How to identify and define the types of events and risks that matter to your business. Why real-time monitoring of both suppliers and locations is critical to an effective risk management program. Ways to proactively respond to risks and opportunities as they occur.

1. HOW WILL THESE GLOBAL TRENDS
AFFECT YOUR OPERATIONS?
Christine Ferrusi Ross, Partner & SVP, Neo Group
Sandeep Suresh, Head of Research, Neo Group
September 24, 2015

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• Globalization Strategy
• Sourcing
• Location Strategy
• Health Checks
• Renegotiations
• Governance
" Since 1999, we have been helping clients
accelerate benefits and minimize risks associated
with global talent and sourcing.
" We have a singular focus on the global services
supply chain.
" We achieve outcomes through deep IP, real-time
analytics, globally recognized experts, proven
methodologies and co-creation with our clients.
" We focus on clients' end business goals, not
global talent as an end in itself.
NEO GROUP’S SINGULAR FOCUS SINCE 1999
We deliver results through three distinct and linked solutions and services:
ADVISORY SERVICES GOVERNANCE
SOLUTIONS
• Design
• Run and Support
• Ongoing Resource,
Contract and Performance
Management Services
SUPPLY MONITORING
& ANALYTICS
• Country
• City
• Supplier
• Real-Time Event Alerts
• Subscription-Based
Monitoring

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TODAY’S PRESENTERS
Christine Ferrusi Ross is a senior vice president at Neo
Group. She’s passionate about helping clients solve
complex global risk, sourcing, and supplier issues to
achieve better business results.
Christine has helped some of the largest companies in the
world operationalize their supplier risk efforts, and she’s a
recognized expert in the space. She’s been quoted in the
Wall Street Journal, on CNBC, and other national media
regarding supplier risk, outsourcing, and globalization.
Sandeep Suresh heads the Research and Supplier
Relations division at Neo Group. With over 15 years of
experience in research and operations, he regularly leads
custom research projects on the outsourcing industry,
including ITO/BPO/KPO, for large global clients.

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Ø Why monitor global trends?
Ø Incorporating real-time monitoring within your
risk management program
Ø Overview of major global trends in 2015 and
potential impacts on operations
Ø Leveraging data to take action on risks &
opportunities
AGENDA

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WHY MONITOR GLOBAL TRENDS?
" Expanding Global Sourcing Footprint = Increasing Risk
• Increasingly, regulators and boards seek evidence of supply risk monitoring.
" Higher Exposure, if your Firm
• Operates in a Regulated industry such as Financial Services or Pharma.
o Fines to $100MM+ for service supply issues
• Has a large or increasing globally sourced portfolio, whether in-house or with partner.
• Globally sources critical functions from multiple countries, cities and locations.
" Impact on Operations Can Be Drastic
• Low cost global sourcing locations face economic, political and social upheaval.
• Providers may propose/adopt alternate strategies that can impact quality.
• Attrition can skyrocket in a growing economy and strip you of your best resources.
" Monitoring Provides the Opportunity to Take Pro-Active Measures
• Active governance often leads to pro-active actions.
• Informs negotiations, re-negotiations and company owned location strategies.
• Enables you to leverage emerging trends, tax and SEZ changes/situations, visa reforms, etc.

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THE RISK MANAGEMENT PROCESS
What risks matter?
Assign responsibility for
tracking and taking
action on the risks
Decide the risk
indicators (with specifics
like percentages, not
“declining”)
Create an action plan for
what to do for each risk
as it happens
Track risk data
Take action as pre-
determined
Feedback loop, including
process changes and
supplier/contract
changes

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A FRAMEWORK HELPS STRUCTURE RISK MANAGEMENT
Supply WisdomSM Real-Time Risk Model
RISK
RATING
NEGLIGIBLE LOW MODERATE HIGH EXTREME
SUPPLIER
RISKS
FINANCIAL CLIENTS PEOPLE ALLIANCES
SERVICE
CAPABILITY
GOVERNANCE INFRASTRUCTURE THOUGHT
LEADERSHIP
CITY
RISKS
MACRO-ECONOMIC FINANCIAL BUSINESS INFRASTRUCTURE
GEO-POLITICAL LEGAL SCALABILITY QUALITY OF LIFE
COUNTRY
RISKS
MACRO-ECONOMIC FINANCIAL BUSINESS INFRASTRUCTURE
GEO-POLITICAL LEGAL SCALABILITY QUALITY OF LIFE
2 4 6 8 10

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SAMPLE TRIGGER EVENTS
• Changes in Investor Holdings
• Changes in Board
• Changes in Senior
Management
• Financial Liquidity
• Revenue & Profitability Issues
• Employee Attrition
• Client Losses / Attrition
• Legal Actions
• Significant Awards
• Significant Partnerships
• IP Filings
• Company-Specific Job Actions
• Credit Ratings / Downgrades
• Changes in Budget
• Stock Market Volatility
• Tax Changes
• New Special Economic Zones
• Cyber Legislation
• Visa Changes
• Power Imbalances
• Geopolitical Events
• Labor Union Formation &
Strikes
• Key Policy Changes
• New Center formation
SUPPLIERS LOCATIONS

