This compendium is the complete compilation of the 2010
GS100 research by Global Services and NeoAdvisory. This year,
the study underwent a major makeover to include several new
elements and the results were discussed in multiple formats.
Webinar Deck: GICs vs. Service Providers: Who is Winning?Everest Group
Leading buyer organizations extensively leverage both Global In-house Centers (GICs) and service providers as part of their delivery portfolios. As their exposure in both these sourcing models increases with growing offshore maturity and adoption, buyer organizations are often faced with the following key questions:
Is one model growing relative to the other?
How should organizations think about comparing GICs and service providers?
What are the best practices for optimizing sourcing model portfolio?
This document summarizes a study comparing the outsourcing trends of two major Indian retailers, Pantaloon Retail Ltd. (Big Bazaar) and Spencer's Retail Ltd, from 2006-2010. It finds that Spencer's outsources a greater proportion of its supply chain than Big Bazaar, which manages more raw materials in-house. Over time, both retailers have decreased their outsourcing ratio as sales increased. A survey also found differences in their outsourcing strategies and vendor management practices.
The document discusses the current state and future direction of customer experience (CX). It finds that while 59% of large companies want to lead their industry in CX within three years, currently only 13% have a high level of CX maturity. Customer experience is shown to strongly correlate with customer loyalty. The document outlines six stages of CX maturity and eight emerging CX skills companies will need to master to reach the highest levels of CX.
Presentation at the Terra Technology conference march 27Lora Cecere
This document discusses supply chain insights and the evolution of supply chain excellence. It summarizes that supply chains are complex systems that are becoming increasingly more complex. It also reviews what some of the tipping points were that changed supply chain excellence from focusing on vertical silos to more horizontal processes that deliver value-based outcomes. Finally, it discusses how supply chains are evolving to leverage big data from various sources and the need for supply chains to become more market-driven and orchestrate demand and supply based on changing market conditions.
REI promotes sustainability through employee engagement and its operations. It aims to reduce its environmental impact while growing its business. REI uses an integrated sustainability framework to track metrics and hold itself accountable. It has successfully reduced waste in its distribution centers. REI also engages members to support public lands and mobilizes around issues of stewardship. Software companies like SAP are helping other businesses implement sustainability strategies through products that allow companies to holistically manage risks and opportunities across their economic, social, and environmental impacts.
Presentation for Consumer Goods TechnologyLora Cecere
The document discusses trends in supply chain management and performance metrics over recent decades. It analyzes how inventory levels, revenue per employee, and commodity price volatility have changed over time for various industries. Additionally, it explores the growth of mobile and social media and new approaches to collaboration between companies and their supply chains.
Session 4400 - Rapid Commercialization Strategies For Pharmaceutical And Biot...James Chi
The document discusses strategies for rapid commercialization of pharmaceutical and biotech companies. It outlines the business drivers for rapid commercialization in the life sciences industry, including increasing pressure from external market dynamics and internal industry challenges. The document also provides an overview of integrated portfolio and project management solutions as well as rapid compliant commercialization solutions that Grom Associates and EnteGreat have developed to help accelerate the commercialization process for life sciences companies.
This document introduces services marketing. It defines services and explains why they require special marketing concepts. Services are intangible, heterogeneous, produced and consumed simultaneously, and perishable. This creates challenges for quality, communication, and demand management. An expanded 7 Ps marketing mix framework addresses the influence of people, physical evidence, and processes in service delivery. The document provides examples of service industries and discusses the impact of technology on services. It emphasizes the importance of customer focus for services firms.
Webinar Deck: GICs vs. Service Providers: Who is Winning?Everest Group
Leading buyer organizations extensively leverage both Global In-house Centers (GICs) and service providers as part of their delivery portfolios. As their exposure in both these sourcing models increases with growing offshore maturity and adoption, buyer organizations are often faced with the following key questions:
Is one model growing relative to the other?
How should organizations think about comparing GICs and service providers?
What are the best practices for optimizing sourcing model portfolio?
This document summarizes a study comparing the outsourcing trends of two major Indian retailers, Pantaloon Retail Ltd. (Big Bazaar) and Spencer's Retail Ltd, from 2006-2010. It finds that Spencer's outsources a greater proportion of its supply chain than Big Bazaar, which manages more raw materials in-house. Over time, both retailers have decreased their outsourcing ratio as sales increased. A survey also found differences in their outsourcing strategies and vendor management practices.
The document discusses the current state and future direction of customer experience (CX). It finds that while 59% of large companies want to lead their industry in CX within three years, currently only 13% have a high level of CX maturity. Customer experience is shown to strongly correlate with customer loyalty. The document outlines six stages of CX maturity and eight emerging CX skills companies will need to master to reach the highest levels of CX.
Presentation at the Terra Technology conference march 27Lora Cecere
This document discusses supply chain insights and the evolution of supply chain excellence. It summarizes that supply chains are complex systems that are becoming increasingly more complex. It also reviews what some of the tipping points were that changed supply chain excellence from focusing on vertical silos to more horizontal processes that deliver value-based outcomes. Finally, it discusses how supply chains are evolving to leverage big data from various sources and the need for supply chains to become more market-driven and orchestrate demand and supply based on changing market conditions.
REI promotes sustainability through employee engagement and its operations. It aims to reduce its environmental impact while growing its business. REI uses an integrated sustainability framework to track metrics and hold itself accountable. It has successfully reduced waste in its distribution centers. REI also engages members to support public lands and mobilizes around issues of stewardship. Software companies like SAP are helping other businesses implement sustainability strategies through products that allow companies to holistically manage risks and opportunities across their economic, social, and environmental impacts.
Presentation for Consumer Goods TechnologyLora Cecere
The document discusses trends in supply chain management and performance metrics over recent decades. It analyzes how inventory levels, revenue per employee, and commodity price volatility have changed over time for various industries. Additionally, it explores the growth of mobile and social media and new approaches to collaboration between companies and their supply chains.
Session 4400 - Rapid Commercialization Strategies For Pharmaceutical And Biot...James Chi
The document discusses strategies for rapid commercialization of pharmaceutical and biotech companies. It outlines the business drivers for rapid commercialization in the life sciences industry, including increasing pressure from external market dynamics and internal industry challenges. The document also provides an overview of integrated portfolio and project management solutions as well as rapid compliant commercialization solutions that Grom Associates and EnteGreat have developed to help accelerate the commercialization process for life sciences companies.
This document introduces services marketing. It defines services and explains why they require special marketing concepts. Services are intangible, heterogeneous, produced and consumed simultaneously, and perishable. This creates challenges for quality, communication, and demand management. An expanded 7 Ps marketing mix framework addresses the influence of people, physical evidence, and processes in service delivery. The document provides examples of service industries and discusses the impact of technology on services. It emphasizes the importance of customer focus for services firms.
The document summarizes key topics from an S&OP panel discussion. It discusses challenges with S&OP processes, including execution of S&OP plans. It also covers the importance of a center of excellence to support S&OP and addresses talent shortages. Additionally, it provides an overview of the founder of Supply Chain Insights, Lora Cecere, and where to find her online.
Bloomberg New Energy Finance is the world's leading provider of independent news, data, and analysis for renewable energy and carbon markets. It delivers comprehensive subscription services including verified news, the largest renewable energy project and company database, and industry-leading research. Bloomberg New Energy Finance helps decision-makers in these complex, rapidly changing markets make informed decisions through expert analysis and insights.
The document discusses the power of cloud computing and its growing importance. It notes that technology is now seen as the most important external force impacting organizations. It outlines barriers to cloud adoption but also "wow factors" like cost savings, speed, and scalability. The document discusses three approaches organizations can take to cloud (optimize, innovate, disrupt) and says disruptors expect to significantly outperform others. It provides examples of how IBM is using cloud computing with clients.
How to develop proven, cost effective post warranty O&M strategies to optimize performance and dramatically reduce costs
Wind Energy Update's O&M Summit USA 2011will again be North America's leading wind operations and maintenance (O&M) meeting point for the 3rd year running.
Wind Energy Update expect over 250 leading operations and maintenance (O&M) personnel from around the globe in 2011 to attend.
Maja Wessels, EVP of Public Affairs for First Solar, presented at the GW Solar Institute Symposium on April 19, 2010. More information at solar.gwu.edu/Symposium.html
Tieto Integrated Paper Solution TIPS – intelligent mill solutionTieto Corporation
Tieto Integrated Paper Solution (TIPS) is:
1) The leading manufacturing execution system for paper mills, with over 400 deliveries to the pulp and paper industry and 800+ employees dedicated to forest industry services.
2) A comprehensive sales, logistics, and production management solution that standardizes interfaces and monitoring across functions like order management, production, dispatching, and quality management.
3) Helps customers achieve benefits like increased in-time deliveries, utilization of free capacity in production, reduced raw material consumption and trim waste, lower stock levels, improved quality and fewer claims, cost efficiency, and energy savings.
This document summarizes the results of a survey of Finnish CTOs conducted in 2013. Nearly half of the TOP 100 R&D investors in Finland responded. The main findings were:
- Almost half of CTOs planned to increase their R&D budgets for 2013, though they were less optimistic than in previous years.
- While a third would increase recruiting, this number has declined from previous years.
- Over half of companies introduce an increasing number of new products and services each year.
- An increasing number of companies plan to benefit from external technology sources like licensing and acquisitions.
- CTOs see the most benefits from R&D collaboration being product/service
X-as-a-Service: Impact on the Global Sourcing MarketStanton Jones
This document provides an overview of "X-as-a-Service" and its impact on the global sourcing market from the perspective of Information Services Group (ISG). The presentation discusses how cloud computing is changing external sourcing models and internal operating models. It highlights what ISG is seeing in the market, including increased adoption of SaaS and gradual transition to dedicated infrastructures through IaaS. Key adoption barriers around security, commercial terms, and financials are also noted.
BMC Holistic Health & Retail ClinicsLauren Peters
The document appears to be a pre-assignment for a service design course. It provides three potential topics or trends for the assignment:
1. The rise of religious "nones" and how this trend could impact traditional and organized religion.
2. The increasing reliance on technology and how "our heads are in the cloud." This could relate to issues around dependency on computers and technology failures.
3. The idea that "nature is over" and how humans now dominate nature, questioning the balance between nature and human-made environments.
The document asks the student to choose one of the three topics or trends for their assignment and provides example prompts for each relating to different industries and business models.
M. Laudisa Executive Profile (www.exec-profiles.com)Maurizio Laudisa
The document summarizes the performance improvements achieved by the CIO at LifeLabs since 2006. Key findings include that annual IT operating costs have decreased 42% (or $4 million) between 2006 and 2009, while system uptime has increased by 3.5 days per year. The CIO rebuilt the IT department and implemented various initiatives that led to lower costs and better performance metrics compared to peer organizations.
Deutsche Telekom and Nummer Gegen KummerThomas Müller
The document summarizes the cooperation model between Deutsche Telekom and Nummer gegen Kummer e.V. Deutsche Telekom provides technical support, financial support, and employee volunteers. Nummer gegen Kummer e.V. expands its advisory services and increases its public presence. The partnership provides benefits such as improved brand image for Deutsche Telekom and expanded services for Nummer gegen Kummer e.V. Together they work to address challenges like integrating anonymous SMS and opportunities like providing immediate help through new technologies.
PwC hosted a roundtable discussion on opportunities in the green economy. The document discusses defining the green economy, challenges in measurement, and implications for PwC's business lines including advisory services around sustainability strategy, reporting, and regulatory compliance. PwC aims to help clients capitalize on green opportunities and manage risks through integrated sustainability solutions while also strengthening its own sustainability practices.
2011 study making-sustainability-profitable_kurt-salmonKurt Salmon
The document discusses the increasing pressures on companies to address sustainability issues. Key findings include:
- Competition is the main driver, as companies must strengthen their competitive position to meet growing consumer expectations around sustainability. Some gain advantage by exceeding environmental expectations.
- Regulation also applies significant pressure, as institutions like the EU implement more stringent policies around climate change.
- Attracting and retaining talent is another factor, as employees want to work for socially responsible employers they can be proud of.
