Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Minefield? Or Greenfield? Mid-Market Sourcing Strategies
1. Minefield? Or Greenfield?
Mid-Tier Sourcing Strategies for Buyers and Providers
December 11, 2012
Sponsored by: Wall Street Tech Conference & Expo
Produced and Presented by: The Outsourcing Institute
2. Today’s Speakers
Moderator
Dan Goodstein
Vice President
The Outsourcing Institute
Debora Card Stanton Jones
Partner , Research and Subscriptions Analyst, Emerging Technology
ISG ISG
3. • Located at outsourcing.com – Largest Professional Association of
Outsourcers with 70,000 Members Globally
• Gateway to Resources, Trends, Best Practices, Case Studies
• Recently launched OTV, including new RPO Video Channel
• Outsourcing Jobs Opportunities and Recruiting Services Through CMS Inc.
• For Buyers:
– Training Through OI University
– Outsourcing RFP Builder Software and Related Tools
– Vendor Matchmaker Service
• For Providers:
– Sponsorship and promotions
– Marketing Campaigns for brand acceleration and exposure
– Performance-based Integrated Sales and Marketing Programs for lead
generation & business development
For more information contact us at:
info@outsourcing.com or 516-279-6850 ext. 712
3
4. 1
Sales Readiness 2013: What Outsourcing Wall Street Tech Conference
Service Providers Need to Succeed in the New March 13, 2013 in NYC
Year
CIOs, CTOs and Tech Sourcing Execs in Banking, Financial
January 29, 2013 in London, England Services & Insurance to Explore "T-5": Sourcing, Cloud
January 30, 2013 in Dallas, Texas Computing, Big Data, Mobility, Security & Compliance -
also known as "T-5", or the five critical technology-
January 31, 2013 in Atlanta, Georgia related trends creating both opportunities and risk for
banking, financial services and insurance organizations -
The Outsourcing Institute’s Service Provider Summit Series is your will be explored at the Wall Street Tech Conference &
ticket to more sales and stronger ROI. Each event in the series delivers Exhibition.
powerful, actionable insights. Arrive hungry for time-tested strategies.
Leave with hit-the-ground-running practices proven to propel your
sales to the next level.
You’ll discover…
- What you need to know…
- Who you need to know…
- What you need to do…
- How you need to do it…
- Where you need to be…
… to transform your top line and bottom line in 2013 – and beyond.
To learn more and register for events visit www.outsourcing.com/events
5. Agenda
1. Setting the stage
2. Initial steps
3. Beyond the basics
4. Game Changers: Cloud and SaaS
5. Keys to success
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6. Setting the Stage: G2000 Sourcing Activity
While sourcing activity in the Forbes G2000 is relatively entrenched within the world’s
largest 500 organizations, most smaller companies have not yet embraced sourcing.
Market Penetration by Forbes Rank
2000 Companies
Outsourcing Prior to 2008 Growth Since 2008 Market Potential
1 - 50 42 1 7
51 - 100 45 2 3
Forbes Global 2000 Rank
101 - 200 60 13 18
201 - 500 169 24 107
501 - 1000 180 49 271
1001 - 1500 109 39 352
1501 - 2000 75 21 404
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7. Setting the Stage: G2000 Sourcing Activity
Over 450 service providers are winning deals among the Forbes 2000. While the growing
number of providers reflects the increasing propensity to engage in specialized multi-
provider relationships, it also points to a high degree of market complexity.
A Field of 467 Providers
Winning Providers by Forbes Ranking of Companies
Total 467
Forbes Global 2000 Rank
G1 - 500 252
G501 - 1000 118
G1001 - 2000 104
Non-G2000 327
8. Initial Steps: Why
Understanding and prioritizing your sourcing objectives will ensure that you make the
right trade-offs as you evaluate your sourcing options.
Cost
Reduction
Offload
Enable
non-
rapid
strategic
growth
Common functions
Sourcing
Objectives
Access
Access to
new
new skills
technology
9. Initial Steps: What
Not all activities are equally suitable for outsourcing; typically transaction and
operational services are stronger candidates.
Application Development & Maintenance ADM Strategy Development
Suitability For Sourcing
High
Requirements Definition
Strong retained candidate Strategic
Application Architecture
Possible outsourcing candidate Application QA Services
Strong outsourcing candidate
Application Testing
Configuration Management
Version Control
Application Build
Enterprise Value Added
Application Design
Performance Testing Operational Services
Application Coding
Security Administration
Technical Training
2nd Level Technical Support
Application Maintenance
1st Level Technical Support
User Training Transaction Services
Basic Complexity of Interaction High
10. Initial Steps: How
There are also choices regarding the type of target operating model (how) that will be
best suited to meet your primary objectives (why) and desired sourcing scope (what).
11. Initial Steps: Avoiding Common Mistakes
Mid-sized organizations can learn from the mistakes made by larger organizations who
have gone before them.
