Oxford Economics - World BPO/ITO Forum 2011 Analytical Report by Palette Marketing

The Economic, E , Political & Technical Impact of Global Sourcing

The World BPO/ITO Forum 2011 Conference Summary Report JUNE 28–29, 2011

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HYATT REGENCY ON THE HUDSON

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JERSEY CITY, NJ USA

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Message from the Chairman Dear Colleagues, New economic realities and globalization are bringing about significant changes in how businesses operate. Uncertain economic conditions, the rise of protectionism and the growing demand for global resources are among the forces that will shape corporations in the years ahead. As firms deal with a flattening world on one hand and a new reality of a roller-coaster economy on the other, they have to realign their business, technology and sourcing strategies. Sourcing is increasingly becoming part of a company’s core business agenda. However in a business environment with heightened sensitivity, each move related to global sourcing becomes more critical, and each decision has a far-reaching impact. To stay competitive and thrive in the “new normal” economy, companies have to deliver more value at lower cost. Global sourcing has become a transformational lever that can empower businesses to take on new competition as well as develop new markets. It impacts economies of developed as well as emerging countries, and is shaping the way relationships are being built between corporations and government across the world. Harnessing the power of global sourcing requires an understanding of its footprint both globally and locally. The World BPO/ITO Forum assembles some of the leading thinkers on the political, economic and technical aspects of sourcing for an open debate and offers a practical guide to navigate the white waters of the “new normal” economy. Whether your organization is a current user of global sourcing or considering such a move in the future, this forum will provide a valuable perspective from around the globe. Over the last four years, the World BPO/ITO Forum has come to be recognized as the “Davos of Offshoring” and has brought together path-breaking executives, academics, providers and visionaries from around the world to share their ideas in a peer group environment. Participants from mature regions such as India, the Philippines, Brazil and Malaysia as well as more emerging ones such as Argentina, Poland and Hungary demonstrate how this industry has taken globalization to the next level. With two tracks—one featuring globalization and leadership topics, the other focusing on strategic and operational issues related to global sourcing—this conference addresses the needs of CIOs, CFOs and CEOs as well as sourcing executives. The “Sourcing Strategy and Best Practices” track illustrates how executives can implement and harness global sourcing to enable competitiveness and achieve business transformation. By sharing valuable insights and hard-won lessons, the sessions in this track enable executives to embed best practices and avoid costly mistakes. The “Globalization and Leadership” track deals with challenges and opportunities facing business and IT leaders today. This track focuses on new approaches to achieving growth, innovation and business success in organizations. It also covers the socio-economic impact of global sourcing across the world and in the US. Whether you are responsible for managing day-to-day issues or for strategizing long-term initiatives, this exclusive forum provides opportunities to interact, learn and share issues, challenges and solutions with your peers. We look forward to your thoughts, suggestions and exchange of ideas to guide the future of this global industry.

The World BPO/ITO Forum Message From the Chairman

Jim Noble

World BPO/ITO Forum

Chairman The World BPO/ITO Forum Senior Vice President Talisman Energy

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

CONTENTS Conference Agenda.........................................................................................................................................................2 Introduction: Flattening the World................................................................................................................4 Keynotes and Presentations...................................................................................................................................5 ■ Creating the Partner Ecosystem: Collaboration Beats Competition..........................................................................5 ■ Transformational BPO: Driving Enterprise Growth and Agility.....................................................................................5 ■ Emerging Trends in Engineering BPO Services...............................................................................................................6 ■ New Horizons for Offshore Outsourcing............................................................................................................................6 ■ Day One Guest Speaker: Dr. Lawrence Summers.........................................................................................................7 ■ Emerging Trends: How Companies Should Align Their Technology and Services Roadmap..........................8 ■ Transformational Leadership and Strategies for Succeeding in the New Economic Order...............................8 ■ Closing Keynote: Fireside Chat ............................................................................................................................................9

Summary of Sessions.................................................................................................................................................. 10 Globalization and Leadership Track............................................................................................................................... 10 ■ Innovate or Die: How Transformational Thinking Drives Business Success........................................................ 10 ■ IDG CIO Executive Council Panel: Journey to the Future-State CIO Overcoming the Top..............................11 ■ The Economic and Social Impact of Global Outsourcing: Getting the Complete Picture............................... 12 ■ Is a Free Market in Global Sourcing Good or Bad for America?............................................................................. 13 ■ CIO Roundtable—Harnessing the Megatrend Trio: Mobility + Cloud + Social................................................... 14 Sourcing Strategy and Best Practices Track............................................................................................................. 16 ■ Portfolio Approach to Global Sourcing: Balancing Risks and Returns.................................................................. 16 ■ The Shifting Global Sourcing Axis: Will Onshore/NearShore be the New Offshore?....................................... 17 ■ Beyond SLAs and Contracts: Structuring a Win-Win Relationship........................................................................ 17 ■ Uncloaking the Cloud: Implications on your Outsourcing/Offshoring Strategy.................................................. 18 ■ Finding Your Next Outsourcing Haven: Emerging vs. Maturing Destinations...................................................... 18

Sponsors................................................................................................................................................................................... 19 Snapshots from the Conference...................................................................................................................... 20 Speaker Biographies.................................................................................................................................................... 22 Strategic Partners........................................................................................................................................................... 26 Letter of Thanks............................................................................................................................................................... 26

CONFERENCE AGENDA DAY ONE Creating the Partner Ecosystem: Collaboration Beats Competition Dana Deasy, Group CIO and Group VP, IT Services, BP Innovate or Die: How Transformational Thinking Drives Business Success Moderator: Emmet B. Keefe III, CEO and Co-founder, iRise Panelists: Hossein Eslambolchi, Chairman, 2020 Venture Partners

Bill Mitchell, Director, Global Platform Services, Deutsche Bank; former CIO, Warner Music International

Eric Ranta, National Vice President, Value Engineering, SAP North America

Roxanna Wall, Executive Director, Corporate Development, Outsourcing and Offshoring, UBS AG

Daniel Kuperstein, Executive Vice President for Business Development, Globant (Argentina)

Doug Sawer, Managing Director, Ceridian UK (Scotland)

Amanda Sweeney, Director, IT Global Service Delivery, PETCO Animal Supplies, Inc

Finding Your Next Outsourcing Haven: Emerging vs. Maturing Destinations Moderator: Soumitra Rathod, VP, World Wide IT Sourcing, The McGraw-Hill Companies Panelists: Anthony Chough, American Healthtech

Gary Hanley, SVP, North America, Invest Northern Ireland (Northern Ireland)

Robert Seges, Polish Information and Foreign Investment Agency (Poland)

Gillian Virata, Senior Executive Director, BPAP (Business Processing Association of the Philippines)

Donald Mones, VP, Outsourcing, Planning and Strategy, The McGraw-Hill Companies

John O’Brien, Executive Director, Morgan Stanley

Andrew Wasser, Associate Dean, School of Information Systems, Carnegie Mellon University

Uncloaking the Cloud: Implications on your Outsourcing/Offshoring Strategy

Moderator: David Tapper, VP, Outsourcing and Offshore Services Market Research, IDC

Larry Bonfante, CIO, United States Tennis Association (USTA)

John Heidelberger, VP and CIO, Individual Life and Disability, The Guardian Life Insurance Company of America

Ted Tompkins, CIO, VetCentric; former President, SIM Capital Chapter

Panelists: Mike Giresi, CIO, Direct Brands; former CIO, Godiva Chocolatier

Srini Krishnamurthy, VP, Business Optimization, Kronos, Inc.; former Head of Sourcing, MassMutual

Sasi Pillay, CIO, NASA Glenn Research Center

George Takach, Partner, McCarthy Tetrault LLP

World BPO/ITO Forum

Transformational BPO: Driving Enterprise Growth and Agility John Lutz, General Manager, Global Process Services, IBM

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

DAY TWO The Economic and Social Impact of Global Sourcing: Getting the Complete Picture

Emerging Trends: How Companies Should Align Their Technology and Services Roadmap

Moderator: Calestous Juma, Professor, John F. Kennedy School of Government, Harvard University

Chris Kaisand, Managing Director, Strategic Alliances and Vendor Relations, TD Ameritrade

Panelists: P.K. Agarwal; President, TiE; former CTO, State of California

Rena Nigam, SVP and Head, Banking and Capital MarketsMature Geographies, MphasiS

Zia Khan, VP, Strategy and Evaluation, Rockefeller Foundation

Harvey Koeppel, Executive Director, Center for CIO Leadership

Ralph Schonenbach, CEO, Trestle Group

Portfolio Approach to Global Sourcing: Balancing Risks and Returns Moderator: Sumeet Sanghani, SVP, Supply Chain Management and Director of Global Outsourcing, SunTrust Banks, Inc.

Emerging Trends in Engineering BPO Services

Panelists: Suzanne Aquino, Executive Director, UBS AG

Patrick Weir, Lead Solution Director, Engineering BPO Services, Accenture

Bobby Varanasi, OM Exco and Head, Marketing and Branding, Outsourcing Malaysia; Chairman and CEO, Matryzel Consulting, Inc.