Stakeholders like consumers, financial partners, investors and stock markets also apply pressures through demands, investment criteria, and rankings that consider sustainability performance.
Green Chemicals & Materials – Unravelling The Myths And Creating Opportun...stevelmy
This document summarizes a panel discussion on green chemicals and materials. The panel discusses key industry trends, green sourcing and processes, legislation, and case studies. Some of the topics covered include defining "green", trends in biobased sourcing and their impact on the chemicals industry, how the chemical industry has reduced its energy usage and emissions over time, and opportunities in bioplastics, biolubricants and other renewable chemical markets. The document provides forecasts for the European PLA market and concludes that green initiatives must be self-funding and sustainable to be effective.
Climate change poses new strategic risks and opportunities for businesses. As the impacts of a changing climate challenge assumptions of global stability and infinite growth, companies must transform their business models to improve resource efficiency, reduce emissions, and meet changing social demands. This creates demand for new technologies and services that enable conservation and efficiency. Business stands to gain competitive advantages from product and service innovation that addresses sustainability challenges.
The document provides an analysis of 12 key financial ratios for Anu's Laboratories Ltd for the years 2010-11, 2009-10, 2008-09, and 2007-08. Some ratios like current ratio, acid test ratio, and cash liquidity ratio have improved compared to past years and industry averages. However, other ratios like inventory turnover, accounts receivable turnover, and times interest earned are lower than industry averages, suggesting areas for improvement. Overall, the analysis evaluates Anu's Laboratories Ltd's liquidity, asset use efficiency, debt levels, and profitability based on common financial metrics.
The document describes various dashboards and features provided by Segmetrix, including dashboards to analyze business opportunities by geography, vertical, buying potential, and incumbent suppliers. It also describes dashboards to view account intelligence by subsidiary, decision site, region, and product. Additional features allow users to view organizational structures, key decision sites, incumbent suppliers across regions, and allocated accounts to determine opportunities. Segmetrix experts can help customers find the right solutions.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. They found it an interesting experience to learn how to design a program evaluation plan using various methods to provide in-depth analysis of whether a program achieved its goals in a realistic, practical way for real life.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. It was an interesting experience where they learned how to design a program evaluation plan using various methods to provide a deep analysis of whether the program's goals were achieved and how the evaluation could be implemented practically in real life.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. They found it an interesting experience to learn how to design a program evaluation plan using various methods to provide in-depth analysis of whether a program achieved its goals in a realistic, practical way for real life.
The document summarizes key topics from an S&OP panel discussion. It discusses challenges with S&OP processes, including execution of S&OP plans. It also covers the importance of a center of excellence to support S&OP and addresses talent shortages. Additionally, it provides an overview of the founder of Supply Chain Insights, Lora Cecere, and where to find her online.
Bloomberg New Energy Finance is the world's leading provider of independent news, data, and analysis for renewable energy and carbon markets. It delivers comprehensive subscription services including verified news, the largest renewable energy project and company database, and industry-leading research. Bloomberg New Energy Finance helps decision-makers in these complex, rapidly changing markets make informed decisions through expert analysis and insights.
The document discusses the power of cloud computing and its growing importance. It notes that technology is now seen as the most important external force impacting organizations. It outlines barriers to cloud adoption but also "wow factors" like cost savings, speed, and scalability. The document discusses three approaches organizations can take to cloud (optimize, innovate, disrupt) and says disruptors expect to significantly outperform others. It provides examples of how IBM is using cloud computing with clients.
How to develop proven, cost effective post warranty O&M strategies to optimize performance and dramatically reduce costs
Wind Energy Update's O&M Summit USA 2011will again be North America's leading wind operations and maintenance (O&M) meeting point for the 3rd year running.
Wind Energy Update expect over 250 leading operations and maintenance (O&M) personnel from around the globe in 2011 to attend.
Maja Wessels, EVP of Public Affairs for First Solar, presented at the GW Solar Institute Symposium on April 19, 2010. More information at solar.gwu.edu/Symposium.html
Tieto Integrated Paper Solution TIPS – intelligent mill solutionTieto Corporation
Tieto Integrated Paper Solution (TIPS) is:
1) The leading manufacturing execution system for paper mills, with over 400 deliveries to the pulp and paper industry and 800+ employees dedicated to forest industry services.
2) A comprehensive sales, logistics, and production management solution that standardizes interfaces and monitoring across functions like order management, production, dispatching, and quality management.
3) Helps customers achieve benefits like increased in-time deliveries, utilization of free capacity in production, reduced raw material consumption and trim waste, lower stock levels, improved quality and fewer claims, cost efficiency, and energy savings.
This document summarizes the results of a survey of Finnish CTOs conducted in 2013. Nearly half of the TOP 100 R&D investors in Finland responded. The main findings were:
- Almost half of CTOs planned to increase their R&D budgets for 2013, though they were less optimistic than in previous years.
- While a third would increase recruiting, this number has declined from previous years.
- Over half of companies introduce an increasing number of new products and services each year.
- An increasing number of companies plan to benefit from external technology sources like licensing and acquisitions.
- CTOs see the most benefits from R&D collaboration being product/service
X-as-a-Service: Impact on the Global Sourcing MarketStanton Jones
This document provides an overview of "X-as-a-Service" and its impact on the global sourcing market from the perspective of Information Services Group (ISG). The presentation discusses how cloud computing is changing external sourcing models and internal operating models. It highlights what ISG is seeing in the market, including increased adoption of SaaS and gradual transition to dedicated infrastructures through IaaS. Key adoption barriers around security, commercial terms, and financials are also noted.
BMC Holistic Health & Retail ClinicsLauren Peters
The document appears to be a pre-assignment for a service design course. It provides three potential topics or trends for the assignment:
1. The rise of religious "nones" and how this trend could impact traditional and organized religion.
2. The increasing reliance on technology and how "our heads are in the cloud." This could relate to issues around dependency on computers and technology failures.
3. The idea that "nature is over" and how humans now dominate nature, questioning the balance between nature and human-made environments.
The document asks the student to choose one of the three topics or trends for their assignment and provides example prompts for each relating to different industries and business models.
M. Laudisa Executive Profile (www.exec-profiles.com)Maurizio Laudisa
The document summarizes the performance improvements achieved by the CIO at LifeLabs since 2006. Key findings include that annual IT operating costs have decreased 42% (or $4 million) between 2006 and 2009, while system uptime has increased by 3.5 days per year. The CIO rebuilt the IT department and implemented various initiatives that led to lower costs and better performance metrics compared to peer organizations.
Deutsche Telekom and Nummer Gegen KummerThomas Müller
The document summarizes the cooperation model between Deutsche Telekom and Nummer gegen Kummer e.V. Deutsche Telekom provides technical support, financial support, and employee volunteers. Nummer gegen Kummer e.V. expands its advisory services and increases its public presence. The partnership provides benefits such as improved brand image for Deutsche Telekom and expanded services for Nummer gegen Kummer e.V. Together they work to address challenges like integrating anonymous SMS and opportunities like providing immediate help through new technologies.
PwC hosted a roundtable discussion on opportunities in the green economy. The document discusses defining the green economy, challenges in measurement, and implications for PwC's business lines including advisory services around sustainability strategy, reporting, and regulatory compliance. PwC aims to help clients capitalize on green opportunities and manage risks through integrated sustainability solutions while also strengthening its own sustainability practices.
2011 study making-sustainability-profitable_kurt-salmonKurt Salmon
The document discusses the increasing pressures on companies to address sustainability issues. Key findings include:
- Competition is the main driver, as companies must strengthen their competitive position to meet growing consumer expectations around sustainability. Some gain advantage by exceeding environmental expectations.
- Regulation also applies significant pressure, as institutions like the EU implement more stringent policies around climate change.
- Attracting and retaining talent is another factor, as employees want to work for socially responsible employers they can be proud of.
Stakeholders like consumers, financial partners, investors and stock markets also apply pressures through demands, investment criteria, and rankings that consider sustainability performance.
Green Chemicals & Materials – Unravelling The Myths And Creating Opportun...stevelmy
This document summarizes a panel discussion on green chemicals and materials. The panel discusses key industry trends, green sourcing and processes, legislation, and case studies. Some of the topics covered include defining "green", trends in biobased sourcing and their impact on the chemicals industry, how the chemical industry has reduced its energy usage and emissions over time, and opportunities in bioplastics, biolubricants and other renewable chemical markets. The document provides forecasts for the European PLA market and concludes that green initiatives must be self-funding and sustainable to be effective.
Climate change poses new strategic risks and opportunities for businesses. As the impacts of a changing climate challenge assumptions of global stability and infinite growth, companies must transform their business models to improve resource efficiency, reduce emissions, and meet changing social demands. This creates demand for new technologies and services that enable conservation and efficiency. Business stands to gain competitive advantages from product and service innovation that addresses sustainability challenges.
The document provides an analysis of 12 key financial ratios for Anu's Laboratories Ltd for the years 2010-11, 2009-10, 2008-09, and 2007-08. Some ratios like current ratio, acid test ratio, and cash liquidity ratio have improved compared to past years and industry averages. However, other ratios like inventory turnover, accounts receivable turnover, and times interest earned are lower than industry averages, suggesting areas for improvement. Overall, the analysis evaluates Anu's Laboratories Ltd's liquidity, asset use efficiency, debt levels, and profitability based on common financial metrics.
The document describes various dashboards and features provided by Segmetrix, including dashboards to analyze business opportunities by geography, vertical, buying potential, and incumbent suppliers. It also describes dashboards to view account intelligence by subsidiary, decision site, region, and product. Additional features allow users to view organizational structures, key decision sites, incumbent suppliers across regions, and allocated accounts to determine opportunities. Segmetrix experts can help customers find the right solutions.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. They found it an interesting experience to learn how to design a program evaluation plan using various methods to provide in-depth analysis of whether a program achieved its goals in a realistic, practical way for real life.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. It was an interesting experience where they learned how to design a program evaluation plan using various methods to provide a deep analysis of whether the program's goals were achieved and how the evaluation could be implemented practically in real life.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. They found it an interesting experience to learn how to design a program evaluation plan using various methods to provide in-depth analysis of whether a program achieved its goals in a realistic, practical way for real life.
E-commerce involves the buying and selling of products and services over the Internet. It provides several advantages such as cost savings, increased efficiency, and access to a global market. However, it also poses challenges such as lack of trust, lack of understanding between departments, and resistance to change. When evaluating hardware, software and services for e-commerce, factors like quality, cost, flexibility, security and documentation should be considered. Standards like ISO/IEC 9126 define key quality characteristics for software.
The students evaluated their classmates' program evaluations, carefully checking that each detail followed the evaluation guide. It was an interesting experience where they learned how to design a program evaluation plan using various methods to provide a deep analysis of whether the program's goals were achieved and how the evaluation could be implemented practically in real life.
“In the past, the choice was between cost savings and transformation. Now you have to do both; it is a model of continuous improvement re-
engineering never stops.”
Welcome to the next generation of the services economy — where we have technology and business processes enmeshing with each other on a global scale — to unlock business value.
The current model of GS100 is based on market performance and
leadership, breadth of services, spread of global delivery capabilities, and
customer leadership. Next year, we would extend the model to measure
how service providers move towards leveraging platforms and solutions to
deliver the next wave of business value.
Congratulations to all the GS100 companies!
The outlook for the global outsourcing market in 2010 is one of slow recovery following the impacts of the recession in 2009:
1) Q1 2010 saw a 25% increase in contract value year-over-year, driven largely by renewals and restructurings of existing contracts.
2) Cost reduction remains a key priority for clients, benefiting Indian service providers competing on price.
3) BPO demand is shifting to smaller, shorter-term specialized projects replacing large transformational deals.
4) The European market, particularly in the UK, faces economic uncertainty that may dampen overall industry growth.
5) Cloud computing and industry-specific BPO solutions show strong adoption signals
The document summarizes the results of a survey on the 2012 global services industry outlook. Key findings include:
- Nearly half of respondents expect a moderate increase in outsourcing activity in 2022, while a quarter expect current levels to be maintained, indicating an overall positive outlook.
