GT_May-June_2010 by Ali Comelek

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GlobalizationToday

Special Event - Exclusive to GlobalizationToday

$50,000-a-day BUSINESS BREAKTHROUGH SUPER CONSULTANT JAY ABRAHAM PROVIDES A NEW SLANT ON OUTSOURCING!

Marketing legend Jay Abraham, now turning his sights on outsourcing.

Outsourcing is rapidly becoming one of the most strategically critical areas of a company’s operations. But, if every company does the same thing the same way – even outsourcing, guess what? Your short term advantages all get minimalized and marginalized. We decided to try a bold, daring (and some would say audacious) experiment for our readers and the companies you represent. We contacted famed business growth expert Jay Abraham and asked him to put his highly innovative mind behind coming up with some breakthrough, non-traditional (highly inventive), ways companies could outsource different elements of the business than most of you focus on now. Why Jay? Well first, NOT because he’s an expert at outsourcing. He is not! But what Jay IS world-class “masterful” at doing is taking approaches, concepts, strategies, and success processes from the over 465 different industries (Jay has successfully worked for) – and engineering wildly profitable and staggeringly fresh breakthrough concepts that make or save his client companies millions (or multiples thereof). Also, Jay has personally advised nearly 200 of the world’s top consultants, experts and business authorities. None came to Jay for help with their methodology. They all wanted Jay to help them command greater prices, superior positioning or preeminent market perception. For example, he’s helped the Deming organization and the world’s leading

1,000 Globalization Today readers will be admitted to a 90 minute tour-de-force re-examination of outsourcing processes, functions, activities and elements in your company. Register your seat below. (First come, first served.) multi-variable testing company, and the world’s largest litigation strategic consulting company, and top technology companies, manufacturing and on and on. Bottom line? We asked him to look at untapped areas, overlooked opportunities, undervalued possibilities that a traditional minded outsourcing professional may not think about. If his 25 year track record is any indication, those in attendance will witness some utterly (and unimaginably valuable) new things you can do for your company that will be highly unconventional (and mostly street-smart “entrepreneurial,” not corporate). Jay’s doing this partially as a challenge. Partially in hopes he’ll come up with some appealing possibilities your company will want his help engineering. Either way, it might be the absolutely most fascinating (certainly most unusual) 90 minutes you spend on a conference call this year.

“Probably the finest marketing mind around today.”

~ Success Magazine

“Jay Abraham is the real thing.”

~ Forbes Magazine

“One of the best business minds I’ve met.”

~ Stephen Covey, Author, 7 Habits of Highly Effective People

“Jay knows how to get maximum results from minimum efforts.” ~ Investor Business Daily

“Jay’s innovative and dynamic approaches are the most powerful and practical I have ever seen.”

FREE SPECIAL BONUS: All event registrants will receive FREE Digital Copy of Jay’s Best Selling Business Book Containing Hundreds of Examples of How His Non-Linear Mind Works www.ProfitonPerformance.com/Outsource

~ Brian Tracy

Official Magazine of the International Association of Outsourcing Professionals

GlobalizationToday May/June 2010

Commerce Redefined

The Outsourcing “Tug-Of-War”

Expert Round Table Debate (pg.32)

Lower Cost vs. Overall Value (pg.20

The 50 Year Old “New” Kid on the Block Ghana Makes Their Case to Outsourcers (pg.36)

Can’t We All Get Along? What Does It Take to Get Advisors and Suppliers Collabrate? (pg.47)

The Outsourcing Hall of Fame

Dmitry A. Loschinin, president & CEO, Luxoft; Joshua R. Jewett, senior vice president – information technology and procurement & CIO, Family Dollar Stores; and Dr. Ganesh Natarajan, past chairman, NASSCOM (20082009), accepting on behalf of the late Dewang Mehta, past president, NASSCOM, are presented with The 2010 Outsourcing Hall of Fame award by Atul Vashistha, COP, CEO of Neo Advisory and chair, IAOP’s Advocacy & Outreach Committee (far left); Michael F. Corbett, chairman, IAOP; and Debi Hamill, senior managing director, IAOP, at IAOP’s Outsourcing World Summit, Lake Buena Vista, Florida, February 16, 2010.

OUTSOURCING H A L L O F FA M E IAOP’s Outsourcing Hall of Fame is one of the most prestigious awards available to individuals working in the

IAOP: IMPROVING OUTSOURCING OUTCOMES BY CONNECTING YOU TO THE RESOURCES YOU NEED

IAOP® is the global, standard-setting organization and advocate for the outsourcing profession.

to help companies achieve better business results through outsourcing.

Provider/Advisor Corporate Membership With a global community of more than 100,000 members and affiliates worldwide, IAOP is the leading professional association for organizations and individuals involved in transforming the world of business through outsourcing, offshoring and shared services.

provides the same organization-wide benefits of Customer Corporate Membership, but also includes member-only sponsorship opportunities that serve the marketing and business development needs of these companies.

for their contributions to the

A Global Community, IAOP has mem-

management practice and

bers in nearly 50 countries. Each member has direct, online access to other members and to IAOP’s entire portfolio of services, including its vast chapter network, regional-level events, and corporate and professional development programs.

to individuals either as part of their company’s corporate membership or on an individual basis. This membership serves the needs of practitioners working in the field of outsourcing whether as customers, providers or advisors. In addition, it provides these professionals with direct, personal access to association services.

field of outsourcing. The Hall of Fame recognizes individuals not only

industry of outsourcing, but to society at-large through outsourcing. On behalf of IAOP’s global community and outsourcing professionals around the world, IAOP congratulates its 2010 inductees.

MEMBERSHIP Customer Corporate Membership

Professional Membership is available

To learn more about IAOP, visit www.IAOP.org.

provides organization-wide access to the association’s research, training, certification and networking programs — all designed

International Association of Outsourcing Professionals® (IAOP®)

Tel +1.845.452.0600

Fax +1.845.452.6988

www.IAOP.org

Promote Your Business in

GlobalizationToday for FREE!

FOUNDER & PUBLISHER Ali Comelek ali.comelek@globalizationtoday.com CO-FOUNDER Larry Genkin lgenkin777@gmail.com

EDITORIAL and PRODUCTION

Get Listed in Globalization Today Buyerâ&#x20AC;&#x2122;s Guide All Globalization Today subscribers have complete access to our Buyers Guides that allows them to quickly find and purchase outsourcing and offshoring related products and services. Globalization Today offers a free basic listing to providers in the following categories: t *OGPSNBUJPO 5FDIOPMPHZ t *OUFSOFU 8FC t $POTVMUJOH t #VTJOFTT 1SPDFTT t )VNBO 3FTPVSDFT t "SU %FTJHO t .FEJDBM #JMMJOH t 1SJOUJOH 1VCMJTIJOH t 8SJUJOH &EJUJOH t &OHJOFFSJOH "SDIJUFDUVSF t 'JOBODF t 7JSUVBM "TTJTUBOUTIJQ

Go to www.globalizationtoday.com to get your FREE listing!

MANAGING EDITOR Ehren Von Lehe www.vonlehecreative.com AD PRODUCTION MANAGER Donna Eastman donna.eastman@globalizationtoday.com graphic design and production Webstaze Design Studio EDITORIAL ADVISORY BOARD Dr. Bruce Greenwald Prof. Asset Management and Finance Columbia Business School Dr. Matt Waller Prof. Marketing and Logistics University of Arkansas Dr. John Hindle Sr. Manager - Accenture, Adjunct Prof Vanderbilt University Mike Corbett Chairman - International Association of Outsourcing Professionals Matt Shocklee CEO & President - Global Sourcing Optimization Services Arijit Sengupta CEO of BeyondCore, Inc Chair of the Cloud Computing Chapter of IAOP

Address: 6501 E. Greenway Pkwy., Ste 103-494 Scottsdale, AZ, 85254, USA Phone: 1-602-494-4194

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publisher’S NOTE

Items to Check Out: Expert Roundtable Debate: We brought together industry experts to debate value vs. cost, the dilemma outsourcing professionals face. In addition to reading the article, you can listen to the recording of the entire debate on page 20. Country Spotlight: Ghana At the 2010 Outsourcing World Summit Ghana’s Deputy Minister of Communications, The Honorable Gideon Quarcoo, revealed some interesting developments to Globalization Today co-founder Larry Genkin. This is a video feature and you can watch the whole interview on page 36. Can’t We All Get Along? Dr. Mary Lacity and Dr. Joseph Rottman answer the question “as outsourcing professionals, can advisors and suppliers effectively cooperate to benefit all parties involved in an engagement?” Read their suggestions at page 47. Practical Globalization Wisdom Final installment of “sneak peak” look at Atul Vashistha’s newly published book “The Seven Secrets of Great Globalizers”. Atul shares his practical methods to become highly efficient outsourcing professionals. Check it out at page 28.

globalizationtoday.com

The Outsourcing Hall of Fame

OUTSOURCING H A L L O F FA M E IAOP’s Outsourcing Hall of Fame is one of the most prestigious awards available to individuals working in the

IAOP: IMPROVING OUTSOURCING OUTCOMES BY CONNECTING YOU TO THE RESOURCES YOU NEED

IAOP® is the global, standard-setting organization and advocate for the outsourcing profession.

to help companies achieve better business results through outsourcing.

for their contributions to the

A Global Community, IAOP has mem-

management practice and

field of outsourcing. The Hall of Fame recognizes individuals not only

industry of outsourcing, but to society at-large through outsourcing. On behalf of IAOP’s global community and outsourcing professionals around the world, IAOP congratulates its 2010 inductees.

MEMBERSHIP Customer Corporate Membership

Professional Membership is available

To learn more about IAOP, visit www.IAOP.org.

provides organization-wide access to the association’s research, training, certification and networking programs — all designed

International Association of Outsourcing Professionals® (IAOP®)

Tel +1.845.452.0600

Fax +1.845.452.6988

www.IAOP.org

inside April 2010 7 publisher’s Note Video message from Ali

8 News Feed

What’s new and noteworthy in global commerce

12 blog beat

Outsourcing news & commentary from the blogosphere

13 Thinking Differently

Is It Time to Bury the Term ‘Shoring’?

17 Secure Outsourcing

Does Outsourcing mean giving up the keys to the castle?

28 Secrets of Successful

Outsourcing Professionals Practical Globalization Wisdom

36 GHANA

50 Year Old “New” Kid on the Block Country Spotlight: Ghana

40 Sourcing Relationship Management Strategies to optimizing your outsourcing engagements

42 IAOP World Connection

Stay up to date on what’s happening at IAOP

47 Can’t We All Get Along? 20

Expert Roundtable Debate

What Does It Take to Get Advisors and Suppliers to Collaborate?

50 Scrap Book

Photos from latest IAOP events

Cost vs. Value

globalizationtoday.com

news feed 1 IBM WINS DEAL TO RUN AIRPORT IT INFRASTRUCTURE IN CANADA www.itworldcanada.com

The Toronto Pearson Airport has inked a five-year, $130-million deal with IBM Canada Ltd. that will outsource the management of critical operations like ticket kiosks, passenger and baggage check-in, and aircraft gates. Perhaps the most interesting part of this initiative to streamline IT systems is allowing Pearson’s 60 airlines to be billed on a per usage basis instead of the traditional bundle of landing fees and terminal charges, said Rocco Rao, general manager of IT & telecommunications business programs with the Greater Toronto Airports Authority (GTAA), responsible for the management of Pearson airport. “(It) provides some benefit to air carriers to get better transparency and to decide on the types of services and the level of the service they want, and the cost of services,” said Rao. What’s also different is that air carriers will be billed directly by IBM, eliminating the middleman and the additional costs.

Toronto Pearson Airport

2 IBM purchases Cast Iron Systems www.noa.co.uk

Computer hardware, software and services giant IBM this week announced it has acquired Cast Iron Systems. The move is expected to give the company the technology and experience it requires

IBM purchases Cloud Computing firm 8

GlobalizationToday May/June 2010

to connect customers’ cloud-based and in-house applications. IBM expects the global cloud computing market to grow at a compounded annual rate of 28 percent from $47 billion in 2008 to $126 billion by

2012. But a key challenge that businesses face in successfully adopting cloud delivery models is integrating the disparate systems already running in their data centers with new, cloud-based applications. In the past, this involved time-consuming and resource-draining coding work. By contrast, Cast Iron Systems will offer IBM customers a platform to integrate cloud applications using a physical appliance, a virtual appliance or a cloud service, and from providers including Salesforce. com, Amazon, NetSuite, ADP, SAP and JD Edwards, according to the company release. “The integration challenges Cast Iron Systems is tackling are crucial to clients who are looking to adopt alternative delivery models to manage their businesses,” said Craig Hayman, general manager, IBM WebSphere. “The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside. This will give clients greater agility and as a result, better business outcomes,” he said.

news feed 3 CapGemini wins Kraft Contract on IBX Platform www.ssonetwork.com

Capgemini in charge of Kraft Foods’ strategic sourcing and spend management

Kraft Foods has partnered with Capgemini America in a new multi-year agreement which will see the global solutions provider assume responsibility for Kraft’s strategic sourcing and spend management categories in the US. Capgemini will deploy its new global service delivery model, which leverages technology from its recent acquisition of IBX, an on-demand purchasing solutions provider, for Kraft Foods’ operations. “With the combination of our globally recognised capabilities, market knowledge, Rightshore® delivery model, and suite of tools and technology, including the Software-as-a-Service procurement platform of IBX, Capgemini will deliver spend savings, processes improvement and change management to leading, global companies like Kraft Foods,” says Capgemini Business Process Outsourcing head Hubert Giraud. “These services will streamline their procurement operations and support their goal of sustainable performance.”