Is a Free Market in Global Sourcing Good or Bad for America?

Moderator: Amit Mukherjee, President, Ishan Advisors, LLC; Executive in Residence, Babson College

Craig Gustafson, VP and Head Business Development, Insurance, US and Canada, MphasiS

Panelists: Joe Held, SVP and Global Chief Information Officer, Reader’s Digest Association

Brian Tumpowsky, Director, Sourcing and Governance, RE:Sources

Danielle Fox de Aguilar, Director, Strategic Sourcing and Supplier Management, Microsoft IT, Microsoft Corp.

Wendell Jones, CEO, SIM International

Jerry Luftman, Executive Director and Distinguished Professor, Stevens Institute of Technology

Ambassador John Veroneau, Partner, Covington and Burling LLP; Former Deputy United States Trade Representative (USTR)

New Horizons for Offshore Outsourcing Ganesh Natarajan, NASSCOM Chairman’s Council, India

Transformational Leadership and Strategies for Succeeding in the New Economic Order Sushma Rajagopalan, Head of Global Strategy and Business Process Services, L&T InfoTech CIO Roundtable - Harnessing the MegaTrend Trio: Mobility + Cloud + Social Moderator: Gary Beach, Publisher Emeritus, CIO Magazine Panelists: Gopal Khanna, Former CIO, State of Minnesota

Day One Guest Speaker: Dr. Lawrence Summers

Director, White House National Economic Council for President Obama 2009-2010; President, Harvard University 2001–2006

Jonathan Miller, VP and CTO, Mc-GrawHill Information & Media, The McGraw-Hill Companies

Peter Whatnell, CIO, Sunoco; former President, SIM International

Sasi Pillay, CIO, NASA Glenn Research Center

Fireside Chat and Closing Remarks Mike Toma, VP and CTO, Automatic Data Processing, Inc. Jim Noble, Chairman, World BPO/ITO Forum Harvey Koeppel, Executive Director, Center for CIO Leadership; Vice Chair, World BPO/ITO Forum

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Introduction Flattening the World With due respect to Christopher Columbus, the world today is, in fact, flattening—at least in terms of the global marketplace, where goods and services travel across borders with ease and technology makes all companies and consumers virtual neighbors. This was the consensus among the 250 business executives who attended this year’s Annual World BPO forum in New York. Sluggish demand pushes companies in two directions, said Patrick Weir, lead solution director of engineering BPO services at Accenture. Firms must retool processes to squeeze growth from mature markets, and expand horizons in emerging markets where GDP growth leaves the US and Europe behind. What does this mean for the outsourcing industry? Just look at the figures, says Mr. Weir: Global engineering spend is rising around 1% to 2% per year across all sectors; as a share of total spending on outsourcing it’s increasing from 6% to 9%. In emerging markets, rates of increase in engineering spending exceed 23%. Forget Horace Greeley’s famous advice to go west—go east and south instead. As technology developments increasingly bulldoze traditional business models, outsourcing providers are finding new opportunities to add value. For example, YouTube founder Steve Chen recently told The New York Times that of hundreds of millions of tweets every day, at most he can read 1,000. That leaves “a waterfall” of information for marketers to parse. A flat world makes it just as easy to analyze that data in Arkansas or Zanzibar. But outsourcing firms today are bridging an even more important chasm—no longer viewed as external vendors who merely handle “non-core” tasks, many service providers are partnering with their clients to provide critical insight on process, best practices and innovation. And in a global marketplace fraught with uncertainty, business executives are realizing that such partnerships can make all the difference between success and failure. As renowned economist Dr. Lawrence Summers noted, “There are those today who would resist the process of international integration; that is a prescription for a more contentious and less prosperous world.” Dr. Summers cautions executives not to oppose outsourcing, but to see it as an opportunity to leverage the expertise of global partners with unique skills.

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Keynotes and Presentations Creating the Partner Ecosystem: Collaboration Beats Competition

Transformational BPO: Driving Enterprise Growth and Agility

Dana Deasy, Group CIO and Group VP, IT Services, BP Baptism by fire greeted Dana Deasy when he became Group CIO and Group VP IT Services at British Petroleum, where the total bill for outsourcing services, from help desks and data centers to application development and maintenance, exceeds $1.5 billion a year. Deasy’s formidable assignment: Reduce 2,500 suppliers to fewer than 1,000, make sure the top 20 suppliers represent 75% of the business—and do it in less than two years. BP beat that aggressive goal by four months. Mr. Deasy and his top lieutenants spent a year putting together an operating manual for a new IT ecosystem. Rationalization began with an enormous color-coded chart listing services required and organizations that performed them. After an extensive review, BP slashed the number of suppliers drastically: from 120 to 1 in the telecom space, for example, and from 124 to 1 in the service space. In the process, Mr. Deasy and his team shed $800 million from the IT budget. Careful planning was paramount, he said. It’s not as simple as signing new contracts one day and launching a new model the next; a lot of work governs how to optimize operations and collaborative relationships, not least among suppliers that are often rivals.

Mr. Deasy and his top lieutenants spent a year putting together an operating manual for a new IT ecosystem— slashing the number of suppliers from 2,500 to 1,000 and shedding $800 million from the IT budget. Convincing suppliers to do what was good for BP meant proving that richer collaboration was good for all parties. To that end, Deasy invited top suppliers’ chief executives to join a “captain’s table” with the aim of coordinating responses to business opportunities and shifting market needs in a seamless standard operating model. At first, the idea was met with skepticism: When Deasy polled other CIOs about his plan for a new vendor ecosystem, most warned that vendors would support him only with lip service. Quite the contrary, said Deasy. The level of positive energy surprised him. Suppliers leaped at chances to join the captain’s table, where they could become integral and creative parts of the global sourcing process.

John Lutz, General Manager, Global Process Services, IBM In today’s world, all major functions of business are critical. Deeming certain functions as “core” and “non-core” is the wrong approach, warned Mr. Lutz. “It’s outdated, even a little insulting.“ As lines continue to blur between business and IT, executives need to think more strategically about the benefits outsourcing can provide to any component of the business. Forget sweeping non-core problems out the door, he says, “these fixes are not durable.” Cost-cutting has its place, but more sophisticated metrics and agility drive performance, Mr. Lutz said. Big benefits stem from “knock on effects” throughout an enterprise. Better compliance and robust analytics overwhelm savings from one procurement operation. And how you “shore” is not the point— better to focus first on business recovery questions, flexibility and emerging skill sets. Make location the last question.

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Remember those fabled CEOs who started in the mailroom? Today, look for future CEOs in delivery centers, learning the pulse of business process outsourcing.

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Remember those fabled CEOs who started in the mailroom? Today, look for future CEOs in delivery centers, learning the pulse of business process outsourcing. Enterprises that leverage sourcing options for improved growth and agility will thrive as the global economy recovers, Mr. Lutz said. This is the basis for next-generation BPO—the continuation of the transformation from an efficiency-focused organization to an increasingly effective organization built on a foundation that continuously leverages innovative ideas to become more agile.

It took some perseverance, but the effort has paid off. Today, top managers at BP set common deliverables to which all contribute according to an overarching methodology—continuous improvement at BP. Leaders convey to the rank and file that inclusive behavior at all levels will make or break success.

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Emerging Trends in Engineering BPO Services

New Horizons for Offshore Outsourcing

Patrick Weir, Lead Solution Director, Engineering BPO Services, Accenture Imagine this: A global industrial microphone manufacturer wants to consolidate vendors from more than 10 to only a handful of providers with end-to-end capabilities. The microphone costs $100 to design, develop and manufacture. Basic engineering improvements alone can trim the cost only by a percent or two. But tap the full stack of capabilities across the value chain, and that costs can come down as much as 15%. That’s “a game changer,” Mr. Weir said. There are many areas that are ripe for such services: electric cars, car electronics and telemetrics in the automotive sector; rig and refinery design and support in the oil and gas sector; smart-grid design and support by utilities; and infrastructure improvement in the emerging world, for example. Emerging markets are fertile ground for new factories, warehouses, offshore rigs and other corporate facilities. The trend is plainly visible in compound annual growth rates (CAGR) for engineering spending that supports development. Overall growth is inching up at less than 2% a year; the share of engineering spending that is outsourced is growing between 6% and 9% a year. That’s a trickle compared to the emerging market segment, where the CAGR in engineering spending— albeit from a smaller base—is growing at nearly 24%. In India, CAGR for engineering spending exceeds 30%. Until engineering skills in emerging markets catch up with demand, a “lift and shift” strategy ships engineering work to India and other large markets. But that trend will change. As engineers flock to emerging markets, said Mr. Weir, the trend will favor market transformations on local levels.

3 Keys to a Successful BPO Strategy for Engineering Services Mr. Weir advises executives to consider three important points: 1 Process and technology innovation are required for differentiation; lowcost execution capability is needed for cost performance reasons. 2 The drivers of engineering services and the type of domain skills vary by industry. Headcount scalability is okay at the bottom of the stack; higher up, experience is needed more.