- Reducing operational costs remains the top driver for outsourcing. Creating bandwidth for strategic growth is also an important driver.
- The overall outlook is modest but positive, as reducing costs remains important but organizations also see outsourcing as a way to free up resources for strategic priorities.
One should expect modest, guarded growth in outsourcing this year. Organizations will want to do it cheaper and better, but face minimal disruptive change - Ed Nair, Editor, Global Services
This document provides a summary of the impact of the 2008 recession on the global outsourcing industry and introduces the GS100 study.
1) The recession changed rules for global sourcing as clients focused on cost cutting and vendors had to adapt by delivering business outcomes at lower costs.
2) While the industry hit a low point in the first half of 2009, it showed impressive growth in the last quarter of 2009 as clients consolidated vendors and engaged more specialized providers through multisourcing.
3) The GS100 study recognizes 100 leading service providers that demonstrated resilience during the recession and have the maturity to deliver high standard IT and BPO services using the global delivery model.
Global Services Digital Magazine November IssueNiketa Chauhan
This article discusses how the needs and expectations of clients from their sourcing advisors have changed over the past two years. It is based on an interview with Cliff Justice, National Leader of Shared Services and Outsourcing Advisory at KPMG.
The key points are:
1. Recently, clients have been demanding more value creation through optimization of several functions and internal services organizations, rather than just advice on outsourcing deals.
2. Sourcing advisors are now expected to help with enterprise services transformation and alignment to drive competitive advantage, rather than just setting up shared services centers or advising on outsourcing contracts.
3. Advisors must take a holistic view of services delivery that
The document discusses how 2010 saw a slowdown in the global outsourcing industry due to the effects of the recession, with indicators like growth rates, contract values and new customers declining. However, it notes that the size of the outsourcing industry did not shrink. The outlook for 2011 is for a steady recovery, as the worst effects seem to be behind and signs point to a reversal in course with factors like a rise in new contracts and resurgence in the BPO sector driving renewed demand.
Global Services LIVE! is the world’s first compilation of success stories in ITO and BPO. It is a year-long program published quarterly for service providers to showcase their best projects.
Semiconductor Industry - Needs more than Moore's LawIBMElectronics
This document discusses strategies for success in the maturing semiconductor industry. It notes that traditional business models are being threatened by increasing costs, competitive landscape changes, technology convergence, and greater global connectedness. The semiconductor industry now faces seven disruptive trends ("seven Cs") that require new optimization strategies to navigate: complexity, commoditization, consumerization, cost, competition, convergence, and connectedness. Future success will depend on innovative changes to business models that optimize capabilities in integration, customer centricity, and collaboration.
KPIT Cummins Investor Presentation - March 2011KPIT
KPIT Cummins Infosystems Limited is an investor presentation from March 2011. It provides an overview of KPIT, including its mission, management team, strategy of focusing on select verticals while building expertise, and global footprint with subsidiaries in the US, UK, Germany and India. It also summarizes KPIT's offerings and leadership in automotive engineering domains. Charts show KPIT's strong growth history over the past decades with revenues increasing from $0.02 million in 1991 to over $224 million in 2010.
This presentation explores what Corporate Social Responsibility (CSR) has to do with IT and how IT Service Management best practice can assist organisations in support of a strategic CSR policy.
Catalogue of steel plant for Operational ExcellenceMattcons
This document discusses strategies for improving operational excellence in the steel industry. It outlines challenges such as volatile prices and environmental issues. It then describes Mattcons' approach to operational excellence, which includes improving plant efficiency, reducing costs and breakdowns, and driving culture change. Mattcons' methodology utilizes techniques like TPM, Lean Manufacturing, and reliability centered maintenance to achieve measurable results for clients.
The document discusses the outlook for the global outsourcing industry in 2011, stating that while 2010 saw a slowdown, the worst effects of the recession seem to be behind the industry and 2011 will see a steady recovery beginning. It notes that the first quarter of 2011 showed some signs of reversal from 2010 trends, and while weak, the overall outlook is for volumes to rise through the year as more business segments follow industries that saw strong first quarter performances. Demand drivers like new technology areas, analytics needs, and business process optimization will translate to new outsourcing opportunities supporting a continued recovery in 2011.
QuEST Global has been recognized as the top engineering services outsourcing vendor in the prestigious Black Book of Outsourcing 2009 survey. The company was ranked first overall and first in 8 of the 18 key performance indicators that were evaluated, including vendor preference, trust, breadth of offerings, customization, reliability, brand image, viability, and customer support. The Black Book of Outsourcing is an annual survey that evaluates over 700 engineering functions and receives feedback from over 26,000 respondents globally about their satisfaction with outsourcing vendors.
This document provides an overview of the Indian IT industry and Tata Consultancy Services (TCS). It discusses the external factors impacting the Indian IT industry through a PESTLE analysis and Porter's Five Forces model. It also analyzes the strengths, weaknesses, opportunities, and threats for the overall IT/ITES industry in India and conducts an internal analysis of TCS, including its resources, capabilities, and strategy. The document aims to provide recommendations to help TCS maintain its leadership position in the growing Indian IT industry.
Market Research Report : ICT Adoption in Manufacturing Sector India 2011Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Need for maintenance of global standards is stimulating ICT adoption in manufacturing sector, finds Netscribes
Webinar Deck: Market Vista - Key Market Development in Q3 2012Everest Group
Outsourcing transaction activity in Q3 2012 remained lower than third quarters of previous years. In contrast, offshore locations in Asia and Latin America continued to report activity across global in-house centers (GICs) and service providers.
Global services managers need to carefully monitor and analyze these market developments that could serve as a critical input toward their plans for 2013.
Service 2020 Megatrends for the Decade AheadDavid Crace
This document summarizes a report about key trends in the service industry over the next decade. It discusses how increased global competition will drive higher service standards. It also explores how companies must maintain quality while adapting to faster customer expectations. Additionally, the summary notes that firms need to leverage transparency on social media and new data sources to personalize service. Finally, it briefly discusses outsourcing aspects of customer service and how customer segments and expectations are evolving with technology.
The document provides an analysis of the impact of COVID-19 on the IT industry and the financial performance of major Indian IT players in the first quarter of 2021. It discusses both the positive and negative impacts of the pandemic on the IT sector. The positive impacts include increased digitization, growth in cloud technology and 5G, and new projects in cloud and digital areas. The negative impacts include a slowdown in the overall economy, cancellation of tech conferences, restrictions on travel and offices, and potential budget cuts by clients. The document also analyzes the financial performance of major Indian IT companies like TCS, Infosys, HCL, Wipro and Tech Mahindra in Q1 2021. It provides details of their revenues,
Vox Artis, Voice of Experts - Next & Best Practices in Global SourcingNiketa Chauhan
Excellence in global sourcing is the key to enterprise services, enterprise transformation, and aligning that transformation to drive competitive advantage to companies.
Global Services Conference 2012 @ NYC in ImagesNiketa Chauhan
This document welcomes attendees to a track session and thanks sponsors for their support of the event. It mentions tracking a session, closing notes, sponsors and sponsor booths at the event.
The article discusses the evolution and maturity of remote infrastructure management (RIM) services. RIM involves managing a client's IT infrastructure from an off-site location. While initially domestic, RIM is increasingly being delivered globally through offshore locations to realize cost savings. The banking, financial services, and insurance industries have led adoption of global RIM due to their need for secure, reliable systems and labor cost arbitrage opportunities. The article predicts continued growth in outsourcing of RIM services globally as clients seek to reduce costs and focus on core competencies.
The one stop resource on global outsourcing destinations. The destinations compendium 2011 brings together the myriad dynamics of outsourcing locations in one place complete with research, data, and expert opinions.
Outsourcing and offshoring of HR presents many opportunities and challenges, what is needed is for more HR professionals to have outsourcing business skills (namely process, operations, project management) and for more outsourcing professionals to have a greater understanding of HR issues and its impacts.
Contact Center Industry: Where Do You Go From Here?Niketa Chauhan
Contact Centers and the Challenge of Social Media - Our cover story this month focuses on the new directions of growth
for the contact center industry.
This document summarizes key steps for empowering the vendor management office (VMO) in global sourcing. It discusses identifying and reducing maverick spending, tiering vendors based on performance and risk, and streamlining contract management. Focusing the relationship on mutual needs through clear expectations and shared metrics can help drive innovation from existing service providers. Meeting compliance requirements and valuing vendors can also boost performance and relationships. Empowering the VMO requires considering the entire sourcing ecosystem.
Global Services Digital Magazine - January IssueNiketa Chauhan
Virtualization and cloud computing has brought utility back into the discussion though neither of them are a precondition for a utility-based model of IT delivery.
As companies come out of the recessionary environment, the buzz in the air is about ‘business transformation’— the ability to achieve breakthrough business value by aligning IT, business processes, and global sourcing in unique ways. The Global Services Conference 2011 brings together industry experts to discuss the forces which will define the next generation of services delivery and enable business transformation, and presents actionable propositions to leverage them. Join us to understand the forces which will shape your business tomorrow and experience the transformational power of global sourcing!
Global Services Digital Magazine October Issue 2Niketa Chauhan
This issue is all about change; how microtrends will become waves of change or systemic shocks like the recession can reset the economy and the market.
The document is a list of the top 100 global services companies in 2010. It includes the company name, CEO, and headquarters location for each entry. Some of the leading companies on the list include Tata Consultancy Services, Wipro Technologies, Infosys Technologies, Cognizant Technology Solutions, and Accenture. The list covers major global services providers across industries like IT services, BPO, engineering services and more.
The document summarizes revenue growth rates across the global outsourcing industry in 2010. It finds that overall growth fell to modest levels of 15.7%. Growth was particularly difficult for small companies under $10M and mid-sized companies between $100M-1B, which saw growth rates of 14% and 5% respectively due to pricing pressures and reduced demand. Larger companies over $1B grew by 18.4% but this was skewed by one large merger; otherwise growth was a modest 3.5%. The document lists the fastest growing companies by revenue size.
The document analyzes data from over 150 companies on the top locations for global delivery centers. India, the Philippines, and the United States have the largest numbers of people deployed, with India having significantly more than any other country. The top 20 locations are listed, with India having over 500,000 people deployed, more than the total deployed across all other countries on the list.
This document discusses trends, traps, and emerging opportunities related to outsourcing. It identifies several trends in outsourcing including the emergence of new roles like chief transformation officers, outsourcing being used as a vehicle for operational transformation, and the convergence of IT and business process outsourcing. It also outlines some traps such as not differentiating between suppliers and not investing in retained organizations. Emerging opportunities discussed include expanding regional operations, leveraging outsourcing for knowledge management, optimizing vendors, and expanding global operations.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
GS100 outsourcing compendium
1.
2.
3. EDITOR’S NOTE
The 2010 GS100
Compendium
‘‘
This compendium is the complete compilation of the 2010
GS100 research by Global Services and NeoAdvisory. This year,
the study underwent a major makeover to include several new
elements and the results were discussed in multiple formats. The
2009 was a compendium is one such format aimed at tying up the various
tough year for parts into one package that is easy and ready to refer.
the outsourcing We would continue to build on this work to make it more
industry. Service valuable to the industry. In 2011, we will pull back the exercise by
providers in one quarter: the survey would be done in the JFM quarter and the
the GS100 list results would be announced in the AMJ quarter.
