Monday, September 22, 2008

IT Services Marketing - Are we there yet?


The concept of IT services marketing is definitely not new but the whole concept has definitely seen a paradigm shift and underwent numerous transitions particularly in India in the last decade or so. The Indian IT companies realized that if they were to beat the IBM’s and the EDS’s of the world in the “game” – they should get their act together. It not only meant the delivering the message to the end customer about the novelty of the services provided by a said vendor but also shrouding the message in a jazzy web so as to create maximum impact and customer recall value. While on one hand it meant the phasing out of a generation of delivery folks out of the marketing departments of the top tier IT companies – on the other the so called marketing whizkids of the FMCG and product companies moved in to fill in the “niche” within. So while the Wipro’s, Infosys’s and the HCL’s of the world got in the marketing guru’s to try and bridge the gap between the message sent out by them and that by the big 3. While in reality though the profit margins increased as did the sales of the Indian companies as they went further global – the big question is pertinent here: Are we there yet?

While the concept of IT services marketing tries in essence to differentiate itself in the sense that it the core strategy is built around influential marketing – much like the US political scenario. The messaging and the context as well as the services need to be flexible.

Boom!!! I said it again – in context is services marketing any different from product marketing. While purists will bay for blood if most modern day marketers try to bring down the holy-grail i.e. the 4P’s of marketing and try adding a different dimension of ‘people’ – in a whole, the context of the 5th P was always integrated within the economics of the world and that made services and not goods the core unit of business.

All businesses at the heart are services business – if we take the Dell model or even the model of a can of “desi ghee” – essentially each one of them follows the integral model of the services economy. In reality marketers try and approach the model from two opposite sides of the spectrum – e.g. our very own Tata with the ‘nano’ is not actually in the business of automobiles (believe it or not) but in the business of transportation services. Marketing of the ‘nano’ would not only revolve around the product marketing to spell success for the product but essentially incorporate the 5th P i.e. people if ultimate success is to be attained.

The Indian IT services arm has essentially not seen much action – but the scene is heating up. With margins shrinking and vendors essentially targeting similar geographical markets we are poised to see a sea-change in this business that will essentially differentiate the innovators from the followers.

The Wipro’s, Infosys’s and HCL’s of the world please stand up.

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