Ganesh Natarajan, NASSCOM Chairman’s Council, India The dot-com crisis of the 1990s shook everyone awake and launched the Indian outsourcing industry as we know it today, said Mr. Natarajan. Instead of waiting for client issues to surface, these firms began reaching out to their customers with ideas and solutions— with fees tied to results. Today, a more agile industry is poised to deploy cloud technology. Cloud-based applications are replacing big investments in infrastructure. Companies are investing in standardized processes subject to four “game changers”: cloud computing, platform business process outsourcing, mobility and web 2.0. “Every customer I speak with is talking about increasing business flexibility,” Mr. Natarajan said. He referred to a firm in the UK that adopted cloud computing to improve customer responsiveness, business agility and continuity. Within a year of implementation, the company saw a 66% reduction in time to market of new services.

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Every customer I speak with is talking about increasing business flexibility.

Conversations with clients follow a new script. “Customers do not want us to talk technology anymore,” Mr. Natarajan said. “We never talk about what we do, application support or infrastructure management; that’s assumed.” Instead, the key words are leadership, governance and organizational change. It’s all about finding solutions that optimize operations and reduce costs, helping organizations respond more effectively to changing business needs, and spurring innovation and growth through better information management.

3 Competitive reconsiderations; still a fragmented market with competitors whose business models are continuously evolving.

World BPO/ITO Forum

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New software platforms can cut costs by 20% to 30% and are key to ensuring that US companies remain competitive on the world stage, he said. For example, Mr. Natarajan noted that at least 20 firms in the US, Europe and Japan have seen benefits from exposure on Second Life, the online virtual environment populated by real companies. Meanwhile, fashion company Threadless invites players to share their clothing designs on Facebook and other platforms; if they are popular enough, the company will produce and sell the clothes, and pay a portion of income to the designer.

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Day One Closing Keynote: Dr. Lawrence Summers Director, White House National Economic Council for President Barack Obama, 2009-2010; President, Harvard University, 2001-2006; Secretary of the Treasury, 1999-2001 Former Treasury Secretary Larry Summers is an outspoken advocate for business process outsourcing to create a level global playing field. He underscored the merits of free trade and the perils of misguided restraint in a world few could imagine just two decades ago, when 100 policy papers on economic issues prepared for candidate Bill Clinton contained not a single reference to an embryonic Internet. When historians write about this era, said Dr. Summers, the big story will center on an unprecedented rise in the standard of living. In 2,300 years from ancient Greece to the industrial revolution, living standards increased by about 50%. The advent of the industrial revolution brought sweeping change— for the first time since Pericles, living standards could improve meaningfully in a single lifetime. Those growth rates pale today next to China, where meaningful changes in standards of living occur within a decade or even faster. “This is progress on a scale never seen before, and it is happening in our lifetimes,” he said. And business process outsourcing plays a big role.

So far in the 21st century, Dr. Summers observed, the most transformative kind of trade is trade in tasks. Companies can separate a roster of trade functions that accompany the production process, such as payroll, market analysis and accounting, among many others. Resisting the prospect of offshoring withholds a major totem of competitive parity from the most profitable producers of economic progress, Dr. Summers said. “It is to deny the US and American businesses an opportunity to participate in this revolution in emerging markets, which is the most important economic story of our time.” He added that increasing trade in tasks makes businesses more efficient and competitive, and allows them to exploit different skills, capacities and labor costs anywhere in the world. Critics who automatically label outsourcing or offshoring a threat to prosperity “resemble luddites who took axes to machinery early in England’s industrial revolution,” he said. Instead of killing jobs, as luddites feared, machines spawned millions of jobs and better standards of living.

While calling for education policies that sustain the US as the world’s primary engine of new science, technology and entrepreneurship, Dr. Summers also advocated far more regulation at the international level. Otherwise we may witness a Resisting the prospect of offshoring … ruinous race to the bottom as countries gut regulations and tax policies to lure employers to their shores. Absent international … is to deny the US and American businesses an opportunity to participate in this revolution in emerging markets, controls, it will be harder if not impossible to generate popular support for trading practices that will make the US competitive which is the most important economic story of our time. and promote global prosperity.

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Andrew Greenwood, TCS & Dr Larry Summers

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Emerging Trends: How Companies Should Align Their Technology and Services Roadmap Chris Kaisand, Managing Director, Strategic Alliances and Vendor Relations, TD Ameritrade Rena Nigam, SVP and Head, Banking and Capital Markets-Mature Geographies, MphasiS In June 2011, for the first time, consumers spent more time on mobile devices than the internet. This speaks volumes to Chris Kaisand. He asked the audience to consider how dramatically the growing array and use of mobile devices have realigned the way companies do business—never mind the role of mobility in the toppling of repressive governments in the Middle East. “If we’re not devising strategies in BPO and ITO partnerships with that in mind,” he warned, “we’re missing the boat.” Whether they furnish trading, banking or margin platforms, partnerships must align technology and services. Economic reality increasingly warrants partners equipped to provide offshore and nearshore solutions: You cannot run the risk of being on an island, said Mr. Kaisand, with a partner who can’t get you off of it. Nearshore solutions need to be part of strategic agendas. For a glimpse of where things are headed, consider how Formula One race car driving teams work in sync. Everything moves at stunning speed in and outside the car. Steering requires 28 buttons, not a steering wheel. In effect, said Mr. Kaisand, drivers play a video game in a machine that’s moving at 197 miles per hour. That’s where the world continues to go, he said. As things move faster, organizations also grow more complex. To mitigate risk, emerging trends in social media, mobile devices, cloud technology and tablet adoption need a comprehensive governance framework across compliance, procurement, finance, legal and operations. That calls for outsourcing capabilities with scope and depth.

Creating a BPO Roadmap in a FastMoving World For successful BPO partnerships, Mr. Kaisand suggested the following: ■ Appoint innovation czars. Leverage communities and social media to invent new ideas. If you don’t have someone, get someone. The right analysis is crucial even when that’s not the direction taken. ■ Stay wired with industry. Evaluate new vendors. Mix and weave horizontal and vertical partners. Form partnerships where excellence is visible. ■ Pay attention to cultural sensitivity. Some outsourcing partners may be technically competent but culturally ill suited to assignments. When mulling near shore solutions, consider immigration and visa hurdles. ■ Plan ahead for a new organizational model. If you don’t have six-month, 18-month and 3-year outsourcing plans, you are making a mistake, Kaisand warned. Even if they change every month—and they will change—companies need a baseline.

Transformational Leadership and Strategies for Succeeding in the New Economic Order Sushma Rajagopalan, Head of Global Strategy and Business Process Services, L&T InfoTech The most enduring transformations occur in response to a bold vision, said Ms. Rajagopalan. She shared statistics showing that 50% of vision-driven transformations succeed, and highlighted visionary transformations that launched or revitalized Starbucks, the city of Dubai, and Larsen & Toubro. All three took shape thanks to visionary leaders who saw ways to seize opportunity. “Who among us has the audacious vision to think boldly,” she asked, “to create something new? We’ve milked the outsourcing game, the cost arbitrage game. We’ve done all of that.” Today, the IT industry needs leaders with bold visions to meet new economic realities. The section of the world once called “undeveloped” will soon account for more than half of global consumption. Middle-class populations and GDP rates are surging in a host of markets. To serve these new customers, companies need BPO partners that can expand their market horizons. IT service providers must learn how to leverage new technology to foster growth. That means finding new revenues, improving profitability, bringing new products to market and helping clients manage risk in unfamiliar territory. Transformative solutions hinge on bold leaders who inspire innovation and lead by example.

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Who among us has the audacious vision to think boldly, to create something new? We’ve milked the outsourcing game, the cost arbitrage game. 8

World BPO/ITO Forum

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• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Closing Keynote: Fireside Chat Mike Toma, VP and CTO, Automatic Data Processing, Inc. Jim Noble, Chairman, World BPO/ITO Forum Harvey Koeppel, Executive Director, Center for CIO Leadership; Vice Chair, World BPO/ITO Forum

From left: Harvey Koeppel, Jim Noble and Mike Toma At the close of the conference, Mr. Toma drew three observations: ■ No matter what companies sell, customers expect products wrapped in flexible services that can adjust to all circumstances. ■ Customers are leaning toward single suppliers of systems in particular domains. The trend is visible in consolidations and roll-ups by big players. ■ Any company starting in a garage can become global. Keep an eye on the small picture; in the enterprise space, localization is crucial to staying on top of trends.

The answers are not strictly about contracts or service-level agreements (SLAs), said Mr. Noble. Interpersonal relationships govern ultimate outcomes. They ensure everyone grasps the stakes and works in concert toward the same goals— especially when problems require urgent solutions. Convening top echelons of vendors and service providers at a “captain’s table,” for example, aligns interests. Once these executives sign on at the strategic level, their organizations can internalize customers’ priorities.

