SaaS versus iTOPS

Companies of all shapes and sizes are embracing the SaaS model, leveraging web-technologies and the pay per-use model. However, it is interesting to dissect both SaaS (Software as a Service) model and iTOPS (integrated Technology and Operations – offered by iGATE) to see which model offers your organization a winning edge.

What SaaS offers to the client organization is the ability to use off premise systems, hosted in a verities of multi-tenant, single tenant basis, pay as per use against a fixed price license and outsourcing the entire IT overhead to a service provider. Well, it makes much sense to any organization that is keen to focus on their core business innovations and less worry on the part of administering the systems by expecting an acceptable standard service from a SaaS provider.

On the other hand, iGATE has been a front runner in offering its widely accepted iTOPS model by providing a true ecosystem of systems, infrastructure, and people by using outcome based pricing to its clients. It inherits all that is in the DNA of any SaaS model by offering even the skilled manpower to handle the business operations of clients’ choice. In other words, iTOPS offers a superior model to client organization by bundling the required pieces to suit clients’ requirements. iTOPS model offers tremendous opportunities to client organizations as well as the software vendors to adapt the new delivery model using their expertise.

Depending on the need of a client, iTOPS offers a flexible option to mix and match what pieces of the entire services suits their immediate business needs. What a SaaS provider is lacking in their offering is the ability to provide process outsourcing to control the operational cost where as iTOPS puts you on top of the entire gamut of the new service delivery model.

Closing session of emergeout conclave

At the valedictory session of the EmergeOut Conclave hosted by NASSCOM, Mr. Phaneesh Murthy, CEO-iGATE shared his views on the Global economy.

He felt that the black swan has landed on the US companies. The worst is yet to come and the economic recovery would not happen in the near future. Given this scenario, he felt that companies need to do the following 3 things:

1.     New models of doing business and delivery models is to be explored and tried. The clients are on the look out for reducing fixed costs and the IT firms need to be cognizant of this. The speaker explained about Outcome based pricing* which his firm has adopted post downturn.

2.    The venture capitalist funding for small and medium enterprises would not come easily. The costs incurred  would be scanned thoroughly and costs needs to be justified. There is absolutely no room for inefficiency.

3.    Focus on Customers and the markets you serve.

Though the economy doesn’t look promising, Phaneesh believes that there are lots of opportunities for IT companies and that they are lying unexplored. He felt that attaining efficiency was never a point of contention and hopes that it would be considered from now on.

* Outcome based pricing – enables iGATE’s clients to move away from fixed pricing to variable pricing. Accounting for services would increasingly become output based rather than input based. Under the iTOPS model clients pay for results rather than efforts.