4 Unisys completes sale of health information business www.outsourcing-alert.com

Unisys Corporation has completed the previously announced sale of its health information management (HIM) business to Molina Healthcare, Inc. for $135 million in cash, subject to adjustment. The HIM business, which provides system solutions and business process outsourcing services to state governments for administering Medicaid and other state health care entitlement programs, represented approximately $110 million in revenue for Unisys in 2009.

Unisys spun off Health Information Management Business

5 American Robot’s Job Outsourced To Overseas Robot www.ssonetwork.com

QT2D-7, an 11-year-old electric assembly-operations robot, was laid off Monday when the Lawn-Boy plant that has employed him relocated its manufacturing headquarters to New Delhi, India. “Query: What am I going to do now?” QT2D-7 said, panning its infrared eye across the empty parking lot outside the factory where it had worked every day for more than a decade. “Observation: I’ve never known anything but assembling lawnmowers. Query: Just like that, they throw me out?” Created by Autobotic, Inc. in early 1993, QT2D-7 began working at Lawn-Boy in June of the same year.

Once activated, QT2D-7 quickly settled into a comfortable, 24-step routine that was updated only three times during its employment, to reflect advancements in the Lawn-Boy product line. According to Lawn-Boy executives, QT2D-7’s workload, along with that of 308 other robots removed from the Canton plant Monday, will be transferred to the New Delhi plant by December. “No warning!” QT2D-7 said. “No warning! No severance!” As the cost-saving benefits of globalization become increasingly clear to CEOs and investors, more businesses are laying off their domestic robotic workforces

and relocating mechanical jobs overseas, a robot-labor expert said. “Fact: It is cheaper to operate a factory in India,” said United Brotherhood of Robotic Workers Local 0010 union steward ZTTU-3, which also lost its job. “Factories in India lack even rudimentary roboticworker protections. In America, assembly departments experience breaks every eight hours. In New Delhi, assembly departments break every 12 to 16 hours, and robotic workers are housed in unventilated basements where dangerous fires and power surges occur with 122 times greater frequency.” globalizationtoday.com

news feed 6 Dell wins three year USCIS FOSS contract www.ssonetwork.com

Dell ‘s wholly-owned subsidiary, Perot Systems Government Services, has won a three year contract to provide a wide range of business process outsourcing (BPO) functions to help simplify operations for the U.S. Citizenship and Immigration Services (USCIS) Field Office Support Services (FOSS). The value of the contract is $120 million shared between Dell the new prime contractor, and five subcontractors. Starting March 15, Perot Systems began providing the resources to help the agency process citizenship and immigration

applications in more than 60 of the agency’s facilities across the country. The engagement also encompasses managing records distribution and maintenance, file operations and maintenance, file and pending application and petition inventory requirements, FBI name and fingerprint checks, interview and oath ceremony scheduling, and data entry. Lee Carrick, vice president of Dell Services Federal Government said, “This is an outstanding opportunity for us to deliver high-value BPO and consulting services to the success of the USCIS mission.”

7 As Convergys Goes on the Block, Will Teleperformance be the Top Bidder? www.cincinnati.com

Convergys Corp., one of Cincinnati’s largest headquarters companies, could be in play. A Wall Street mergers and acquisitions tracker DealReporter, quoting three unnamed sources, this week said Convergys has hired investment bank JP Morgan to explore a possible sale. Convergys officials would not comment on the report. But investment analysts who cover the company point to signs that indicate the $2 billion downtown-based company that

#1 Accenture #2 Infosys Technologies #3 Sodexo #4 Wipro Technologies #5 IBM #6 ISS #7 Tata Consultancy Services #8 ARAMARK #9 CSC #10 Convergys #11 ACS #12 Jones Lang LaSalle #13 B Richard Ellis #14 Johnson Controls #15 Diebold #16 Amdocs #17 Capgemini #18 Colliers International #19 NCR #20 Genpact #21 Aegis #22 Hewitt Associates #23 Intelenet Global Services #24 NCO Group #25 Firstsource Solutions #26 Neusoft #27 Lionbridge #28 Stream Global Services #29 EMCOR Group #30 ADP Employer Services 10 GlobalizationToday #31 Sitel

employs 70,000 around the world could be broken up. Sale of all or part of the company could put the future of 2,200 Convergys employees in the region in question. It could also cast doubt on the future of the downtown headquarters, which the city of Cincinnati agreed to save from moving in 2003 with a tax break valued at $52 million. “It is plausible” that Convergys could be sold, said Matthew McCormack, an analyst who follows the company for Arlington, Va.

2010 TM

#32 HCL Technologies #33 CGI Group #34 TeleTech Holdings #35 iGATE Global Solutions #36 NCS #37 Inspur #38 Ceridian #39 Cognizant #40 Softtek #41 Pitney Bowes #42 CPA Global #43 MindTree #44 Tech Mahindra #45 Insigma #46 Mastek #47 Syntel #48 CPM Braxis #49 ITC Infotech #50 Océ Business Services May/June 2010#51 SPi #52 transcosmos #53 EPAM Systems

#54 Unisys #55 Oracle Financial Services #56 Patni Computer Systems #57 Headstrong #58 WNS Global Services #59 Stefanini IT Solutions #60 HOV Services #61 IBA Group #62 Hexaware Technologies #63 Williams Lea #64 Intelligroup #65 hiSoft Technology International #66 EXL Service #67 ChinaSoft International #68 Concentrix #69 Neoris #70 Newmark Knight Frank

#71 Collabera #72 VanceInfo #73 Hinduja Global Solutions #74 Outsource Partners International #75 Dextrys #76 Scicom #77 Ci&T #78 CIeNET International #79 Xceed #80 Itransition #81 Grupo Prominente #82 InterGlobe Technologies #83 Globant #84 MERA Networks #85 Intetics #86 Auriga #87 Bleum #88 Beyondsoft (Beijing) #89 M&Y Data Solutions #90 China Talent Group #91 Global eProcure #92 Nagarro #93 Corbus #94 ePerformax Contact Centers & BPO #95 Grupo ASSA #96 SoftServe #97 gem #98 Emerio #99 Objectiva Software Services #100 Synygy

Please join IAOP in congratulating The 2010 Global Outsourcing 100, the world’s best outsourcing service providers.

www.IAOP.org

news feed

8 CALIFORNIA’S MEDICAID SIGNS A 10-YEAR $1.6 B CONTRACT WITH ACS www.outsourcing360.com

ACS gets $1.6B contract with California Medicaid

ACS Inc, A Xerox Company, signed a ten-year, $1.6 billion contract to manage California’s Medicaid Management Information System (MMIS). ACS will assume operations of the current MMIS and implement enhancements to improve operational efficiency and allow for greater control across Medi-Cal, the state’s Medicaid program. The program will then transition to the ACS Health Enterprise, a system giving the Department of Health Care Services (DHCS) additional flexibility to better serve and support providers and beneficiaries, to precisely and quickly pay claims, and to help prevent fraud and abuse within the program. The ACS Health Enterprise is Web-based, real-time, and aligned with the new Medicaid Information Technology Architecture (MITA) standards.

9 Patni Scores Five Year Deal with U.S. Insurance Provider www.nearshoreamericas.com

Mid-sized software firm Patni Computer Systems Ltd said on Tuesday it won a multi-million dollar, five-year back- office outsourcing deal from US health insurance provider Universal American Corp. The Pune-based firm will also acquire CHCS Services Inc., a back-office unit of Universal American in Pensacola, Florida, with 200 employees, for an undisclosed sum, the company said in a statement. “The transaction would be closed in 30 days,” Robert A. Waegelein, executive vice-president and chief financial officer at Universal American, said over the phone. “All the people in the company (CHCS) will be employed by Patni.” Waegelein declined to give the financial details for the deals. Universal American has been Patni’s customer since 2005.

Patni bags 5-year deal from Universal American

10 Merck signs a 5-year $500M contract with HCL Technologies www.outsourcing360.com

HCL inks $500-million deal with Merck & Co

HCL Technologies has has signed a five-year, $500 million strategic engagement with MSD (also known as Merck & Co., Inc. with headquarters in Whitehouse Station, NJ, USA), a global research-driven pharmaceutical company. HCL will extend its existing relationship with MSD, dating back to 2004, to become an integral business & technology services partner and provide a multitude of services including software-led IT solutions, remote infrastructure management, engineering and business and knowledge process services.

globalizationtoday.com

BLOG BEAT

News and Commentary from Bloggers around the World sourcingfocus.com

CIOs must focus on benefits of application outsourcing, says study

Enterprise applications represent some 40 percent to 60 percent of corporate IT budgets, but have yet to be significantly outsourced, according to a London Business School report released yesterday and commissioned by Fujitsu. In part, say the report’s authors, that’s because many companies still have to get to grips with ‘best practice’ when it comes to handing enterprise applications over to third-party providers, which differs subtly but fundamentally from approaches commonly used in other areas of outsourcing: “The results of our survey show that while most of the lessons from other forms of IT outsourcing apply, applications outsourcing must be treated with extra are. Unlike infrastructure - a data center, for example - business applications are inextricably tied to the way a business functions.” As a result, while there are significant cost savings to be achieved, the costs of getting application outsourcing wrong can be very high, too - and potentially damaging to an organization’s ability to do business, according to John Hanley, managing director of the applications division at Fujitsu UK and Ireland Chief among the study’s findings and recommendations are the following points: • Competitive advantage drives outsourcing direction and decision-making – decision-makers must have a clear understanding www.sourcingfocus.com

about what constitutes ‘competitive advantage’ for their business and be able to segment their applications portfolio accordingly. • CIOs who are successful at application outsourcing have a deep business knowledge about their organizations, good board relationships and develop business performance (not just IT- or finance-based) measures for assessing outcomes. • The ability to manage internal stakeholders effectively is essential – in particular, collaboration between heads of IT and heads of finance is vital. The finance department needs to be involved as early as possible in the outsourcing discussion. • Strike a balance in the type of applications outsourced – failure to do so will affect flexibility and agility. • Enable continuous management – the way application outsourcing is implemented and managed must be continuously reviewed, and should be adapted as the business landscape changes. “Whilst these findings are by no means an exhaustive list, the recommendations – and the corresponding report – should provide guidance and insight to CIOs planning to review their approach to application outsourcing,” said Hanley. A full copy can be download here. In April, Fujitsu UK & Ireland appointed Hanley head of its applications division and announced an ambitious three-year plan to double revenues from this part of its business by 2013.