1 Understand the existing environment
2 Expect the provider must make a profit
3 Big isn’t necessarily better
4 Don’t underestimate internal management requirements
5 Put the right team in place with the right tools
6 Focus on continuous improvement
7 Facilitate transformation
12. Beyond the Basics
Businesses that have an established track record in the basics of outsourcing may aim to
take the next step on the maturity scale and integrate multi-sourced models, governance
mechanisms and process optimization into their environments.
Getting
Managing
multiple
multiple
providers to
contracts
collaborate
Responding Assessing
to changes renewal or
in the rebidding
business options
13. Outsourcing and Cloud
Cloud is increasingly a key component in an sourcing strategy. Companies are attracted
to more flexible pricing structures, as well as the opportunity to dramatically lower
software and infrastructure provisioning times.
Percentage of ISG Advised
Contracts with Cloud in Scope
27%
20%
9%
Number of Industrywide
Contracts with Cloud in Scope*
2010 2011 2012 YTD
↑100%
300e
220
110
2010 2011 2012e
*ISG Contracts Knowledgebase®
14. SaaS vs BPO: What is the Difference?
The SaaS delivery model alone does not address buyer’s desire to outsource routine
transaction processing and other back office support processes.
Software as a Service (SaaS) Business Process Outsourcing (BPO)
Employee Portal Employee Portal
Employee Contact Employee Contact
Customer
Managed Transactions Transactions
Configuration Configuration
Provider
Application Application
Managed
Middleware Middleware
Provider Database Database
Managed
Operating System Operating System
Infrastructure Infrastructure
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15. Keys to Success
Wherever a mid-tier organization is on its sourcing journey, essential success factors
include:
Knowledge
of
Knowledge competitive
of provider market
capabilities standards
Negotiating
Expertise
Sourcing Success
16. The Power of One: ISG-One
ISG is a leading technology insights, market intelligence and advisory services
company, offering clients one source for support in driving operational effectiveness.
The world’s leading
sourcing data and
advisory firm.
the power
A premier independent
technology advisory
of One
serving the The premier independent
U.S. public sector provider of business and IT
benchmarking, performance
improvement, data and
analytics services.
16
17. Get Help When You Need It With AccessISG™?
A subscription knowledge service that provides on-demand access to ISG
data, insights and experts
Sourcing Portal
► Service provider capabilities database with requirements matching engine, detailed profiles
► In-depth research on market trends from geography, industry and service line perspectives
► Market Tutorials, best practices, data “nuggets” and “in the trenches” viewpoints
► Premium toolkits to help expertly manage your sourcing projects New
Concierge Inquiry Service Custom Research
► On the Fly’ Inquiry ► You work with ISG experts to design a
We poll our consultants for their expertise research project that gives you the precise
► Detailed Inquiry information you need.
We mine our databases for specific answers
► We execute and deliver to your unique
TPI IndexTM Compass Benchmarks specifications.
Contracts KnowledgebaseTM DynamicRFITM
► Direct Access
Connect with a functional domain expert
18. AccessISG™ Sourcing Portal
On-demand
information, instruction
and tools that enable
smart sourcing decisions
Features ISG thought
leadership and proprietary
data and toolsets
Creates a sourcing
marketplace where
buyers and service
providers can interact
19. Questions? Contact Us
Debora Card Stanton Jones
Partner, Research and Subscriptions, ISG Analyst, Emerging Technology, ISG
Tel: 586-677-6351 Tel: 281-795-2636
debora.card@isg-one.com stanton.jones@isg-one.com
www.linkedin.com/in/Debcard www.linkedin.com/in/stantonjones
https://twitter.com/stantonmjones
www.isg-one.com
www.isg-one.com
Dan Goodstein
Vice President, The Outsourcing Institute
Tel: 516-279-6850 x717
dgoodstein@outsourcing.com
www.linkedin.com/in/danielgoodstein
19
20. Thank you for joining
Minefield? Or Greenfield?
Mid-Tier Sourcing Strategies for Buyers and Providers
Dan Goodstein Stanton Jones
Debora Card
Vice President Analyst, Emerging Technology
Partner , Research and Subscriptions
The Outsourcing Institute ISG
ISG
This webinar was sponsored by the Wall Street Tech Conference & Exhibition
in conjunction with The Outsourcing Institute.
Editor's Notes
This is a key area for aligning your stakeholders. You are likely to make different choices if your top priorities are enabling rapid growth and access to new skills vs. cost reduction.
Knowledge of competitive market standards shows clients where existing services stand on the cost/quality spectrum, what opportunities for improvement exist and whether a proposed solution is economically viable. Negotiating expertise is needed to define requirements, evaluate proposals and craft a successful agreement. Knowledge of provider capabilities allows a client to identify and assess vendors best-suited to meet a particular set of requirements.