Automation Through Technology: Must For Increasing Profitability & Adding Value Beyond Cost Savings
Over the last decade, the global market research industry has reinvented itself
, riding on the back of technology. Understandably, market research outsourcing and offshoring service providers had to keep pace with the changing technology. Outsourcing providers can improve the value exchange by further reducing costs using technology and by improving service delivery. These are affected by reduced turnaround, improvements in quality assurance systems and better integration of services with client operations. The cost of developing proprietary technologies is substantial and needs to be borne by service providers in order to create value.At Cross-Tab, we classify technological development for operational efficiency at two broad levels: fundamental and adaptive. The fundamental level involves identifying technology platforms that will serve as a catalyst in delivering services across all projects. These technologies typically include functional applications, knowledge management, project management, project mining (archiving) and internal MIS systems, etc. At the adaptive level, automation is characterized by innovations at micro-level and quick responses to project specific problems and opportunities to accelerate the delivery of services. For example, during the course of a project, experienced research professionals can automate processes such as data migration and error identification through the use of macros and other methods. Cross-Tab has identified a group of experts who are experienced in identifying such opportunities for developing adaptive technologies. Such professionals with strong technical expertise are able to create feasible solutions which bring about efficiencies in custom projects. Subsequent cost savings can then be passed on to clients, ensuring a more profitable business exchange. Beyond time and cost efficiencies, these technologies offer features such as enhanced visibility, transparency and accuracy in operations, often of critical importance to clients.
Cross-Tab has from time to time invested in fundamental technologies that are either customized for specific client(s) using industry standard platforms (helps to absorb a good proportion of initial costs) or developed from scratch if reliable industry wide solutions are not available. For example, Cross-Tab provides real time reporting and the ability to run cross-tabulation on survey data to all clients where data collection is managed on Confirmit. In such cases, variable costs required for customization and providing access are charged to the client, while Cross-Tab absorbs all Confirmit licensing costs. Launch of mobile metering and an enterprise level SMS/WAP based mobile survey platform are also strong examples of Cross-Tab investing in fundamental technologies to meet client needs.
We foresee that as market research outsourcing relationships go through advance phases of maturity, further value addition (i.e. advantage beyond labor cost arbitrage) will come from usage of new technologies and micro innovation at the floor level. The value addition could be in the form of cutting down the project turnaround time, improving project management, knowledge management or any other feature that is important for the client. Outsourcing providers are in a position of advantage due to their scale of operations for each service line, which makes investment in fundamental and adaptive technologies feasible. The outsourcing providers and clients who work towards identifying and deploying these technologies would be able to sustain and grow their relationships, make the engagement more profitable for both the parties and add value beyond cost savings. It is a win-win proposition.
by: Kumar Mehta