In an exclusive with virat bahri, Aricent CEO Sudip Nandy talks about how focus has been one of Aricent’s key strengths and how they will leverage it to enhance value proposition and growth prospects for the future
B&E: Isn’t giving up the IP a concern for you at times?
SN: No, there are some IPs which we create if they are standards based. When we work with the customer they would want the IP. Not only that, they prevent us from working with main competition for a long time. They say you will not work with so and so at all. We try and say that we will not work with competitors for 1 year or six months, or we will not work with the same team or on the same project. Non-compete becomes a critical ask for our customers and we have a huge negotiation on this topic.
B&E: You talk about the differential play on the design front with respect to telecom services and handsets. How far do you think it works in a price sensitive market like India?
SN: Over time it will. Right away we will probably only be contributing towards making networks more efficient so that fewer calls are dropped. And as 3G comes, there will be an entirely new set of users, which you can call power users. Even if there are 2-3% of such subscribers who want more band width and applications, the number would translate into 25-40 million customers; is a huge number even for a Vodafone or an AT&T. That will be more 2-3 years down the line, when they want differentiation not just in terms of availability and speed, but also with the features and experience they get. Today, from the operator’s side it is more like a land grab – about getting subscription numbers right. Number portability will bring more options to customers. The focus will be then on segmenting into high paying and low paying. Also, how do I keep the high paying customers and do more for them will be an area of concern. It has happened in other markets and will happen here. Look at how Bharti and Vodafone have launched the App store even though there isn’t much money coming from it at the moment.
B&E: Isn’t giving up the IP a concern for you at times?
SN: No, there are some IPs which we create if they are standards based. When we work with the customer they would want the IP. Not only that, they prevent us from working with main competition for a long time. They say you will not work with so and so at all. We try and say that we will not work with competitors for 1 year or six months, or we will not work with the same team or on the same project. Non-compete becomes a critical ask for our customers and we have a huge negotiation on this topic.
B&E: You talk about the differential play on the design front with respect to telecom services and handsets. How far do you think it works in a price sensitive market like India?
SN: Over time it will. Right away we will probably only be contributing towards making networks more efficient so that fewer calls are dropped. And as 3G comes, there will be an entirely new set of users, which you can call power users. Even if there are 2-3% of such subscribers who want more band width and applications, the number would translate into 25-40 million customers; is a huge number even for a Vodafone or an AT&T. That will be more 2-3 years down the line, when they want differentiation not just in terms of availability and speed, but also with the features and experience they get. Today, from the operator’s side it is more like a land grab – about getting subscription numbers right. Number portability will bring more options to customers. The focus will be then on segmenting into high paying and low paying. Also, how do I keep the high paying customers and do more for them will be an area of concern. It has happened in other markets and will happen here. Look at how Bharti and Vodafone have launched the App store even though there isn’t much money coming from it at the moment.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