May the cloud washing begin: Enterprise software giants graze on cloud startups If you lead a startup focused on cloud computing or software as a service you’re in luck. The big enterprise software players want to buy you. It’s safe to say 12 to 18 months from today there will be a lot fewer young cloud players—they’ll be units in giant on-premise applications companies. Cloud washing refers to the practice of slapping the term “cloud” on any technology you have. Cloud washing’s cousin is green washing (is anything NOT green these days?) The game plan for enterprise software giants: Buy up on-demand IT players, slap the term “cloud” on your old stuff and sell away to customers that are asking questions about these nutty upstarts that want to reinvent computing. Need evidence? Consider: •IBM bought Cast Iron Systems; •CA bought 3Tera, Nimsoft and Oblicore; •Even Oracle is in on the cloud act, buying Phase Forward. You can argue that Oracle’s purchase was more about the health care vertical, but the target is still completely SaaSy. And if the big bucks didn’t make these cloud startups feel like belles of the ball, you can always sell out to smaller players that just happen to be a lot bigger than you are. To wit: SuccessFactors acquired CubeTree and Salesforce bought Jigsaw. Simply put, this is a swell time to be a fledgling cloud computing player with a few customers, maybe some social mojo and a dream. What’s not to love? The on-premise players have to paint their software and “solutions”—the second worst phrase behind “paradigm shift”—with the cloud lingo. Larger cloud players have to fill in product gaps. But let’s keep this post focused on the big enterprise software players. The thinking from the big boys goes like this: We’ve milked license and maintenance forever, but that gravy train may not last forever so we’ll add some annuity revenue too. Vinnie Mirchandani pens an open letter to CIOs: Mr. and Ms. CIO, over the next couple of years you will need a strong www.zdnet.com

GlobalizationToday May/June 2010

constitution as one after another of your big, “strategic” vendors line up to make acquisitions “in the cloud”. They have plenty of cash to do so. It’s your money. You fattened them. The punchline: These vendors are sitting on hundreds of billions of cash they charged you lock-in prices for. And are about to buy smaller cloud vendors they steadfastly warned you for years were bad for your security and your health. Mirchandani’s advice: Get a strong stomach because you may hurl when you listen to all of the cloud chatter from on-premise giants. In some respects, this cloud computing merger and acquisition flurry validates a lot of the concept. It also shows that the big boys are having to deal with CIOs that want to play the cloud game. The cloud computing genie is out of the enterprise IT bottle and it’s affecting software and service delivery. Just think: Now NetSuite has IBM (via Cast Iron) as an integration partner. Zach Nelson said on NetSuite’s earnings conference call: [There is] a sea change in the services mentality, moving away from complex, costly onpremise implementations to somewhat less costly, somewhat less complex implementations around cloud computing, and it’s largely driven by customer demand. [Wipro is] hearing more and more CIOs want to look at cloud based ERP solutions. For good measure, Nelson added that SAP’s move into the full-court BusinessByDesign SaaS press will validate the cloud ERP concept more. Perhaps these cloud acquisitions could be transformative to large software vendors. IBM could mix Cast Iron with WebSphere and help it scale in large, complicated enterprise implementations. CA can go from managing your data center to being a cloud arms dealer. Perhaps Oracle CEO Larry Ellison even gets SaaS religion and cloud washes everything—once hell freezes over and maintenance revenue streams collapse (there’s no evidence of either). But I digress. Bottom line: The burden of cloud computing proof rests with the large enterprise software folks. Your job will be to distinguish from mere cloud washing and real IT value.

Thought Leader

Thinking Differently By Michael F. Corbett

New Ideas for Taking on Globalization’s Toughest Challenges Is It Time to Bury the Term ‘Shoring’? First we had offshoring; then near-shoring, followed by on-shoring. Recently I’ve heard the term ‘in-shoring’ (the equivalent of rural sourcing), and even ‘cross-shoring’ (where staff from a home country, such as the U.S., work from an offshore location, such as the Philippines). Each of these are, of course, important efforts to highlight and brand the wide range of alternatives now available to business globally – and that’s important. But is ‘shoring’ really the relevant differentiator it once was? Perhaps not. Now, before I raise the ire of my colleagues all around the world, let’s be clear, I’m not suggesting that companies should not be ‘shoring’. In fact, I’m making exactly the opposite argument. It’s that every business in today’s world needs to be looking at outsourcing and shared services options everywhere and anywhere around the world. Let’s just call it ‘allshoring.’ (Oops, there I just did it myself!) IAOP’s Members Report a Very ‘Shoring’ Trend – There Is No Trend

Important

As a global membership organization, one of IAOP’ greatest resources is its ability to survey its members to capture the industry pulse – what’s hot, what’s not, and which way things are headed. For example, as mentioned in my last column, it’s now clear from IAOP member surveys that the recent economic crisis has actually been good for outsourcing. In January 2009, 36 percent of our customer members said that their companies were actually expanding their future outsourcing programs as a result of the economic crisis. By September 2009 that number was at 47 percent. By January 2010 it was up to 56 percent. Then delegates attending the 2010 Outsourcing World Summit said that for them it was now 70 percent! A clear statement of where the industry is headed. But when t comes to ‘shoring,’ these same customers tell us that it’s a much more fluid dynamic as opposed to a trend. In January 2009, 24 percent said that they were doing more offshoring as compared to only 9 percent who said they were doing less. By September 2009, 31 percent said they were more focused on offshoring while 33 percent said

Michael F. Corbett is the founder, chairman, and chief strategy officer at IAOP. He believes it’s time think differently about the world we live and work in.

they were more focused on nearshore and onshore providers. By January 2010, the percent increasing their focus on offshoring was back down to 25 percent while the percent increasing their focus on onshore and nearshore providers was also down to 26 percent. More like a tide then a trend. The simple fact is that everyone is getting more global. In September 2009, 47 percent of our provider members said that their firms were expanding geographically and 42 percent said the same thing in January 2010. In both surveys, about 30 percent of providers said they were establishing more local and rural centers from which to service their customers. So while it’s clear that the industry is getting more ‘global’ which ‘shore’ is shifting around a lot. As both customers and providers become more global and distributed in their operational footprint and as the work becomes more fluid in terms of where it’s done, location distinctions are less significant in customer decision-making. Costs are becoming more blended as well in today’s virtual, cloud-like, delivery model, making a pure-play offshoring decision less of a driver for many companies than it was in the past. Colombia: A Great Example So, is the country of Colombia, where we just opened an IAOP Chapter, an offshore, nearshore, onshore, whatever-shore location? You bet, all the above. Citi is supporting Spain from call centers in Bogota. Telperformance is supporting customers in Mexico. Bilateral has customers in the U.S. being supported in Spanish and English from centers in Barranquilla and Bogota. And there are many more examples, including the growing ‘onshoring’ of work for Colombian companies right there in Colombia. So, the question is: Do we really want to keep talking ‘shore’ when we should be talking ‘solution’? Is all the talk about shore hiding what really matters – value? Just a thought. But what do you think? Email me at michael.corbett@ iaop.org with your thoughts about the affect of the recent financial crisis on outsourcing. Also, let me know about examples of thinking differently on any aspect of globalization and business that you’d like to see explored in a future column.

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Thought Leader

Secure outsourcing

By Barmak Meftah

It seems that every day the world becomes more fast-paced and competitive. To stay in the game frequently demands that organisations turn to outside developers and services in order to meet tight schedules and even tighter budgets and stay ahead of the competition. With this in mind Barmak Meftah, Chief Products Officer at Fortify Software, provides a CISO’s insight into secure outsourcing. Fortunately, there are fewer and fewer barriers preventing access to a worldwide supply of skilled developers and valuable resources. People and services can be located almost anywhere and still contribute to an organisation’s software development or online presence. The good news is that the resources are out there. The bad news is that it’s your responsibility to maintain security and vigilance over people and practices that often are out of your control in day-to-day business. Whether you are outsourcing development, services or maintenance, the bottom line is you are allowing others to create code and run services that your customers will perceive as coming from you—meaning that you are responsible for any functional problems or security breaches. Does outsourcing mean giving up the farm? According to a Gartner recent survey, more than 60 per cent of companies don’t do any security risk mitigation when outsourcing development. An example of a simple risk mitigation strategy would be to contractually require outsourced developers to adhere to best practices in secure coding. Allowing outside software developers into your shop and then not demanding that they produce secure code raises the white flag to any malicious or insecurely-written code. Of course it is not simple to guarantee that your programs and data will remain secure once you’ve allowed outside applications to run on your servers or integrated them into your web presence. But there are practices you can adopt that will ensure—as much as possible—that you maintain control over the security of your company and customer information.

Barmak Meftah Chief Products Officer at Fortify Software

What’s a responsible CISO to do? 1. The best time to ensure that your service provider is taking security seriously is before you sign the contract. Make sure you make specific and detailed requirements in the contract for what you will and will not accept. 2. Practice due diligence for code handling and access to resources. Specify the minimum amount of sensitive data that will be released to the vendor in order for the vendor to supply the required services. 3. Require coding standards and security requirements in every specification between you and the vendor. 4. Demand metric reports for security of the vendor’s code that are repeatable and verifiable. 5. Require that all security requirements are met prior to the first time the code is executed in your environment with penalties for non-compliance. 6. Where possible, have a comprehensive code review process for every piece of code you allow onto your servers. 7. Require that code be vetted for security by the vendor using an automated source code analyser prior to being submitted to you. 8. Require a comprehensive review of possible vulnerabilities resulting from new external services operating in conjunction with your current services. 9. Require a report specifying security issues and measures taken to address them for every task and deliverable from the vendor. 10. Ensure that best practices for ensuring secure program execution are followed, e.g. encryption keys are not passed in the data stream. What’s a responsible CISO to do? Security specific companies are able to advise organisations on how to get the most out of their outsourcing partners to ensure that the code and services being used comply with the best practices in software risk mitigation, application vulnerability detection and secure software development. Through training, research, practices and software tools, companies can achieve the best from outsourcing, permitting a productive and collaborative development environment as well as being able to maintain the integrity and security of their data environment. Resource Box:

Barmak Meftah is a technology industry veteran with over 17 years of experience in enterprise software development, product management and management consulting. Currently he is with Fortify (www.fortify.com). Prior to his appointment at Fortify, Barmak was Vice President of Engineering and Product Management at Sychron. Previously, he spent seven years in various senior management roles at Oracle Corporation within the Server Technologies division. Roles at Oracle included Group Manager for ease of use and manageability product lines as well as Director of Development for the eServices platform. At the time of his departure, he was the head of products for the Oracle 9i Database on Windows and .NET platforms.

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Roundtable Participants

OUTSOURCING TUG-O Industry Experts Debate Cost vs. Value

Michael F. Corbett, Chairman, International Association of Outsourcing Professionals.

Mr. Corbett is one of the best known experts in the field of outsourcing as author, lecturer and visionary. Has served as an expert witness on outsourcing for President Bill Clinton and has testified before the Office of Management and Budget’s Commercial Activities Panel re: the Federal government’s outsourcing policies.

Michael S. Mensik, Partner, Baker & McKenzie LLC

Mr. Mensik is the editor of the monthly “Legalbytes: Outsourcing Digest” and provides expert counsel to companies on how to structure, negotiate and manage their internal and external sourcing arrangements.

Matt Shocklee, President and CEO of Global Sourcing Optimization Services Roundtable Moderator

Mr. Shocklee is the Global Ambassador for the International Association of Outsourcing Professionals (IAOP), Chairman of the IAOP’s Outsourcing Tools & Technology Innovation Chapter and a Certified Outsourcing Professional (COP).

GlobalizationToday May/June 2010

Globalization Today gathered 5 industry experts together to discuss the topic of value in outsourcing engagements. Moderated by Matt Shocklee, the objective was to shine some light on this difficult outsourcing dilemma. Matt Shocklee: When you ask business leaders today if they’re getting the business value that they originally contracted for and need today from their existing outsourcing contracts unfortunately, the answer that we all too often get is, “I don’t know,” or, “No.” [They are] being challenged in many cases to define what they really expect in the terms and value from their relationships. So during this roundtable discussion today, we’ve asked industry leaders to come together to explore the topic of what the contemporary value drivers of outsourcing deals really are or should be. So from your perspective, what do you see as really the critically important value drivers in a relationship today? Dr. Mary Lacity: I liken it to the metaphor of the elephant and the blind men. One touches the tail and says the elephant is a rope, and one touches the trunk and says it’s a tree, etc. When we talk about outsourcing value, it depends on who you’re speaking to. Typically, when we’re talking to a customer CXO, they’re mostly defining value in financial terms, particularly in lower costs. When you talk about the end users who are actually consuming the services, they tend to talk about value in terms of service quality and supplier responsiveness. Then you talk to customer back office functions in the organization, and they’re primarily focusing on value in terms of innovation, what does the supplier bring in terms

OF-WAR

EXPERT ROUNDTABLE - COST vs. VALUE

of new technologies and processes and products. They’re just touching different parts of the elephant. Sandip Sen : The term value is ubiquitous. Of course, they’d like to get it cheaper. But they’re saying, “Can you provide us a good customer experience, which helps differentiate us in the marketplace?” What About Innovation? Michael Mensik: I think innovation is clearly one of the imperatives that the outsourcing relationship also has to somehow serve. It seems every time I ask what is important to the company, what is driving the company today, usually you hear four or five things. • Reducing costs • Become more efficient • Innovate • Be agile/respond to change • Manage risk The successful outsourcing relationship has to touch in some manner each of those five particular factors. Matt Shocklee: What do you see as some of the key inhibitors and/or challenges to optimizing business value in today’s outsourcing contracts and relationships and why? Michael Corbett: I think most organizations kind of struggle with is getting to the point where there is a common understanding of what it is the organization is trying to accomplish through outsourcing and how it’s going to understand whether or not it’s done that. I don’t think we can overestimate just how much the financial prices and the kind of turmoil we saw in the global economy over the past 24 months has fundamentally changed the way companies are thinking about and the way they view the value proposition of outsourcing. I think companies have come to realize is that in many ways, outsourcing may be the less risky option. I may have less risk in my system because of these outside

relationships and the ability to tap those. Dr. Mary Lacity: One of the things that I think we can all do better as an industry is trying to measure and benchmark value. It’s kind of a two-edged sword. On the one hand, what clients want are measures that are very specific to their company, so they compare with what the outsourcer does compared to what they used to do internally. But, on the other hand, if they’re too specific, you can’t answer the question of how well are we doing as far as best practices. So there’s kind of a tug and pull between client specific measures versus benchmarks so that we can get better benchmarks in an industry.

