Sourcing Gurus Advisory Briefing Ver 1.0


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Sourcing Gurus Advisory Briefing Ver 1.0

  1. 1. Sourcing Gurus – Advisory Briefing March 2010 © 2010 Systems Plus Proprietary and Confidential
  2. 2. Agenda  About Systems Plus  Profiles  Background  Our Approach  Sourcing Advisory  Methodology  Vendor Classification & Timelines  Service Offerings © 2010 Systems Plus Proprietary and Confidential 2
  3. 3.  About Systems Plus  Background  Our Approach  Sourcing Advisory  Methodology  Vendor Classification & Timelines  Service Offerings © 2010 Systems Plus Proprietary and Confidential
  4. 4. Systems Plus Solutions – Background 20 years of transforming global enterprises using Technology Experience in 20+ countries, multi-lingual, multi time zone environment Team of 300+ resources and growing ISO Certified Processes (ISO 9001:2008) Key practice areas: Sourcing Advisory (services rendered under “Sourcing Gurus” brand) Technology Solutions Oracle E-Business Oracle E- Business Sourcing Advisory Support & Helpdesk 24/7 Technology Helpdesk & Solutions Support © 2010 Systems Plus Proprietary and Confidential 4
  5. 5. Services Portfolio Oracle E-Business Business Consulting Technology Solutions  Oracle E-Biz Implementation Sourcing Advisory  Application Development and  Process Manufacturing  Vendor Selection Maintenance  Financials, HRMS  VMO / PMO setup and sustain  Intranet Portals and Share point Implementation  Order Management  Managed Services Scorecard  Legacy system migration  Advance Pricing, Workflow, EDI/E-Com Gateway Governance, Risk & Compliance  Offshore Project Support  IT Audit & Health Check Services  Oracle On Demand Support  IT Compliance: Implementations  Staff Augmentation Services  CEMLI development & customization of COSO/COBIT 4.0 compliant IT  Product Development Operating Model  EAI  DBA Services: DB Audit, Remote Server Management  SOX & ITIL Framework  MS.Net, VB 6, J2EE  Oracle DBI & BIEE Financial Services / Alternative  SQL Server, MS Access, MS  Forms / Reports / Discoverer / Investments Office PL/SQL  Operational processing  Pocket PC, Win CE, expertise  Hospital Management System  Master data management  Operating model definition / process standardization © 2010 Systems Plus Proprietary and Confidential 5
  6. 6. Geographies Canada Poland Fort Belg/ Atk UK Holland Russia Los Angeles Chicago UK Germany Romania San US Turkey Portugal Spain US Greece Diego Dallas Japan China Korea Gulf India Hong Mexico India Kong India Thailand Taiwan Malaysia Singapore Australia New Zealand Offices Partners Customers © 2010 Systems Plus Proprietary and Confidential 6
  7. 7. Some of our Clients Lilavati Hospital © 2010 Systems Plus Proprietary and Confidential 7
  8. 8.  About Systems Plus  Background  Our Approach  Sourcing Advisory  Methodology  Vendor Classification & Timelines  Service Offerings © 2010 Systems Plus Proprietary and Confidential
  9. 9. Systems Plus Advisory  SourcingGurus is a boutique advisory firm offering end to end consulting for IT, BPO and Infrastructure outsourcing initiatives. Our advisory service provides a comprehensive understanding of the client’s IT sourcing options  SourcingGurus consults with mid-sized (US $ 1 – 5 bn) companies on their outsourcing needs. We have domain expertise in the Retail and Manufacturing verticals  SourcingGurus succeeds when clients save 20 – 40 % of outsourcing costs with an appropriately matched sourcing partner Vision The leading India based sourcing advisor, preferred by clients for delivering outstanding value at minimum cost © 2010 Systems Plus Proprietary and Confidential 9
  10. 10. Why a Sourcing Advisor? Advisors bring in value through unbiased advice 92.6% of clients surveyed say - “An advisor would have improved their outsourcing initiative” Over 2/3rd of clients say they will use an advisor for their next outsourcing initiative  91.8% of clients surveyed are satisfied with their outsourcing advisor Source: 2008 Black Book of Outsourcing Advisors have demonstrated their value and contribution to clients in both first time and repeat outsourcing engagements. They bring insight, objectivity and local knowledge to enhance results for successful outsourcing initiatives © 2010 Systems Plus Proprietary and Confidential 10
  11. 11. Typical Sourcing Lifecycle 1 Sourcing Strategy 2 Vendor Selection Sourcing Value Strategy Requirement Vendor Assessment Formulation Definition Evaluation & & Sourcing RFI/RFP Selection Readiness Due Contract Steady State Transition to Diligence & Review / Optimization Vendor Negotiation Resource 4 Relationship Management 3 Transition Outsourcing Lifecycle © 2010 Systems Plus Proprietary and Confidential 11