Many thanks to the service providers who participated in the
their resilience 2010 GS100 survey and shared valuable data and information
to weather that helped us achieve the objectives of the research. The GS100
the economic is a benchmark in the global ITO and BPO industry. Therefore,
downturn, the
ability to retain reason to participate next year, provided they help the project
market leadership, with data.
to play by the Good luck and enjoy the 2010 GS100 Compendium.
changed rules of
the industry. Ed Nair ed@cybermedia.co.in
Editor
2010 GLOBAL SERVICES 100 STUDY 3
4. CONTENTS
Editor’s note 03
INDUSTRY ANALYSIS AND OUTLOOK
Shaping the Battleground for GS100 Service Providers 07
Outlook 2010: Slow Start, Great Prospects 14
SURVEY ANALYSIS
The Growth Story 21
Contract Sizes: The Lifeline of Business 25
Spread of Global Delivery Centers 28
Analysis of Risk Management Across Segments 30
HR and Employees Segment Analysis 34
Analysis of Mergers & Acquisistionsin IT Services & BPO 37
ITO ANALYSIS AND TRENDS
Development Declines, Maintenance Promises to Grow 43
Enterprise Applications: Depressed and Challenged 49
OPD: New Products and New Markets Are the Growth Areas 54
IM: Infrastructure Management Continues to Be Hot 63
ESO: Service Providers See Promising Prospects in Engineering Services Outsourcing 70
2010 GLOBAL SERVICES 100 STUDY
5. BPO ANALYSIS AND TRENDS
FAO: Could 2010 Be the Year for FAO? 76
80
HRO: Buyers Choose Short-term Single-function Deals 85
Customer Care: Focus on Customer Value, Bundled Services, and Virtual Contact Centers 89
96
GS100 LISTS AND CATEGORIES
The GS100 Survey Metholology 107
109
The 2010 GS100 Category Lists 112
Acknowledgment 119
CREDITS
E. Abraham Mathew GS100 COMPENDIUM SPONSORS
President Global Services Media LLC
806 Green Hollow Dr HCL Inside Front Cover
Ed Nair Iselin 08830
Editor Intetics Co. 9
NJ
ed@cybermedia.co.in Tel: +1 732 634 3420, EXL Service 11
Satish Gupta +1 678 665 6005 Xchanging 13
Associate Vice President Global Services
satishg@cybermedia.co.in EPAM 15
Cyber Media (India) Ltd.
Ashwin Razdan CyberHouse, B- 35, Sector 32 Sonata Software 17
ashwinr@cybermedia.co.in Gurgaon-122001,
India IBA Group 31
Pratibha Verma Tel: +91 24 4822222 Tata Consultancy Services 97
pratibhav@cybermedia.co.in Fax: +91 24 2380694
Sruthi Ramakrishnan Forthcoming Compendiums
sruthir@cybermedia.co.in Global Shore - Destinations
Niketa Chauhan Global Services Live! Disclaimer
niketac@cybermedia.co.in (Sourcing Success Stories) All rights reserved. No part
Experts on Outsourcing - YOU of this publication may be
Research Partner reproduced by any means
NEO Advisory Contact: without prior written
globalservices@cybermedia.co.in permission from the publisher.
Design
CyberMedia Services
2010 GLOBAL SERVICES 100 STUDY
7. Shaping the Battleground for
GS100 Service Providers
The recession changed several rules in global sourcing. The GS100 is
a study in how service providers withstood the shocks and adapted.
ED NAIR
When the economy buckled
down into a recession in 2008, the
global outsourcing industry still
seemed very robust. Slowly, but
surely, the impact of the recession
was felt by the industry during
2009. Companies clammed up on
ambitious technology projects that
required huge outlays in investment
and CIOs were forced to operate on
constrained IT budgets which largely
focused on squeezing more bang
from the bucks that were spent in
the earlier years. Spending was guided by discretion into areas
that were necessary to ‘keep the lights on’ and saving costs
became the driving factor in decisions.
Outsourcing’s potential to save costs actually helped.
Service providers (vendors) were forced to operate in a new
environment in which they got paid for business outcomes
industries directly responsible for recession (like mortgage
processing, title management, etc.) almost vanished. In other
service providers were tasked with delivering business outcomes
2010 GLOBAL SERVICES 100 STUDY
8. ‘‘
at lower cost. There were very few bright spots, if at all, in both
recovering in the second half of 2009. In fact, the industry put up
an impressive performance in the last quarter of 2009, with the
about setting the
‘new agenda’ or of 47 percent sequentially and 8 percent year-over-year and the
realizing the ‘new best quarterly performance since the second quarter of 2008,
normal’
“Full-year 2009 results could not overcome the market’s weak
FRUITS OF A CRISIS
A monumental crisis has a monumental impact on the dynamics
of industry. So did the recession change several rules in global
sourcing, which led to new behaviors both on the clients’ and
on the service providers’ end. In 2010, we see the permanence
agenda’ or realizing the ‘new normal’, whatever you call it.
consolidating the number of vendors they have to deal with. At
GLOBAL COVERAGE
2010 GLOBAL SERVICES 100 STUDY
9.
10. GLOBAL COVERAGE
Category Aggregate Revenue 2009 (in $M)
1M-10M 55
10M-100M 1393
12917
58999
Total
GLOBAL COVERAGE
the same time, buyers have also started splitting their scope and
engaging with a broader set of specialist vendors. This trend,
known as multisourcing, has given access and opportunity to
many mid-tier vendors but it has also led to reduction in value
and duration of outsourcing contracts. This has led to more
competition amongst vendors.
The recession also brought into focus many issues related to
renegotiations became all too common. More importantly,
most vendors had to deliver on outcome-based pricing. Along
with pricing, practices about risk management and governance
became topics of interest, moving from being concepts to
practices. Other factors not related to recession, like the
2010 GLOBAL SERVICES 100 STUDY
12. potential of cloud computing and its impact on delivery of
between service providers, maturing of service providers
from Central and Eastern Europe, Latin America and China,
threatened to change the landscape of the services industry.
During this entire episode, the service provider community
was both resilient and adaptive. The storms they braved were
far more severe than the ones faced by the buyers. These are the
Global Services 100 companies, the list of 100 companies that
will be released in the last phase of this study.
GS100: RECOGNIZING AND CELEBRATING
SERVICE PROVIDER EXCELLENCE
service provider excellence. It enlists service providers who
possess the maturity to deliver high standard services in IT
providers possess many other attributes that lead to market
leadership and the study is intended to take a closer look at
these.
This year we had over 150 companies that participated in the
study and voluntarily shared a lot of quantitative and qualitative
information about themselves. The absence
of a few Tier 1 companies like Accenture,
is explained either by their unwillingness
to share data due to policy or by their
point of view, the study represents relevant
samples across all categories (revenue
bands) of companies. Therefore, the
and conclusive.
2010 GLOBAL SERVICES 100 STUDY
13. Clear blue water…between
you and your competitors
When the moment comes to step up the stroke rate, your whole team needs to respond
in perfect harmony…maximising performance together. Winning as a team. We see
ourselves as part of the team, the engine room – giving you the most effective business
processing services across the functions you need, precisely when you need them.
Xchanging provides procurement, accounting, Xchanging is one of the largest and fastest
human resources and technology services across growing business processors. With a wide range
industries. These include banking, insurance, of multinational customers in 42 countries and
manufacturing, retail and real estate among employing over 8,000 people, we are a truly
others. We combine functional expertise with global company.
deep industry domain knowledge to provide
specific outcomes for our customers.
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Global Business Processing www.xchanging.com
14. Outlook 2010: Slow Start,
Great Prospects
ED NAIR
2010 GLOBAL SERVICES 100 STUDY
21. The Growth Story
ED NAIR
‘‘
revenue range of
$10M to $100M
percent.
The 2010 GS100 survey participants represent about $73B
contract value on outsourcing in 2009.
2010 GLOBAL SERVICES 100 STUDY
22. FIG.1
Category 2008 (in $M) 2009 (in $M) Growth percent
14
1237 1393
12917
1B+
Total
2010 GLOBAL SERVICES 100 STUDY 2
23. this category.
FIG.2
Country Revenues 1B+
North America
Latin/ South America 4 7
EMEA 29 27
Asia 14 7 9 10
Japan 1 0 1 0
Australia 3 1 2 1
2010 GLOBAL SERVICES 100 STUDY 3
24. FIG. 3: TOP 5 FASTEST GROWING COMPANIES
($10M TO $100M)
No Company Country
1 China
2 Corbus
3
4
Globant
FIG. 4: TOP 5 FASTEST GROWING COMPANIES
No Company Country
1
2
3
4 China
2010 GLOBAL SERVICES 100 STUDY 4
25. Contract Sizes: The Lifeline
of the Business
Contracts below $25M continue to be the most important,
even as ITO and BPO contract sizes are shrinking.
ED NAIR
Contracts are the lifeline of the
outsourcing business: the number
pace of business and the size of
contracts (in terms of total contract
value and annual contract value)
denotes the overall momentum of
the industry.
It is very clear that contract
sizes of less than $50 M (total
contract value) are the mainstay
of the industry. This is more so for
companies in the mid-tier. The
dynamics of the band of contract
sizes less than $50M are far more
interesting. Unfortunately, this
visibility into that band. Hence, we
look at some published research
from TPI Inc., a sourcing research
and advisory company that tracks
contracts on a quarterly basis.
From this, we can infer that
contract sizes less than $25M are
important for not only the mid-tier
2010 GLOBAL SERVICES 100 STUDY
26. FIG.1
‘‘
AREA ITO BPO
Company 1M- 10M- 100M- 1B+ 1M-10M 10M- 100M- 1B+
Size 10M 100M 1B 100M 1B
Contract
There were Size
nearly 600 Less than 197 1203 6260 396 76 337 2404 534
contracts with $50M
total contract $51-$99M 5 26 52 16 2 1 44 52
value of more $100M- 0 16 8 0 0 4 10
than $25M $299M
in 2009. ITO
contracts clearly
companies but also for Tier 1 companies. There were nearly 600
led the way.
contracts with total contract value of more than $25M in 2009.
ITO contracts clearly led the way with at least three out of four
contracts being an ITO contract, though this is not the case in
Fig.1 in the $1B plus category because the study sample includes
more BPO companies in the $1B plus category.
Relative Percent of Total ContractsAwarded by TCV Band
2005 2006 2007 2008 2009
66% 68% 67% 69%
53%
24% 23%
16% 15% 18% 16% 18% 18% 16% 15%
Less than $100M $100M-$199M Greater than $200M
Average TCV ($M) of Industrywide Contracts > $25 M
2005 2006 2007 2008 2009
231
201 173 161
145 148 140 147 142 157
127 126 128
105 97
All Industrywide Contracts ITO BPO
2010 GLOBAL SERVICES 100 STUDY 2
27. The above slide from TPI’s presentation clearly shows that from
2006 onwards contract sizes have been shrinking. For example, in
2009, nearly 70 percent of the contracts were less than $100M in
2009 was a tough year with both ITO and BPO at lowest average
FIG.2
Quarter # of Contracts > $25 M TCV Area
ITO BPO
1Q2009 141 101 40
2Q2009 148 118 30
3Q2009 140 108 32
4Q2009 168 110 58
Total 597 437 160
Source: TPI
2010 GLOBAL SERVICES 100 STUDY
28. Spread of Global Delivery Centers
India, Philippines and the U.S. are the three largest locations in terms of
number of people deployed.
ED NAIR
‘‘
The number of
people deployed
in India is far
higher than the
total number
deployed in
the other 32
countries.
India, Philippines and the U.S. are the three largest locations in
terms of number of people deployed. India has a gigantic majority
and heavily polarizes the distribution to the extent that the
number of people deployed in India is far higher than the total
number in the other 32 countries. On an industry-wide basis, this
would again hold true because companies like IBM, Accenture,
HP, Cognizant, Capgemini, which are not part of this sample also
have India as their largest locations.
2010 GLOBAL SERVICES 100 STUDY
29. FIG. 1: TOP 20 LOCATIONS
Rank Country Total
1 India 514157
2 Philippines 97740
3 United States 42808
4 China 34672
5 Canada 32690
6 England/UK 23494
7 Brazil 10213
8 Germany 9269
9 Australia 8544
10 Mexico 8412
11 Ukraine 5816
12 Russia 5113
13 Belarus 4534
14 Chile 3572
15 Sri Lanka 3317
16 Argentina 3241
17 Malaysia 2868
18 South Africa 2855
19 Singapore 2833
20 Poland 1963
FIG. 1: NEXT 10 TOP LOCATIONS
Rank Country
21 Costa Rica
22 Japan
23 Hungary
24 Romania
25 Bulgaria
26 Czech Republic
27 Vietnam
28 Uruguay
29 Ireland
30 Egypt
2010 GLOBAL SERVICES 100 STUDY 2
30. Analysis of Risk Management
Across Segments
Cross-border project development and management system,
automated production control, reusable assets, and focus on
‘people’ is the new mantra for managing risks.
