Expert on software development and startup technology businesses.
Proven offshore advisory capabilities.
Representative TPI clients include: British Petroleum, Bank of America, ING, International Paper, United Airlines, British Petroleum, Kraft Foods Global, General Motors and Motorola.
Previously, CEO of Offshore Development Group, assisting clients in leveraging global resources in strategic and emerging markets.
TPI and Telstra have worked together on initiatives to enhance and expand the use of offshore delivery resources and models.
Responsible for Telstra’s outsourcing strategies and relationship management
Operational scope for Shared Services, including BPO and ITO
Previously, led outsourcing and offshore operations for Qantas Airlines and Westpac
Industry experience in Retail, Financial Services, Telecommunications, Transportation
Leads TPI’s Market Development – Research, Industry Relations, TPI Index
Innovation Agenda for the Global Outsourcing Industry
Provides counsel to Clients on complex change programs, including P&G, Wyeth, McDonalds, Starbucks, GMAC
Led TPI’s portfolio of BPO services
Previously, CEO of Data Dimensions, an offshore AD/M provider with operations in Ireland
CSC – Global IT Service Delivery for JPMorgan
Our Topic Many organizations are facing the challenge of taking inaugural offshore operations to the next level of productivity and scale. Inaugural Captive or Outsourced Offshore Operation Deeper Capabilities Broader Application Enhanced Productivity Accelerated Performance Global Footprint Measure Output, not Effort
Roadmap Client Motivations & Challenges Peter Allen Evolving an Offshore Capability Chris Walsh Discussion / Q&A All
TPI Line-of-Sight 2002-2006 Unique Clients Served Organizations across the world rely on TPI for strategic sourcing advice.
TPI has served 50 clients in the Fortune Global 100 (50%)
172 clients in the Fortune Global 500 (34.4%)
US$20B TCV awarded 2006; Current pipeline of US$19B
Engagement Profile Nature of Engagement
Mega-Relationship Trends Shorter Durations Moving the Industry from Mega-Deals to the Era of Mega-Relationships Avg. # of Years Average Contract Duration: 1997-2006 # of Contracts # of Contracts: 1997-2006
BPO Market Trends BPO Contract Awards Showed Changing Characteristics in 2006; Opportunity for Maturing Offshore Operations? Industrywide TCV ($B) Total Industrywide Contracts (#) TCV ($B) # of contracts Industrywide BPO Contracts With TCV > $25M: Y/Y Annual Comparison Industrywide BPO Contracts With TCV > $25M: # of Contracts Awarded Industrywide BPO Contracts With TCV > $25M: TCV ($B) of Contracts Awarded
Record # of BPO Contracts Awarded
Acceleration in Europe
Fewer large CRM or multi-process BPO deals impacting TCV awarded
HRO contracting on a per-function basis
F&A still largely a labor arbitrage profile
Seminal Observation . . . Corporations that possess experience with offshoring are better prepared to evaluate the range of service delivery alternatives, all with an eye towards increasing competitiveness. The Industrialization of Services Information-based services today can be standardized, built to order, assembled from components, picked, packed, stored, and shipped. Establish a Captive Offshore Center Outsource Setup a Shared Services Operation Transform the Organization Offshoring placed within a broader agenda for change The Shared Services Mandate Company Facing Internal and External Pressures
The Changing Motives for Outsourcing & Offshoring Source: Offshoring research Network; Duke University Fuqua School of Business; 2006 Prevailing Motivations for Outsourcing & Offshoring In contrast to the recent past, today’s reasons for evaluating alternative service delivery models are increasingly about competitive enhancements. Emphasis on Service over Process. = Primarily Competitive Motivation
Growth through Innovation: What Roles do Outsourcing & Offshoring Play? In searching for avenues for growth, corporations look towards outsourcing along the spectrum of tactical/strategic, depending on their aspirations. Near-Term Cost Savings Capital Expense Avoidance Converting Fixed Cost to Variable Pathway to New Markets Access to Specialized Expertise Platform for Mergers, Acquisitions, Divestitures Achieving Economies of Scale Lever for Organizational Change Positioning for Survival Positioning for Market Leadership Tactical Strategic Human Capital Strategy Motivations Time Horizons
TPI’s clients seek support to make this transformation
Outsourcing’s Scorecard Standardize Services Unitize and Variabilize Costs Leverage Scale Deliver Innovation In general, outsourcing clients have been disappointed at the level of innovation delivered through their relationships. Expanding/Maturing offshore operations experiences the same stress.
Predictability in execution, delivery and innovation
Outsourcing & Offshoring are here to stay as essential tools for realigning services operations to enhance competitiveness. “ If the rate of change outside your business exceeds the rate of change inside your business, the end is in sight.” Jack Welch Chairman General Electric, 2003