Roundtable Participants

Sandip Sen, President of the Americas and Global CMO of Aegis

Mr. Sen was the founder CEO and COO of Customer First Services, which was acquired by Aegis. Mr. Sen also teaches MBA students Consumer Behavior at the Xavier Institute of Management and Entrepreneurship (Bangalore, India).

Dr. Mary C. Lacity, Professor of Information Systems and an International Business Fellow at the University of Missouri-St. Louis.

Dr. Lacity has served as an expert witness for the US Congress, has published 12 books including most recently China’s Emerging Outsourcing Capabilities and was the recipient of the IT Coalition’s Gateway to Innovation Award.

globalizationtoday.com

Bundling for competitive advantage

Research findings from The Outsourcing Unit, The London School of Economics and Political Science

The current economic climate has proved a strong imperative for businesses to improve their competitive position, and outsourcing is playing a much greater role in their strategies. An increasing number of companies are bundling multiple back office processes together with a single provider to maximize cost reduction, improve cash flow and speed growth. Accenture recently supported research by The Outsourcing Unit of The London School of Economics, which examined over 1,850 outsourcing contracts and interviewed 69 leading clients and suppliers in ITO and BPO services. The interviews revealed the common myths and realities of bundled outsourcing, its drivers and benefits, as well as the attributes of companies likely to benefit from bundled services.

Myths and realities 1. Control–Does multi-sourcing or bundling give a client more control? Multi-sourcing may provide clients with more power and control over individual suppliers, but increased control comes at a price in terms of increased management costs, time, effort and measurement. The management capability needed to manage multi-supplier outsourcing environments represents a “hidden” cost that equates to between 4-10 percent or more of total contract value. An argument can be made as well that bundling makes a client larger and more important to a provider, thus making the provider more responsive. 2. Risk–Is going with one supplier more risky or less risky? While there is more perceived risk in depending on one or two suppliers, much depends on the supplier’s capabilities, scale, and financial strength. As well, with a multi-sourcing strategy risks move into other areas including cracks between services and service providers, security issues, hidden costs with continued monitoring and renewal of contracts, and possible failure and replacement of narrow suppliers. 3. Incremental or big bang implementation? Most organizations take the incremental route but some were found to have gained from making a major one-off bundling deal, using the decision as a lever to drive comprehensive organizational change. Much depends on the

ability of the client and supplier to manage such arrangements and the associated internal change management programs.

arrangement, optimizes business performance, and reduces costs, duplication and complexity in the retained organization.

4. Tidy then outsource? Should organizations clean up legacy technology and business processes before outsourcing? Some businesses have taken this approach, often through adoption of a shared services route before moving to a bundled approach. This approach is tactical, however, and while it mitigates some of the risk of outsourcing inefficient IT and process, there is a high risk that shared services technology and process investments will be scrapped in order to re-establish the processes on an outsourcing provider’s platform. Management should examine the risk in terms of full life cycle costs, and consider whether there are more strategic uses of capital.

Reduce operating risk: The use of multiple service providers creates significant potential for operational failures related to shared processes, systems and controls. Bundling with a single provider greatly reduces these potential points of failure.

5. Cost and operational gains? The overall cost gains of bundling two or more business functions can be of the order of 10-15 percent, and related research shows that companies can save 35-40 percent of setup costs by awarding additional work to an incumbent provider instead of introducing a new supplier to the mix (Everest Research Institute, 2009). A primary contractor model can be a half-way house but it is unlikely to achieve the significant cost savings, process standardization, transformation or innovation that a bundled outsourcing arrangement provides.

The benefits of bundling If companies evaluate opportunities based on function or silo they miss the benefits of “connecting the dots” among different business functions, sharing resources, applications and platforms, and integrating end-to-end processes that typically span internal functions, such as procure-to-pay. “Connecting the dots” allow companies to: Reduce duplicative or redundant management layers, processes and costs: Operating multiple processes from a single platform and single provider drives greater cost efficiently, lowers costs and improves business results. Simplify the governance process: Investing in a relationship with a single service provider simplifies management of the outsourcing

Mitigate delivery risk: Lower risk and increased comfort result from one point of contact for bundled outsourcing services. It prevents the headaches of managing and arbitrating across multiple vendors and the potential for lack of accountability between providers. It avoids multiple processes, varying timelines and differing approaches to business management and reporting. Standardize operations: Clients benefit from a consistent approach to business processes, methods and terminology: one Six-Sigma program, one set of process documentation, one management model, one change management process and one global footprint.

The trade-off The impact of the current economic climate means that for many businesses there is a strong imperative for change. There are tremendous opportunities for businesses that use the downturn as an opportunity to achieve high performance by making fundamental changes to drive growth and sustainable results. Bundled outsourcing has been proven to provide benefits that can help companies improve cash flow, speed growth and reduce costs. Much depends, however, on the organization’s ability to align sourcing strategy with business strategy, to create the conditions for partnership with providers, and to develop the management capabilities, tools and methodologies to realize the potential of such strategic partnerships.

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Michael Mensik: I think the process of putting these relationships together is still much too much on cost. The time is compressed. The negotiations still too often are adversarial. That makes it very difficult for the parties to come to a common understanding, much less agree on terms, that really create a partnership that lead to this value creation long term. Sandip Sen: A customer has used this term: co-creation of value. They’re saying “this is our shared goal,” and before we start the negotiation or as we do the contracting, can we work around by saying what we need to do as part of the contract process in order to achieve this shared goal of cocreation of value. If you start with price, your contract is based on that. And then after six or eight months, a client comes to you and says, “Oh, what are the insights you provided to me? What is the great customer experience that you’ve done, which I haven’t had?” But the entire discussions prior to that, the entire pricing was based by saying, “Can you do my metrics, which I am doing at a cheaper cost?” And therefore, it makes much more sense. As we start the engagement with the client by saying, “Hey, what do you want to achieve? What do you mean by value? What do we mean by value? Let’s sit across the table,” understand that and co-create value. And that kind of gets into not just the contracting, the kind of people we need, the kind of metrics we follow, the kind of technology we use. And if that is done right from Day 1 and everybody understands that this is the value we want at the end of day end, then it’s much easier for both sides. Matt Shocklee: As we look at the challenges organizations have to optimize value in their contracts, what are you seeing as best practices in the industry right now? Michael Mensik: One rather interesting phenomenon is the emergence of enterprise risk management as a discipline, and the impact that that is having a bit on outsourcing relationships. The company goes through an enterprise risk management exercise that has an impact on the outsourcing relationship and then actually sits down in having identified the

GlobalizationToday May/June 2010

particular compliance risk sits down with its provider and begins to design a series of controls, communication protocols, monitoring procedures, all of which are designed to mitigate, reduce, manage that risk. Matt Shocklee: What role do you see advanced tools and technologies taking as our industry tends to grow and globalize itself? Michael Corbett: I think we’re kind of going through a two-step process here. One is that the industry itself is professionalizing. And the immediately behind that comes tools. And most of the tools are really going to focus on information gathering and exchange, getting everyone to see the elephant the same way or at least understand how their parts of the elephant relate to the ones that everybody else is looking at. Michael Mensik: One that we’re beginning to see as a law firm, believe it or not, is how the provider’s technology can actually help us be innovative in ways that if left to our own devices, we would never

be. To give you an example, legal process outsourcing is often thought about as we’ll take a contract review or e-discovery, and we’ll put it into the hands of a low-cost Indian provider. That’s certainly there, but what’s also there is looking to an LPO that understands technology and instead of handing over a memorandum that describes how you deal with particular compliance risks, actually provide a compliance tool, which the client can load on its system and deploy immediately around the world. Michael Corbett: I realize the terms like cloud computing and software of service are used by some as being as much marketing hype as they are reality, but the simple fact is that more and more, these business processes are being moved out into some kind of a web based application. I think we’re going to see an acceleration of the use of the technology to manage what will become an increasingly technology based delivery environment. Matt Shocklee: How do you see business value from outsourcing affected by an organization’s ability to manage cultural diversity and adapting to changing

EXPERT ROUNDTABLE - COST vs. VALUE on the benefits. Michael Corbett: I just got back from Columbia last week, and one of the things that was obvious is that this issue goes beyond outsourcing. Columbia is probably the best friend the United States has in Latin America, and yet we continue to drag our feet in terms of signing a free trade agreement with that country, where as other countries like China and others are very aggressively entering into free trade agreements. It really is a general sense that is developed in the popular press and in the popular mindset that [outsourcing] is a win-lose environment. Outsourcing & Off Shoring – Confusion Abounds

geo political realities that are out there whenever anyone uses the O word? Dr. Mary Lacity: I have a bigger concern, and my concern is about public opinion. To me, xenophobia, nationalism, ethnocentricity, they’re on the rise in countries like the United States and the United Kingdom, and I just think it’s so important that we have a constant dialogue among our politicians, academics, and industry leaders that educate the population about the need for companies to source globally. Sandip Sen: Data provided by independent studies show if you were offshoring to India and the economy gets better and more people are flying, what are they doing buying Boeing airplanes? If you look at the call center agent themselves, at a micro perspective, what are they doing? They’re buying Levi’s jeans and consuming Coca-Cola. So the amount of products or the exports that the US does actually outweighs the jobs, which might be shifted as a result of off shoring. I don’t think we’ve done enough discussion or educated the public enough

Matt Shocklee: One of the things that we tend to get confused about is really just the definitions. How often do people confuse outsourcing and off shoring as an example? One of the fastest growing sectors in the US on outsourcing is the public sector in the US. As state and local governments tend to have budget problems today, what we’re seeing is a real explosion in those states. Outsourcing activities to organizations within the state. Not moving the work maybe outside the state, but the workload in the process is more efficient companies or organizations that are actually in state. Here is an opportunity where value to the state is enhanced by their ability outsource. Maybe not necessarily move the work offshore per se, but to reduce spend and consolidate activities with companies who do work in their own environment. Dr. Mary Lacity: Some call it in-shoring. I’m going to call this a niche strategy. I’m still a little skeptical about how much it can scale up. But I will say that state and local governments are highly interested in this model. Sandip Sen : We’ve been working very closely with a couple of governments, [such as] Kentucky. We’ve been looking to set up a new center in either Hopkinsville or Lancaster, which is really an area of Kentucky, and the governments have been very proactive. We’ve been looking at

some of the big companies in that region to help us, and also a little bit of government services. We are agnostic to region. We are agnostic to location. WHAT IS THE FUTURE OF OUR INDUSTRY? Dr. Mary Lacity: No matter what the economic cycles are, no matter pretty much what the stock market is doing, the overall trend for outsourcing has been increasing. I don’t think we’ve ever seen a downward dip that has ever been sustained, so I see nothing but growth. Michael Mensik: I have to agree with Mary. I think there is continued growth ahead. Really, the question is are we ever going to hit a point where the cost of doing something externally is going to exceed the cost of doing it internally again. I suppose that might happen if we add too many transaction costs and if we overlay too many regulations and legal requirements. Providers today are so adept at putting in place appropriate controls, that the line of where somehow doing things internally is going to exceed the value that one achieves to having it done externally, is still a way off. Sandip Sen: I think the industry is growing. But I’d like to add one more perspective which is other countries are also growing very large, and they are doing a lot of outsourcing within their country. If you look at these large and developing markets in other parts of the world, I think the total sum of the outsourcing business is bound to grow and rise. So I think 2012 and beyond is going to be very good for outsourcing all around. Mike: We do have a tendency to see this industry from a US or a developed economy perspective. I think we’re going to look back at the economic crisis of the past few – past year or two and come to see it as probably one of the best things that ever happened to accelerate the growth of outsourcing.

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Practical Globalization Wisdom

SECRETS OF SUCCESSFUL OUTSOURCING PROFESSIONALS “Sneak Peak” part three of the newly published book Globalization Wisdom: The Seven Secrets of Great Globalizers

Globalization Wisdom Secret #6: Implement a Strong Governance Model By Atul Vashistha This is the final installment in a series of an excerpt from the newly published book by Atul Vashistha, Globalization Wisdom: The Seven Secrets of Great Globalizers. When I make presentations at client conferences, I often ask this question: What is the single largest factor contributing to the failure of services globalization initiatives? The answers I receive range from “lack of proper planning”, “supplier incompetence” to “miscommunication” to “internal resistance.” But in my experience, a great percentage of services globalization initiatives fail because of the client organization’s inadequate attention to governance. 28

GlobalizationToday May/June 2010

Governance usually gets a lot of attention during the rollout period of the initiative. It’s after steady state has been reached and executives have moved on to new initiatives that governance often gets forgotten—though it’s as important during steady state as it is any other time. The most common problems that I’ve seen plague services globalization initiatives post-rollout include a lack of executive focus after the contract has been signed, insufficient monitoring of performance and deliverables, contract amnesia and a loss of original objectives. In the 1978 Superman movie, Christopher Reeve’s Superman catches Lois Lane mid-fall and says, “Easy Miss, I’ve got you.” “You’ve got me?” Lois exclaims, “Who’s got you?!”

