Reversing IT

face="Times New Roman, serif">Think
of a warranty repair and one would probably think of an after-market
services or reverse supply chain, as said by the vendors. In fact,
reverse logistics is the most evolved term conventionally used to
denote
the complexities of warranty issues. The market for the low-cost
outsourcing model for their warranty support and repair needs is
attracting more and more OEMs and ODMs. With such attention on its
part, this segment is expected to grow manifold evolving from a
profound transformation. Of
late, the market for repair outsourcing in the channel industry is
transforming into a lucrative business, though much business in the
sector is still unorganized as many end users prefer locally
available and often cheaper services. However, with more branded
players getting into the fray and increasing customer demands for
repair, the scenario is going to experience a lot of change. The
boost in the repair outsourcing segment is expected to grow manifold
with the help of a higher rate of technological
obsolescence and faster upgrade cycles, especially in
lifestyle-oriented products.

face="Times New Roman, serif">To
name a few in India, some of the active players in the IT products
repair segment include Allied Digital, inTarvo technologies and
Chabria Infotech among others. According to Nitin Shah, MD, Allied
Digital Services, “Repair and remote troubleshooting is a huge
industry and companies are offering remote helpdesk support and
technical expertise through outsourcing model, which is
cost-effective.” The company maintains a helpdesk with service
engineering staff, and offers technical support to
end-users. Allied Digital Services, an IT infrastructure management
and technical support services outsourcing company had acquired
Digicomp, to provide component repair services to IT and
telecommunications hardware makers. One of the key companies in this
segment that has grown significantly is, inTarvo technologies, which
has more than 400 service centres and 200 locations. “We have
support from most of the leading security manufacturers. We are also
pioneering the third-party service
provider field in electronic security and helping OEMs and channel
partners to serve their
customer base better by maintaining critical electronic security
infrastructure in time,” said Sudhir Putthiharan, President-Field
Services, inTarvo Technologies. In the changing competitive market
scenario, the customer doesn't have the time to wait too long, and
any hardware and software downtime is productivity loss to him. Thus,
any delay in delivery or longer turnaround time makes customer
reaction very uncertain. So it is compulsory for the company to keep
its customers updated on the issues with the product and expected
time of delivery online on a real-time basis. The company's
customers, especially Fortune 500 companies, typically do not carry
out component-level repairs but module repairs, which implies a
quicker turnaround time. Service delivery depends on OEM policies,
warranty
period, kind of refurbishment or repair required and the availability
of spare parts and accessories.

face="Times New Roman, serif">Zakir
Hussain Rangwala from Alladin Multimedia, Mumbai also commented,
“It's a profitable business for both the parties. For the
software installation of a product in Kolkata, I had asked Chabria
Infotech in Kolkata to do the following requirement. As far as the
pricing and warranty is considered, there is no particular
margin and it depends completely on the product.”

face="Times New Roman, serif">"Also
in this model, the customer experience is owned and delivered by the
OEM, while the partner delivers whole unit repair plus spare units
and parts. Commodity suppliers are linked directly to the outsourcing
partner, creating a unified relationship with the OEM,” he added.

size="3">CHANGE
OF PLAN

face="Times New Roman, serif">While
warranty repair continues to be a key area of focus in reducing cost
and improving the customer experience, the trend toward providing an
end-to-end services supply chain continues to evolve with the
potential to create even greater value for OEMs, their channels,
partners and end-customers. However, a drive towards end-to-end
services requires improved efficiency throughout the entire reverse
supply chain to realize maximum benefits. Speed and customer
expectations are rapidly changing the scenario in reverse logistics.
In order to lean out the entire services supply chain, one will find
several market drivers that are creating opportunities for the same.
“Matured organizations generally appoint one or few service
providers who can offer them warranty support. Most OEMs appoint
those service providers who can offer call center, carry-in and
on-site support. Vendors use
the channel support for their end customers. We have Digicomp with us
in 27 locations for the carry-in support of our products,” added
Shah.

By
introducing new products, OEMs are definitely finding way to stay
ahead in competition. Of course, there is also a need and ongoing
challenge of protecting the quality of all products in the channel.
Apart from this, end-customers are demanding greater product
reliability and uptime. As a result the service supply chain demands
have increased efficiency through the optimization of the services
ecosystem due to these market drivers. Warranty repair is also
replaced by the end-to-end services and global outsource solutions
that are emerging rapidly.

size="3">TIE-UPS
WITH PARTNERS

face="Times New Roman, serif">Crucial
in this game, channels partnerships backed by commendable presence
and servicesupport have been the backbone of the company. inTarvo
plans to enlist more support through the franchisee model with its
listed partners. To bolster its support operations, inTarvo had also
initiated the Tech Gurukul programme for training engineers, science
graduates and diploma holders in various technologies such as
networking, GSM and CDMA, BTS installation, RF technologies, Windows
server, routers and switches. The technical training and development
arm, Tech Gurukul provides franchisee model for
channel partners for opening centers for training fresh graduates and
engineers on joboriented courses
in various IT domains. They also train fresh graduates and engineers
to provide customers with a readily deployable workforce. “inTarvo
will be expanding its ability to help channel partners by giving
regular training services for electronic security systems. Our
franchisee network has also been strengthened and we are equipping
them with support for the electronic security products,” added
Putthiharan.
“For an OEM to have a successful services supply chain, there is a
need to pursue an
end-to-end service outsourcing model, leverage best-in-class
capabilities, never lose focus
on improving customer satisfaction, and ruthlessly simplify. This
business is growing rapidly
and as it evolves, the members within the environment also need to
evolve to maintain
balance. Success will be predicated on driving improved customer
value by leaning out
the entire services supply chain, focusing on a complete end-to-end
services strategy and having
the right partners in place to execute results,” added Shah.