Kapil Pal, Head-IT, Pepsico India, speaks about the changes CIOs must look forward to in order to adapt to current trends in the Indian outsourcing industry.
How has security in outsourcing changed over the years?
Earlier, there were varying quality standards for security, but today there's a focus on standardization. CIOs are more focused on following a standard and they ensure that the solutions deployed are certified. At Pepsico, we also undergo four security audits per year. Currently, we have deployed a unified security solution with the help of our outsourcing partners to connect about 1,000 distributors over 140 locations.
What's the ideal duration for an outsourcing contract today?
About two to three years is an ideal amount of time to build a relationship with an outsourcing partner. Initially, our business requirements were mostly met with generic solutions from some outsourcing partners unless we put our foot down on what we exactly wanted. For the first six months, we decided to educate all our partners about our business and its future needs. That's when we realized that short-term contracts--for one year, for example--don't work at all. But going beyond a four-year contract is also not practical.
How easy is it to move from one outsourcing partner to another?
I think it all depends on the CIO and the outsourcing relationship he builds by giving due importance to SLAs. Sometimes it could be the organization's fault as well. Changing a vendor is the easiest way out, understanding and acknowledging our drawbacks isn't. This is true especially when the fault lies in our own SLAs.
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