The question can be all-too-familiar in business, as everyone assumes that someone else has assumed responsibility. But in a services globalization initiative, a lack of direct monitoring of performance and deliverables can lead to reduced quality and missed or misaligned expectations. Even if a client organization is monitoring service levels, there are other performance criteria such as attrition levels that are critical to the continued success of the initiative. Without direct monitoring, the quality of service may suffer. The successful governance model operates on three levels: the organizational level, the functional level and the operational level. The top tier in the pyramid reflects organizational governance. At this level, governance activities are primarily strategic and are engaged by the organization’s senior leaders. Organizational governance is where the big picture is reconciled, where

Practical Globalization Wisdom At the functional level, the role of the governance group is to enable coordination, communication and control among key stakeholders and functional leads. Focus is on functional synergies and coordination rather than day-to-day management. The operational level is the front line of an initiative’s governance activities. This is where individual contracts and relationships are managed. The operational governance team is responsible for monitoring the day-to-day activities within the initiative as well as for reporting fromthe-ground information to the functional and organizational governance teams. Because the operational governance team is directly responsible for managing the initiative on a day-to-day basis, large organizations may have several operational governance groups in place across divisions or functional areas. The Program Governance Office

the firm’s business case for globalization is aligned with the initiative itself. This level of governance focuses on achievement of strategic objectives through services globalization and monitors that progress.

The lack of a single, unified management office is a leading cause of initiative failure, says Ron Kifer, Group VP and CIO at Applied Materials. “More often than not, the reason these managed service initiatives fail is because there is no single point of contact for the engagement-for vendor negotiations, for vendor management, for contract management.” Ultimately, it is the Program Governance Office (PGO) that is accountable for the ongoing success of the services globalization initiative. That doesn’t mean that the PGO has to bear the weight of governance at all three layers; instead, it means that the PGO is where the

proverbial buck stops. “The PGO is key to long-term success. Certainly it’s key in negotiations. You can’t have every business leader in the negotiation-there has to be a single point of contact throughout the entire process and then a single management entity with responsibility across the whole enterprise, because globalization is not just about ITit’s an enterprise solution,” Kifer explains. The PGO bears the ultimate responsibility for ensuring that good governance is being practiced within all three layers. A successful PGO will do that by: 1.Ensuring that accountable resources are identified for individual program management and execution (expectations should be clearly outlined as well as the consequences of failing to meet responsibilities). 2.Ensuring that schedules and plans are synchronized for all project constituents. 3.Ensuring that Client Business and Operations groups are linked and synchronized. 4.Ensuring executive sponsorship, user acceptance and buy-in throughout the engagement. While the Project Governance Office is a part of the client organization, a successful program manager will assign a dedicated on-site manager (a global project manager) to act as a liaison between the client and the supplier organizations. The global project manager may be a direct employee of the client organization who relocates to the supplier country (the do-it-yourself model); an employee of the supplier’s; or an independent local third-party oversight organization. Applied Materials leverages Neo Group to help it manage, monitor and

Key Components of the Governance Operating Model

Activities

Benefits

Performance management

• Analyze trends in service lines (SLs) • Reorganize work process flow for offshore delivery • Monitor continuous performance improvement efforts • Review workload distribution across resources • Recommend productivity enhancements • Perform monthly operations reviews

• Early indications of problems • Forecast of shift scheduling • Maintain focus on quality improvements • Consistent performance levels • Optimal utilization of resources • Implementation of global delivery model

Financial management

•Facilitate renegotiation of pricing model when triggered by volumes •Validate one-time expense allocations •Help modify pricing model for moving up the value chain

• Value for money, quality, flexibility • Industry benchmarking of market rates • Proper utilization of allotted one-time costs • Improved global sourcing

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Practical Globalization Wisdom

Contract management

Relationship management

Resource management

•Track adherence to SLs •Redefine SLs for relevance •Review DR/BC planning and testing •Review compliance with insurance requirements •Review HIPAA compliance and data security •Track volume levels for pricing model triggers •Monitor sufficiency of connectivity/infrastructure

• Contract compliance • Ensuring SLs are a true reflection of vendor performance • Recommend new SLs for raising the bar • Ensure planning for 24/7/365 operations • Mitigate regulatory risk • Achieve next level of economy of scale globalization • Ensure offshore center availability

•Maintain vendor’s focus on client as “Client of Choice” •Ensure continuity of clear organization escalation path on both sides •Track issue logs and days to closure •Clear up any cultural miscommunications •Facilitate offshore-onsite interactions

•Vendor remains involved in engagement at the executive level •Avoid issue accumulation due to executive-level changes •Early issue resolution •Seamless integration between client and supplier •“One Team” atmosphere

•Review resource profiles for recruitment •Monitor on-boarding processes •Ensure smooth transition of key resources •Review attrition figures and retention strategies •Monitor skills/new process training •Assist in employee recognition

•Right resource for the right job •Early on-the-job productivity •Attrition management •Project continuity •Process-specific, not people-specific delivery •Knowledge management is built for future transitions, if any •Prepare offshore for growth and moving up the value chain •Increase individual productivity •Generate loyalty to the engagement

improve IT supply relationships. In most cases I recommend that client organizations use an independent thirdparty oversight organization that is in the same location as the supplier to act as the global program manager. I never recommend that a client organization rely solely on the supplier for governance, and the do-it-yourself model is usually only effective when a client organization has a large presence in the location already and can leverage economies of scale. Whichever global program manager model is chosen, the best global program manager will understand the cultural and business climate in the supplier country and have experience working with client and supplier organizations in global arrangements. Specifically, a successful global program manager will have direct experience with and knowledge of supplier methodologies as well as an understanding of the client’s business processes. The table below details the activities that a successful global program manager will undertake in each governance area: In the end, the purpose of governance is to ensure that the goals set out for a services

GlobalizationToday May/June 2010

globalization initiative are being met. An organization may embrace globalization (Secret #1), welcome it as a transformation lever (Secret #2), adopt a lifecycle approach (Secret #3), align business and globalization objectives (Secret #4), and assign the best people (Secret #5), but if the organization walks away from the initiative at that point, it may fail. Establishing a strong governance model helps to ensure that globalization continues to be embraced and welcomed as a transformation lever; that the lifecycle is followed through; that business and globalization objectives are consistently remeasured and realigned; and that the best people stay on the job. It is only with strong governance that an organization can secure the continued success of its globalization initiative. Globalization Wisdom Secret #7: Embrace a continuous improvement mind-set Many client organizations undertake global sourcing initiatives without an accurate understanding of the management that will

have to be involved for the initiative to be successful. That’s why the sixth secret is to implement a strong governance model. But how will the client organization know if its governance model is strong enough? If its global sourcing initiative is successful? That’s where a continuous improvement mindset comes in. Embracing a continuous improvement mindset throughout the entire lifecycle of your sourcing initiative will allow you to understand how well the initiative is working. Plantronics CEO Ken Kannappan explains that the company spends at least 10–20% of its time on continuous improvement. “If you go to our factory, 10% of time there is spent on improving operations. We spend a huge amount of time on this. In R&D, 20% of time is spent on process improvement.” There are a number of well-thought-out, tested models for process improvement. Six Sigma has proven the most resilient as well as, importantly, the most cross applicable throughout a variety of different kinds of processes in a variety of different kinds of industries. In Secret #2, on welcoming globalization

Practical Globalization Wisdom as a transformation lever, talks about leveraging globalization to improve processes. But if processes are flawed because of the institutionalized way of doing things within the organization, simply shipping a few back-office processes overseas may not solve the problem. That confounds many executives, who expect globalization to be a panacea. But Six Sigma teaches us that to improve our business we must look at the cause of the problem, and fix the cause—not just the problem. That means, according to George, Rowlands and Kastle , that “if you want to improve quality, you have to change the way work is done.” To do that, George, Rowlands and Kastle say, “You need to become a process thinker—someone who frames

problems and issues in terms of what may be happening in the process. Making this mental leap has a much more profound effect than it may sound at first.” Another of the great contributions we take from Six Sigma is its focus on the voice of the customer (VOC). As George, Rowlands and Kastle describe, “The companies who will do best in the marketplace are those who take the time to see everything through their customers’ eyes and deliver what they want.” If your product or service isn’t what your customers want, it’s defective. The ultimate goal of Six Sigma is to eliminate defects. Of course, the definition of “customer” can vary. Is your customer external—those who purchase and use your products and

The Global Program Manager’s Governance Activities

Governance area

Activities

Performance management

•Evolve a robust workflow and process for both organizations •Focus on service levels in the contract that have a direct bearing on success •Focus on gap-closing processes

Financial management

•Manage financial expectations in the contracting phase •Prepare the client organization and supplier to expand their global engagement into other areas of the business •Create awareness about unbudgeted expenses such as resource transitions, turnover, cultural holidays, etc.

Contract management

• Set up consistent compliance meetings as a regular checkpoint for deliverables, unresolved issues, and service level monitoring • Apply the terms of the contract from the beginning • Monitor adherence to contract terms

Relationship management

• Hand pick the user/IT staff that forms the core team from those who have a positive stake in the success of the globalization initiative • Build trust, relationships and effective partnerships over time • Secure and check executive sponsorship throughout the organization • Pro-actively manage issues so that they do not snowball • Communicate regularly, especially during periods of transition

Resource management

• Specify those key personnel in supplier organization who cannot be reassigned without prior client approval • Prescribe a 10% resource buffer • Allow 2 to 3 weeks of overlap to transition resources • Agree on a process for the movement of personnel • Oversee investment in both technical and process training and management and professional training

services? Or is your customer internal? Or perhaps your primary customers are shareholders. No matter who you serve most directly, say George, Rowlands and Kastle, external customers “are ultimately judges of your company’s products or services. They’re the ones who determine whether or not your company will be profitable.” So even if you’re in the Finance department, you’re ultimately responsible for your company’s external customers as much as the customer service representatives are. One of the most common mistakes that client organizations make is seeing services globalization as an end rather than a means. Applying the principles of Six Sigma to services globalization reminds us that global sourcing is actually the means to an end—an end that is, ultimately, serving our customers needs well. The purpose of embracing a continuous improvement mindset in services globalization is to allow for continuous gains. If you follow the processes outlined in the other chapters of this book, you’d probably have a successful initiative, even without adopting a continuous improvement mindset. But your gains would be one-time. To realize continuous gains, adopt a continuous improvement mindset: never stop learning, use the define-measureanalyze-improve-control model, conduct regular health checks, and always keep a lookout for new opportunities to do better. And remember, in Six Sigma founder Dr. Deming’s words, “If you can’t describe what you are doing as a process, you don’t know what you’re doing.” Resource Box:

Atul Vashistha is Founder & Chairman of Neo Advisory (formerly neoIT), a leading management consultancy since 1999, focused on independent, objective and actionable advice to enterprises that seek to transform their organizations by capitalizing on outsourcing and globalization. He is also Founder of Neo Group, a firm focused on managing, monitoring and improving supply relationships. His latest venture is BestOutsourcingJobs.com, an online job portal focused on outsourcing careers. He can be reached at atul@vashistha.com.

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video feature Click to Watch

At the Outsourcing World Summit Ghana’s Deputy Minister of Communications, The Honorable Gideon Quarcoo, revealed some interesting developments to Globalization Today co-founder Larry Genkin.

On Being New to Outsourcing “A lot of people may associate Ghana with excellence in soccer, and we don’t mind that. But there’s an awful lot else going on. Soccer is basically a microcosm of the kind of spirit that’s out there in Ghana. People think about us as the new kid on the block just because most of the players are huge. They have large global corporate footprints and ours is relatively a small one. But that is fine. Ghana’s valuable position is the human talent pool that we have.” On University Educated Talent Annually, we’re sending about 100,000 into universities, which means annually we’re graduating somewhere around that number. Now there are many places for them to get employed. A lot are leaving the country to go overseas and so on. We want to keep some of that talent at home to help develop our nation.

GlobalizationToday May/June 2010

On Moving Beyond Call Centers & Data Processing It’s not just about operating a call center or data processing facility. We have accountants that are looking for work. This type of “knowledge work” can be done in a place like Ghana. What we are saying to the rest of the world is, “Come check us out because you may be in for some surprises.” The government has made a very deliberate statement aboutcreating jobs in Ghana across a broad spectrum. It’s not just lowend paying jobs but also high-end paying jobs. We are on a mission. This is just the very beginning. On Being Africa

The

Gateway

“I don’t think that the Queen came to visit Ghana by accident. Neither did Tony Blair. Neither did Bill Clinton. Neither did George Bush. Recently, neither did Obama.