ASHWIN RAZDAN
The last decade witnessed a substantial
growth in outsourcing. Existing service
providers evolved into becoming market
leaders and many new ones took birth to
address the need of niche markets. The
dawn of recession compelled the industry
to adopt new practices and embrace
automation to improve productivity at
various stages in a project lifecycle. The
patience level of the customer dropped. It
was important to deliver. Hence, service
providers (at all levels) began analyzing
risks more seriously and built impressive
mitigation strategies.
Most Band 1 (with annual revenue
between $1M-10M) companies continue
(like ISO) to manage security risks.
46 percent of survey respondents in
this category claimed to have unique
employee assessment systems,
proprietary career development systems,
their employees to manage increasing
attrition rates. A common practice
2010 GLOBAL SERVICES 100 STUDY
31.
32. noticed across this band is the usage of reward program for
‘‘
employees. 15 percent routed projects to delivery centers at
cheaper locations when labor costs went up, one of the favorite
destinations for this being China’s tier 2 cities.
Over 80 percent The trend noticed in Band 2 (companies with annual revenues
of Band 4
($1B+ revenue) depend highly on technology to manage risks associated with
companies have labor and non-labor operations costs. Over 70 percent have a
system for production control where cost of services, projects
investments in
multiple areas analyzed and contrasted with the estimated budgets for each
to mitigate risks operation, and actions are established to control the cost level,
associated with avoiding deviations from the established thresholds. 18 percent
labor and non- maintain a dedicated audit team that ensures every project team
labor operations complies with all policies set by the company and its clients.
costs. Employees working for this band are often subject to desktop
inspections at any time, and the audit group performs random
inspections periodically. All employees are required to sign an
Most service providers manage risks by adhering to global
standards such as ISO, COPC, CMM and PCMM. Adopting
capture any failures or non-performances proactively. These
monitoring mechanisms include tools such as internal and
external audits, dashboards, quality score cards, management
reviews etc. which ensure failure avoidance in the standard
procedures. A few use online HR systems to statistically
predict and analyze the labor cost. These costs are
monitored and analyzed in real time at corporate level.
Band 3 (with annual revenue between $100M-1B) and
Band 4 (with annual revenue of over $1B) companies
Excellent coordination is maintained between
2010 GLOBAL SERVICES 100 STUDY 3
33. project outcome. Over 80 percent of Band 4 companies
mitigate the risks associated with labor and non-labor
integral part of the organization strategy to improve
productivity. Development of tools, assets,
prototypes and references to the single source of
‘legacy’ information ensures that the project
teams continually deliver high quality
and consistent services leading to
a lower cost of software delivery.
Further, 40 percent of respondents
continue to hire fresh talent in great
numbers from local universities to
keep labor costs low.
Only a handful use proprietary
tools that accurately identify and
mitigate risk as well as determine
appropriate contingency dollar
estimates. 5 percent also use
key performance indicators
that provide comprehensive
real-time data and statistical
analysis on individual
performances.
2010 GLOBAL SERVICES 100 STUDY 3
34. HR and Employees
Segment Analysis
While increase in head count, and emphasis on rewards and
recognition programs remain the highlights this year; cultural
compatibility/acclimatization for expats and lodging cost, are the
primary restraining factors for moving human resource globally.
ASHWIN RAZDAN
The analysis of HR practices and employees during the GS100
study clearly shows signs of a recovering economy. Last year
there was a substantial increase in hiring across the service
provider landscape. While the average increase in head count
has been 23 percent across survey respondents; Band 1 (with
annual revenue between $1M-10M) companies saw the highest
growth at 31 percent and Band 3 (with annual revenue between
$100M-1B) had the least with 16 percent.
investments to decrease the attrition rate, the top two areas
2010 GLOBAL SERVICES 100 STUDY
35. ‘‘
for this being a more comprehensive reward and recognition
program, and increase in bonuses. This was closely followed by
healthcare benefits and rotation among project teams. Nearly
63 percent in Band 1, focused on community service programs
Last year service while equity or stock ownership programs led the way in Bands
providers made 2 (with annual revenue between $10M-100M) and 3.
significant While over 70 percent of companies have an initial training
investments to program of over 3 weeks and nearly 55 percent have an annual
decrease attrition ongoing training program for 10 days and above; nearly 5
rate, mostly percent still continue to have the same for less than 4 days.
through a more The ratio of employees to HR personnel stands at 74:1. It is
comprehensive significantly higher in the case of Band 4 (with annual revenue
reward and of over $1B+) with 117 employees to a single HR personnel, and
recognition 49:1 for Band 1 companies.
program, and
bonuses.
numbER of dAyS of ongoing
tRAining pER yEAR
35
30
25
20
15
10
5
0
Over 15 10-15 5-9 days 3-4 days Less than
days days 3 days
2010 Global ServiceS 100 Study 35
36. Increasingly, companies have realized
the potential of rotating their project team
across destinations. It has not only decreased
attrition rates but in many ways enhanced
the skill-sets of high performing individuals.
However, there are a number of restraining
factors for such a campaign. Almost 57 percent
companies believe that cultural compatibility/
acclimatization for expats is the leading
constraint followed closely by lodging costs.
Though these factors continued to be a
restraining factor amongst companies in Band 1, 2 and 3, it was
not the case in majority of the Band 4 companies. 33 percent of
companies in the latter category thought of housing availability,
quality and security for expats as the prime restraining factor.
REStRAining fActoRS foR moving
HumAn RESouRcE globAlly
40
30
20
10
0
1. Loading Cost 2. Cultural 3. Housing 4. Access to
Compatibility/ availability, health care/
Acclimatization quality & Insurance
for Expats security for Planning
Expats
2010 Global ServiceS 100 Study 36
37. Analysis of Mergers
& Acquisitions in IT
Services & BPO
ASHWIN RAZDAN
‘‘
compared to the
2010 GLOBAL SERVICES 100 STUDY
38. outside of their geographies due to remote management and
Total Deal Value (US$mn)
2010 GLOBAL SERVICES 100 STUDY 3
39. # of Deals Average Deal Value (US$mn)
2010 GLOBAL SERVICES 100 STUDY
3
40. Acquirer Acquirer Target Target Sector Deal size
Country Country in $M
iMedX Medware NA
Japan
NA
tems
France Nomi Group NA
August
NA
Nspro NA
NA
NA
tions
NA
NA
NA
gies
Nether NA
NA
NA
gies tems
tion
NA
tions poration
NA
2010 GLOBAL SERVICES 100 STUDY
41. NA
gies
NA
March
Nordic Research NA
NA
NA
NA
NA
NA
ing
nect
ConnXion Ventures
Ltd
NA
2010 GLOBAL SERVICES 100 STUDY
43. Development Declines,
Maintenance Promises to Grow
Agile methodologies, the pressure of using the cloud, rising customer
expectations, and the need for a multi-sourcing strategy kept vendors
on their toes last year.
ASHWIN RAZDAN
‘‘
The larger
portion of the
the application
management
and maintenance
contracts
renewed this
year.
The year 2009 pushed the vendors to a variety of limits. Apart
not), and focus on enhanced governance and risk management.
strong existing relationships, improved technology and multi-
their revenue.
2010 GLOBAL SERVICES 100 STUDY
44. GS100 VENDOR SPEAK
Last year truly set new rules for the game; larger long term
annually, it will also give smaller vendors a chance to compete on
A leading trend in the ADM industry is the rise of specialized
Russia continue to specialize in selected areas of ADM and are
The application development industry is getting more dynamic
process oriented vendors. This includes onshoring, using the
in rural areas. Over the next few years, you will see millions of
2010 GLOBAL SERVICES 100 STUDY
45. These new strategic low-cost outsourcing models (along
slowly eating into the market share of the traditional service
development and maintenance. A similar negative growth was
a record for the highest spending in
consecutive year of growth.
that custom application development
already were, or planning to, outsource
DEALS
and many reasons to smile. The year so far has witnessed a
maintenance.
2010 GLOBAL SERVICES 100 STUDY
46. agreement with a ceiling value of $2B from the
Federal Aviation Administration (FAA). The deal is
provider Telenor, and will see the companies working together
to consolidate and virtualize a new technology platform that will
of close to $2B.
The ADM industry will continue to induce fresh skills and
2010 GLOBAL SERVICES 100 STUDY 4
47. GROWTH DRIVERS
their customers want.
applications on a virtual server.
The processes
continue to evolve and will never
get out of fashion. The leaner, the
The deal
change. The need for agility and
adopt and emphasize on agile
methodology and technology.
CHALLENGES & RISKS
Buyers expect vendors to share the risk.
transforming into one of partnership that focusses on usage of
smart technologies like cloud computing, improvisation to meet
2010 GLOBAL SERVICES 100 STUDY
48. MARKET RISK
restrict credit in the near future, it has a high price/earnings ratio
OTHER RISKS
decline in the dollar. Further, governance of processes and talent,
and time zones is proving critical for smooth operations. An
continue to take genuine cost cutting
measures, application development
is expected to fall (as compared
to most years in the last decade).
higher maintenance contracts (of
course, negotiated), reduced pricing,
increased use of innovation for
delivery, relaxation in volume
commitments and the maturity of a
2010 GLOBAL SERVICES 100 STUDY
49. Enterprise Applications:
Depressed and Challenged
2009 was not a great year for the enterprise applications industry.
While the bigger players did barely better than 2008, the industry at-
large underperformed. While we take a closer look at what happened;
undoubtedly, its time to leverage the subscription-based revenue model.
ASHWIN RAZDAN
The decline in the global
economy led the enterprise
application software market to
shrink by 6 percent. Like the rest
of the industry, business leaders
implemented cost containment
and reduction strategies as
consolidation occurred across
customers and suppliers. Some
applications fared better than
others. ERP, supply chain, and
product lifecycle management
(PLM) saw declines above 7
percent, while supply management,
human capital management
(HCM), and CRM saw declines of
less than 4 percent.
According to a recent AMR
research report, there were also a
mixed bag of winners and losers
within each application segment.
ERP suite vendors like SAP, Oracle,
and Lawson, with high revenue
shares, weighed the markets down
2010 GLOBAL SERVICES 100 STUDY
50. with dismal license numbers. In most cases, they were able
‘‘
to keep their steady maintenance revenue at or slightly above
2008 levels, which helped mitigate overall revenue declines.
Conversely, companies like salesforce.com, Descartes, Ariba,
The year 2010 and Concur posted positive revenue gains that are attributed to
may not be one the appeal of their subscription models.
of the best years
for new deals more customers, service providers re-packaged enterprise
in this sector, applications, bundled with a number of home-grown features.
but the industry These ‘enriched’ enterprise applications not only served the
can indeed purpose but also assured greater value for the investment.
expect increased
activity in the upgrade, and migration and support for various products like
maintenance SAP R/3, SAP ERP, SAP CRM, SAP SRM, SAP SCM, SAP BI,
of installed BO, NetWeaver. Many also provided the full spectrum of e-
applications commerce services on SAP R/3 / SAP ERP, including SAP
and their up- consulting analytics and portals.
gradation.
around the two largest product suites,SAP & Oracle. Many a
times they also covered IBM Maximo, TIBCO, WebMethods,
Pega, Savvion, SalesForce.com, Clarify, Amdocs as well as
Microsoft Dynamics. The range of such services included
evaluation of the ‘need’, providing training and support in their
implementation, global rollout and supporting their upgrades
and maintenance on an ongoing basis.
business transformation by leveraging packaged software to
process re-engineering, re-designing of application architecture
and organization change management. Services continued to
evolve in areas such as Customer Relationship Management
(CRM), Supply Chain Management (SCM), Human Capital
Management (HCM), Corporate Performance Management
(CPM), Business Process Management (BPM) and Enterprise
Application Integration.