While agreeing that game-changing innovation must take place, the three speakers probed the elusive meaning of innovation. Apple did not invent MP3 technology or the MP3 player—its innovation lay in revolutionizing customers’ music experience in every dimension. Sony had owned the music business for four decades; through innovation, Apple took it away in only two years. Mr. Noble posed three persistent questions customers ask of their BPO partners: 1 How do we insure we get the “A” team? 2 How do we incentivize partners’ behavior? 3 How do we intervene if things go wrong?

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The answers are not strictly about contracts or service-level agreements (SLAs).

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Globalization and Leadership Track Innovate or Die: How Transformational Thinking Drives Business Success Moderator: Emmet B. Keefe III, CEO and Co-founder, iRise Panelists: Hossein Eslambolchi, Chairman, 2020 Venture Partners Bill Mitchell, Director, Global Platform Services, Deutsche Bank; former CIO, Warner Music International Eric Ranta, National Vice President, Value Engineering, SAP North America Roxanna Wall, Executive Director, Corporate Development - Outsourcing and Offshoring, UBS AG IT departments often hear these urgent marching orders from their CEOs these days: Get me something game changing in production—within three months. Hossein Eslambolchi of 2020 Partners recalled the rapid pace of change at AT&T on his watch as chief transformation officer. His tenure centered on leadership at every level, from retuning process to slashing cycle times. He kept a tight lid on installation times because he has found that complexity multiplies geometrically with every extra minute needed to install systems.

In banking, said Roxanna Wall of UBS, the transformative mantra is “innovate or die.”

Five billion cell phones spell significant opportunity for IT leadership, said Eric Banta of SAP. “When you measure market penetration as a percentage of world population,” he said, “that is a macro trend.” IT leaders can redefine ways business customers get value from mobile apps. Beyond setting goals, companies must plan to leverage or realize the value of technology once it is in place. It does not generate an optimal return merely because it has been installed. Omitting this step is “a real shortcoming,” Mr. Banta said. In banking, said Roxanna Wall of UBS, the transformative mantra is “innovate or die.” Recent discussions about outsourcing to reduce costs led her firm to swap the old outsourcing model for one with an innovative solution. We’re turning the whole concept of outsourcing on its head.” That means tackling problems with vision, a strong sponsor and teams of people from different backgrounds, and forming outside partnerships.

From left: Hossein Eslambolchi, Eric Ranta, Roxanna Wall and Bill Mitchell

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

IDG CIO Executive Council Panel: Journey to the Future-State CIO Overcoming the Top Roadblocks Moderator: Pamela Stenson, SVP and General Manager, CIO Executive Council Panelists: Mike Belak, CIO, Metropolitan Regional Information Systems (MRIS) Larry Bonfante, CIO, United States Tennis Association (USTA) John Heidelberger, VP and CIO, Individual Life and Disability, The Guardian Life Insurance Company of America Ted Tompkins, CIO, VetCentric; former President, SIM Capital Chapter Four prominent CIOs probed the theme of transformation, framed by moderator Pamela Stenson as a three-step progression—from functional to transformation and finally to a future state where IT helps shape business strategies.

What Keeps You From Your Future State? Panelists identified the top 10 hurdles: ■ Leadership depth in CIO’s staff

Command of the functional state means running an organization smoothly, keeping teams systems-oriented, and ensuring that the house is in order so far as stakeholders are concerned. However, most companies today find themselves in the transformational stage, according to a show of hands by the audience. Like them, the Guardian Life Insurance Company of America is in the transformational stage edging toward future state.

■ Time to shift focus from IT operations

CIOs play pivotal roles in the future state. In this third state, “you are a game changer,” said Ms. Stenson. Future-state CIOs have market knowledge; they know the competition and what customers want. Their teams are business-oriented and customer-facing. IT anticipates and provides information CEOs need to reinvent corporations in shifting economic horizons.

■ Seat at the table

■ Business credibility ■ Stabilizing IT ■ Time to shift focus from enterprise processes ■ Knowledge of our business and market strategy ■ Knowledge of external customers ■ General negative perception of IT ■ IT credibility

Ten hurdles impede progress toward the future state. Topping the list was “leadership depth in CIO’s staff.” Stretch assignments, feedback sessions, mentoring and coaching and project management training all nurture the next generation of IT leaders. Collaboration also promotes the future state; lack of collaboration certainly dooms it. Allowing other executives to pigeonhole IT executives impedes leadership, panelists agreed. Avert that by learning about colleagues’ challenges, and then show them how the IT group can support the entire organization, starting at the earliest planning stages.

Future-state CIOs have market knowledge; they know the competition and what customers want. Their teams are businessoriented and customer-facing.

Pamela Stenson

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The Economic and Social Impact of Global Sourcing: Getting the Complete Picture Moderator: Calestous Juma, Professor, John F. Kennedy School of Government, Harvard University Panelists: P .K. Agarwal; President, TiE; former CTO, State of California Zia Khan, VP, Strategy and Evaluation, Rockefeller Foundation Harvey Koeppel, Executive Director, Center for CIO Leadership Ralph Schonenbach, CEO, Trestle Group Making global sourcing a positive and sound strategy, said moderator Calestous Juma, starts by getting away from contentious debates that imply one side loses when another side wins. Business process outsourcing conducts commerce, manages industry, and takes advantage of data and analytics to promote a better culture, and a better standard of life for customers and employees. The ecosystem around sourcing rests on global companies that train and educate workers, and foster local economies wherever they set up operations. As these companies educate workers, they affect people, families and whole communities. “In trying to do social good, how can we use business as a lever?” asked Zia Khan of the Rockefeller Foundation. Putting poor and vulnerable populations to work gives those workers a stake in economic growth, and makes them more resilient in hard times. Outsourcing jobs to developing counties also promotes stability. The Rockefeller Foundation estimates that the social value of outsourcing by 2015 will inject $20 billion into new markets and create up to 800,000 new jobs.

Negative images of global sourcing derail favorable effects of outsourcing. It fosters a protectionist culture, warned Mr. Schonenbach of the Trestle Group. Protectionism only closes borders, erects barriers between affluent societies and disenfranchises markets whose people want to become trading partners. Popular rhetoric aside, consumers implicitly vote for global outsourcing every time they shop at Wal-Mart for goods made in China. Having operations and gaining insight from companies that large companies see as the future is very important. “We are at the early stages of exploring this,” Mr. Khan said. To reach later stages, the economic and social impact of global outsourcing pose tough questions: What is going to be the right value proposition for large companies? What are policy considerations when governments are major customers? What will it take to persuade large organizations to pursue business process outsourcing not only as an economically viable initiative but also to drive social impact? Verdicts await.

The Rockefeller Foundation estimates that the social value of outsourcing by 2015 will inject $20 billion into new markets and create up to 800,000 new jobs.

Calestous Juma

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Is a Free Market in Global Sourcing Good or Bad for America? Moderator: Amit Mukherjee, President, Ishan Advisors, LLC; Executive in Residence, Babson College Panelists: Joe Held, SVP and Global Chief Information Officer, Reader’s Digest Association, Inc. Wendell Jones, CEO, SIM International Jerry Luftman, Executive Director and Distinguished Professor, Stevens Institute of Technology Ambassador John Veroneau, Partner, Covington & Burling LLP; Former Deputy United States Trade Representative (USTR) By a vote of hands, nearly everyone in the audience agreed that business process outsourcing is good for America. Then, moderator Amit Mukherjee highlighted the contrast with consumers generally. Asked in a 2004 Zogby poll whether outsourcing hurts the US economy: 71% of consumers agreed. Asked whether the US government should tax or legislate against companies that engage in outsourcing, 62% agreed.

Critics of business process outsourcing overlook lessons from the automotive industry. Modern automakers source parts worldwide while retaining here the roles that make cars desirable and innovative—and keep their identity as US companies. Likewise, winners across the board will build global infrastructures and become best at integrating the parts they source worldwide.

A profound disconnect separates insiders from outsiders over questions about the merits of global outsourcing. Changing minds won’t be easy, warned Mr. Mukherjee. Convincing skeptics rests on convincing voters that BPO has many more layers than moving jobs abroad to cut costs. Alliances and interdependencies, networking, new distribution channels and business redesign create opportunity but are hard for most consumers to grasp.

To defuse critics who fix on payroll numbers, make competiveness the issue, Mr. Veroneau said. Talking about closing borders is unrealistic and ultimately poses harmful consequences for the US economy. It is an “oversimplified notion that we can wrap a big fence around the US economy and ‘save jobs,’” said Veroneau. “Growth outside the US is the source of US growth and job creation—not the opposite.”

Insiders fret too much over defining cross-functional teams, flattening hierarchies and assigning roles to managers. These are the wrong questions. Instead, growth-minded firms ought to focus on encouraging worker problem-solving and better training for entry-level jobs. Failure to change will spawn losses and bankruptcies. Former deputy US trade representative John Veroneau sees competing alternatives. Public perception makes it difficult for lawmakers to embrace global business process outsourcing, its merits notwithstanding. Politicians can lose more voters than they’ll gain by trying to say what’s good about global outsourcing. But many of the same policy makers also realize they cannot tie the hands of companies competing globally in new markets.