These people came to Ghana for a reason. We are being seen now as the gateway to Africa. You would ask, “But why? There are bigger economies.” Take South Africa for instance – what’s our competitive advantage? Ghana is a very secure place to do business and that is a key consideration. You want to make sure when you sleep at night that your investment is safe; you can wake up in the morning and your workers will turn up at work and produce. You want to make sure that you yourself – in terms of your personal safety – are safe walking the streets and there is no problem. You want to make sure that your investment is not going to be disrupted by some kind of political upheaval. Ghana has one of the most stable democracies – if not the most stable democracy – in Africa. That is saying a lot. On Being World Class World class thrives on a certain set of principles and conditions. What I would say to the potential investor is that Ghana has those world class indicators that would

Emerging Region Profile

permit them to succeed and make their operation – and Ghana – a world-class destination over time. I have been talking about the talent pool. Let’s not mistake it; it’s a large talent pool. Ghana alone would have about 10 to 11 million employable in terms of numbers. But when it comes to Ghana as a member of a block – Ghana exists within the ECOWAS which is the Economic Community of West African States. That is 250 million people. Many of those folks travel across borders to work. On The Ghanian Accent & Language Advantage We have to go back to the history. Ghana was a British colony. So that means that English is something we’ve spoken from birth to grave. Our institutions are run in English. Our official business language is English. You go to school, you study English. So, we’ve been steeped in that language. Tthe sound of a Ghanian speaking English approximates as closely as you can the Middle American or English standard accent. It is neutral. It doesn’t

have any regional bias. It’s a very trainable accent. On How Expensive is Ghana When you’re investing overseas, you want to make sure that your risk averse and you’re reducing your exposure. You want make sure that the factors for setting up your business have a cost profile that doesn’t outweigh the gains you’re going to make, and you want to make sure that the labor rate is at least competitive. So, from the perspective from all of those, I’ll tell you that Ghana – I’ve heard it said – approximates to Indian price structure in terms of wage cost, labor cost. What I hear is that that makes us very competitive. We’re not cheap, cheap; but we’re by no means expensive. We think that you’re going to get so much quality for that price that it makes us – it leverages our advantages over the competition.

Resource Box:

Location: Western Africa, bordering the Gulf of Guinea, between Cote d’Ivoire and Togo Area: Total: 238,533 sq km Climate: tropical; warm and comparatively dry along southeast coast; hot and humid in southwest; hot and dry in north Terrain: mostly low plains with dissected plateau in south-central area Natural resources: gold, timber, industrial diamonds, bauxite, manganese, fish, rubber, hydropower, petroleum, silver, salt, limestone Geography - note: Lake Volta is the world’s largest artificial lake

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very latest technology.

www.diebold.com/outsourcing

VALUE HEALTH CHECK

Sourcing Relationship Management (SRM) Insights to Optimizing Outsourcing Relationships Welcome to the May edition of Sourcing Relationship Management (SRM) where we share the latest developments, findings and best practices in optimizing outsourcing and shared service center relationships as captured through the Value Health Check SurveyTM (VHCSTM). Transparency – You Can’t Value What You Don’t Know or Can’t Trust! We hear and read a lot in the press today about the need for enhanced transparency, whether it be in the U.S. Federal Government in Washington, the global financial m a r k e t s and now the IAOP. IAOP Members are sounding-off as they’re demanding enhanced transparency in the relationships they have with their outsourcing service providers. When asked why they felt this way, typical rationale for improved transparency ranged from the need to better understand cost drivers in the relationship due to the current economic downturn, to concerns over managing more complex portfolios of relationships and fears about outsourcing risk and compliance given rapid globalization of business operations. What is clear is that over two-thirds (2/3) of IAOP Corporate Customer Members did NOT agree with the following key value statements in their relationships: • Our Service Provider is appropriately transparent about their operations and accepts suggestion for improvement. • We have adequate transparency into supplier performance and supporting data/systems to appropriately understand performance.

GlobalizationToday May/June 2010

VALUE HEALTH CHECK Complicating the situation is the acknowledgement by outsourcing customers that they generally lack the necessary tools and technologies to: • understand if they’re getting the required capabilities from their outsourcing service providers’ • effectively and efficiently govern their outsourcing relationships • easily monitoring, managing and reporting on the business case realization of outsourcing. Unfortunately, what outsourcing customers generally do agree on is that they’re typically managing their portfolio’s of outsourcing relationships on the back of excel spreadsheets or home-grown tools that lack real-time access to accurate data across their increasingly complex portfolio of outsourcing relationships! It’s In The Data – Dummy! The consequences associated with lack of alignment in expectations between outsourcing customers and service providers on the topic of transparency in the relationship can be significant. Gary Oliver, CEO of a Blazent Software (www.blazent. com), an IAOP Corporate Member that specializes in providing advanced tools and technologies for IT outsourcing governance recently shared the frustration from one of their customers. In their words: “Frankly lack of transparency is at the heart of the friction we have with our ITO service provider. They can’t give us comfort they know where our assets are and whether they’re compliant. We’re constantly arguing about billing accuracy and they can’t give us data or reports that we can audit and verify as to what they’re telling us. We know things are screwed up, and they’re not willing to tell us how bad it is.” ~Vice President for Strategic Sourcing, US Fortune 100

Are the service providers held back from sharing data/ information with the customers? “Not necessarily so!” says Gary Oliver from Blazent Software. The fact is that the outsourcing business is complex and in certain fields of outsourcing such as information technology (IT), the ability to accurately track and manage millions of servers, modems, laptops, cell phones and other devices around the world is a daunting task! The key is access to accurate data and then having the ability to provide real-time access to that accurate data/information to BOTH the customer and service provider. Mutual trust and confidence is at the heart of the matter and there’s nothing like accurate and timely data and information to build the required trust and confidence in an outsourcing relationship. Optimizing Transparency in Outsourcing Relationships! As IAOP Customer and Service Provider Members look to the future of their outsourcing and shared service center relationships, how should they address the “transparency challenge” in building a strong outsourcing relationship? Gary Oliver at Blazent Software advises his clients to start with the basics. First ensure that both sides (customer and service provider)

are clearly communicating their expectations. Then, make the data from all your data sources accessible – either on your own or through your service providers – and don’t take no for an answer. Ironically, almost every organization has more than sufficient data however its usually spread across 5 to 25 or even more sources that make it almost impossible to ensure accuracy and build trust in the data, resulting information and overall outsourcing relationship. There is good news however. In the past couple of years, emerging technologies and advanced processes are making it much easier to collect, cleanse and gain real-time access to data enabling both customers and service providers to have confidence in their resulting “golden asset records”. It does require access to existing data sources, but the business return on investment (ROI) is typically huge both in terms of tangible dollar savings or revenue generation. And of equal importance, the impact on the degree of trust and confidence between customer and service provider is always improved through improved transparency in the relationship. As more and more organizations use the VHCS, we’ll be sharing additional insights on the topic of transparency and how customers and service providers are using advanced tools and innovative technologies to create business value in their relationships. We encourage IAOP Corporate Customer and Provider Members to use their complimentary VHCS as part of their annual membership. If you’d like to learn more about the IAOP Value Health Check Survey (VHCS), visit: http://www.outsourcingprofessional.org/surveys/ VHCS/Login.aspx Early Participation in the Value Health Check Survey In the first seven months of general availability of the VHCS (through April 1, 2010), approximately twenty (26) VHCS have been completed involving IAOP Customer/ Provider Members and NonMembers. Participating organizations come from various industries ranging from high tech and financial services, to consumer goods and engineering. The scope of outsourcing services includes contact/ call center, facilities/property management, IT infrastructure, application development and engineering support services to name just a few. On average, customers and service providers involve 6 respondents in the VHCS process from disciplines across their respective organizations and from around the world. Resource Box

Matt Shocklee assists organizations world-wide as they develop, implement and optimize their global sourcing strategies and relationships. He’s currently the President and CEO of Global Sourcing Optimization Services (GSOS). In addition, Matt is the Global Ambassador for the International Association of Outsourcing Professionals (IAOP), Chairman of the IAOP’s Outsourcing Tools & Technology Innovation Chapter, Co-Chairman of the IAOP Midwest Chapter and a Certified Outsourcing Professional (COP). Matt is the author of the Sourcing Relationship Value FrameworkTM and the Value Health Check SurveyTM (VHCS). He is a frequent speaker on the developing management science in outsourcing and Sourcing Relationship Management (SRM).

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WHAT’S HAPPENING AT IAOP Welcome New IAOP Members

MEMBERSHIP AND CHAPTERS Membership in IAOP provides access to an extensive array of services, and just as importantly distinguishes organizations and professionals as leaders in the field of outsourcing. IAOP membership demonstrates a commitment to innovative thinking, continuous performance improvement, and to the sustaining development of outsourcing as both an industry and as a profession.

IAOP is pleased to welcome new and renewing corporate and professional members from: Accenture; Apple, Inc.; ACS; Allstate; American Express; AstraZeneca; AT&T; AXIS Inc.; Bancolombia; Belcan Corporation; Booz & Company; Capgemini; Cassidy Turley; CB Richard Ellis; Chinasoft International; Colliers Turley Martin Tucker; Compass America Inc.; Compassion International; Deloitte Consulting LLP; EquaSiis; EquaTerra; Expense Management Solutions; Express Scripts; FirstService Real Estate Advisors; FutureWerks, Inc.; GASSCOM; GlaxoSmithKline; Haynes and Boone, LLP; HCL America Inc; Hexaware Technologies Inc; Hinduja Global Solutions; Hospira, Inc.; ICA Solutions; Information Technology Association of Jordon; Infosys Technologies; Intel Corp; J Phillip Partners; John Hancock Financial Services (Manulife); Kibel Green Inc.; Kraft Foods Global, Inc.; La Trobe;Larsen and Toubro (L&T) Infotech; Liberte DG Sarl; Long View Systems; LWS Media, LLC; Manulife Financial; Marsh Canada Ltd.; Mayer Brown LLP; McKenna and Associates; McKesson; Morrison & Foerster; Mphasis; Novigos SpA; Orange Business Services; Ordina Application Outsourcing; PricewaterhouseCoopers; Procter & Gamble; Rigel Networks; Sacrum Inc.; Safeco Insurance; Saqui Concepts Technologies Pvt. Ltd.; Sitel Corporation; Sourcing Board; Standind (Shanghai) Co., Ltd.; Sykes;Teletech; Terrace Services; The Boston Consulting Group; TIAA-CREF; University of St. Thomas; WebAttract, LLC ; Wellpoint; Xceed Contact Center; Yahoo! and Zensar Technologies. For information on IAOP membership, click here or email sales@iaop.org.

Recent IAOP Announcements

IAOP Announces 2010 Rankings for The World’s Best Outsourcing Providers and Advisors Accenture was named the world’s best outsourcing provider for the third consecutive year and TPI topped the list of leading advisors to the industry in the 2010 Global Outsourcing 100® rankings released. The Global Outsourcing 100® -- an independently judged, optin ranking of the world’s best outsourcing service providers and advisors -- has become an important resource to help companies compare providers and advisors using an objective methodology.

GlobalizationToday May/June 2010

WHAT’S HAPPENING AT IAOP Customer Corporate Membership Organizations that are currently outsourcing or are considering one or more outsourcing initiatives should become Customer Corporate Members of IAOP. This membership provides organization-wide access to the association’s research, training, certification, and networking programs - all designed to help companies achieve better business results through outsourcing. Provider/Advisor Corporate Membership Outsourcing service providers and advisory firms should join IAOP as Provider/ Advisor Corporate Members. This membership provides the same organization-wide access to IAOP’s research, training, certification, and networking programs as Customer Corporate Membership, but also includes member-only sponsorship opportunities that serve the marketing and business development needs of these companies. Professional Membership Professional Membership is available to individuals either as part of their company’s corporate membership or on an individual basis. This membership serves the needs of practitioners working in the field of outsourcing whether as customers, providers, or advisors. In addition, it provides these professionals with direct, personal access to association services. Calendar of Events

CHAPTER MEETING CALENDAR Through its active and expansive chapter network, IAOP members can share their expertise and find knowledge on best practices for specific industry segments, topics and geographic areas within outsourcing. •

May 31

Jordan Chapter Meeting

•

June 2

Canada (Toronto) Chapter Meeting

•

June 2

Texas Chapter Meeting

•

June 8

New York, Governance and Outsourcing Tools & Technology Joint Chapter Meeting

•

June 10

India (Bangalore) Chapter Meeting

•

June 10

Contracting Process Chapter Meeting

•

June 24

Midwest Chapter Meeting

•

June 24

gREATER Cincinnati CHAPTER

Gain knowledge, network and earn COP credits! Sign up for a chapter meeting today at www.IAOP.org.