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TREND #1: GLOBAL SALARIES
Global salaries are on the rise...or are they?
0
5000
10000
15000
20000
25000
30000
35000
In
US$
ITO
-­‐
Salary
of
Entry
Level
Talent
(0
to
2
years)
2014
2015
0
5000
10000
15000
20000
25000
In
US$
BPO
-­‐
Salary
of
Entry
Level
Talent
(0
to
2
years)
2014
2015
0
10000
20000
30000
40000
50000
60000
In
US$
ITO
-­‐
Salary
of
Mid
Level
Talent
(3
to
8
years)
2014
2015
0
5000
10000
15000
20000
25000
30000
In
US$
BPO
-­‐
Salary
of
Mid
Level
Talent
(3
to
8
years)
2014
2015
0
10000
20000
30000
40000
50000
60000
70000
80000
In
US$
ITO
-­‐
Salary
of
Senior
Level
Talent
(8
+
years)
2014
2015
0
10000
20000
30000
40000
50000
In
US$
BPO
-­‐
Salary
of
Senior
Level
Talent
(8
+
years)
2014
2015

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TREND #1: GLOBAL SALARIES
10.6%
8.9%
4.6%
4.0%
7.7%
10.7%
8.0%
4.8%
3.0%
9.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
India
China
Mexico
Poland
Turkey
In
%
2014
2015
Outsourcing Salary Growth Rates

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TREND #1: GLOBAL SALARIES
§ How will this impact the wages you pay in these
regions?
§ How will this impact your contracts with suppliers?
Prepare to renegotiate terms.

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TREND #2: IMMIGRATION & VISAS
Crossing Borders Becomes Easier Than Ever
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
In
Numbers
Labor
Pool
IT
Labor
Pool
BPO
Labor
Pool
0%
5%
10%
15%
20%
25%
India
China
Mexico
Turkey
7%
9%
4%
23%
7%
NA
4%
14%
In
%
Head
Count
Growth
Rate
ITO
BPO
0%
5%
10%
15%
20%
25%
30%
35%
40%
India
China
Mexico
Poland
17%
23%
5%
15%
37%
30%
5%
15%
In
%
ANriOon
ITO
BPO
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
In
Numbers
Graduate
Pool
IT
Graduates
Non
-­‐IT
Graduates

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TREND #2: IMMIGRATION & VISAS
Crossing Borders Becomes Easier Than Ever
§ Talent is mobile – where is it coming from and moving
to?
§ How will this impact your workforce? Prepare to build
and manage a multi-cultural workforce.

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TREND #3: REGULATORY ENVIRONMENT
§ China implemented tough national security laws with
sweeping powers in tandem with its tough stance on
corruption
§ Malaysia is building momentum to counter corruption
in its business environment by revising its
anticorruption laws such as the Malaysian Anti-
Corruption Commission Act 2009 (“MACCA” or “Act”)
§ Thailand made amendments to its anti-corruption
measures by extending the maximum penalty of
capital punishment to foreign nationals
§ Australia introduced stricter norms against terrorism,
with penalty of stripping citizenship if a citizen is found
to have links with terror outfits.
APAC Takes a Tough Regulatory Stand

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TREND #3: REGULATORY ENVIRONMENT
§ Regulations are on the rise globally - how do you
ensure effective monitoring to stay current on latest
updates and revisions?
§ Must ensure that your organization and all third parties
are in compliance
APAC Takes a Tough Regulatory Stand

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OTHER GLOBAL TRENDS
§ LATAM Currencies Weakening – A Domino Effect
§ Infectious Diseases Globally Highlight Need For
Epidemic and Pandemic Planning
§ Crossing Borders Becomes Easier Than Ever
§ International Business Rules Get Simplified
§ Taxation: Out with the Old, In with the New
§ Maturing Tier 1 Outsourcing Markets and New
Developments In Tier 2 Locations
§ Human Capital: A Long Term Investment
§ Smog-Filled Skies Are A Growing Concern

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BENEFIT OF PROACTIVE RISK MONITORING
ü Smoother operations: Fewer disruptions to delivery or
supply
ü Competitive advantage: Proactive management likely
means you were able to achieve a better outcome than
your competitors in that location or working with that
supplier
ü More options: Faster, more proactive response means
you have more options than if you had waited (regardless
of what competitors do)
ü Ability to innovate: not all risk-events are negative, some
are positive, like a country building more infrastructure in
key locations. Looking for risk-lowering events helps you
create opportunities for your firm

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THANK YOU
NEO GROUP GLOBAL
HEADQUARTERS
340 S. Lemon Ave. #3252
Walnut, CA 91789, USA
ASIA-PACIFIC
HEADQUARTERS
No.13, B-2, 1st floor, C Block
Embassy Heights, Magrath Road
Bangalore-560 025, India
AMSTERDAM, NETHERLANDS
AUSTIN, TEXAS
BOGOTA, COLOMBIA
LONDON, UK
NEW YORK, USA
ATLANTA, USA
SAO PAOLO, BRAZIL
SILICON VALLEY, USA
SYDNEY, AUSTRALIA
CHRISTINE FERRUSI ROSS
Partner & SVP
christine@neogroup.com
SANDEEP SURESH
Head of Operations & Research
sandeep@neogroup.com
www.NeoGroup.com
www.SupplyWisdom.com
info@neogroup.com