Location Outlook: What's your Destinantion?
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Location Outlook: What's your Destinantion?






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    Location Outlook: What's your Destinantion? Location Outlook: What's your Destinantion? Presentation Transcript

    • Panel discussion Location Outlook: what’s your destination? Moderated by: Rabie Lamghari, May 16, 2012, Amsterdam
    • Traditionally, organizations primarily chose a locationbecause of its Cost-Risk profile Cost-Assessment Importance Cost-risk analysis ILLUSTRATIVEdimensions 1. Talent pool W1% and Peer Low Manage presence risk 2. Real estate W2% trends Cost of operationRisk 3. Higher cost W3% Infra Higher risk structure 4. (e.g., and Safety W4% telecom) security 5. Operating Avoid risk W5% environment 1 HighCost 6. Salaries and operating High Relative risks Low costs 1 Operating environment includes legal and regulatory, labor laws, and government incentives and tax policies
    • With increasing maturity of global services programs,additional factors must be considered ◦ Talent pool depth and Sustainability breadth ◦ Cost structure ◦ EnvironmentIncreasing maturity Scale Changes in business Flexibility needs Requirements Portfolio view Changes in market Changes in strategy Role within Hubs, spokes, COEs portfolio Additional capabilities Redundant capabilities Sourcing model implications
    • Best practices for helping your organization deal withlocation questionsBe realistic about Although centers can operate at small scale, they tend to be lessscale and ramp- resilient. Additionally, ramp-up rates differ dramatically byup rates location and need to be understood accordingly Although you will have to make decisions without perfect data, doUse the right focus on using data which is applicable to the services industry anddata relevant skill sets (e.g., languages, technologies, domain knowledge) Location selection considerations need to be resilient to macro-Design for the environment changes and talent/cost sustainability challenges – newlong term locations are an investmentPrecisely define Location concentration concerns can’t be meaningfully addressedconcentration without specifics – the site, the city, the country, the region?concerns Concern for catastrophic or temporarily disruptive events?Solve for “portfolio” View the location portfolio as a strategic lever to balanceinstead of“footprint” savings and mitigate risks in global sourcing programs
    • Genpact Global Footprint Czech Republic India Netherlands Poland Japan HungaryUSA Spain Romania China MoroccoMexico UAEGuatemal Philippinea sColumbiaBrazil South Africa Delivery Center 17 Countries | 64 Delivery Centers | 25 Languages | 56,000+ Employees Genpact Delivery Footprint 2009 2010 2011 2012 •Unparalleled diversity & depth of services Countries of 13 14 16 17 Operation •Serving 600+ clients representing 40+ Operating 39 42 58 64 industries across 17 countries Centers •Extensive skills range to match service range – from simple invoice processing to complex statistical modeling
    • SelectionCriteria -ChecklistKey Parameters 40% Statutory: 20% Infrastructure 20%HR: 25% Legal: 5% Facility: 10% Graduate / Year New legal entity setup Suitable Bldg availability Talent Pool Labor law CAPEX Additional language availability Finance: 5% OPEX Labor Costs New legal entity setup IT: 10% Wage Inflation Complexity of Stat Rep IT Maturity confidence to hire Tax: 10% Vendor competition mobility of population With-holding tax rules CAPEX retention factors Overall tax enviroment OPEX Growth potential Environment 20% Future outlook of labor Subsidies: 15%Demographics 15% CIT abatement City Population Personal Income Tax Surrounding catchment Social Security Reduction Age segmentation Training Subsidy Diversity segmentation Cash Grants Unemployment % Hiring Cost subsidy Accessibility Subsidized Rent City LooknFeel Government: 5% Competition today Support for BPO Forecasted competition Attitude towards business Potential to support GP
    • Trends in location selection and Factorsimpacting location strategy 1. Evolving location models: move to a more complex set-up a) Emergence of decoupling – front-office / back-office b) Services evolving from transactional scope to more high end scope with stronger language dependency & complexity: Requirement for new locations onshore & nearshore c) More complex set-up: requires seamless and integrated multi-site delivery d) Multilocation solutions becoming the norm 2. Emerging markets: India to India and China to China 3. Key challenges: Russia and APAC 4. Reshoring of activities: back from Asia to Europe 5. Decreasing focus on Labour arbitrage
    • Home to Outsourcing Professionals1 May 2012
    • Morocco, Adestination of choicefor your captiveoperations •15 km away from Europe •At the heart of the EMEA region •3 hours away from major European capitals •On the same time zone as major EU markets •A major player in the Mediterranean region •Extensive fiber optic connectivity through the EMEA region4
    • Morocco, Adestination of choice Reduced cost structurefor shared servicecenters5
    • Morocco, Adestination of choice Availability and sustainability offor shared service qualified profilescenters The Moroccan education system pumps 300 000 suitable graduates a year in the job market 3900 5100 10050 63600 Business and management Engineering 99000 Medical, Dental and Public Health Sciences and Technical Engineering Arts, Human sciences 120000 Economics and Law studies6
    • Morocco, Adestination of choicefor shared servicecenters Three pillars that enable your business Competitive Availability of World Class operational costs qualified HR infrastructures Strengths A Pro business government Geographic proximity Dedicated/free zones Young and skilled (real estate, telecom) Population Elaborate training Reliable Infrastructures programs Excellent progress Aggressive incentives towards free economy program Continued support to enable growth7
    • Our Mission Promote, develop, manage and sustain the dedicated outsourcing business parks by adopting best practices, insuring continuous improvement and making client satisfaction a top priority in all areas of our core competency8