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Over time we will no longer be talking about global outsourcing, we will be talking about global talent.

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There is a bullish perspective on the virtues of outsourcing, said Professor Luftman. Plenty of research furnishes evidence that BPO is not only good for America, but for job seekers too. IT fuels demand for cadres of skilled workers and will continue so for the foreseeable future. These IT jobs and careers will migrate in all directions. A global shortage of talent affects countries from Brazil to Vietnam. “Over time we will no longer be talking about global outsourcing,” predicted Mr. Held of Reader’s Digest. “We will be talking about global talent.” Failure to groom talent at home already harms the ability of US companies to compete and warrants attention by the government, panelists agreed. www.worldbpoforum.com

Ambassador John Veroneau

CIO Roundtable - Harnessing the MegaTrend Trio: Mobility+Cloud+Social Moderator: Gary Beach, Publisher Emeritus, CIO Magazine Panelists: G opal Khanna, Former CIO, State of Minnesota Jonathan Miller, VP and CTO, Mc-Graw-Hill Information & Media, The McGraw-Hill Companies Peter Whatnell, CIO, Sunoco; former President, SIM International Sasi Pillay, CIO, NASA Glenn Research Center Companies that leverage social media properly are likely to become revenue leaders in their industries by 2015, the research firm Gartner has reported. But according to rival Forrester Associates, said moderator Gary Beach, nearly half of the firms that it surveyed ban social media from workplace access. In contrast with companies that block social media, Beach recounted how social media flopped initially at an industrial company in Ohio until HR surrendered control to the engineering department. Then it took off. The message, said Beach: Whoever builds what you sell should run social media. Slamming a door on social media in the workplace is myopic and ultimately futile. Far from choking off digital communication at the McGraw-Hill Companies, Chief Technology Officer Jonathan Miller promoted a virtual water cooler aimed at free, informal sharing of ideas—and a way for new recruits to join the conversation. Internally, the company encourages use of yammer.com, a means of fostering thought leadership among colleagues inside thousands of companies—especially young employees. It has also adopted jive.com.

The NASA Research Center is “anywhere and everywhere today” in social media, said Mr. Pillay. It aims to inspire the next generation of students to go into science, engineering and technology. Experimentation extends to NASA’s virtual presence in Second Life, a virtual world populated by players’ avatars and virtual companies and institutions. NASA houses a model on Second Life where visitors can learn about jet propulsion, among other things. Policy and politics may paralyze the side of government that makes evening news, but not where government programming starts. Governments are ripe for digital innovation and transformation, said Mr. Khanna. By 2025, he predicted, new IT system designs will dislodge government systems and practices dating to the 1950s and 1960s, when customer fulfillment mimicked the nine-to-five corporate structure. As the private sector moved on to a 24/7 profile, the public sector fell behind. The two sectors have long since converged in many ways— private firms now build bridges, highways and other public infrastructure. Once this becomes clear, wider use of BPO for ongoing government activities should attract less scrutiny.

From left: Peter Whatnell, Gopal Khanna and Jonathan Miller

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Sunoco is gearing up for three megatrends, said Mr. Whatnell. The first trend, he said, is that world is becoming more “instrumented.” Sensors populate every kind of device from cars to cameras to home climate controls. It will create huge amounts of data for computers to parse. The second trend is that everything will be connected to everything else: Whatnell counts eight IP addresses in his home, including a cable box, television and video camera. Finally, devices are converging—why own a standalone GPS device when a single device packages GPS, e-commerce, communication tools and countless other features?

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An important lesson, says Gary Beach of CIO Magazine: Whoever builds what you sell should run social media.

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At McGraw Hill, project teams, project managers, business executives and even IT create demand on systems that can tax capacity needed to sustain operations, much less get in front of change. As a result, McGraw Hill is putting heavy demand on cloud infrastructure. There is a lot of activity but as yet, said Miller, no consolidated cloud-based strategy. Miller estimates that about 5% of new apps are designed for the cloud, where elasticity has high appeal in business areas that are subject to spikes in demand, such as financial services when a stock index changes. As a close to the discussion, Mr. Beach invited panelists to pick a winner in the “digital sweepstakes”: mobility, cloud, and social media. The verdict leaned toward mobile technology that is transforming the way people live, work and transact business every day.

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Gary Beach

Sourcing Strategy and Best Practices Track Portfolio Approach to Global Sourcing: Balancing Risks and Returns Moderator: Sumeet Sanghani, SVP, Supply Chain Management and Director of Global Outsourcing, SunTrust Banks, Inc. Panelists: S uzanne Aquino, Executive Director, UBS AG Bobby Varanasi, OM Exco and Head, Marketing and Branding, Outsourcing Malaysia; Chairman and CEO, Matryzel Consulting, Inc. Craig Gustafson, VP and Head Business Development, Insurance, US and Canada, MphasiS Brian Tumpowsky, Director, Sourcing and Governance, RE:Sources Danielle Fox de Aguilar, Director, Strategic Sourcing and Supplier Management, Microsoft IT, Microsoft Corp. Four buy-side sourcing experts and one vendor addressed two themes under the heading of “Portfolio Approach to Global Sourcing: Balancing Risks and Returns.” Moderator Sumeet Sanghani invited panelists to think about the ways a typical investment portfolio manager balances risk and reward versus options that face outsourcing portfolio managers. How do risk-adjusted returns affect outsourcing portfolio strategies, including investment growth, capital preservation and risk appetite, among others? Change alters these calculations. At Re:sources, an IT arm of the global advertising giant The Publicis Groupe, digital media has doubled its share of the top line in three years, to 15%. Social networking is paramount. IT now pervades external customer-facing activities in addition to expanding internal roles. Outsourcing fosters all of these opportunities, but new risks accompany them. Because outsourcing firms are best equipped to evaluate risks, Re:Sources looks routinely to its supply chain partners for ideas that help it keep outsourcing portfolios in balance, said Mr. Tumpowsky. Capacity and capabilities motivated Microsoft to begin outsourcing, said Ms. Fox de Aguilar. It migrated afterwards toward cost savings. Its outsourcing portfolios include delivery of new services and access to new markets or looking at ways to transform the business. “You’re not just looking for someone to support applications or infrastructure,” she said, “but somebody to supply end-to-end business capabilities.” From left: Craig Gustafson, Bobby Varanasi, Suzanne Aquino , Danielle Fox de Aguilar, Brian Tumpowsky

World BPO/ITO Forum

Upheaval in the finance industry propelled UBS to ease risk by outsourcing practices beyond knowledge, project research and analytics restricted to its investment bank, said Ms. Aquino. Now, the company outsources routinely to ITO suppliers, though it retained one captive unit in Poland to handle activities that securities regulators insist investment banks handle in-house. A tough decision to divest ownership of an outsourcing captive firm in India drew internal criticism from IT developers, but two years later it still looks smarter to ally with niche players that are experts in markets where UBS lacks expertise and profit motive. For very big companies like UBS or Microsoft, with thousands of vendors and outsourcing arrangements, bottom-line benefits of outsourcing rest on smart allocations. Outsourcing is now core managing practice. But is it true of the larger landscape? Not yet, said Mr. Varanasi. Firms with less scale still have their eyes mainly on procurement, not on broader benefits. Organizations must pick the right partners if they hope to prevail, said Mr. Gustafson of MphasiS. Toward that end, key sourcing partners warrant seats at the table where companies and vendors weigh potential risks and rewards. With time a precious asset, companies can’t afford to develop 200 relationships with 200 partners that deliver 200 things, he said. Companies are choosing fewer vendors that can grasp and help manage the risks and rewards in outsourcing initiatives.

Key sourcing partners warrant seats at the table where companies and vendors weigh potential risks and rewards.

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

The Shifting Global Sourcing Axis: Will Onshore/NearShore be the New Offshore? Moderator: Krista Sykes, Strategic Procurement Manager, The Coca-Cola Company Panelists: Robert Janssen, Managing Partner, Outsource Brazil (Brazil) Daniel Kuperstein, Executive Vice President for Business Development, Globant (Argentina) Doug Sawer, Managing Director, Ceridian UK (Scotland) Amanda Sweeney, Director, IT Global Service Delivery, PETCO Animal Supplies, Inc Moderator Krista Sykes of Coca-Cola led an engaging discussion about the increasing trend among companies to shift from overseas outsourcing to nearshoring, working with firms that are closer to home. Understanding where to locate your next sourcing program depends on the prioritization of risk diversification, costcontainment and business agility. Mr. Sawer of Ceridian agreed that nearshoring is more prevalent today than five years ago.

Panelists noted that there are centers of excellence for certain types of outsourcing. For example, Petco’s customer help desk is located in the Philippines because the quality is better, said Ms. Sweeney. But overall, the key to successful outsourcing is to understand that “the buyer is really the only one that knows the business. Sourcing is a very important management responsibility, and executives need to understand that.”

