Businessmodel of GlobalLogic

Customer Segments

GlobalLogic has a mass market business model, with no significant differentiation between customer segments. It targets its offerings at firms across industries that need product development services.

Value Proposition

GlobalLogic offers four primary value propositions: accessibility, convenience, performance, and brand/status.

The company creates accessibility by offering a wide variety of options. It has acquired numerous firms since its founding. These include offshore software R&D services vendors Lambent Technologies, InterObject, and Cubika; Rofous Software, a content engineering firm; and Method Incorporated, a brand experience agency. These additions have greatly expanded its capabilities.

The company creates convenience by simplifying operations for its clients. It provides automated solutions for pattern detection, optical character recognition, semantic analytics, and more, with tools that analyze video, text, and imaging layer media. It also offers real-time monitoring services to assists customers in the management of their social media and collaborative content.

The company has demonstrated strong performance through tangible results. High-profile examples of specific positive outcomes for customers include the following:

• Stellar, an aviation startup, used GlobalLogic’s services to build a Minimum Viable Product (MVP) app and a connected operator system, resulting in three operators signing on as investors
• Innovative Interfaces used GlobalLogic’s services to build Innovative India, a service, support, and development center, resulting in the resolution of over 10,000 support tickets within a year
• Avid, a digital media firm used GlobalLogic’s services to supplement its R&D personnel, resulting in a 50% reduction in labor costs and annual savings of as much as $20 million
• Pollogen, a provider of medical aesthetic solutions, used GlobalLogic’s services to develop the graphical user interface for its geneO+ appliance, resulting in over 1,000 unit sales

• Fluid, a digital shopping site builder, used GlobalLogic’s services to develop new products Fluid Socialize and Fluid Configure, which outperformed other online retail solutions by 150-200% The company has established a strong brand due to its performance. It has more than 10,000 employees who work with hundreds of companies worldwide, delivering over 1,500 projects annually. Its clients include many *Fortune *500 firms, such as Microsoft, Coca-Cola, Amazon, Verizon, Cisco Systems, and Samsung. Lastly, it has won many honors, including the following:

• Recognition as one of the“50 Best Companies To Work For” by SiliconIndia (2014)
• Recognition as one of the “Top 25 Companies for Work-Life Balance” by Glassdoor (2013)
• Recognition as a “Top 100 Global Services Provider“ by Global Services Media (2012)
• Recognition as an AlwaysOn Global 250 Company (2010)
• Ranking on the “Technology Fast 50 Fastest Growing Companies“ list by Deloitte (2008) ### Channels

GlobalLogic’s main channel is its direct sales team. The company promotes its offering through its website, social media pages, and participation in trade shows, forums, summits, and conferences.

Customer Relationships

GlobalLogic’s customer relationship is primarily of a dedicated personal assistance nature. Employees work closely with customers as they assist them with their product development activities. That said, there is a self-service component. The company’s website features a “News and Insights” section that includes self-help resources such as white papers, blogs, and videos.

Key Activities

GlobalLogic’s business model entails designing and developing its services for customers.

Key Partners

GlobalLogic does not maintain any formal partnership programs.

Key Resources

GlobalLogic’s main resources are its human resources, namely the R&D employees that design and develop its services. Its staffers work out of “Delivery Centers” in the U.S., India, Ukraine, Argentina, Poland, Slovakia, and Croatia and “Method Studios” in the U.S. and UK. As a startup it has relied heavily on funding from outside parties, raising $42 million from two investors as of October 2013.

Cost Structure

GlobalLogic has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent product enhancements.

Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of product development, research/development, and sales/marketing, all fixed costs.

Revenue Streams

GlobalLogic has one revenue source: revenues from the contracts clients sign to obtain its portfolio of services. Sales staff must be contacted directly for pricing as it varies by client and other factors.