Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case
This case concerns a one billion (US) dollar 10-year global outsourcing project signed in 2007 to outsource major parts of the human resource (HR) function of a major multinational company. The client and supplier embarked on a large-scale implementation plan and ran into difficulties on meeting deadlines and delivering the systems required. The case focuses on the step-by-step phased roll-out in the client's Europe, Middle East and Africa region covering 44 countries. The case follows the many attempts to stabilise and deliver the project. In June 2010, the supplier sold its HR line of business to another supplier, which became responsible for the project. The case documents the strategy, governance, project management and escalation issues to March 2011, and asks questions about the practices exhibited so far, and future decisions on strategic sourcing, project management, de-escalating the problems and the retained capabilities needed by the client.
Authors :: Dorottya Kovasznai, Leslie P. Willcocks
Swot Analysis of "Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case" written by Dorottya Kovasznai, Leslie P. Willcocks includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Escalation Project facing as an external strategic factors. Some of the topics covered in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, supply chains are disrupted by pandemic , technology disruption, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Escalation Project, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Escalation Project operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case can be done for the following purposes –
1. Strategic planning using facts provided in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case case study
2. Improving business portfolio management of Escalation Project
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Escalation Project
Strengths Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Escalation Project in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case Harvard Business Review case study are -
Successful track record of launching new products
– Escalation Project has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Escalation Project has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– Escalation Project has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Escalation Project is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Escalation Project digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Escalation Project has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Analytics focus
– Escalation Project is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Dorottya Kovasznai, Leslie P. Willcocks can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Escalation Project
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Escalation Project does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Escalation Project is one of the most innovative firm in sector. Manager in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Technology & Operations industry
– Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case firm has clearly differentiated products in the market place. This has enabled Escalation Project to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Escalation Project to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Escalation Project has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Learning organization
- Escalation Project is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Escalation Project is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Escalation Project has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case are -
Increasing silos among functional specialists
– The organizational structure of Escalation Project is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Escalation Project needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Escalation Project to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Escalation Project is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Escalation Project has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Escalation Project has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the segment, Escalation Project needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Escalation Project has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case, is just above the industry average. Escalation Project needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Skills based hiring
– The stress on hiring functional specialists at Escalation Project has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case, in the dynamic environment Escalation Project has struggled to respond to the nimble upstart competition. Escalation Project has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Escalation Project has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Escalation Project even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Escalation Project has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Escalation Project to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Escalation Project in the consumer business. Now Escalation Project can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Escalation Project to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Escalation Project to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Escalation Project can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Escalation Project can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Building a culture of innovation
– managers at Escalation Project can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Escalation Project can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Escalation Project has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Escalation Project can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Escalation Project can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Escalation Project can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Escalation Project has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Escalation Project to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Escalation Project in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Escalation Project to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case, Escalation Project may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Escalation Project with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Escalation Project can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Escalation Project in the Technology & Operations sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Escalation Project needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Escalation Project is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Escalation Project will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Escalation Project needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Escalation Project can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Escalation Project
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Escalation Project.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Escalation Project.
Consumer confidence and its impact on Escalation Project demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Escalation Project needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Weighted SWOT Analysis of Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Escalation in Global Outsourcing Projects: The XperTrans-C&C BPO Case is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Escalation Project needs to make to build a sustainable competitive advantage.