Some of the companies that engaged such vendors include a
leading global agrochemical company, a Fortune 100 wireless
and broadband communications company, a leading sportswear
and sports equipment manufacturer, insurance, banking and
manufacturing & logistics sectors. Other specialized industries
2010 GLOBAL SERVICES 100 STUDY
51. High-tech, consumer commodities, retail, electronics, car,
garments, and mechanics. Not surprisingly, manufacturers
remain the primary customers of the enterprise services
industry.
With the recession behind us
now, government data is showing
progress in GDP, manufacturing,
and retail sales. This is a moment
(not prolonged, of course) to
rejoice.
The year 2010 may not be one
of the best years for new deals in
this sector, but the industry can
indeed expect increased activity
in the maintenance of installed
applications and their up-
gradation. These initiatives will
help transform people, process,
technology and systems to deliver
more value.
Service providers continue to
help clients with comprehensive,
that meet their unique
requirements right from
managing supply chains, devising
CRM strategies, and deploying
content management solutions
to integrating enterprise-wide
functions.
Innovation will be
demonstrated through a high
level of application architecture
and business process expertise in
2010 GLOBAL SERVICES 100 STUDY
52. system that allows organizations to automate their processes
without customizing the software.
TOP DELIVERY LOCATIONS
The GS100 study reveals the following as the most popular
delivery locations for enterprise applications:
India
U.S.
Brazil
The four fundamental factors that drive organizations to have
a strategy for implementation of enterprise solutions is cost,
collaboration, compliance and continuity. Greater cost pressure
upgrades and functionality additions, standardization, and
initial and long-term cost savings are looking attractive, more so
in a post-recessionary scenario.
Subscription pricing models will continue to grow at a faster
rate as compared to license models. The subscription model will
2010 GLOBAL SERVICES 100 STUDY
53. expand beyond the SMB market to larger corporations that are
increasingly becoming more comfortable and willing to evaluate
on-demand delivery options. It remains to be seen whether
buyers will return to purchasing perpetual license of ERP
integrated suites, or if they will move on to a model of buying
departmental applications and monthly license fees.
The outlook for capital spending is improving, with modest
growth for IT spending anticipated in 2010. And while
enterprise software lags behind overall IT, the outlook again
looks bright for the enterprise software market.
Geographically, emerging markets, especially Brazil, Russia,
India, and China (BRIC), are expected to maintain their
momentum, with their growth outpacing North America and
Western Europe. Russia is lagging due to weaker demand. The
their upward course. The midmarket remains a major growth
avenue for enterprise application software, especially in the
emerging markets.
For now, vendors will have to treat an organization’s business
processes as assets that can be designed, reused and exploited.
Next-generation solutions, frameworks and accelerators are
the need of the hour; in addition to adopting an iterative Agile
development methodology.
GS100 VENDOR SPEAK
Use of plug-in, plug-out framework based on modular design and proprietary
models like Value Realization Method (VRM™) are helping customers mea
sure clear business value from their transformational programs.
development and support capabilities.
their investments.
2010 GLOBAL SERVICES 100 STUDY 5
54. New Products and New Markets
Are the Growth Areas
With increasing competition and availability of similar types of products
to be critical factors for an organization to create a unique place and
leapfrog the competition. Small and Medium enterprises (SMEs) are
coming up as a huge market in the emerging geographies and one of the
key growth drivers.
SRUTHI RAMAKRISHNAN
The sharp downturn in the economy, belatedly hitting the
outsourcing industry last year, forced the latter to reconsider
their approach towards outsourced product development (OPD).
Since early 2009, companies are shifting focus from cutting costs
to retaining customers and enhancing existing relationships.
2010 GLOBAL SERVICES 100 STUDY
55. GATEWAY
to the Global Sourcing of IT and BPO Services
Connecting the global buyers and providers of IT and business process
outsourcing services. Global Services, your own global media platform, not
only helps you to choose your partner but also enables you to leverage its media
solutions to make your outsourcing relationship work. Global Services’ authen-
tic and on-time content facilitates right outsourcing partnerships. Our portfolio
includes a magazine, website, newsletters, events custom solutions.
The gateway to the global sourcing of IT and BPO services
globalservicesmedia.com
56. R&D SPEND OF COMPANIES IN SOFTWARE PRODUCT VERTICAL
Global Software Product Market
USD 300-320 Billion
Total R&D Spend (15%) Others (85%)
USD 45-48 Billion USD 272-285 Billion
A B C D
Concept (8%) United States (73%) Mature Products (75%) Total In- House (95%)
USD 3.6 - 3.8 Billion USD 32.9 - 35.0 Billion USD 33.8 - 36.0 Billion USD 42.8 - 45.6 Billion
Development (37%) *Other Developed (12%) New Products (25%) Total Outsourced (5%)
USD 16.7 - 17.8 Billion USD 5.4 - 5.8 Billion USD 11.3 - 12.0 Billion USD 2.3 - 2.4 Billion
QA/Testing (31%) **Emerging Geo (15%) Note:
USD 14.0 - 14.9 Billion USD 6.8 - 7.2 Billion 1. In- house includes offshoring to captive centers
2. Outsourced is only to 3rd party service
providers
Support/ Sustenance
(23%) India= USD 3.8 - 4.2 Billion * Western European countries and companies
USD 10.4 - 11.0 Billion China= USD 2.0 - 2.4 Billion ** India, China, South East Asia, Central and
Eastern European countries, Russia and others
Source: Zinnov Analysis
providers, and an overall increased receptiveness to outsourcing
in general. Globalization has resulted in product companies
seeking new ways of doing business, learning new techniques,
optimizing software manufacturing process, and making funds
available for global initiatives.
On the client side, now that every enterprise practices
offshoring, cost advantage is no more a competitive advantage.
Now companies are looking at gaining additional offshoring
value, by reducing their R&D budget, or getting higher return on
the same or incremental investments.
The changing needs of customers towards SLA based
assurance for software products, ubiquity, adoption of pay-
per-use and integration of social media tools in enterprise
environment are the primary drivers for software product
2010 GLOBAL SERVICES 100 STUDY 56
57. development companies today.
With the increasing competition and availability of
similar types of products and services in the marketplace,
for an organization to create a unique place and leapfrog the
competition. Innovation could be in business models, products,
frameworks all adding up to the creation of indispensable value
to clients.
CHALLENGES FACED
Though independent software vendors (ISVs) maintained
their spending in the early phase of the slowdown towards
the end of 2008, the severity in the downturn forced many to
freeze investments on new product development during 2009.
to see an increase in new project starts as customers start
investing in next generation product development. According
to Kaufman Brothers Equity Research, this could be, in part,
due to temporary pent-up demand from projects frozen in 2009.
Buyers are still being cautious about making any major upfront
investments or undertaking any perceived high risk outsourcing
ISVs are facing multifaceted challenges- an intensely
competitive market with ever shrinking product life cycles,
growing technical complexities, shorter release cycles and a
demand for faster time to market. Besides, in the aftermath of
recession, they are now aiming at improving the quality of the
product without increasing the cost of quality. Consequently,
ISVs are actively considering outsourcing non-core functions
like testing to cut costs quickly, avoid new capital investment,
and improve product quality.
In the production process they have to face several challenges at
multiple levels: managing global design requirements, distributed
design teams and vendors in diverse countries, and ensuring that
localized products meet necessary statutes. Protecting product
IP is also a major issue. Whilst coping up with all these issues,
organizations need to focus on their core competencies.
2010 GLOBAL SERVICES 100 STUDY
58. GS100 VENDOR SPEAK
Agile methodology being tailored to suit distributed development of products.
At the same time continuously improving and updating older versions.
Products being made Cloud/ SaaS enabled.
Working on products which harness the convergence of computing and
communications technologies. Looking into ‘greening’ technology.
quickly ramp up in new markets. Aim to strike the right balance between
proven and cutting-edge technologies, and thus considerably decrease time to
market while ensuring high level of quality, reliability, and security.
Relations with clients moving beyond the conventional vendor- client
engagements to having a shared vision and joint investment in building
partnership value, thus helping vendors expand their geographic reach.
Best practices: adherence to internationally accepted and recognized quality
standards like ISO9000:2000 and PMI. Strong emphasis on IP protection of
customers/ clients with strong contractual agreements protecting IP rights.
NEW AVENUES OF GROWTH
The OPD industry is set to grow in the domains of analytical
services, embedded software and engineering design services.
The current economic situation has made Outsourced
Product Testing more appropriate and attractive, while the
available from service providers. Besides, customers’ intolerance
towards product quality issues, and new competition are leading
more product companies to adopt the outsourced product
testing initiative. Outsourced testing service providers are going
up the value chain by developing reusable IP in the form of
automated testing frameworks and employing the necessary
skilled resources to serve customers and maintain their
to be prepared to scale new heights when market conditions
improve. Software engineering teams are increasingly operating
in a distributed environment.
OPDs are realizing the need to invest in the intimate
collaboration and goal alignment that true R&D requires. Most
2010 GLOBAL SERVICES 100 STUDY
59. ‘‘
because they focus on compliance and optimization, which
suppresses innovation.
Companies
FOCUS ON NEW PRODUCTS
currently earn
only about 5-15 R &D spend of companies in software product vertical is
percent from new currently in the range of $ 45B – 48B i.e. 15 percent of their
products, but company revenue, according to a Zinnov research (based
this is expected on annual company reports). Some of the small to mid sized
to grow owing companies (less than $1B in revenue) have been able to
to the ease
of delivery/ portion of their R&D to low cost destinations such as India
business and China. Such companies have more cost pressure and hence
through SaaS, they are willing to move even the high end of the PDLC value
SoA, software chain towards emerging locations, says the study. But larger
appliance etc. companies continue to keep most of the R&D investments
(about 80 percent of total R&D investment in software) in the
US as they believe that high quality talent to work on next
This brings us to the phenomenon of increasing focus on
new products. ISVs are today investing in developing new
products in areas such as cloud computing, social networking,
virtualisation and software-as-a-service (SaaS) among others.
Companies currently earn only about 5-15 percent from new
products, but the expectation from new products going forward
is much higher owing to the ease of delivery/ business through
SaaS, SoA, software appliance etc. This has led them to reduce
spend on existing/ mature products, the Zinnov study says.
The same study says that more development and QA/ testing
work (low end of the value chain) related to mature products
investment on them. This has seen majority of companies
increasing R&D spend in emerging geographies such as India,
advantage, availability of talent, maturity of vendor eco-system,
Besides, as they grow at a rapid pace, companies believe that these
markets will play a critical role in their revenue growth as well.
2010 GLOBAL SERVICES 100 STUDY
60. Thus management of mature products is set to provide
immense opportunities of growth for third-party providers.
NEW TECHNOLOGIES AND PROCESSES
The ever competitive software product industry continues to
witness new technologies sweeping the market, heightened
consolidation waves and a move to utility based software
delivery through Software as a Service (SaaS) and Web 2.0
technologies.
SaaS has revolutionized the way ISVs deliver, manage and
support software. According to an EquaTerra report, Saas as
a hosted delivery model is appealing because of low upfront
investment costs, ease of deployment, more robust functionality
than existing buyer legacy or commercial software and
continual and less burdensome upgrade process. Besides, SaaS
can deliver services globally and support users from remote,
The increasing pace of innovation has in turn shortened the
life cycle of software products.
Buyers today are more often employing a broader range of
shared services centers and software as a service (SaaS) as a
complementary or alternative means to outsourcing. More rapid
and continual change, and
even more diligent focus on
aspect of the ‘new normal’,
says the EquaTerra Echo:
1Q10 Edition report.
PARTNERSHIP MODELS
Industry leaders have
realized the importance
of collaboration to stay
competitive and have started
building their global product
development ecosystem to
2010 GLOBAL SERVICES 100 STUDY 6
61. outdo competitors. OPDs are using risk-reward partnership
models and focus on transparent, metrics-driven value delivery
so as to ensure complete alignment with clients’ business and
R&D objectives. Through them they are touting their ability to
move beyond service-level agreements to deliver services tied to
customers’ business results--higher sales, lower costs, reduced
errors.
Service providers are establishing partnerships with global
R&D product companies to help them enter into newer
geographies. Larger companies are set to gain more investments
in the Hub and Spoke model, whereby the captive plays the role
of the hub and works with the partner ‘spokes’.