  12. 12. Methodology: Vendor Selection Sourcing Readiness Data Collection & RFP Build Scope Workshop RFP Finalization Kick off and Readiness Data Collection RFP Creation Validate Scope and Shortlist Vendor RFP Finalization Assessment and Analysis Process Validate Scope and review RFP Finalize RFP TIER TIER 1 Giant 1 Contenders Outsourcing preparation and Data collection, Build RFP & TIER gap identification validation and Annexure TIER 2 2 Global - Pure Play India arm Analysis Vendor NDA Vendor shortlist: Finance and IT Readiness assessment Onsite support RFP creation Scope workshop to Finalize and approve RFP People, Process, for data to start with Validate final information to be with OSI team and Legal Strategy checkpoints collection phase data analysis released in RFP  Modify RFP, if required Capture key Create draft Details Outsourcing Steering Final vendor short list for Financial Establish contact with Committee formation data RFP for and IT scope vendors Briefing on vendor Offshore data Financial and Sign NDA with selection process validation IT scope vendors for RFP Data collection templates Analyze and release introduction model data Plan for Internal Setup and Sustain (Client side activities) © 2010 Systems Plus Proprietary and Confidential 12
  13. 13. Methodology: Vendor Selection RFP Management RFP Analysis RFP Release, RFP Clarifications and final Proposals Quick Elimination Detailed Evaluation Process Vendor Clarification/ Vendor Elimination workshop Detailed Ratings of vendor response contacts Additional data Proposal Release of RFP to shortlisted vendors Determine elimination criteria to quickly The short listed vendors will go through RFP clarifications evaluate knockouts and strikeouts from detailed response rating & analysis Release RFP response / additional data to vendors vendor proposals process prior to vendor visit Elimination Workshop is conducted to Analysis is carried out for vendors based Details  Manage all communication with vendors shortlist vendors to visit on Checkpoint for vendors selected that  Over all response are common in both RFPs  Best fit (Technology and culture)  Financials © 2010 Systems Plus Proprietary and Confidential 13
  14. 14. Methodology: Vendor Selection Vendor Visits Negotiation Transition Support Relationship Management Vendor Visits & Final walk through & Transition planning Sustain outsourcing relationship Re-evaluation negotiation Process Detailed proposal and Due diligence and negotiation Transition oversight, Relationship Management Oversight vendor team evaluation checklist based approach Vendor facility visits for Vendor performs onsite due Review of transition plan Participation in quarterly proposal defense diligence before final proposal Transition governance setup governance meeting with vendor Evaluate Best and final offers Transition assessment and Review SLAs Details Delivery team Negotiation with selected analysis Issues Solution assumptions vendors Transition checkpoints for various Escalations Account executives Finalize draft MSA/SOW transition phases Relationship counselor and liaison Process & Facility Shadow between client and vendor Management Reverse shadow attention Finalize qualified vendors Revised bid , if required © 2010 Systems Plus Proprietary and Confidential 14
  15. 15.  About Systems Plus  Profiles  Background  Our Approach  Sourcing Advisory  Methodology  Vendor Classification & Timelines  Service Offerings © 2010 Systems Plus Proprietary and Confidential
  16. 16. Vendor Classification – IT TIER TIER TIER TIER Global - 1 Giant 1 Contenders 2 Pure Play 2 India arm Leading Indian offshore Vendors with significant Mid sized companies Mature Model – providers Indian delivery teams & with good delivery building synergies with Equally strong in IT, BPO global presence capability local operations and Infrastructure Building competencies Traditionally stronger in Global vendors with offerings in Integrated BPO and Application good Indian presence Competing with Global Infrastructure offerings Development and Have acquired sizeable players on equal footing Support firms to leverage  Revenue offshore model  Revenue $500 mn- $3 bn Revenue $4 bn +  Employees $200 mn - Sales - India in infancy  Employees  ~30,000 + $500mn India Employees  50,000 + Employees 15,000 + ~ 5,000 + Hexaware Accenture Cognizant Infosys iGate Capgemini HCL TCS Mastek CSC Mahindra-Satyam Wipro Mindtree HP (EDS) Patni Syntel IBM © 2010 Systems Plus Proprietary and Confidential 16
  17. 17. Vendor Classification – BPO TIER TIER TIER 1 Pure Play 1 ITO & BPO 2 Pure Play Vendors Proven global delivery Has a mature service Gained global exposure track record, rapidly delivery footprint in ITO and capabilities by expanding, focused on domain, with BPO as an servicing their large client providing BPO offerings extension to their service accounts. They are strong for different domains offerings. Have setup in niche area and compete delivery centers in India as with all other players Revenue well as global for more  Revenue  $500 mn + competitiveness in the BPO service offerings  $50 mn – $500 mn Employees  Revenue  Employees  15K +  $ 500 mn  ~<10K  Employees  ~12K + Cognizant 24/7 Aegis HCL Tech Cambridge FirstSource IBM Daksh EXL Genpact Infosys HTMT Intelenet Mahindra Satyam Minacs WNS TCS Sitel Wipro © 2010 Systems Plus Proprietary and Confidential 17
