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  • To Diversify or To consolidate-NICT at Crossroads: Gsde Assignment

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    Rachit Pradhan
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    This document summarizes an assignment submitted by Subramaniam S. regarding whether NICT should take up a PBI offer. The summary argues that NICT should not accept the offer for several reasons: it may reduce employment and empowerment, two key drivers of NICT's inclusive growth model; existing employees may not have the skills needed to serve PBI's requirements; and it could damage NICT's reputation and flexibility. If NICT accepts, it may damage relationships with competitors SBI and BOI, reducing NICT's bargaining power and customer base.

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    NICT

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    PGP2_NICT_2013PGPM054

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    This document summarizes an assignment submitted by Subramaniam S. regarding whether NICT should take up a PBI offer. The summary argues that NICT should not accept the offer for several reasons: it may reduce employment and empowerment, two key drivers of NICT's inclusive growth model; existing employees may not have the skills needed to serve PBI's requirements; and it could damage NICT's reputation and flexibility. If NICT accepts, it may damage relationships with competitors SBI and BOI, reducing NICT's bargaining power and customer base.

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    75 views3 pages

    To Diversify or To consolidate-NICT at Crossroads: Gsde Assignment

    Uploaded by

    Rachit Pradhan
    This document summarizes an assignment submitted by Subramaniam S. regarding whether NICT should take up a PBI offer. The summary argues that NICT should not accept the offer for several reasons: it may reduce employment and empowerment, two key drivers of NICT's inclusive growth model; existing employees may not have the skills needed to serve PBI's requirements; and it could damage NICT's reputation and flexibility. If NICT accepts, it may damage relationships with competitors SBI and BOI, reducing NICT's bargaining power and customer base.

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    of 3

    GSDE ASSIGNMENT

    To Diversify or to consolidateNICT at crossroads

    Submitted by,
    Subramaniam S
    2013PGPM054

    1) Do you think NICT should take up PBI Offer?


    NICT should not take up PBI offer due to the following reasons:
    Test parameters

    Evaluation of parameters
    The drivers of Business model

    Employment

    Empowerment

    If NICT takes up the PBI offer, the employment which is a


    key driver for its inclusive growth might not be contributor
    anymore.
    The skill-set and capabilities of the employees needed to be
    much stronger to serve the requirements of PBI.
    The reputation and reliability of the services extended by
    NICT towards PBI might be lost due to inefficient working.
    Therefore the empowerment of people which is one of the
    core inputs for NICTs inclusive growth could be lost.
    The key ecosystem partners

    Employees

    Existing customers

    The complacency among the employees would increase,


    thereby increasing the inefficiency of work within the
    company.
    The CSC employees who were not even graduates will not be
    able to inculcate the capability to serve the requirements.
    The competitors of PBI viz. SBI and BOI might not retain
    their relationships with NICT. This would mean that NICTs
    dependence on PBI would increase, thereby transferring the
    bargaining power to PBI.
    Organizational attributes

    Flexibility

    Reputation

    The organization hierarchy would be incompatible, if the PBI


    offer is accepted. The accountability issues would escalate
    causing disharmony within the teams.
    The workload by PBI might affect the flexibility of NICT, and
    its ability to offer diversified portfolios, which would thereby
    disrupt NICTs reputation.

    2) What are ramifications with respect to SBI & BOI if it takes up PBI Offer?
    If NICT takes up PBI offer, the following are the ramifications with respect to SBI &
    BOI:
    a) Since SBI & BOI are immediate competitors of PBI, they would be reluctant to maintain
    the same relationship with NICT as before.
    b) Also, NICT need to make sure that they are not biased in offering services to their
    customers. In case of any bias, either of the power heads could terminate their association
    with NICT.
    c) If SBI and BOI plan to exit the relationship with NICT, PBI would emerge as the only
    major revenue source. Thereby the bargaining power would be now with PBI.
    d) The villages that received empowerment due to the alliances might get stopped, thereby
    restricting NICTs customer base.

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