Cognizant CEO Explores Next Phase of Global Service's Value Creation

In a guest editorial appearing in India’s The Economic Times, Cognizant President & CEO Francisco D’Souza examines the next stage of business value delivered to clients of IT and Business Process Outsourcing services. Known as intellectual arbitrage, the approach builds on the significant cost savings realized through labor arbitrage by leveraging talent worldwide to achieve outcomes that were previously unattainable. “Intellectual arbitrage shatters previously held people-to-process paradigms,” D’Souza writes.

Organizations motivated solely by labor arbitrage tend to see outsourcing as a means of achieving the same outcomes at a lower cost. Organizations that embrace intellectual arbitrage see outsourcing as a way to achieve dramatically improved outcomes at the same cost per transaction, D’Souza declares. By tapping the best and brightest knowledge resources worldwide and orchestrating services delivery through more efficient virtualized channels, global services providers can help clients to more effectively renovate inefficient business processes and introduce major process breakthroughs that extend operational excellence and drive competitive advantage.

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