  18. 18. Vendor Selection Process – IT 3 Months 3 Years Readiness Scope RFP RFP Vendor Due Diligence Letter of Checklist Workshop Release Submission visits begins intent Sourcing Readiness Data Collection,RFP Build RFP Management Vendor Selection Negotiation Transition Relationship Management Sourcing Data RFP RFP RFP RFP Vendor Due Steady State Contract Kickoff Finalization Transition Readiness Gathering Creation Release Management Analysis Visits Diligence Optimization Review Internal Delivery model, & RFP release and Elimination Proposal Pricing & negotiation / Transition Performance Preparation finalize RFP vendors clarification workshop Defense Vendor monitoring & Vendor recommendation management Giants Contenders 8 - 10 ~4-5 2 1 Pure Play Global - India arm Filter Filter Filter 1 2 3 - Milestone Elimination Vendor visits Contract negotiation © 2010 Systems Plus Proprietary and Confidential 18
  19. 19. Timelines – IT Timeline Vendor Selection Transition RM Dec Jan Feb Mar Apr May Jun Jul Aug Y1 Y2 Y3  Sourcing Readiness Readiness Assessment  Data Collection & RFP Build Build Scope and Scope Workshop  RFP Management RFP Release RFP Submission Core Phase  RFP Analysis Elimination Workshop  Vendor Visits Vendor Visit  Negotiation LOI  Transition Support  Relationship Management  Outsourcing Remediation Internal Setup and Sustain  Client side project management  PMO Setup  VMO Setup  Process Harmonization  Transition Preparation and Set up  Finalize SLA  Finalize Engagement Governance  VMO ,Governance and Process Support (Ongoing) © 2010 Systems Plus Proprietary and Confidential 19
  20. 20. Client List – Sourcing Advisory Vendor Selection Relationship Management Client Scope Description Sourcing Strategy Vendor Evaluation and Due diligence Contract Review / Steady State Selection and Negotiation Resource Optimization  Application Sourcing value Vendor evaluation and SOW Alternate vendor Incumbent Development and assessment selection MSA review strategy vendor Maintenance (ADM) Strategy formulation Captive unit performance Application Portfolio Requirement definition Business Case improvement Analysis RFI/ RFP Process Audit  ADM Outsourcing Strategy formulation RFP response analysis SOW VMO Back Infra Outsourcing Requirement definition Vendor visits MSA review office Competency Centers RFP Management Recommendations QA DW/BI  ADM Outsourcing Strategy formulation RFP response analysis SOW Negotiation & BPO - Finance & Requirement definition Vendor visits MSA review Contracts Accounting (F&A) RFP Recommendations  ADM Outsourcing Strategy formulation RFP response analysis SOW Negotiation & Vendor  Helpdesk Outsourcing Requirement definition Vendor visits MSA review Contracts management VMO RFI / RFP Recommendations office Setup PMO Data collection and Project analysis management office Setup  ADM Outsourcing Requirement definition Vendor evaluation and RFP Management selection RFP analysis Vendor visits  F&A outsourcing RFI – Scope build Vendor research & APAC RFI process finalization shortlist  SAP resource RFI creation RFI response analysis augmentation RFI – RFI Management Recommendations Europe © 2010 Systems Plus Proprietary and Confidential 20
  21. 21. Our Differentiators We leverage knowledge of being both an IT vendor and a client in our advisory services Over 20 years of experience as an India based IT solutions provider Vendor selection process formulated by the CEO based on his prior CIO experience.( as an outsourced CIO of OIS, a Santander group company, and ex-outsourced CIO of Frito-Lay Asia Pacific ) A highly knowledgeable team of consultants and domain specialists to support the processes Advisory services based out of India Insights into the Indian market scenario and evolving vendor capabilities Provide valuable perspective in the selection process through our understanding of cultural nuances and regional diversity Efficient scheduling and coordination of logistics of vendors visits We are close to the clients through our offices in the USA and UK © 2010 Systems Plus Proprietary and Confidential 21
  22. 22. Advisory value adds Vendor Selection process with advantages Advice and direction from the starting of process Relationship management oversight (3 years ongoing during contract period included) Vendor SWOT of India delivery operations Cost benchmarking Fast tracking of selection if required  Experience as Tier 3 IT software vendor provides Direct knowledge of market conditions Easy access to all vendors (global and Indian) Immediate information of skill availability – zero lag  Acclimatizing client team Coordination of all India travel, scheduling and vendors visits Sensitizing to local culture and norms Establish and sustain outsourcing governance process © 2010 Systems Plus Proprietary and Confidential 22
  23. 23.  About Systems Plus  Profiles  Background  Our Approach  Sourcing Advisory  Methodology  Vendor Classification & Timelines  Service Offerings © 2010 Systems Plus Proprietary and Confidential
  24. 24. Service Offerings Sourcing Readiness Assessment and Strategy Formulation • Internal preparedness and reorganization Vendor Evaluation and Selection through a RFI / RFP process Steady State Optimization and Relationship Management • Establish PMO / VMO • Provide Back Office support for VMO Contract Review and Resourcing Alternatives Relationship Management Scorecard • Web based tool using the Balance Scorecard framework © 2010 Systems Plus Proprietary and Confidential 24
  25. 25. Thank You © 2010 Systems Plus Proprietary and Confidential