THE ROAD AHEAD
Focus on end-market innovation requirements will help ISVs
retain their competitive edge. To achieve their vision more ISVs
will start using their engineering vendors as their value partners.
The global delivery model is one of the key strategies being
evaluated by providers, according to Zinnov. In the past 15
years, many R&D companies have successfully leveraged global
sourcing to optimize their bottom line and improve their top
line revenue. Due to these successes, more and more companies
across the revenue spectrum are willing to leverage the
Small and Medium enterprises (SMEs) are emerging as a huge
market in the emerging geographies and one of the key growth
drivers for IT services vendors. Deals are coming from vendors
on the SaaS model to target the small and medium business
customers. As customers, SMEs are showing a huge appetite for
development.
Increasingly new startups are capitalizing on the
weightlessness of global-delivery to emerge as serious
challengers to well-known organizations. These organizations
have no manufacturing capacity of their own but are turning
to the growing number of companies that cater to their very
2010 GLOBAL SERVICES 100 STUDY
62. propositions such as opening development centers in prime
that specialize in it.
However, industry experts are questioning the wisdom of
startups outsourcing product development, citing problems in
communicating and understanding customer needs, managing
and intellectual-property protection, that is particularly a strong
concern in China. They advise that startups stick to outsourcing
testing or ancillary-product development, not core products.
The days of OPD deals based on labor arbitrage as the crux are
clearly over as buyers look for sourcing partners to help them
accelerate new product development, shorten time-to-market
and expand into new markets.
2010 GLOBAL SERVICES 100 STUDY
63. Infrastructure Management
Continues to Be Hot
The recession, while halting or slowing spending in other outsourcing
segments, gave a boost to the outsourcing of critical IT infrastructure
management services. But enterprise customers are taking a cautious,
phased approach to cloud- based services.
SRUTHI RAMAKRISHNAN
‘‘
Majority of
growth in RIM is
expected to come
midrange
services, and
network towers,
likely to account
for approximately
70 per cent
of the overall
opportunity.
Infrastructure outsourcing has been in news for the sheer
amount of deal activity in the past two years. HCL signed a
$350 M seven-year deal with Readers Digest, apart from similar
deals with Nokia and Xerox. Wipro acquired Citi Technology
Services for around $127 M, the deal including the latter’s
commitment to outsource all future infrastructure management
contracts to Wipro, potentially worth almost $1B over six
2010 GLOBAL SERVICES 100 STUDY
64. years. Year 2010 has already seen bigger names like Thomson
Reuters, Singapore Exchange, Merck Sharp and Dohme (MSD)
outsourcing their infrastructure installation and management in
multi-million dollar deals.
The recession, while halting or slowing spending in other
outsourcing segments, gave a boost to the outsourcing of critical
IT infrastructure management services, with more companies
exploring new ways to save dollars. CIOs, over the past one
year, have become more willing to take risks because of cost
work — has increased on technology and companies want to
keep pace with changing business models.
The global IT infrastructure market has been growing
exponentially over the past few years, across diverse industry
verticals, including manufacturing, retail, hi-tech, media/
big deals that have happened in IO since last year have come
from these verticals. The infrastructure management market
is expected to touch $180B by 2013. Industry watchers term
application development maintenance and BPO.
GROWTH IN INFRASTRUCTURE OFFSHORING
management, as well as the spread of low-cost bandwidth
and the wider availability of high-speed networks, spurred
annual rate of 80 percent since 2005, according to a 2009
McKinsey Quarterly report.
Everest says that the success of Indian suppliers in extending
translated into high growth rates for them. Industry players
admit that until a few years ago, only remote infrastructure
quality of work and processes employed by Indian outsourcers
2010 GLOBAL SERVICES 100 STUDY
65. in delivery of Remote Infrastructure
Management or RIM services are
enabling them to now deliver end-to-end
IT infrastructure management services.
The top tier players have invested in
training their infrastructure employees in
and ISO 9001:2000, 27001.
emerged. The McKinsey Quarterly reports that
unlike India, whose talent pool for mainframes
is limited (though growing rapidly), Brazil has
strong capabilities in this area, and a number of
global vendors run mainframe centers of excellence
there. Pan- European companies that require French-
deeper pools of talent to meet these specialized needs.
OFFSHORING CHALLENGES AND SOLUTIONS
McKinsey Quarterly, these include a tendency to ignore the
partners, and a lack of clarity about the end-state operating
model—what the operation will look like in 36 months. These
can result in implementation delays, proliferation of service
problems, and deferred or minimal savings.
To overcome such challenges, companies must take an
integrated approach to the global infrastructure delivery
model—an approach that fuses long-term operating strategy
with the practical mechanics of moving critical infrastructure
important than ever to proceed deliberately.
Despite such problems, the report found that some large
organizations locate 50 percent or more of their IT infrastructure
2010 GLOBAL SERVICES 100 STUDY
66. RIM DISPLAYS BIGGEST GROWTH POTENTIAL
Remote Infrastructure Management or RIM is set to emerge as the
Report. In the last 10 years, there has been rapid growth of
new models of infrastructure services delivery, such as Remote
Infrastructure Management (RIM) and Information Management
Services. Based on reports from various industry research
analysts, the current total market for RIM services is anywhere
from $80B to $120B.
The IMS industry is moving towards a remote delivery model
where services are increasing delivered by vendors and captives
from low cost locations. The majority of growth in RIM is likely
likely to account for approximately 70 per cent of the overall
opportunity, according to the report.
The report says that it is
the convergence of three
independent forces-- the rapid
evolution in technologies
and IT architectures, changes
in customer behaviors and
developments in the vendor and
have propelled the industry at a
pace faster than earlier conceived
and which will continue to
accelerate RIM adoption.
companies succeed in RIM
outsourcing, providers from
China, Philippines, Brazil, Eastern
Europe, etc., are trying to enter
into RIM outsourcing market.
2010 GLOBAL SERVICES 100 STUDY
67. NEW IO DELIVERY MODELS
Innovation in new remote management tools and technologies
has led to the emergence of the asset light RIMO, in which
both the companies and outsource vendors enter into a short-
term contract. Unlike asset-heavy model, asset-light model
does not entail transfer of asset ownership and IT personnel
to the vendor. The asset-light model is being used proactively
by providers to reduce cost and timeframe of implementation.
Due to the lower capital investment involved, it has created
market.
vendor- managed inventory, etc. which allow customers to
convert capital expenditure into operating expenses while giving
them strategic control of their IT assets.
Over the coming year, cloud infrastructure services will make
progress, albeit slowly. New platforms will be released, new
and private clouds will start to make inroads into the enterprise.
testing out software and applications, disaster recovery and
scaling up new websites. Many startups— particularly in new
media— are already taking advantage of cloud services. But the
progress and the growth of this sector will be incremental and
marginal compared to the world of IT in general.
Forrester believes that cloud computing is a sustainable, long-
term IT paradigm and the successor to previous mainframe,
client/server, and network computing eras.
strategies for enterprise data centres’, highlights how Private
years, and how it will boost the opportunity for third party
data center outsourcing. However, migrating to cloud services
represents a new way of operating, and will require a change
2010 GLOBAL SERVICES 100 STUDY
68. GS100 VENDOR SPEAK
remote server and storage systems management, IT infrastructure support to
database and application layers.
Using deep infrastructure analytics in combination with automation and
autonomics to improve speed and responsiveness; improving ability to meet
Collaboration, mobility, virtualization and Cloud Computing are some of
IT marketplace using Virtual Enterprises through the Global Delivery Model.
Best practices: Combining Six Sigma principles and techniques with ITIL, to
achieve new benchmarks in performance and productivity. Making services
standard tools to facilitate business process improvement.
For the long-term, the report sees the hybrid cloud as the next
public cloud for non-critical applications. By 2020, a majority
of enterprises will have as little as 10 percent of applications in
private clouds.
IO STRENGTHENING AMONG MIDMARKET COMPANIES
continued shift towards mid-sized to smaller IO buyers in 2009.
Midmarket companies are making a stronger-than-ever case for
com reveals the latest trend is to evolve the practice rapidly,
even as there is a dilemma in traditional outsourcing converging
Reportlinker.com found that clients with annual revenues
their infrastructure outsourcers than the larger market cap
counterparts are. This may be because midmarket companies
can change providers if services are not up to mark, whereas
larger enterprises may be locked into long-term contracts.
2010 GLOBAL SERVICES 100 STUDY
69. Industry players are also observing an increasing willingness
on the part of companies to change their model for managing
infrastructure. This is especially true in the mid-market segment,
which is now focusing on RIMO as a key part of their business
transformation initiatives.
Reportlinker.com’s assessment is that midmarket adoption
means there is a “focus on end-to-end infrastructure deals that
avoid direct competition or develop variations of a converged
WHAT LIES AHEAD
The economic downturn motivated IT departments to challenge
the status quo and explore ways to improve operational
Report found that a large percentage of organizations are
looking at infrastructure outsourcing as a means of delivering
as much as for the mid-sized organization, cloud is an active
source of IT infrastructure management. “The largest companies
companies see cloud or virtualization as key.
IT departments feel their top three cost savings would come
this year from reducing infrastructure costs, infrastructure
consolidation and a virtualization or cloud computing strategy.
With the outsourcing forecast for the next 10 years set to grow
(some two-thirds of organizations surveyed
believe the majority of their infrastructure
will be outsourced compared with fewer
the adoption of cloud services will play an
important role in transforming this industry.
But by and large, enterprise customers
are taking a cautious, phased approach
application, workload or business process
– before they commit themselves more
substantially.
2010 GLOBAL SERVICES 100 STUDY
70. Service Providers See Promising
Prospects in Engineering Services
Outsourcing
Engineering work is becoming more and more internationalized and
increasing pressure on the part of European companies to reduce costs,
which requires more innovative solutions from suppliers in order to keep
PRATIBHA VERMA
As the global spending on overall engineering services (which
These companies acquired the skill-sets, tools and experience
from generic IT software and services, to evolve from providing
basic data conversion, through 2D and 3D CAD/CAM/CAE,
2010 GLOBAL SERVICES 100 STUDY
71. advanced simulation, prototyping, testing, PLM, product design
‘‘
The worldwide
spend on
engineering
services is
expected to grow
opportunities
will be captured
Analysts note that companies in the electronics industry have
three years, more work is getting outsourced,” says Mukesh
For some companies, particularly large manufacturers in the
not only by
large companies
in developing
countries, but
companies are dealing with the aging workforce in the United
take over when the older engineers retire, so they’re turning to
contributed by third party Indian service providers (HCL Tech,
units, while the remaining 2 percent was by non Indian IT
Some of the largest deals in the last two quarters are as follows:
• Meggitt-UK, an international group specializing in
engineering management outsourcing contract with HCL in
• Infotech Enterprises and Hamilton Sundstrand signed a
2010 GLOBAL SERVICES 100 STUDY
72. GS100 VENDOR SPEAK
Use of unique methodology of predictive and adaptive engineering which
agility translates into optimal solutions, allowing engineers to anticipate issues
Engineering operational tools, based on state-of-the-art IT infrastructure, allow
PLM services focus on implementation, application, development/
Re-engineering of powertrain components from physical components to math
• QuEST Global and Belgian aerospace major SABCA
in the demand for ESO can be observed as a result of the
increasing as companies want to reduce costs to strengthen their
The global spending for engineering services, which is
the worldwide spend on engineering services is expected to
which it shares with Canada, China, Mexico, and Eastern
2010 GLOBAL SERVICES 100 STUDY
73. be captured by large companies in
developing countries, but SMEs will
Good product designs are
produced in Asia by large software
that concentrate on designing and
producing high-volume commodity-
like products such as cell phones
developing design services, mostly on
the software development side, ODMs
are doing their design in Taiwan and
customers are now paying attention
to India due to the large number of
engineers available here but India
needs to work on some areas to
G H Rao, Corporate Vice President
and Head, Engineering and R&D
Indian IT companies increase domain
knowledge, the core product development would be outsourced
have been the biggest revenue generators for the industry with
are looking at long term strategic partnerships with the buyers
to maintain their cost leadership, Indian IT companies are
2010 GLOBAL SERVICES 100 STUDY
74. Germany is by far the largest importer and exporter of
companies are making use of engineering services from Eastern
Engineering work is becoming more and more
internationalized and engineering companies are becoming
percent of engineering opportunities are found in developing
For the coming years, employee shortages are expected in the
the part of European companies to reduce costs, which requires
more innovative solutions from suppliers in order to keep a
2010 GLOBAL SERVICES 100 STUDY
76. Could 2010 be the Year for FAO?
2010 promises to be a stronger year for FAO, as the previous year
had buyers showing their commitment to the FAO model in the face
of a challenging economic environment.
