Outsourcing and global delivery services


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Outsourcing and global delivery services

  1. 1. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 1 CS Bern Plug Into the Global Workforce™ OutsourcingandGlobalDeliveryServices Domestic talent pools in first world countries have dried up and companies are having great difficulty in sourcing talent from emerging markets due to increased domestic demand for the skilled labour. Making things more challenging, companies opting to staff domestic projects through landed resources are struggling with high turnover rates and constantly changing immigration laws. Companies that rely solely upon importing foreign talent are finding it increasingly difficult to deliver an on-time project within budget. To be a success, companies need to leverage remote teams operating out of foreign countries. The firms that do this gain access to an incredible talent pool and, in most cases, realize a material cost-savings over traditional domestic project delivery models.
  2. 2. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 2 Client Preparation 20% Client Execution 10% Client - Vendor Team Issues 35% Quality of the Vendor's Team 25% Vendor Execution 10% Global Delivery Team Reality Leveraging a remote team operating in a low-cost emerging market is the future of project delivery. In addition to the potential savings, companies gain access to a talent pool that cannot be imported. However, globally delivery projects, either through an outsourcing vendor or through a company’s own offshore captive center, are difficult to operate and require specific expertise to run well. In a review of thousands of offshore outsourcing and captive center engagements over the years and a decade of working intensively with firms to solve the problems they were encountering, CS Bern found that less than one-third of these projects will achieve their defined objectives. These terrible results explain why most companies have reduced their use of these centers. Why Do Globally Delivered Projects Fail? Our research uncovered the following root reasons for the failures: Client-Vendor Team Issues By far, the greatest cause for outsourcing failure is problems related to the client-vendor team. Clients and outsourcing vendors simply do not take time to create an effective joint delivery team and never really start outsourcing engagements in synch. Taking care to establish a strong team upfront goes a long way toward solving these and other problems related to communication, culture, etc. Quality of the Vendor’s Team Although outsourcing vendors often attempt to convince clients otherwise, the quality and stability of the vendor’s team is critical to the overall success of your outsourced engagement. You need to ensure the vendor
  3. 3. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 3 finds the best talent in the market, places them on your engagement and keeps them there. Vendor Execution Vendors make mistakes and these mistakes impact client outsourcing engagements. Although not the top risk to outsourced projects, clients must stay on top of vendor deliverables and actively participate in the outsourcing engagement. If the client is involved, vendor errors are most often found early and corrected before any significant damage is done. Client Preparation The secret that most outsourcing vendors keep from clients is that the client is equally responsible for the overall success of any outsourced engagement. In most cases, clients are inadequately prepared for the outsourcing engagement and the result is an increase in project errors, delays and costs. There are no magical easy solutions here. A highly prepared client is usually a highly successful client. Client Execution Just as vendors make mistakes, clients will also make mistakes throughout the offshore outsourcing engagement. A mechanism must be in place that ensures both the client and vendor capture issues as they arise and work together to mitigate any potential harm. Keys to Global Sourcing Success While there is a clear pattern to outsourcing engagements failures, there is an even clearer pattern displayed by successful outsourcing engagements. CS Bern research found the following keys to success: A Commitment to Success In every successful outsourcing engagement, you will find a fully committed client and vendor team. These teams have committed to success and are willing to do whatever it takes to make the engagement succeed. Rather than waste time fighting with each other over issues, these teams focus on fixing the problem and only then work together to ensure the problem doesn’t happen again. Again, they share a commitment to succeed rather than sitting on the sidelines looking for opportunities to fault the other party. Highly Prepared In every successful outsourcing engagement, the client came to the engagement extremely prepared. They took the time to assemble all information the vendor needed to work effectively. They took the time to prepare their internal teams, business functions, partners, customers, etc. and this extensive internal preparation ensured their ultimate success.
  4. 4. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 4 Actively Involved Simply put, if you want to be a success, insert yourself into the global team and be actively involved on a daily basis. Successful outsourcing engagements often have client-vendor project managers that talk many times each day. There is a constant dialog. A True Client-Vendor Team And related to the above points, every successful outsourcing engagement has a real and effective client-vendor team relationship. Both the client and vendor are honest with each other. There is transparency with little game playing. Both the client and vendor have taken at the outset to figure out how to work together, how to deliver projects together and how to resolve issues together. If you want to be a success with any outsourcing engagement, take the time to establish a cohesive and effective team relationship with your vendor. Outsourcing Lifecycle Start YearEnd1 YearEnd2 YearEnd3 YearEnd4 YearEnd5 StartPlanning Allocate Funds HireVendor Transition Production EndofLife Although project specific outsourcing engagements often happen quickly, the full lifecycle of a traditional outsourcing engagement is longer than most clients think. From the moment a client decides to outsource to the point when the client completes their final ROI review, an outsourcing engagement typically lasts five years. However, a typical project will see the vendor truly engaged with the client for only a little over half of the five years. If the client is prepared for and understands each step along the outsourcing lifecycle, the outsourcing engagement will have a greatly improved probability of success. While the vendor is extremely important in the overall success of any outsourcing engagement, there are many tasks that must be completed by the client prior to retaining a vendor. All of these tasks have a major impact on the overall success of the engagement.