But nearshoring isn’t always the right decision. Mr. Janssen of Outsource Brazil stressed that companies today need to be looking for more than the lowest price for services—they must seek the firms with the best skills and ability to leverage talent to find workable solutions. In that sense, location is not as important as the specific skill sets an outsourcing firm can provide.

Our outsourcing partners need to understand our strategic issues, and drive innovation.

Ms. Sweeney of Petco echoed that sentiment. She said that companies are shifting away from cost as the primary incentive to outsource and focusing more and more on quality. “Our outsourcing partners need to understand our strategic issues, and to drive and reward innovation,” she said. At outsourcing firm Globant, said Mr. Kuperstein, the firm follows what he calls an innovation incubation model. “We crowdsource ideas from within our own firm,” he says.

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Dr. Lawrence Summers and Krysta Sykes

Beyond SLAs and Contracts: Structuring a Win-Win Relationship Moderator: John Fafian, VP, Strategic Sourcing, Morgan Stanley Panelists: Angelo Incorvaia, SVP and Head of Information Technology, Bank Leumi USA Donald Mones, VP, Outsourcing, Planning and Strategy, The McGraw-Hill Companies John O’Brien, Executive Director, Morgan Stanley Andrew Wasser, Associate Dean, School of Information Systems, Carnegie Mellon University In this session, moderator John Fafian of Morgan Stanley led an interactive workshop to help attendees navigate the choppy waters of service-level agreements. One attendee noted that not enough firms conduct customer satisfaction surveys to understand the effectiveness of SLAs. A show of hands in the room revealed that very few outsourcing customers are asked to participate in such studies. This was an important insight for outsourcing vendors. “You might be meeting the SLAs,” said the attendee, “but the customer is still not happy.” Another attendee asked how to resolve an issue in which an SLA is not met because customer needs changed. Panelists agreed that change management clauses need to be built into the agreement to address such issues; if requirements are altered, the contract should be amended. www.worldbpoforum.com

On the topic of providing incentives for outsourcing partners, panelists agreed that the best reward is the promise for future business. This, however, should not be written into the contract itself. “It’s important to make sure up front that SLAs are measurable and meaningful,” said one panelist. Panelists also advised outsourcing vendors not to promise too much for free in an SLA. Too often, an outsourcing provider will make the mistake of offering extra services at no additional cost in the hopes of securing more work with the client down the line. If the additional work does not materialize, they begin pulling the services the client had come to expect as part of the agreement. This ultimately damages the client relationship.

Uncloaking the Cloud: Implications on your Outsourcing/Offshoring Strategy

Finding Your Next Outsourcing Haven: Emerging vs. Maturing Destinations

Moderator: David Tapper, VP, Outsourcing and Offshore Services Market Research, IDC

Moderator: Soumitra Rathod, VP, World Wide IT Sourcing, The McGraw-Hill Companies

Panelists: Mike Giresi, CIO, Direct Brands; former CIO, Godiva Chocolatier Srini Krishnamurthy, VP, Business Optimization, Kronos, Inc.; former Head of Sourcing, MassMutual Dr. Sasi Pillay, CIO, NASA Glenn Research Center George Takach, Partner, McCarthy Tetrault LLP

Panelists: Gary Hanley, SVP, North America, Invest Northern Ireland Robert Seges, Polish Information and Foreign Investment Agency Gillian Virata, Senior Executive Director, BPAP (Business Processing Association of the Philippines)

Cloud computing is quickly emerging as a key model for service delivery in the outsourcing space. Particularly for firms that do not have dedicated IT departments, outsourcing provides huge opportunities. Yet many firms still hesitate to adopt the cloud, for a host of reasons. David Tapper launched the discussion by asking panelists where they see adoption happening most quickly.

As the outsourcing market matures, companies are looking to new destinations for value. Soumitra Rathod of The McGrawHill Companies led a panel discussion in which representatives of foreign investment agencies from Ireland, Poland and the Philippines shared their views about emerging destinations for outsourcing.

Mr. Krishnamurthy of Kronos said that outsourcing is not widely used in financial services. In his view, if cloud services were to be considered in finance, it likely would be for a common shared service such as human resources. “That’s a space where I think we will see more adoption,” he said. But Mr. Takach of McCarthy Tetrault said that cloud services are gaining traction across other industries. “Security remains an issue—and right now the cloud is more like a fog. But within three years you will start seeing movement.” A show of hands in the audience showed that roughly one-quarter of the room currently use public clouds in their operations. Mr. Tapper asked the panelists to discuss the extent to which they saw cloud short-circuiting normal procurement processes and exposing customers to risk. Mr. Tackach agreed that could be an issue. “If you have been through a major CRM implementation that costs millions of dollars and you’re still not there, Salesforce starts to look pretty good.” However, he added, “there is still due diligence, issues you need to consider and work through” before executives made the decision to switch. Dr. Pillay of NASA stressed the need for proper guidelines to make sure that decisions about cloud deployments are carefully considered. “You need to have policies in place to make sure you can’t just go and do it on your own,” he said. Panelists agreed that the cloud—in both its public and private forms—will play a critical role in the future. But it will take time to develop the requisite skills that will enable the construction of private clouds that are comparable to the likes of Amazon. Until then, panelists cautioned attendees to make sure they have proper policies in place to protect data.

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Right now the cloud is more like a fog. But within three years you will start seeing movement.

World BPO/ITO Forum

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Finding a cultural match is an important first step, agreed panelists. For companies that are outsourcing for the first time, it’s important to start with a process that is well-defined. Gary Hanley of Invest Northern Ireland explained why so many Indian investors are putting their money in Northern Ireland: “We have the best English-speaking workforce in Northern Europe, the lowest operating costs and the best digital infrastructure,” he said. Rather than focus on scalability, which requires thousands of workers, “we addresses capability,” he said. Furthermore, Northern Ireland offers grants for research and development. And because the nations spends significantly on education, “we are able to match research to the capabilities of our universities and research institutions,” he said. In Poland, said Robert Seges, the decision was made to differentiate in outsourcing services rather than compete directly with the likes of India. “We can say that Poland changed the development of the service sector from simple processes into decision-support and knowledge outsourcing,” he says. In addition, “We have many multinational centers in which clients are served in 25 languages,” he said. “This is not employment of Polish nationals; these are people who speak the native language.” Gillian Virata of the Business Processing Association of the Philippines admits that as an outsourcing destination, the Philippines is already well-known for its high-quality callcenters. “If you are a large call center looking to outsource, you are a little late,” she says. The region is now branching into nonvoice services and seeing significant interest. Many firms that partner with outsourcing companies in the Philippines choose to expand their business there because “the Polynesians have an ‘x factor,’” she said. “It’s difficult to quantify. We have a cultural gene that makes us happy to help others. The thing we fear most is letting down the team.”

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

sponsors LEAD ANCHOR SPONSOR

DR. Lawrence SUMMERS KEYNOTE SPONSOR

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snapshots from the conference

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

www.worldbpoforum.com

Keynote Speaker Bios Jim Noble

John Lutz

Chairman, World BPO/ITO Forum; SVP Talisman Energy

General Manager, Global Process Services, IBM

Till very recently, Jim was responsible for IT Strategy and Process Re-Engineering for BP’s global Information Technology and Services organization. Throughout 2007, Jim had responsibility for strategy and transformation for business operations, client services and technology solutions for all of the Merrill Lynch businesses worldwide. Jim was also enterprise chief architect, and had line management responsibility for technology in Investment Banking. Until end 2006, Jim was VP and CIO of Altria Group Inc., with overall responsibility for information technology in that Fortune 15 company. Jim was President of Tecworks LLC, the shared services organization run as a separate legal entity. Prior to joining Altria Group in March of 2002, Jim was SVP and CIO at AOL Time Warner. Prior to that Jim had been with General Motors Corp, where he was based in Detroit as Chief Technology Strategy Officer, moving to that assignment from the role of CIO of General Motors International, where he was responsible for all IT activities outside of North America. Earlier in his career, Jim led the worldwide IT consulting practice at Cap Gemini, and prior to that he worked for GEC on the design of aircraft systems. Jim is past President of the Society for Information Management, which is the leading professional association for IT executives. In 2007, Jim was voted as #7 in the annual table of the most influential IT executives in the USA.

As General Manager of IBM’s Global Process Services, John leads IBM’s process outsourcing business. He and his teams serve clients around the world with leadership capabilities in Human Resources, Finance and Administration, Supply Chain Management, and Customer Relationship Management. Through these services, IBM combines deep industry knowledge, process know-how, and leading technology to improve the efficiency and effectiveness in both industryspecific and horizontal domains. IBM’s solutions approach drives a balanced approach between top-line growth and bottom-line savings by employing rigorous yet flexible methodologies and toolsets deployed across a global delivery network. Prior to this role, John was General Manager of IBM’s Global Financial Services organization, responsible for IBM’s overall relationship with major financial services firms around the globe. John and his team help financial services clients transform their businesses to respond to the swiftly changing array of business conditions, regulatory requirements, and other challenges they face today. John’s experience in financial services spans a wide range of assignments, including service as IBM’s Managing Director for JPMorganChase, responsible for IBM’s overall business relationship with this client. Other experiences at IBM include roles as Vice President of Global Sales for On Demand Business, Executive Assistant to IBM’s Chairman and CEO, Louis V Gerstner, Jr., and Vice President for Insurance in Europe, Middle East, and Africa, and a variety of sales roles in the Midwest of the United States. John’s first experience at IBM dates to the early 1980s as a summer intern at the T.J. Watson Research Center where he worked on natural language translation algorithms. John earned an A.B., magna cum laude, from Harvard College and is a graduate of St. Joseph High School in Ironton, Ohio. He serves on the advisory board of the Center for Talented Youth at Johns Hopkins University and resides with his wife and three children in Ridgefield, Connecticut.

