For a corporation like Virtusa, it is important to identify their products through value improvements and ground breaking features through focusing more on its value chain activities to permit better competitiveness in the market and help identify and capitalize on the competitive advantages.
Table 5: Value String Research for Virtusa
Value String Activity
How does Virtusa create value for customers? What issues Virtusa have in its value string?
Primary
Inbound Logistics
Developing move diagrams based on customers' requirements to supply the needed IT solution
Information is not accessible to competition and hard to access
Operations
work stream design is efficient
Since each solution is exclusive and custom to suite the requirements of the respected customer, selected technicians are assigned to troubleshoot and offer assistance in a personalized fashion.
efficient customer account management
Custom frameworks for various development requirements
Outbound Logistics
Being an organization that delivers digital products, circulation stations are highly accessible - usually rely on the internet/intranet or set up VPNs with the clients.
On-time beta and trial assessment for customers ahead of genuine delivery deadline to ensure increased and seamless applications are delivered
Providing security and penetration evaluation for customers as value additions
Marketing and Sales
Most of the Marketing activities are at minimal and even more concentration on online-marketing
Word of oral cavity advertising usually through customer reviews and confessions
Virtusa also conducts CSR pursuits like providing computer labs and facilities for schools
Service
As a result of efficient consideration management, comments from customers and responses tend to be more direct and helps to attend instantaneously.
Quality is ensured through continued enhancements and patching to cope with the advancements of technologies
Secondary
Procurement
Strategic partnerships with world's leading solution providers like Microsoft, Oracle, IBM, Sunlight Microsystems. . . etc permits Virtusa to provide world-class solutions and the capability to integrate its alternatives with third-party sellers.
Multiple strategic partnerships eliminates dependency on a single supplier
Technology Development
As the IT hardware is one of the most rapidly evolving business, Virtusa ensures their hardware up-to-date and complies with the industry criteria.
The intangible tool skills used at Virtusa permits them to provide sophisticated state-of-the-art alternatives such as venture management systems.
Human Source of information Management
At recruitment level, Virtusa is very effective as staff are hired predicated on behavioural skills and the specialized skills are produced by providing relative training and hands-on-experience
Staff-retention system is satisfactory but can be better.
Infrastructure
The company's intranet proven over a VPN serves as a platform to talk to customers as well as employees.
Organisational goals are communicated throughout the business and personnel performance is commendable.
VRIO Framework
The VRIO construction by Barney and Hesterly is an efficient tool you can use to asses and look at the inner environment of an organization (2006). Below is the VRIO Examination, for Virtusa predicated on the value string analysis and center competencies.
Table 6: VRIO Examination, Competitive and Economical Implications for Virtusa
Resource / Activity
Is it. . .
Competitive Implications
Economic Implications
Valuable?
Rare?
difficult to Imitate?
properly Organized?
Inbound logistics
Yes
No
Yes
Yes
Competitive Advantage
Normal
(for a period)
Yes
Yes
Yes
Yes
Sustained Competitive Advantage
Above Normal
Outbound logistics
Yes
No
No
Yes
Competitive Parity
Normal
Marketing & Sales
Yes
No
No
Yes
Competitive Parity
Normal
Yes
No
No
Yes
Competitive Parity
Normal
Yes
No
No
Yes
Competitive Parity
Normal
Technology development
Yes
Yes
Yes
Yes
Sustained Competitive Advantage
Above Normal
Human resource management
Yes
No
No
Yes
Competitive Parity
Normal
Yes
No
No
Yes
Competitive Parity
Normal
Findings based on Value Chain and VRIO Framework Analysis
It has been discovered that Virtusa already loves two ecological advantages which can be Operations in its principal activities and Technology Development in its supplementary activities. Virtusa's executive operations to leverage a internationally distributed, world-class engineering force to design, develop and deploy mission-critical products. The anatomist processes and solutions are inimitable because they are costly for competition to imitate. With Virtusa's inimitable resources such as skilled engineers, industry competence, unique delivery model and innovative technologies, the company has had the opportunity to gain the self-confidence of customers as customers feel that the business is reliable and the money they pay is appreciated along with quick delivery service, and therefore provide competitive gain. However, Virtusa should keep these unique functions in order to accomplish sustainable competitive edge, while shopping for new resources.
The Virtusa Corp. has been in the business enterprise of integration for a long period. Its unique system procedure for cost efficiency, industry experience brand name recognition has also increased them in getting sustainable competitive advantage with a strong fiscal growth in the modern times despite recession. Following its unique and threshold proper capacities, the Virtusa is exploiting in to massive jobs local and global framework.
Stakeholder Mapping
Figure 6 below shows stakeholder mapping for Virtusa corp.
Figure 6: Stakeholder Mapping for Virtusa
As for the stake holder mapping for Virtusa, top management of Virtusa will play an integral role in the business as they'll be answerable and in charge of businesses in Sri Lanka. Virtusa being a global company will be governed based on the guidelines and policies established by its head office. Thus the top office is considered as one of the main element players. ICTA plays a vital role in IT industry in Sri Lanka hence have electricity and interest to impact the business enterprise of Virtusa. Another key player is strategic partners who've partnerships over solutions. These partnerships ensures maximum delivery rate, espouses a high degree of product experience, total solutions, implementation skills and support for objective critical environments. These lovers have high interest over Virtusa and has quite significant electricity can make them an integral player.
The group who has high level appealing and lower in ability will be categorized as keep prepared group. Suppliers and opponents will have advanced interest over Virtusa businesses nonetheless they do not have much power to influence the business enterprise. Being a technology motivated organization the skilled technical engineers performs the major role. Hence they will have a high level of interest but their ability is low.
Government of Sri Lanka will have high power to influence the business of Virtusa. For a good example they may bring policies which might adversely impact the IT industry in Sri Lanka. Authorities has less interest on Virtusa business; hence it'll be grouped under keep satisfied group. Also the Virtusa customers have advanced of power because of the competition however the interest over business is low. Support personnel and third get-togethers help the business enterprise can be categorized under minimal effort category which has low interest and low vitality.
Through this matrix it is evidently identified that we now have different levels of stakeholders who have varied interest and electric power on the origination's strategies. We need to properly manage stakeholders such as government who've more electric power even though their interest is low, in order for to sustain on the market.
Conclusion
This survey analyzes the proper path of the Advanced Technology Center of Virtusa Corporation, in order to accomplish its goals. However the key focus and range of the survey was to recognize the competitiveness of the industry with the key driving forces and strategic ability analysis. It boosts the inner and exterior environmental affects and dangers, value chain and center competencies such as increased anatomist efficiencies and cost efficiencies of the business, strong leadership with skilled resources and creativity that were in a position to create value for the customers through better software development and services. Virtusa has been able to gain lasting competitive advantage due to these successive factors.
However the business should further improve their strategic capabilities and become aware of the changing pushes and change their strategies when needed to be able to stay competitive and successful in the industry. The later stage identifies the proper groups of the business and stakeholder mapping with proper models which really helps to identify the stakeholder expectation and their vitality through which one can determine their political priorities. The business must keep its key stakeholders satisfied in order to achieve success in today's and future.