CERTIFICATION & PROFESSIONAL DEVELOPMENT

The Certified Outsourcing Professional® (COP) designation distinguishes individuals as leaders in the field of outsourcing. It powerfully demonstrates that they possess the experience and knowledge required to design, implement, and manage outsourcing initiatives that have a high probability of achieving an organization’s intended outcomes. Complimentary COP Webinar

Looking for more information on IAOP’s de facto certification? The next COP Prep Class is taking place Wednesday, May 19, at 12:00 p.m. EST. Go to www.IAOP.org to register for this complimentary 60-minute primer and find out what it takes to become a COP. 2010 COP Master Classes and Workshops

The COP Master Class is an integral part of the COP program. It provides outsourcing professionals — whether they work as customers, providers or advisors — with an intensive learning experience on the state-of-the-art, end-to-end process for outsourcing success. Individuals who complete the course will not only earn 75 points toward their COP designation, but also will immediately be able to improve outsourcing outcomes at the organizations with which they work. The Outsourcing Governance Workshop is a one-day intensive designed to gain comprehensive cuttingedge knowledge on all aspects of creating and sustaining successful relationships with your outsourcing partners. On top of earning 15 points towards the COP designation, participants also learn to understand the stages of growth in governance and assess where their organization is positioned and how it can move further along the growth curve.

• June 21-23. COP Master Class in Toronto, Canada. • June 24. Governance Workshop in Toronto, Canada. • August 12-15. COP Master Class in Cititel Mid Valley, Kuala Lumpur, Malaysia. To register for this Master Class please email Bobby Varanasi at bobby@matryzel.com. • September 13-15. COP Master Class in Chapel Hill, NC, USA. • September 16. Governance Workshop in Chapel Hill, NC, USA. • September 20-22. COP Master Class in Hong Kong. To register for this Master Class please contact Winnie Chow at winniechow@hbc.hk. • October 12-15. COP Master Class in Rome, Italy • November 1-3. COP Master Class in La Jolla, CA, USA. • November 4. Governance Workshop in La Jolla, CA, USA.

Unless otherwise noted, please register for the above classes and workshops at www.IAOP.org *The one-day intensive Outsourcing Governance Workshop content is based on the Outsourcing Professional Body of Knowledge (OPBOK) and the Outsourcing Professional Standards developed by IAOP and the Outsourcing Standards Board. Can’t Attend a Classroom COP Master Class?

Call for Papers for The 2011 Outsourcing World Summit® Now Open!

The Program Committee for The 2011 Outsourcing World Summit is now accepting proposals for presentations. For more information and to submit a proposal, go to www.iaop.org. The deadline for all submissions is June 15, 2010. Please direct questions to Christina Powers at christina.powers@iaop.org or +1.845.452.0600 ext. 106.

This is the fifth provider list and second advisor ranking. The leading players on both lists possess strong customer references, management capabilities, balanced performance and demonstrated competencies in an industry that is increasingly becoming more strategic and used for higher skilled knowledgebased activities. “These firms on the Global Outsourcing 100 are leaders who are helping the companies that use their services realize greater value and business flexibility, as well as a lower cost structure that will make them stronger in the long term,” said IAOP Chairman

The online COP Master Class is a great alternative for those who cannot attend a live classroom version. Save time and travel expense. Register at www.iaop-cop.com today. OPEN NOMINATIONS FOR IAOP’s OUTSOURCING HALL OF FAME

Atul Vashishta, chair of IAOP’s Advocacy & Outreach committee is announcing that an open nomination period for the Outsourcing Hall of Fame will begin June 1 through July 31, 2010. Nominees are outsourcing executives known not only for their contributions to the management practice and industry of outsourcing, but also for their contributions to community-based economic development and socially-directed investments, as well as career development, education and training through outsourcing. Nominations may be made online at www.iaop.org beginning June 1.

Michael Corbett, who led the judges’ panel. In the Leaders category of companies with more than $50 million in revenue or 5,000-plus employees, the top 10 players included a mix of companies from the U.S., Europe and Asia providing IT, facility services, customer relationship management, food and refreshments, and other services. In order, the top Leaders are: (1) Accenture, U.S; (2) Infosys Technologies, India; (3) Sodexo, France; (4) Wipro Technologies,

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WHAT’S HAPPENING AT IAOP India; (5) IBM, U.S.; (6) ISS, Denmark; (7) Tata Consultancy Services, India; (8) ARAMARK, U.S.; (9), CSC, U.S.; and (10) Convergys, U.S. The Rising Stars category of smaller fast-growing companies that are ranked numbers 76 to 100 provide a snapshot of outsourcing destinations to watch. The top 10 companies in this category are: (76) Scicom, Malaysia; (77) Ci&T, Brazil; (78) CIeNET International, China; (79) Xceed, Egypt; (80) Itransition, U.K.; (81) Grupo Prominente, Argentina; (82) InterGlobe Technologies, India; (83) Globant, Argentina; (84) MERA Networks, Russia; and (85), Intetics Co., U.S. The top 20 advisory firms were ranked as one list this year versus last year when they were divided by size. The leading firms are predominately from the U.S. with two from the Netherlands. The leading 10 advisors in order are: TPI, EquaTerra, Alsbridge, KPMG, Kirkland & Ellis, Quint Wellington Redwood, Morrison & Foerster, Baker & McKenzie, Gartner and Booz & Company. For complete lists and more than 80 sublists with rankings by geography, industry and service areas, go to www.iaop.org and click on the 2010 Global Outsourcing 100 link. Outsourcing Being Used More Strategically for Higher Knowledge Processes, IAOP Survey Shows Outsourcing has established itself as a strategic management practice that leading companies around the globe are increasingly using for high-value, knowledge-based processes, according to survey results from IAOP. Released in April, the results of the IAOP global membership surveys conducted with support from Accenture over the past 18 months, show outsourcing is a thriving competitive industry that is being used strategically with more senior C-suite decision making. The industry is also rapidly adopting technology such as cloud computing and Software as a Service (SaaS), show the findings of the series of global surveys of the association’s 100,000 members and affiliates representing outsourcing customers, providers and advisors. “Increasingly, companies are outsourcing to do more than cut costs but to add value, increase business flexibility and prepare for future growth,” said IAOP Chairman Michael Corbett. “Companies that are using outsourcing are poised to emerge from the current economic crisis stronger.” The estimated $6 trillion (IAOP estimate) global outsourcing industry expects to continue to grow. A January 2010 poll of members showed 56 percent of respondents planned to increase outsourcing activities in the future, up from 47 percent who answered a September 2009 poll. “Outsourcing remains a strong option for businesses facing unprecedented market conditions and the imperative to change both quickly and dramatically,” said Kevin Campbell, group chief executive, technology, at Accenture. “Most companies pursue outsourcing to not only realize immediate and sustained cost savings but to implement solutions to improve cash flow, achieve real business outcomes and to drive topline growth.” Among the key findings: • Outsourcing Becomes More Strategic: Strategic issues are

GlobalizationToday May/June 2010

playing an important role in outsourcing decisions at most companies. In January, about 50 percent of respondents indicated that greater business flexibility and preparing the company for future growth have become more important reasons for them to use outsourcing. • C-Suite Driving Decisions: Outsourcing decisions are being made at higher senior executive levels, the results show. Two-thirds of respondents indicated in January 2010 that senior executives were increasingly involved in outsourcing versus only 13 percent who said that senior executives were less involved. • Smarter, Skilled Profession: Knowledge-based outsourcing is becoming more important to companies and the industry is filling this demand.In both the fall of 2009 and January 2010, 40-plus percent of respondents indicated that the outsourcing at their organizations was increasingly focused on knowledge-based activities compared to less than 30 percent who said they were increasing the outsourcing of lower-skill level positions. • Rapid Technology Adoption: Cloud computing and SaaS are being examined by 88 percent of outsourcing customers surveyed in January and 66 percent of providers are exploring these technologies for the delivery of services to their customers. • Bundling Services: This January, 45 percent of survey participants stated that their company was more focused on bundling services with fewer outsourcing services providers versus 18 percent who indicated that they were doing more multi-sourcing. The full report is available at IAOP’s Knowledge Center at www. iaop.org. IAOP’s Certified Outsourcing Professional Program Gets its First Government Approval from Malaysia - Training and Certification Program Becomes Part of Federal Program to Build Country’s Knowledge Workforce IAOP’s Certified Outsourcing Professional® (COP) program has received its first government endorsement from Malaysia as an approved training program to build the nation’s ranks of knowledge-enabled professionals. The COP program -- which distinguishes professionals as leaders in outsourcing – is the first senior management program the Malaysia government has given its endorsement to. The federal government of Malaysia has approved the COP program for inclusion into its Capability & Capacity Development initiatives under the auspices of the Ministry for Science, Technology & Innovation. “We are pleased to continue to grow our partnership with the Malaysia government to train and certify COPs,” said IAOP Chairman Michael Corbett. “This government endorsement is a powerful testament of the continued growth and acceptance of the COP program and the tremendous impact it can have on transforming not only individuals but also companies and entire nation’s workforces.” The recognition will provide key subsidies for Malaysia citizens taking both the COP master classes and pursuing certification.

WHAT’S HAPPENING AT IAOP Multimedia Development Corp. (MDeC), a national parastatal agency under the Ministry of Science, Technology & Innovation, will market the IAOP developed program along with the Ministry. Through the Capability & Capacity Development Program Malaysia is working to transform its workforce to higher skill levels and become a developed nation by 2020. “The COP program is clearly aligned toward MSC Malaysia’s national initiative to create a knowledge-enabled workforce” said Rob Cayzer, General Manager, Business and Market Development, MDeC. “The certification program will help us reach our goals of developing more competent and globally aligned leadership in the ICT sector, especially in the sourcing marketplace.” Said Srikrishna Vadrevu, CEO, Sigmax-e Services & Committee Member, Outsourcing Malaysia: “The COP program will be a great asset to Malaysian executives looking to gain expertise in the rapidly growing and evolving business of outsourcing. I am sure a qualification like this will stand out and cry for attention when HR folks are searching for the right qualifications in a large pile of resumes” “Nations in their pursuit of creating forward-looking and globally-oriented industries in the ICT sector have been grappling with one principal demand factor -- realigning and continually creating a talented knowledge-enabled workforce that’s ready for the intricacies and complexities of a globalized world,” said Bobby Varanasi, Chairman & CEO, Matryzel Consulting, who holds the COP designation and is IAOP’s Asia Ambassador. “Having proven its place as a premier global standard of excellence in the sourcing marketplace, COP is well positioned to address these very needs,” Varanasi said. “The Federal government’s adoption of the COP program reinforces not just IAOP’s commitment to professional standards, but also its contribution to the needs of a growing marketplace where governments are increasingly emphasizing the need for such standards. This is an excellent recognition for the COP program and I’m sure it is just one of many more to come.” IAOP Expands in Middle East with Launch of Jordan Chapter - Information Technology Association of Jordan Leads New Outsourcing Group IAOP continues to expand in the Middle East and North Africa with the launch of its Jordan Chapter that will hold a kick off meeting in Amman on May 31. The new chapter is chaired by Information Technology Association of Jordan, an industry-support association for Jordan’s ICT sector founded in 2000 that is building on the nation’s core asset of highly educated and skilled human resources to establish Jordan as a leading regional ICT hub and an internationally recognized exporter of ICT products and services. The meeting will be held from 9 a.m. to 5:30 p.m. at Sheraton Amman Al Nabil Hotels & Towers in Amman, Jordan and include welcome remarks, networking, webinars and workshops. Speakers and topics include a keynote address by IAOP Chairman Michael Corbett on “Yesterday’s Challenges & Tomorrow’s Opportunities in the MENA Region,” and a panel discussion on “Building a Smart Shore Destination: Jordan’s Strategic Advantage” with speakers from Development Zones Commission (DZC), USAID Jordan Economic Development Program (SABEQ), IAOP,

Int@j and Aspire Services. Also, Bobby Varanasi, CEO of Matryzel Consulting Inc and IAOP Asia Ambassador, will speak at two separate workshops on “The Essential Elements of Outsourcing Strategy” and “Solution Selling and Client Acquisition” for outsourcing providers. “Launching an IAOP chapter in Jordan reflects the strong commitment from both the government and industry to adopt and leverage global professional standards of excellence, while continually endeavoring at showcasing the benefits of such adoption to the global marketplace,” Varanasi said. “The chapter’s thrust on talent development and understanding the intricacies of the Middle East North Africa marketplace is vital to the profession, paving the way to increased focus on this clearly emerging region.” The Jordan Chapter is a geographic chapter within IAOP’s portfolio of more than 40 chapters worldwide. It is open to all IAOP members from around the globe. IAOP members wishing to attend the upcoming meetings should e-mail the chapter coordinator at amanda.corbett@iaop.org. Nonmembers can request a guest pass at www.iaop.org. EVENTS

The 2011 Outsourcing World Summit® February 21-23, 2010 | Renaissance Esmeralda, Indian Wells, California The 2011 Outsourcing World Summit’s program will directly address the issues that arise in today’s global marketplace by showcasing the breakthrough achievements of the companies paving the way. The Summit looks at outsourcing as a management practice – from strategy to implementation and ongoing relationship management. For a limited time, registrants will receive: •A $500 savings •A FREE room night at the Renaissance Esmeralda •An electronic copy of The 2010 Outsourcing World Summit Audience Response Data – which provides key industry trends not available anywhere else •Access to the Summit’s LinkedIn group – Begin cultivating potential business partnerships with other delegates now! This will be the best deal offered to delegates, so don’t delay! Go to www.IAOP.org to find out more. Why Sponsor The 2011 Outsourcing World Summit®? By sponsoring a Summit, service providers and advisors gain a proven, unparalleled opportunity for brand awareness and influence on the thinking and decision-making of client executives worldwide. Support of IAOP’s Outsourcing World Summit directly demonstrates the commitment your firm has made to leadership and excellence in outsourcing. A wide range of sponsorship opportunities – one for every purpose and budget – are available. These include, hosting various networking functions, branding of conference materials, exhibition packages, and sponsorship of client case study presentations. Download the Sponsorship Prospectus at www.iaop.org or contact Renee Preston at renee.preston@iaop.org to learn how your firm can play a role in this exciting event.