Dana Deasy Group CIO and Group VP, IT Services, BP Dana Deasy is Group Chief Information Officer (CIO) and Group Vice President, Information Technology and Services for BP. When Dana joined BP in October 2007, he took responsibility for the global IT strategy and capability supporting all the firm’s operations including its Refining and Marketing and Exploration and Production businesses, as well as its commodity trading operation. As part of BP’s current change agenda, Dana is transforming the IT organization to maximize the competitive edge and value that information technology provides to the firm. Outside of IT, he holds group-wide responsibility for indirect procurement. Dana has over 25 years of experience gained from leading and delivering large scale IT strategies and projects. He joined BP from General Motors where he held the position of Chief Information Officer, North America, leading the information management organization for the North American region of the company. Prior to General Motors, Dana was the Global CIO for Tyco International and before that, CIO of the Americas for Siemens. He has held a number of positions at Rockwell Space Systems Division, ultimately achieving the position of Director of Information Management supporting Rockwell’s Space Shuttle program. Dana holds an undergraduate degree from the University of Southern California and a graduate degree from National University.

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Ganesh Natarajan

Patrick Weir

Vice Chairman and CEO, Zensar Technologies Chairman, National Committee, CII Member, Chairmen’s Council, NASSCOM

Lead Solution Director, Engineering BPO Services, Accenture

Dr. Ganesh Natarajan is Vice Chairman and CEO of Zensar Technologies, a global firm that transforms Technology and Processes for Fortune 500 companies. He is also President of the IT Sector and a member of the Management Board of the $3.25 billion RPG Group. He is the current Chairman of CII’s National Committee, Co-Chair of the CII’s National Knowledge Council which sets the agenda for the growth of all knowledge sectors in India and global collaborations and a member of the Chairmen’s Council of NASSCOM. A Gold medalist in Mechanical Engineering and Industrial Engineering, Ganesh a doctoral degree in Knowledge Management from IIT Bombay. He is the author of four McGraw Hill publications on Business Process reengineering and Knowledge Management and a regular columnist in India’s leading business and technology magazines. He serves on the Board of Global Talent Track, Asia’s pioneering venture in Technology enabled Skills development and is a member of the Board of Governors of NITIE Mumbai. Ganesh was named “CEO of the Year” by the Asia Pacific HR Conference in 1999 and received the Wisitex Foundation’s “CEO of the Decade–Knowledge Award” from India’s Minister for Information Technology in 2000. In July 2005, he received the Asia HRD Congress Award for Contributions to the Organisation through HR. Ganesh was recognized by Ernst & Young in 2005 Award for exceptional entrepreneurship and in November 2010, awarded the “Outstanding Entrepreneurship Award 2010” by Enterprise Asia.

Dr. Lawrence Summers Director, White House National Economic Council for President Barack Obama, 2009-2010 President, Harvard University, 2001-2006 Secretary of the Treasury, 1999-2001 Chief Economist of the World Bank, 1991-1993 Dr. Summers is one of the most distinguished voices in America today on the global economy and the role of the United States in the world. He has served as Director of the National Economic Council for President Obama, President of Harvard University, Secretary of the Treasury of the United States, and Chief Economist of the World Bank. His tenure as Treasury Secretary coincided with the longest period of sustained economic growth in U.S. history, and made him an expert on domestic economics and a leading authority on international finance. As Director of the White House National Economic Council, Dr. Summers emerged as the key economic decisionmaker in the Obama administration. He served as an architect of the Recovery Act and other job creation measures and the Financial Stability Program. As co-chair of the President’s Auto Task Force, he led the restructuring of the U.S. automobile industry. On Dr. Summers’ service, President Obama said, “I will always be grateful that at a time of great peril for our country, a man of Larry’s brilliance, experience and judgment was willing to answer the call and lead our economic team.” www.worldbpoforum.com

Mr. Weir joined Accenture in 1998 and is currently the Lead Solution Director for Accenture’s Engineering Services business. Pat works with clients around the world, including leading companies in Aerospace and Defense, Automotive, Industrial Equipment, High Tech, and Resources. As solution director, he assesses client engineering needs and opportunities and develops a corresponding global engineering services solution. Pat played a critical role in Accenture’s entry into the engineering services business by setting up the first engineering services BPO operation in the company. Pat also has extensive experience working with clients in product development, product lifecycle management, and maintenance, repair, and overhaul. He is a co-author of several active predictive maintenance patents. Prior to Accenture, Pat was an Air Force officer and pilot.

Sushma Rajagopalan Head of Global Strategy and Business Process Services, L&T Infotech Sushma Rajagopalan is a global business leader with more than 20 years of experience in IT services, outsourcing and technology business. Her career has been an eclectic mix of corporate and entrepreneurial ventures. She re-entered the IT industry as a Chief Strategy Officer after spending five years in building her own growth consulting and M&A advisory firm. In her current capacity as the Head of Global Strategy and Business Process Services at L&T Infotech, Sushma is responsible for positioning the company for continued growth and the associated strategic initiatives including M&A and Sales and Marketing Operations. Prior to joining L&T Infotech, she was the Chief Strategy Officer of Zensar Technologies and the CEO of Zensar ThoughtDigital, a subsidiary of Zensar in New York. Her other past positions include Co-founder and General Partner of Threshold Partners; CEO of Carnegie Speech, a spin-off from Carnegie Mellon University; Head of Global consulting and training at RedHat; President of Planning Technologies (an infrastructure services firm); a Senior Management Executive and Officer of iGate; and a variety of senior management positions in Citibank India and CMC. Sushma holds an M.A. in Personnel Management from the Tata Institute of Social Sciences in India and an MBA from Carnegie Mellon University with a focus in entrepreneurship and strategy. She is also a Certified M&A Advisor. She has taught business courses at Penn State University. Sushma has been living in the United States for over 17 years (currently in Devon, Pennsylvania—a suburb of Philadelphia) and is in Mumbai, India, every other month. Sushma is passionate about promoting entrepreneurship and is a co-founder of America’s first minority angel investor network.

Harvey Koeppel World BPO/ITO Forum Vice-Chair Executive Director, Center for CIO Leadership Harvey Koeppel is Executive Director of the Center for CIO Leadership. In this capacity, Harvey sets the Center’s strategy and directs internal and external operations. He also serves as Chairman of the Center’s Advisory Committee. From May 2004 through June 2007, Harvey served as the CIO and SVP of Citigroup’s Global Consumer Group (GCG). In that role, Harvey set the strategic direction for the GCG’s operations and technology and actively supported the development and growth of the operations and technology community across all GCG lines of business globally. Harvey served as the Chairperson of the Offshore Program Office Steering Committee and provided strategic input to GCG’s offshore and outsourcing practices. He additionally provided executive oversight to the Information Security and Data Protection programs for the Group. Prior to taking on the CIO role, Harvey provided consulting services to CitiFinancial, Citibank and other Citi affiliates from 1986 to 2004. He was heavily involved in supporting the planning and integration of many of Citi’s major acquisitions, including Travelers Insurance, Associates First Capital, European American Bank and Golden State Bank. Harvey has a distinguished record of IT innovation in the financial services industry. He designed the first graphical user interface for the NASDAQ trader workstation. He was the architect and designer of FxNet, a software program that revolutionized the way large financial institutions manage settlement risk within FX portfolios. He was also a primary contributor to the development of the Maestro platform at CitiFinancial, the online interface between customers, the sales force and the back office, which fundamentally changed the loan sales and approval process and significantly streamlined branch workflow. Harvey is the named inventor on the Citibank patent of the “Recommendation Engine,” a software component that advises sales and service staff about products and services to discuss with clients based upon their financial goals and objectives.

Karen Morris Former CIO, AIU Holdings; World BPO/ITO Forum Master of Ceremonies As the former Chief Innovation Officer for AIU Holdings, Karen Morris specialized in innovation strategy and execution in order to identify new growth platforms with special emphasis on speed to market, disruptive innovation and embedding innovation as a broad organizational capability. Karen is deeply involved in analyzing and interpreting the implications of globalization for 21st Century leaders, in particular, the ever-flattening and hyper-connected nature of global economies, the globalization of human capital, and ethics and sustainability across international value-chains. In her private capacity, Karen is writing a book on the challenges legacy organizational and management models face in adapting to the challenges of exponential change.