  5. 5. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 5 Outsourcing Lifecycle Phases This lifecycle can be broken down into the following phases: Foundation The Foundation phase of the outsourcing lifecycle is the foundation that all outsourcing engagements are built on. During this phase, companies establish enterprise level functions such as risk management, oversight, management and communication. Preparation During the preparation phase of the outsourcing lifecycle, the client will typically prepare the enterprise for outsourcing, select the functions, teams and processes of outsourced project. Procurement The procurement phase of the outsourcing lifecycle is the vendor selection process. Engagement The engagement phase of the project begins with the selection of the vendor and ends with signing of the Statement of Work, SLA and Transition Plan. During this phase of the lifecycle, the client and vendor will figure out how to work together and define what must be delivered by each party. Too often, this phase is skipped by both the client and vendor leading to significant delivery problems later in the lifecycle. Transition Once contracts have been signed, the outsourcing lifecycle enters the transition phase. During this phase of the engagement, the client and vendor prepare everything required to deliver the outsourcing services. During this phase, the vendor’s team will be assigned, infrastructure will be Client Exclusive 1.Foundation 2.Preparation 3.Procurement Client Vendor Team 4.Engagement 5.Transition 6.Production 7.Endof Engagement
  6. 6. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 6 prepared, knowledge transfer will take place, etc. The full transition plan should have been defined during the engagement phase. If done right, this phase of the engagement will be more implementation than discovery. Production The Production phase of the outsourcing lifecycle is the phase most often associated with outsourcing. During this phase, clients and vendors work together to deliver tasks that are outlined by the Statement of Work. End of Engagement Once all tasks have been completed, the outsourcing lifecycle comes to an end. At the end of the engagement, there should be set procedures the client and vendor must complete to ensure the outsourcing engagement has provided the best ongoing value for the client. CS Bern Approach to Global Sourcing Engagement CS Bern takes a holistic approach to each outsourcing and captive center engagement. We are committed to your success and believe very strongly that a highly prepared and empowered client is good for our business. With each opportunity, we give each client the tools and information they need to succeed. We give each client an outsourcing and captive center manual that provides them a step-by-step guide to preparing for and managing any globally delivered project. We are true thought leaders in the market and we ensure that every CS Bern client is given a knowledge base that will facilitate future outsourced projects. What We Offer CS Bern offers the following through our Outsourcing and Global Delivery Services: Outsourcing and Global Delivery Framework Most companies do not have appropriate internal management and control mechanisms allowing them to consistently be a success with offshore outsourcing or globally delivered projects. CS Bern believes strongly in a holistic approach to all services and works closely with clients helping them implement the appropriate oversight, management and control mechanisms allowing each client to achieve offshore success. We give you the tools, information and mentoring necessary to be a success. Captive Centers For many clients, owning and operating their own captive center in a low cost foreign market is a smart business decision. While such a delivery center gives the client an increased degree of control and transparency, they can be difficult to launch and integrate into the global enterprise. CS
  7. 7. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 7 Bern is uniquely positioned to help clients through the entire captive center development and management process. We have helped over a dozen major firms open, operate and improve the performance of captive centers in countries around the world. We are the world’s top experts in helping you plan, assemble and manage these complex teams. With deep in-market experience in over 20 of the top captive center markets and a proven network in over 70 of the top markets, CS Bern can help you through the full cycle from initial strategy to the operational launch - regardless of your chosen market location. Outsourced Services From our delivery centers in Ukraine, we provide a range of IT, Engineering and Biotechnology / Pharmaceutical related outsourcing services. Similar to our captive center development service, we have helped many companies with their projects from beginning to end. In each step of the process, we bring the tools, leadership, inside knowledge and the world-class team you need. About CS Bern The world is changing. To compete in the modern economy, firms must do far more, faster and for far less. To complicate this challenge, companies now compete globally for top talent. An overwhelming majority of companies around the world now cite the lack of qualified talent as a top limiter to their success. CS Bern was created to help you solve this problem. By bringing you thought leadership, innovative solutions, global delivery capabilities and complete transparency, we help you beat the competition.
