Professional Services consist of custom services for deploying and seamlessly integrating a product into customer environment. Within services, Professional Services is a high growth, high margin opportunity for product companies owing to its high impact potential. Product companies have set up Global Delivery Centers and started to leverage cost and operational efficiencies. Global distributed delivery centers have evolved from a cost arbitrage focus to value delivery focus over time.

1. Professional Services – Global Trends
Talent Practice
Data | Analytics | Technology | Network
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2. Introduction
Professional Services consist of custom services for deploying and seamlessly integrating a product into
customer environment. Within services, Professional Services is a high growth, high margin opportunity
for product companies owing to its high impact potential. Product companies have set up Global Delivery
Centers and started to leverage cost and operational efficiencies. Global distributed delivery centers
have evolved from a cost arbitrage focus to value delivery focus over time.
Key Drivers for increased Professional Services Globalization
1. Skilled Talent Pool Availability
 Global locations have a substantial base of IT services & Systems Integration talent pool
 India and China continue to produce a significant number of fresh engineers who are
available to work for MNCs both in R&D and Professional Services
2. Evolved Customer Base
 Customers of product companies are globalizing rapidly and expect their product vendors to
globalize and support them accordingly
 Product vendors are targeting Emerging Markets since Developed Markets are getting
saturated
3. Tried & Tested Peer Models
 Well tested global delivery models used by Software Product vendors as well as global SI’s
have paved the way for the maturity of distributed delivery
 Even supporting processes such as work selection and transition have grown in maturity
4. Mature Partner Ecosystem
 All tier-1 and most tier-2 partners have matured to a great extent over the past decade, with
very robust transition and delivery processes
 Many partners are also capable enough to be channel partners in addition to delivery
5. Increased Margins
 Fully loaded services FTE costs in emerging locations such as Brazil, India and China vary
between half and one-third the cost in developed nations, still providing a significant
contribution to the margin
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3. Key Trends in Global Professional Services Sector
1. Location Strategy
2. Virtual Jobs
3. Driving Global SI Partnerships
4. Deputed Workforce Model
1. Location Strategy
The selected locations can be categorized into three sub-categories - Predominantly Customer Locations,
Purely Backend offices and both. Also, the categorization based on cost shows that Western Europe and
USA are high cost regions, whereas Asia - Pacific is a low cost region.
AMERICAS EMEA APJ
Key Locations
(Non-Exhaustive) (Non-Exhaustive) (Non-Exhaustive)
Rio de Janeiro Munich Melbourne
Predominant Customer Houston Milan
Locations Vancouver Stockholm
Riyadh
Buenos Aires Budapest Kuala Lumpur
Pure Back-end Offices Mexico City Moscow Hyderabad
Santiago Prague
San Jose (Costa Rica) Bucharest Bangalore
Sao Paulo Cairo Beijing
Both
Johannesburg Manila
Shanghai
High Cost Locations Medium Cost Locations Low Cost Locations
(Non-Exhaustive) (Non-Exhaustive) (Non-Exhaustive)
Munich Houston Manila
Milan Rio de Janeiro Shanghai
Stockholm Moscow Kuala Lumpur
Melbourne Santiago Beijing
Vancouver Johannesburg Cairo
Riyadh Sao Paulo Bangalore
Prague San Jose (Costa Rica)
Bratislava Bucharest
Budapest Hyderabad
Buenos Aires
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4. Mexico City
2. Virtual Jobs
Virtual Jobs are generally performed either from a home office or from a customer location. Technology
companies are increasing utilization of virtual jobs model, as it offers benefits such as:
 Reduction in office locations
 Tapping high quality regional talent and utilize it wherever required, e.g., a customer far from existing
locations of the company
Roles Involved:
 Global: Global virtual jobs involve working with global teams and therefore one can be assigned
various locations depending on requirements. Expected Travel: 0% - 80%
 Regional: Regional virtual jobs involve working with regional level teams e.g. Asia Pacific team.
Therefore one can be assigned in a location in the region depending on requirements. Expected
Travel: 0% - 60%
 National: National virtual jobs involve working with national level teams and therefore one can be
sent to work within the country. Expected Travel: 0% - 40%
3. Driving Global SI Partnerships
Service providers are partnering with the pure play product companies to provide integration services.
Large IT service providers are delivering services for global customers from places like India. India is
home to 15% of all global software developers. Total India headcount of the Top 20 System Integrators is
886,000.
Large SI’s deliver most of their services to the North American and European Markets
6.18% North America
6.00%
5.45% Western Europe
27.45% Asia Pacific
Central and Eastern
Europe
30.36%
Middle East and Africa
24.55%
Latin America
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5. BFSI & Manufacturing continue to be the key verticals that SI’s play in today
BFSI
Manufacturing
15.20% 17.00% Retail
Services
12.09% Healthcare
17.35%
Transportation
4.15%
13.06% Communication
Utilities & Construction
8.09%
Government
2.76%
3.25% 7.05%
Others
4. Deputed Workforce Model
Most of the Service Providers follow the deputed workforce model to build their capabilities in customer
geography. The employees are hired in the back offices and sent to the Client locations based on the
project requirement.
 Most of the companies follow the Deputed Workforce Model and have a dedicated management
team in place to organize and streamline the deputation function
 The resource is hired in the back office. These employees then travel from back offices to the Client
location as per the requirement. The immigration process starts with the client sending the resource
requirement to the Onsite Manager or the Business Unit Head.
 The size of Deputation Operations team is based on the frequency and volume of employee
deputation within a particular organization. The team comprises of personnel handling different
functions within the deputation process such as travel, immigration, payroll, administration and
coordination.
 This team is further divided to manage the deputation for specific locations like the US, UK etc. This
size is in turn dependent on immigration formalities required to be fulfilled and frequency of travel
to a particular country
 The employees are sent to the Client locations for short term or long term duration, depending on
the project requirement. Most of the technical support work happens from the back offices.
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6. About Zinnov
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