The document discusses business innovation and outsourcing. It notes that increased competition, costs, globalization, and new technologies are driving companies to innovate and outsource non-core functions. Traditional recruitment models are transaction-based with no differentiation. Outsourcing can reduce costs and improve focus. Common functions outsourced include payroll, tax compliance, benefits administration, and HR. Success requires cultural compatibility, clear goals, proper contracts, and senior support. Staffing companies are shifting from reactive vendor models to strategic partnerships.

1. Business Innovation

2. Why Innovate
• Increased competition
• Cost concerns
• Globalization
• Rapidly growing internet technologies – the
social media network
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3. Digital Imperative
• Web 2 and the proliferation of internet
technology – the big bang theory
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5. Traditional Business Model for
Recruitment Companies
Transaction Based, No Major Differentiator
Key Need – Cost Optimization and Process Efficiency
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6. Why Offshore Outsourcing
• Global offshore outsourcing business for IT
and other services is estimated at $55 Billion –
2008
• Estimated annual growth rate 20%+ over the
next five years
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7. Why Outsource
6%
3%
8%
6%
17%
3%
16%
12%
3%
12%
2%
2%
4%
5%
0% 5% 10% 15% 20%
Take Advantage of Capabilities
Share Risks
Resources not available internally
Reduce time to market
Reduce and control operating costs
Make capital funds available
Improve company focus
Gain access to wold class
capabilities
Function difficult to manage or out
of contro.l
Free resources for other purposes
Cash influsion
Asset transfer
Accelerate re-engineering benefits
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8. Processing
Costs when
performed
in-house
Off-shore
Processing Cost
Additional Cost
for Remote
Services
Total Cost for
Off-shoring
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9. How can it be
made
successful
4%
5%
4%
3%
10%
8%
2%
14%
12%
7%
5%
21%
5%
0% 5% 10% 15% 20% 25%
Near Term Financial Justification
Cultural Compatibility
Access to Outside Expertise
Open Communication with Affected
Individuals and Groups
Understanding Your Firms Goals
and Objectives
Strategic Vision and Plan
Careful Attention to Personal Issues
Ongoing Management of
Relationships
Properly Structured Contract
Proper Mix of Retained Inhouse
Staff and OS Operations
Senior Executive Support and
Involvement
Selecting the Right Vendor
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11. What is being outsourced
68%
48%
46%
21%
19%
13%
12%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Payroll
Tax Compliance
Benefits & Claims Administration
Internal Auditing
Accounting
Human Resources
Asset Management
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12. Changing Role of Staffing Companies
Vendor Approach
Demand Based
Generalist
Database & Active Candidate Mode
REACTIVE STRATEGY
Partnership Approach
Planning Based
Specialist
Research & Passive Candidate Mode
PROACTIVE STRATEGY
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13. About IMS

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