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Moving From Outsourcing To A 360 Degree Partnership Erick Watson
 

Moving From Outsourcing To A 360 Degree Partnership Erick Watson

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A brief presentation delivered to the International Association of Outsourcing Professionals, Northwest Chapter in Seattle on how to evolve from an IT Outsourcer to a true Partner.

A brief presentation delivered to the International Association of Outsourcing Professionals, Northwest Chapter in Seattle on how to evolve from an IT Outsourcer to a true Partner.

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  • Thank you for having me…Part of my job at Microsoft is to grow our China-based Partners, and to help transform their businesses from “outsourcers” to “360 degree partners”My job today is to help you think about your business differently, and to share some ideas that I hope you find beneficial…
  • Here’s a view of all the countries that I could identify that are actively growing their sourcing commerce, both outbound and inbound. Traditional outbound markets include North America and Western Europe. Inbound growth markets include China, Southeast Asia, Eastern Europe, and South America. India and Philippines are facing growth pressure due to wage inflation there.Everest Group stats. 20% YoY Growth
  • What’s driving the growth? A waterfall of global labor arbitrage. For every outsourcing contract in play there are a ten other companies in a dozen different countries ready to pick up the business if you should falter. How do you put more distance between yourself and the competition while continuing to grow your business?
  • With apologies to my Chinese friends, I submit that today’s Sourcers need to experience a Revolution in their Culture.What’s the one critical difference between a partner with staying power and one that’s running a race to the bottom? It’s Culture.What differentiates an “outsourcer” from a “360 degree Partner”? It’s Culture.(Evolution vs. Revolution)
  • Original XBOX vs. Zune Case Study“Kick-ass” vs. “Who are we building this for?”
  • How should you think about organizing in a way that builds strong culture while still meeting your objectives?
  • Culture (def.) : The set of shared attitudes, values, goals and practices that characterizes an institution or organization.Language, AttitudeSymbols, Signs & ActionsAll the little details…
  • Microsoft Values: Integrity & Honesty; Open & Respectful; Big Challenges; Passion; Accountable; Self-Critical
  • No to employees, customers, deals or behaviors that don’t meet the bar…
  • Boeing 737 vs. 787 Case Study…
  • Good people. Strong competencies. Flawless execution
  • “Name and Claim” the value that you add by taking an integrated approach. Shout about it! Defend it!iPod Shuffle Case Study
  • Push back on customers and others who ask you to compromise on your culture and the benefits of your integrated approach…

Moving From Outsourcing To A 360 Degree Partnership Erick Watson Moving From Outsourcing To A 360 Degree Partnership Erick Watson Presentation Transcript

  • Moving from Outsourcing to a 360° Partnership
    Erick Watson
    Microsoft China
    Strategic Partnership Group
    Northwest Chapter
  • Sourcing competition increases daily
    “Global Sourcing market should grow 20% YoY”
    (Everest Group 2011 Market Predictions)
  • Commoditization threatens your existence
    “Cost will remain the #1 concern for companies who outsource”
    (Gartner on Outsourcing 2010)
  • Sourcers need a Cultural Revolution!
  • Clear culture creates clear value
    >80M units shipped in first year
    <2M units shipped in first year
  • Sourcers must integrate…
    3. Customer
    Experiences
    2. Solutions
    1. Organizations
    …via well-designed culture
  • 1. Organizational Strategy
  • Culture – noun : a set of shared attitudes, values, goals and practices that characterizes an institution or organization.
    Define & establish your culture
  • Proclaim authentic values
    e.g. Microsoft Values: Integrity & Honesty; Open & Respectful; Big Challenges; Passion; Accountable;
    Self-Critical
  • Say “No” to what doesn’t fit
  • 2. Solution Integration
  • Begin with the basics
  • Lay claim to integrated value
  • Fight back againstcustomer
    “disintegration”
  • 3. Customer Experiences
  • Organize from customer’s perspective
  • Create customer evangelists
    U.S. Bricks & Mortar Shoe Retailers: 5
    Online Shoe Retailers: >41,000
    Zappos Market Cap: $1.2 Billion in 9 yrs.
  • Measure, track & improve
    DISCLAIMER:
    "Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted". Anonymous
  • Can sourcers achieve cultural integrity?
  • Commoditization undermines value
  • Sourcers must integrate…
    3. Customer
    Experiences
    2. Solutions
    1. Organizations
    …via well-designed culture
  • Cultural integrity delivers customer value
  • Culture creates 360° Partners…
    Erick Watson
    erick.watson@microsoft.com
    (425)894-3301
    http://www.linkedin.com/in/erickwa
  • APPENDIX
  • Image Credits
    Slide 03:http://grassrootsgourmet.net/2009/02/10/top-5-most-irresponsible-meals-of-all-time/commodity-corn/
    Slide 04: http://www.dev.net.np
    Slide 05: courtesy of Microsoft Corporation http://www.microsoft.com
    Slide 07: http://commons.wikimedia.org
    Slide 08: http://idzinecards.com
    Slide 09: http://www.lichfield.gov.uk
    Slide 10: http://www.flickr.com
    Slide 11: courtesy of The Boeing Company http://www.boeing.com
  • Image Credits (Continued)
    Slide 13: courtesy of Apple Computer http://www.apple.com
    Slide 14: courtesy of Warner Brothers http://www.warnerbros.com
    Slide 16: http://www.targetcastgroup.com
    Slide 17: courtesy of Zapposhttp://www.zappos.com
    Slide 18: http://www.flickr.com
    Slide 19: courtesy of Microsoft Corporation http://www.microsoft.com
    Slide 20: courtesy of the Hormel Company http://www.spam.com