ASHWIN RAZDAN
Although the number of
contracts signed and the
Annual Contract Values (ACV)
growth was lower in 2009
compared to recent years,
organic growth through
contract extensions picked up
to almost 40 percent of
the ACV growth in 2009,
Everest Group. Only 9 percent
of end-of-term contracts were
terminated, largely due to
macro-economic conditions
such as buyer bankruptcies
and lower transaction volumes.
Established leaders Accenture,
ACS-Xerox, Capgemini,
Genpact and IBM accounted
for nearly 65 percent of the
FAO market’s ACV.
The year 2010 looks better
and service providers
continue to improve internal
better deal. Clients in this
space are witnessing a 30-40
2010 GLOBAL SERVICES 100 STUDY 7
77. percent reduction in per invoice cost; 70-80 percent reduction
‘‘
in accounting errors; and nearly 35 percent lower average
processing cycle time.
Established
SERVICES OFFERED
leaders
Accenture, While accounts receivable, accounts payable, controllership
ACS-Xerox, accounting (including Reconciliation, Cost Accounting,
Capgemini, General Ledger Accounting, Provisioning Asset Accounting;
Genpact and IBM Audit Support, Financial Analysis and Reporting and Taxation)
accounted for continue to remain the favorites to be outsourced; others
nearly 65 percent
of the FAO asset accounting. Most $1B plus companies in the GS100 list
market’s ACV.
business consulting/ transformation services. A few vendors
also combine these processes with call center services, superior
customer and vendor support, risk management and continuous
transactional processes to judgment-based technically complex
processes around the F&A domain including joint ventures,
entity account management, lease accounting, property
accounting and data analytics.
TEAM SIZE
Better forecasts in the F&A space have encouraged even smaller
vendors to increase their team size to meet the estimated
demand. GS100 reveals that small service providers have an
average headcount of 250-1000; Band 2 has 2000-3000 people,
while Band 3 and 4 have a team size of nearly 8000 in their F&A
business.
TOP DELIVERY LOCATIONS
India continues to top the chart as the most popular destination
for F&A outsourcing; with cities like Pune, Bangalore, Chennai
and Mumbai housing some of the largest teams in the world. It
is closely followed by U.S., China and Poland. Other locations
2010 GLOBAL SERVICES 100 STUDY 7
78. include Canada, Panama,
Philippines, Bulgaria and parts
of Latin America.
Approximately 80 percent
of F&A work is delivered out
locations and the overall FTE
strength of FAO grew by over
30 percent in 2009.
The year 2009 also witnessed
ups (especially in US) implying
the growth of an onshore-
mix. However, the maximum
nearshore standpoint took
place in India (both tier 1
and tier 2 locations) and S.E. Asia. It is interesting to note that
captives continued to be key M&A targets for suppliers.
Industry verticals that saw the largest increase in the value of
deals signed during 2009 were the telecoms and pharmaceutical
sectors, with the Everest report adding that there was also
FAO market growth continues to see aggressive adoption across
manufacturing, consumer packaged goods, retail and high-tech
sectors.
Industry experts see continued growth in this sector, as
buyer segments, meet client needs in terms of global delivery
capacity and service, bring technology and process solutions
that more closely link process operations with business
outcomes, and focus on client relationship management.
CLIENT PROFILES
The largest client-base in this sector is based in the U.S.
followed by those in UK. The leading segment for FAO was
2010 GLOBAL SERVICES 100 STUDY 7
79. GS100 VENDOR SPEAK
Vendors geared to achieve higher customer satisfaction ratings.
continuous improvement programs as a part of their end-to-end F&A solutions.
judgment-based technically complex processes.
Many developing proprietary tools for reconciliation and technology
found to be the manufacturing industry. Some of the others
include:
Banks
Consumer electronics
Energy services companies
Insurance companies
Mining organizations
Print media conglomerate
Pharmaceutical giants
Retail conglomerates
Property management companies
Transportation, logistics and courier companies
The airline industries
Telecom
services will drive growth in the industry. The picture is only set
to turn brighter as the global economy revives. Most suppliers
are reporting stronger sales pipelines. According to the recent
Finance & Accounting Outsourcing Annual Report 2010,
business is expected to rebound from pre-recessionary growth
levels to 20 percent plus growth to reach $3.7 B.
While analysts continue to believe that the services spending
will revert to the pre-recession levels, it will immensely depend
the fear of another recession (in the current volatile market)
may also slow down the expected growth.
2010 GLOBAL SERVICES 100 STUDY 7
80. Changing Deal Terms and
PO deal pipelines have shown a healthy upward graph since 2000, as
buyers are much more accepting of outsourcing as a solution and are
becoming more sophisticated in deal developments. PO processes have
also improved and transformed during this period.
‘‘
There is a
trend upwards
to include the
sourcing activity
in procurement
deals to bring in
more business
case value.
The procurement outsourcing market has a unique competitive
landscape. It is dominated by four market-leading vendors,
including two outsourcing giants (IBM and Accenture) and two
procurement specialists (ICG Commerce and Ariba).
bottom line improvements or reinvest to drive growth. Under one
2010 GLOBAL SERVICES 100 STUDY
81. GS100 VENDOR SPEAK
improved service levels, stronger supplier relationships, and improved
Optimization of suppliers approach: Providers research the best sources with
the lowest price points, and work with clients to improve and manage supplier
agreements and terms.
procurement business platform, which has best of technology (based on SAP
SRM), process and BPO all bundled as one solution. Can further be customized
based on client needs. The platform is operated on outcome based model and
risk.
Commercial model is also designed to match clients’ needs and budgetary
requirements.
Global delivery model enables a customized delivery model based on client-
is an outcome-based compensation structure which is considered as “pay as
you save,” not “pay as you use.”
of the latest PO deals of Xchanging with CHEP, Xchanging was
asked to manage $116.5M of spend per annum ($582M of spend
and standardize procurement processes for CHEP’s business
across the U.K., France, Germany and Spain for their non-core
categories. Xchanging was also asked to consolidate spend
management and help reduce overall non-core procurement
costs across CHEP’s European businesses. The contract included
sourcing of non-core categories and a large proportion of procure-
to-pay activities.
Deal terms are slowly becoming mature, but risks stemming
from internal readiness to comply with new policies and
The deals have risen steadily with a recent trend towards
broadening scope, according to Equaterra.
Rick Bertheaud, Managing Director, Equaterra says, “There is
an expansion in PO cycle which includes sourcing, procurement
2010 GLOBAL SERVICES 100 STUDY
82. operation, back-end accounts payable and full source-to-pay.
Some people are doing only procure-to-pay, that is, procurement
to include the sourcing activity in procurement deals to bring in
more business case value.”
Larger providers are capitalizing on industry experience
base like IBM capitalizing on CPG experience, and Accenture
The deal activity in 2009 was quite strong. Many were smaller,
sourcing-only deals focused on driving short-term savings.
“We are seeing broadening of categories in the market where
deals are narrowly focused on some indirect procurement
activities, but some providers are gaining traction in direct
categories, for example, Corbus in manufacturing and Capgemini
in the utilities industry. Providers seem to be softening
but a strong push for big technology / transformation investment
seems to have waned. The reason is that if it gets delayed, the
deal becomes more expensive and clients want quick return on
investment,” he adds.
Despite the expansion of procurement outsourcing, the
continued lack of standard deal terms suggests that the market is
not yet ‘mature’ and still has a number of risks in it.
Change management: The largest risk in doing Source-to-Pay
Outsourcing (S2PO) is more around managing change internally
within the client’s organization. This is actually true regardless of
the delivery model - whether you are building a captive or you do
it with an outsourcing provider.
new suppliers and negotiate better contracts, which is the
sourcing part. The toughest part comes afterwards - getting your
contracts. In fact, non-compliance with negotiated contracts and
leakage. In some companies, a culture of ‘rogue buying’ persists
2010 GLOBAL SERVICES 100 STUDY
83. deal. Organizations that manage compliance well – which can
outsourcers, can ‘plug the leaks’,” Rick says.
Financial: In addition to change management risk, source-
procurement operations only, or other BPO deals, which rely
heavily on labor arbitrage to create value.
times, clients are underinvested in sourcing operations prior
to engagement. Such clients may actually invest more to
generate larger savings downstream. S2PO is not about reducing
administrative cost of the activity, but it is about generating
savings from third party spend. In fact, often you have to spend
more in order to generate healthier savings.”
There is an inconsistency in selection of resource units used
to allow variability in base charges like FTEs, spend volume,
transaction volume, and savings achieved. In S2PO deals, there
is a lot of focus on realizing savings and ensuring deal terms to
provide mutual incentives to deliver the desired business case.
The challenge is in objectively measuring achieved savings.
What seems like a straightforward exercise can quickly get
suppliers are added to the mix. To this end, it is critical that deal
terms with S2PO providers not only include clear targets and
incentives for savings achievement, they also need to address the
methodologies to be used in calculating savings. Rick adds, “In
the end, deal terms will only go so far. Trust and collaboration
between client and PO provider is critical to the success of a
S2PO relationship.”
Not just the absolute savings, the relative savings are also
important. Most of this saving is relatively measured; it is more
ambiguous, and hence has to be discussed and agreed to as part
of the savings calculation methodology between the partners.
Deal terms are maturing, but vary from deal-to-deal. It is to be
ensured that contract takes care of the objectives and risks of
2010 GLOBAL SERVICES 100 STUDY
84. the relationship. In terms of savings assurance
service levels, there is a shift from a penalty-
only-model to a balanced-gain-and-pain-share
model to encourage providers to exceed
targets. Both models require clear rules of
engagement and measurement; ensure that
Picking the right PO provider is critical.
While buyers should have the necessary
diligence to evaluate the provider’s technology,
delivery model and solution, choosing a
partner that aligns culturally to foster an
environment of collaboration and trust is even
more important.
In PO, it is almost entirely about creating
an environment of collaboration. Managing
savings is important and should be measured
beforehand.
Adequately addressing the change
management issues is also critical. It should
also be ensured that one is pulling in the right
executive sponsorship, putting in place the processes, tools and
communication programs to drive compliance.
Cloud computing has begun to impact many areas in the services
industry. PO vendors are closely looking at the software-as-
a-service (SaaS) model. Procurement processing is getting
increasingly tied to the platform.
One of the best examples of 2010 is Capgemini, a PO service
provider, which acquired IBX, a procurement services and
that combine hosted third-party technology (e.g., SAP SRM),
internally developed solutions that make up for the functional
shortcomings of existing systems and expert services. Capgemini
is ready to tackle this new growth opportunity. Service providers
are getting themselves ready for the change, despite knowing that
2010 GLOBAL SERVICES 100 STUDY
85. HRO: Buyers Choose Short- term
Single-function Deals
PRATIBHA VERMA
‘‘
2010 GLOBAL SERVICES 100 STUDY
89. Focus on Customer Value,
Bundled Services, and Virtual
Contact Centers
potential, growing executive-level acceptance of outsourcing as a business
practice, declining in-house capabilities, and rising customer demand for
multiple support channels have been the main growth drivers for CCS
outsourcing in the last year.
SRUTHI RAMAKRISHNAN
Contact center outsourcing, over the past few years, has
services, telecommunications and travel. Industries, such as
pharmaceutical and brokerage that have traditionally been slow
2010 GLOBAL SERVICES 100 STUDY