  8. 8. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 8 CS Bern Services Founded by experienced executives in the global delivery and resourcing industry, CS Bern is uniquely positioned to help companies plug into the global workforce. CS Bern strives to create highly successful, strategic and long term relationships with each of our clients. With each engagement, we bring the information, tools, resources and experience necessary to help each client succeed. CS Bern provides the following services: Global Workforce and Delivery Strategy After mapping your current project resourcing and delivery models, CS Bern will work with your executive team to outline a paradigm shift in how you find and use talent. This new Global Workforce and Delivery Strategy will allow you to more effectively use talent from around the world and will give you an effective framework for delivering projects from foreign locations. Strategic Resourcing and Mobilization For large projects, CS Bern works closely with clients to plan and execute a global resourcing and mobilization program. We provide full project management and skilled talent, when and where you need them. With a network in each of the top 75 sourcing countries around the world, CS Bern has the global footprint, boots-on-the-ground experience and proven history of delivering the largest and most complex teams. Global Delivery Framework Out of our Global Delivery Centers in Ukraine, CS Bern provides comprehensive IT and Engineering outsourcing. CS Bern takes a very holistic and client success-centric approach to all of our outsourcing engagements. We help each client fully prepare, understand and manage the entire Outsourcing Lifecycle. Captive Center Development For many clients, operating their own delivery center in a low cost market with a great supply of skilled talent is a very smart hedge against domestic talent shortages. That said, opening and operating a true Captive Center is fraught with major challenges. CS Bern has extensive experience helping companies define a Captive Center Strategy, open a successful center and operate these remote delivery teams. Strategic Workforce Development With our network of government and higher education connections around the world, CS Bern has helped several major companies implement innovative training programs. These programs provide a highly scalable and tailor-made workforce and are an effective hedge against future skilled talent shortages.
  9. 9. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 9 Why CS Bern? CS Bern was founded by thought leaders in the outsourcing and global resourcing industry. With decades of experience delivering offshore outsourcing engagements, building international client captive centers and mobilizing a truly global workforce, CS Bern is uniquely positioned to help each client achieve success. Clients turn to CS Bern for the following reasons: Holistic approach to each engagement CS Bern takes a very holistic approach to each client engagement. We provide the tools and information each client needs to be a success. Through our proprietary Outsourcing Lifecycle Management Methodology, we give you a proven framework that will guide you through all aspects of an outsourcing engagement. Transparency into our internal operations We believe full transparency is critical in all outsourcing engagements. We provide each client complete visibility into our operations throughout the engagement allowing each client to fully understand current challenges. With this transparency, we then work hand-in-hand with each client to make mutual decisions to ensure the success of the outsourcing engagement. This is not an idle promise. Working with CS Bern, you will know our costs, resource allocation, margins, etc. There will be no guess work. Again, with this level of transparency, you will have the information you need to make informed decisions. Thought leadership and experience CS Bern is a thought leader in the global resourcing and outsourcing industry. With numerous research projects under our belt, CS Bern is often approached by governments and world institutions for insight into this incredibly dynamic industry. Many large firms have relied on our expertise to help them solve the toughest global resourcing and outsourcing engagements. Over the years, we have published, co-authored or contributed to:  Over 100 books  Over 200 newspaper and magazine articles  Industry research reports from Forrester, Gartner and IDC.  Major research programs for IMF, World Bank, OECD, WIPO and others
  10. 10. CS Bern: Plug Into the Global Workforce™ © 2013 CS Bern www.csbern.com Page 10 Executive Bios Mr. Phillip J. Hatch CEO & Co-Founder Mr. Hatch is a 15 year executive in the global sourcing, outsourcing and workforce strategy industry. As a recognized thought leader in the market, Mr. Hatch has completed numerous research projects and published extensively on topics related to global outsourcing, solutions to workforce shortages and global labor market dynamics. Most recently, Mr. Hatch was the head of the Global Strategic Services unit of the ManpowerGroup, the world's largest staffing, recruiting and professional services company. In this capacity, Mr. Hatch had oversight of all global outsourcing business and worked closely with ManpowerGroup's top clientele in addressing their various large scale global workforce issues. Over the years, Mr. Hatch has been a strategic policy advisor to many government agencies around the world. Mr. Hatch has also worked with numerous private sector firms helping them solve various labor shortage, offshore outsourcing and global operations projects. Mr. Hatch's clientele have included People's Republic of China, Slovakia, Romania, Ukraine, Russia, Chile, India and others. Mr. Hatch's private sector clientele have included UBS, Credit Suisse, Deutsche Bank, Boeing, Microsoft, Oracle, Intel and other Fortune 500 firms. Mr. Martin Winstanley COO & Co-Founder A co-founder of CS Bern, Mr. Winstanley graduated with a Bachelor of Arts from McGill University in 1979 and a Bachelor of Laws from Osgoode Hall Law School in 1983. Since his graduation, Mr. Winstanley has thirty years of operational experience, helping numerous companies grow their businesses and achieve operational excellence. He has served as a founder, director and executive officer with companies in industries ranging from soft drinks to digital imaging. Never shy to roll up his sleeves, he does what it takes to get the job done on time and on budget.