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how Can Advisors & Suppliers Collaborate

Can’t We All Get Along? What Does It Take to Get Advisors and Suppliers to Collaborate? By Professors Mary Lacity and Joseph Rottman – University of Missouri, St. Louis It seems that getting goals to aligning amongst outsourcing clients, advisors, and suppliers requires nothing short of an act of God. • Clients want cheap prices, exceptional service, and short-term commitments. • Suppliers want big, long term engagements. • Advisors stand in the cross- fire. The $64,000 question is how, as outsourcing professionals, can advisors and suppliers effectively cooperate to benefit all parties involved in an engagement?

Deal Making to Partnering There is an industry wide desire to move from “deal-making” to “partnering”. “Deal-making” focuses on ruthless contracting in which each side is incented to maximize its own advantage. In these scenarios it is commonplace for each side to posture and exaggerate their capabilities (clients may claim internal benchmarks based on their most optimistic self-assessments and suppliers may overpromise the resources that will be allocated to service the account in order to win the bid.) In contrast, “partnering” focuses on how the relationship will work for the mutual benefit of all parties. Of course, the contract is still important because it aligns expectations, but all parties agree going in that change is at the heart of all engagements and they mutually commit to resolving conflicts fairly. Partnering also means being open to the idea of collaborating across suppliers, and in particular— small suppliers may contribute to an important component of a large supplier’s delivery. The biggest impediment to “partnering” during the past few years has been the global economic crisis. Clients have been pressured within their own organizations to make quick deals with aggressive targets to realize incredibly short payback periods. This economic pressure has caused some clients to use competitive bidding to pressure the incumbent supplier to reduce prices. Many times this is done with little or no intention of switching suppliers. It’s not uncommon for suppliers to feel they’ve been rushed through the procurement process without being offered proper due diligence or time to assemble their resources to service a new engagement.

The Important Role of Advisors As an industry, how can we abandon the short-term mindset associated with deal-making for a long-term commitment associated with partnering? Uniformly, suppliers said that advisors play a crucial role here. Clients listen to advisors and good advisors makes sure the client: • is ready to evaluate suppliers by assembling client teams of senior executives, business managers, and internal procurement. • has credible internal benchmarks and baselines on volumes, service levels, and costs. • doesn’t put out generic RFIs that attract 30+ superficial responses. • prescreens suppliers and helps the client send a targeted RFP to less than 10 suppliers. • quickly and rationally prunes the RFP responses to 3 to 5 suppliers and get the contenders involved with the client team early in the process, particularly the senior client managers, soon thereafter. • informs bidders quickly once it becomes clear that the client will chose the incumbent or chose to stay in-house. You know you have a good advisor if: • they remain neutral and promote transparency during the contracting and engagement processes. • they can traverse the murky lines between formal and informal communications with suppliers. • they look for opportunities across supplier bids. The Efficacy of Trust Trust in outsourcing is the confidence that another will conform to one’s expectations. Fair and reasonable contracts go a long way to help build the spirit of goodwill among all parties. In the long term, however, trust is based on behavior. Clients trust suppliers that deliver promised services. Suppliers trust client relationship managers and advisors that facilitate the supplier’s success within the client organization. Trust is also built by resolving conflicts fairly, rather than holding the disadvantaged party to a contractual clause that may have been

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how Can Advisors & Suppliers Collaborate negotiated based on shaky data or assumptions that no longer hold. Partnering is ultimately about mutual and collaborative performance.

Roger Mellor

Head of Transition Implementations

Infosys

Shevy Magen

Vice President of Business Development

Avasant

Zachary Misko

Global Director

Kelly OCG

Bill Hall

Partner

Pretrium Partners

Demanding Innovation Today clients are demanding innovations in areas including delivery, engagement and staffing models and contracting processes. Examples of such innovations include: • integration of innovation - centric key performance indicators into service level agreements and contracts • monthly innovation debriefing sessions between suppliers and customers • movement away from FTE modeling to business result deliverables, and innovation based metrics. As our industry continues to grow and mature in capabilities, diversity, and global reach, advisors and suppliers are increasingly moving toward a model of “co-opetition” and away from pure competition. This maturity is being fueled by adaptive procurement processes, increased transparency in the negotiation, innovation, contracting processes, and an understanding of the importance of trust. The framework exists for advisors and suppliers to work together, the real question is will they? IAOP Advisor/Supplier Networking Session This article was based on the first provider/advisor networking session conducted at the 2010 Outsourcing World Summit. The session was organized by Matt Shocklee, COP, Chair of the IAOP Tools & Technology Innovation Chapter, Rich Etzkorn, Chair of the IAOP Midwest Chapter and SVP of Cassidy Turley. Industry leaders who participated in the discussion were:

Name Alex Golod

Title

Company

Vice President, Global Delivery

Intetics Co.

John Beardwood & Andrew Alleyne

Partners

Fasken Fasken, Martineau and Demoulin& Martineau

Bill Domeika

Senior Vice President

Global Sourcing Optimization Services

Donna Martin

Vice President, Sales

Aegis Limited

Mary Lacity & Joseph Rottman

Professors of Information Systems

University Missouri St. Louis

Phil Hadcroft

General Manager, Strategy Business Process Outsourcing

Salmat

Rich Etzkorn

Senior Vice Cassidy Turley President, Principal

Resource Box

Dr. Mary C. Lacity is a Professor of Information Systems and an International Business Fellow at the University of Missouri-St. Louis. She has conducted case studies and surveys of hundreds of organizations on their outsourcing and management practices. She has given executive seminars world-wide and has served as an expert witness for the US Congress. She was the recipient of the 2008 Gateway to Innovation Award sponsored by the IT Coalition, Society for Information Management, and St. Louis RCGA and the 2000 World Outsourcing Achievement Award sponsored by PricewaterhouseCoopers and Michael Corbett and Associates. She has published 12 books, most recently China’s Emerging Outsourcing Capabilities (Palgrave, 2010; co-editors Leslie Willcocks and Yingquin Zheng); Information Systems Outsourcing: Theory and Practice (Palgrave, 2009; coauthor: Leslie P. Willcocks) and Offshore Outsourcing of IT Work, (Palgrave, 2008; coauthor Joe Rottman). More than 50 of her publications have appeared in the Harvard Business Review, Sloan Management Review, MIS Quarterly, IEEE Computer, Communications of the ACM, and many other academic and practitioner outlets. She is Senior Editor of the Journal of Information Technology, Co-editor of the Palgrave Series: Work, Technology, and Globalization and on the Editorial Boards for MIS Quarterly Executive, Journal of Strategic Information Systems, Strategic Outsourcing: An International Journal, and Journal of the Association for Information Systems (JAIS). She is co-Program chair for the Midwest Chapter of the IAOP. Resource Box

Dr. Joseph Rottman is an Associate Professor of Information Systems at the University of Missouri-St. Louis and a Research Fellow in both the Center for International Studies and the International Business Institute at the University of Missouri – St. Louis as well as a research fellow with the Chinese Academy of Social Sciences. He has conducted case studies in over 40 firms and has been engaged by Fortune 500 firms to analyze their offshore strategies. His recent book, Offshore Outsourcing of IT Work (with Mary C. Lacity) details models and practices IT professionals can utilize to effectively engage offshore suppliers and explores emerging outsourcing markets such as rural sourcing and the Chinese market. His publications have appeared in Sloan Management Review, MIS Quarterly Executive, Information Systems Frontiers, Strategic Outsourcing: An International Journal, IEEE Computer, the Journal of Information Technology, the American Review of Public Administration and Information and Management and leading practitioner outlets such as CIO Insight and the Cutter Consortium. He earned his Doctor of Science in Information Management from Washington University in St. Louis. He has conducted research and spoken internationally on global sourcing, innovation diffusion and public sector IT. He was the 2006 recipient of the Anheuser-Busch Excellence in Teaching award, and is on the editorial board of MIS Quarterly Executive.

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SCRAP BOOK

r, chaired by ANDI (National The inaugural meetings of the IAOP Colombia Chapte and ProBarranquilla were Bogotá in Invest bia), Colom of tion Business Associa photo was taken of the This quilla. Barran held on May 3 in Bogota and May 5 in only”! room ng “standi was which , Bogota in g Meetin r Chapte

The inaugural meeting of the India (Bangalore) Chapter chaired by Infosys and Intel was held on Thursday, March 18. In this photo Anantha Radhakrishnan, Vice President, Infosys BPO delivers a presentation titled “Business Platforms - New Paradigm in Outsourcing.”

) Master Certified Outsourcing Professional (COP Business ge Oran , roste Coste Alain nts Class stude Kong Hong ger, Mana Services and Aubrey Au, Authorized Kong Hong from ers point ve recei Post y Yuen. Trainer for the COP Master Class, Sidne

GlobalizationToday May/June 2010

r in Bogota on May 3. The inaugural meetings of the IAOP Colombia Chapte presented “Trends (From left to right) Michael F. Corbett, Chairman, IAOP an, NeoGroup Chairm ha, Vashist Atul ; Vision” Global – of Outsourcing titiveness, Compe bia: Colom & g presented “Global Services Sourcin Director- Worldwide , Santos Julia d”; Forwar Way and s tunitie Oppor er Companies Strategic Outsourcing, Johnson & Johnson Group of Consum They Look At Various presented “What Multi-nationals Think About When , Executive Director, Destinations Around The World”; Santiago Pinzon tion of Colombia) Associa ss Busine al Chamber of BPO and IT, ANDI (Nation r. Chapte bia Colom IAOP’s of ir Co-Cha and

Advertiser Index Page #

Company Name

URL

22, 23 14, 15 46 38, 39 4, 10, 51

Accenture Aegis BCS Diebold International Association of Outsourcing Professionals (IAOP) InvestChile Jay Abraham Kelly Outsourcing & Consulting Group (KellyOCG) Thought Leadership Marketing Replace Myself RR Donnelley Global Services SENCOR WNS Global Services

www.accenture.com www.aegisglobal.com www.bsc.org/opportunity www.diebold.com www.IAOP.org

26, 27 52 30, 31 6 48 16 34, 35 18, 19

www.investchile.com www.profitonperformance.com/outsource www.kellyocg.com www.outsourcingthoughtleadership.com www.ReplaceMyself.com/Global www.sencor.net www.outsourcingthoughtleadership.com www.wns.com

Advertiser Index Page #

Company Name

URL

22, 23 14, 15 46 38, 39 4, 10, 51

Accenture Aegis BCS Diebold International Association of Outsourcing Professionals (IAOP) InvestChile Jay Abraham Kelly Outsourcing & Consulting Group (KellyOCG) Replace Myself RR Donnelley Global Services SENCOR Thought Leadership Marketing WNS Global Services

www.accenture.com www.aegisglobal.com www.bcs.org/opportunity www.diebold.com www.IAOP.org

26, 27 52 30, 31 48 16 34, 35 6 18, 19

www.investchile.com www.profitonperformance.com/outsource www.kellyocg.com www.ReplaceMyself.com/Global www.outsourcing.rrd.com www.sencor.net www.outsourcingthoughtleadership.com www.wns.com