    • Key stakeholders The Ministery of Industry, CDG Group, Morocco’s MEDZ Sourcing100% Commerce, and new largest institutional subsidiary of CDG Group Technologies investor: The specialized arm of Leads the promotion and Eur 9 billion of managed CDG Group in charge of development of foreign assets developing and managing investments in strategic Leading partner in business parks dedicate to sectors: Outsourcing, developing dedicated the Outsourcing arena automotive, Aerospace, etc. infrastructures to support Manages more than Leverages the financial the government’s effort in 600000 sqm of office space strength of CDG Group to creating and sustaining high assets develop and manage value industries within Over 70 clients out which dedicated infrastructures for Morocco 75% fortune 500 companies these sectors9
    • MedZ Sourcing, your trusted partner for business space in Morocco Mission Promote, develop, manage and sustain the dedicated outsourcing business parks by adopting best practices, insuring continuous improvement and making client satisfaction a top priority in all areas of our core competency.10
    • MedZ Sourcing, your trusted partner for business space in Morocco Approach Handle all office space needs and allow your organization to focus on its core competence Support clients in their office space due diligence and need assessment Support clients in their facility management and planning Accompany our clients in solving obstacle to organic development Plan and execute cross-city development and guarantee a seamless operation across sites Establish accountability in quality through SLA and stability in operations Listen to our clients through regular QBR Draw action plans for corrective measures11
    • MedZ Sourcing, your trusted partner Oujda shore for business space in Morocco The network relies on it’s : -seamless connectivity regardless of the location (telecom, road, air, train) -proximity to airports -Proximity to universities and large human resource pools -Secured infrastructure To allow your company to benefit from untapped potential in different regions of the country at varying cost levels while staying12 on the same time zone.
    • A comprehensive offer of end- end- user services13
    • A comprehensivetechnology parksconceptInfrastructure Closed ParK Office space Telecoms Parking Other Business One stop Recrutement Office fit- Business services shop support out support center Other General Catering Kindergarten Transportation Hotels banks services Facility Facility Preventive & Cleaning, Utilities Security & services management corrective gardening safety Maintenance14
    • Infrastructures SECURITY AND SAFETY 24/7 security team on site (fixed and patrolling agents) Badge-based access and automated tracking State of art video surveillance and motion detection Centrally-managed alarm system Fire prevention and smoke detection - Guaranteed safety of your people, premises and data - Compliance with your clients’ requirements in terms of physical and data segregation - No additional cost to your business since these are shared with other tenants15
    • Infrastructures A FLEXIBLE OFFICE REAL ESTATE Ready for output buildings Pre-wired office space (IT room, telecom, electricity, lighting, sanitary, Airco, etc) Cables run through the ceiling for easy and quick customization of office layout Generator backed up electricity Multiple lifts and emergency stairs Motion detectors Fire detectors Optimized and responsible usage of energy • Reduced implementation lead times • By default, compliance to security and safety requirements • 100% generator backed up power supply to insure flawless access to electricity • CAPEX turned into OPEX (generators and UPS)16 • Eased ramp up
    • Telecoms STATE OF THE ART TELECOM INFRASTRUCTURE At start: 144 optic fiber sub wires go through the park with possibility of easy upgrade Two drop off points represented by the green dots show where the private network terminates to join the national and international network Double connection: each building is connected to the drop off points from two separate ends Double Interconnection: each drop off point is connected with national and international network via two separate channels • Access to latest telecom technologies without CAPEX investments (i.e. VOIP) • Low telecom costs contribute to your business’s competitiveness and your ability to close more business • Redundancy provide a built-in backup17 solution to secure continuity of service
    • Facility Management AROUND THE CLOCK FACILITY MANAGEMENT • 24/7 Maintenance services for the premises and equipment to insure reliability • A 360° Computer Managed Maintenance System • Preventive and corrective maintenance • Central Helpdesk for incoming queries • Online access to client account and information • Great opportunity to focus on your core business and let us manage your facility and utilities • Onsite access to technical assistance in case of issues or caused outage18
    • Catering A VARIETY OF CATERING SERVICES • No need to dedicate production office space to catering or coffee breaks • Low price makes the service accessible to you employees • Enough capacity to cover your actual and future needs • Variety in menus and concepts to allow employees to try different things different days • On premise VIP catering for your senior management or client visits saves time and provides convenience Internationally branded Food courts Large company canteen VIP restaurant19
    • One-stop-shop WELCOME AND SUPPORT DESK TO INVESTORS A number of administrative desks setup onsite to provide direct and fast support to investors and exisitng tenants - Government representatives - Regional Investment Center - Social Security - Government Training and Professional Education (OFPPT) - Recruitment support and training subsidies through ANAPEC • Keywords: • -Speed • -Proximity • -Accuracy20
    • Services Dedicated parking areas Parking 24/7 security and Surveillance sécurisées par un contrôle d’accès Business -Meeting rooms -Conférence rooms center -Reception & Catering areas Kindergarten -At the heart of the park -Sufficient capacity -Extended working hours Transportation -Public transportation (Buss, Train, Tram) -Branded transportation fit to your needs -Majors Banks represented Banks -Proximity and enriched services Shops -Kiosks, super market, cafés … -Provides a work-life-balance type of environment Sport & -enhances employee retention and overall21 Leisure satisfaction
    • Already on-board OUJDA SHORE22