Additional Speakers P.K. Agarwal President, TiE Global Former CTO, State of California Suzanne Aquino Executive Director, UBS AG Gary Beach Chairman Emeritus CIO Magazine Mike Belak CIO, Metropolitan Regional Information Systems (MRIS) Larry Bonfante CIO, United States Tennis Association (USTA) Hossein Eslambolchi Chairman-2020 Venture Partners Former CIO/CTO AT&T John Fafian VP Strategic Sourcing, Morgan Stanley Danielle Fox de Aguilar Director Strategic Sourcing and Supplier Management, Microsoft IT, Microsoft Corporation Tsvi Gal World BPO/ITO Forum Vice-Chair General Partner & CIO, Exigen Capital Former CTO, Deutsche Bank, Investment Banking, Deutsche Bank Mike Giresi CIO, Direct Brands Former CIO, Godiva Chocolatier Gary Hanley Senior Vice President, Invest Northern Ireland John Heidelberger VP & CIO, Individual Life and Disability, The Guardian Life Insurance Company of America Joe Held SVP and Global CIO, Reader’s Digest Association, Inc. Angelo Incorvaia SVP & Head of Information Technology, Bank Leumi USA Babu Lal Jain Co-Founder, The World BPO Forum Chairman, WICS Robert Janssen Managing Partner, Outsource Brazil

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Dawid Jarosz Director, Małopolska Regional Development Agency (MARR), Poland Wendell Jones World BPO/ITO Forum Vice-Chair CEO, SIM International Calestous Juma Professor of the Practice of International Development, Director of Science, Technology and Globalization Project, Harvard University Surya Kant President, Americas & Europe, Tata Consultancy Services Chris Kaisand Managing Director, TD Ameritrade Emmet B. Keeffe III CEO & Co-founder, iRise Zia Khan VP, Strategy and Evaluation, Rockefeller Foundation Gopal Khanna Former CIO, State of Minnesota Kartik L. Kilachand Co-Founder, The World BPO Forum Srini Krishnamurthy VP, Business Optimization, Kronos, Inc. Former Head of Sourcing, MassMutual Daniel Kuperstein Executive Vice President for Business Development, Globant Jerry Luftman Executive Director & Distinguished Professor, Stevens Institute of Technology Jonathan Miller VP & CTO, Information & Media, The McGraw-Hill Companies Bill Mitchell Director, Global Platform Services, Deutsche Bank Former CIO, Warner Music International Donald Mones VP, Outsourcing, Planning & Strategy, The McGraw-Hill Companies

Amit Mukherjee Babson College Rena Nigam SVP & Head, Banking & Capital Markets - Mature Geographies, MphasiS John O’Brien Executive Director, Morgan Stanley Sasi Pillay CIO, NASA Glenn Research Center Eric Ranta National VP, Value Engineering, SAP North America Soumitra Rathod VP, World Wide IT Sourcing, The McGraw Hill Companies Sumeet Sanghani SVP, Supply Chain Management & Director of Global Outsourcing, SunTrust Banks, Inc. Doug Sawers Managing Director, Ceridian Ralph Schonenbach CEO, Trestle Group Board Member, Trestle Group Foundation Robert Seges Deputy Director, Department of Regional Development, Polish Information and Foreign Investment Agency Pamela Stenson SVP & General Manager, CIO Executive Council

Ted Tompkins CIO, VetCentric Former President, SIM Capital Chapter (DC, MD, VA) Brian Tumpowsky Director, SBS Delivery, Sourcing and Governance, RE:Sources Bobby Varanasi OM Exco & Head, Marketing & Branding, Outsourcing Malaysia Chairman/CEO, Matryzel Consulting, Inc. Ambassador John Veroneau Former Deputy US Trade Representative, Partner, Covington & Burling LLP Gigi Virata Senior Executive Director, Information and Research, BPAP Roxanna Wall Executive Director, Group Outsourcing & Offshoring, UBS AG Frank Wander CIO, Guardian Life Insurance Company of America Andrew Wasser Associate Dean, School of Information Systems and Management, Carnegie Mellon University Patrick Weir Director for Engineering BPO Services Accenture Peter Whatnell CIO, Sunoco Former President, SIM International

Amanda Sweeney Director of IT Global Services, PETCO Animal Supplies, Inc. Krista Sykes Strategic Procurement Manager, The Coca-Cola Company George Tackach Senior Partner, McCarthy Tétrault LLP David Tapper VP, Outsourcing and Offshore Services Market Research, IDC Mike Toma VP & CTO, ADP, Inc.

Karen Morris Former Chief Innovation Officer, AIU Holdings

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STRATEGIC PARTNERS The Center for CIO Leadership was launched in October 2007 as an open, independent industry organization. Its mission is to advance the CIO profession through global thought leadership, research, education, and outreach. The Center develops practical insights, collaborates with academic and learning partners, sponsors a global learning community, promotes peer-to-peer mentoring, and fosters a greater understanding of the value of IT in business among executive leaders and industry influencers. Visit the Center at www.cioleadershipcenter.com

SIM NY Metro is the premiere New York community for IT leaders, delivering vital knowledge to create business value and enable personal development. SIM NY Metro offers IT executives the unique experience of networking through local meetings, forums, and special events – to discuss the latest trends, best practices, and hot topics in the IT industry. The dinner meetings and programs are geared to stimulate innovation, economic development, healthy competition, and IT job creation. Leadership skill development is promoted to enable our members’ growth at each stage of their careers.

The Philadelphia Area Chapter of the Society for Information Management (SIM) is a “byinvitation” federation of Senior IT managers and practitioners experienced in both information systems and general management. SIM members represent a range of organizations, including business, consulting, and academic in and around the Delaware Valley. Our purpose is to provide leadership and education in the successful management and use of information technology to achieve business objectives through: providing a forum for creating and disseminating knowledge for/to IT professional, being the voice of the IT professional, building the capability of the IT professional by providing high-quality and topical workshops and speakers, developing close working relationships with academic members, and recognizing excellence in the management and use of information technology and technical education.

The Capital Area Chapter of SIM (SIMCAC) is a regional organization for top information executives in the Washington, DC, Maryland, and Virginia regions. Its members include senior IT managers from more than 100 local private-industry organizations, government agencies, and many NGO’s and universities, from Baltimore to Richmond and into Northern Virginia. We see our primary chapter mission as providing a trusted forum for senior information officers to network with each other, inform each other on important IT issues of the day, provide links with academia, and provide a setting in which CIO’s looking for new opportunities can assist each other in their search efforts.

World BPO/ITO Forum

• June 28–29, 2011 • Hyatt on the Hudson • Jersey City, NJ USA

Thank you for attending this year’s event. We extend special recognition to the Sponsors, Partners, Speakers and Attendees for their time and support. The World BPO/ITO conference is in its fourth year, and getting close to its aspirations to become the “Davos” of off-shoring events. The conference offers a “one stop shop” for executives at mid- to large-sized companies (CIOs, CFOs, COOs) to hear from speakers who can offer best practices in global sourcing, and to meet with representatives of service providers from countries around the World. Globalization is both fueling and being fueled by massive, technological shifts: open industry standards; new modes of collaboration and integration; and above all, the emergence of the Internet as a global platform. As a result of these forces, new business models are emerging. These new business models are setting the stage for C-Suite Executives to pull their organizations up to a new level of competitive advantage. Hence, IT has outgrown its position as a provider of efficient operations and is now a central component of innovation, growth and business transformation. In this environment, CIOs are at the tipping point of an enormous opportunity to directly participate in the shaping of the strategic future of their enterprises and move beyond their historic role as IT expert. Not only do CIOs have a ‘seat at the C-Suite dining table, increasingly they now also have a ‘voice’ at the table At World BPO Forum 2011, it was quite clear that part of the “new normal” would lie in transformational outsourcing, as is evident from the exploitation of synergies between ITO and BPO. BPO is no longer just a cost play, and ITO cannot simply layer on top of existing IT systems. Taken together, there is an opportunity for transformational change. American jobs going overseas is an emotive subject, but there is widespread accord that the resulting efficiency improvements will allow better use of skilled U.S. professionals to gain productivity and spearhead innovation – thereby maintaining America’s position as the undisputed leader in the post-industrial world. With a strong roster of speakers, practitioners and service providers lined up to participate in World BPO/ITO Forum 2012, taking place in Manhattan on June 26–27, 2012, it is well on its way of becoming “The Davos” for Strategic Sourcing.

Kartik L. Kilachand Co-Founder, World BPO/ITO Forum

Babu Lal Jain Co-Founder, World BPO/ITO Forum; Chairman, WICS

500 East 77th Street, Suite 509 • New York, NY 10162 For more information, please call 917.470.9022 or visit our website at www.worldbpoforum.com

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E T A D E SAVE TNHUAL SUMMIT N 5TH A , 2012 7 2 – 6 2 E JUN CITY, NY K R O Y NEW 1 mit 201 m hts – Su Highlig 50+ Attendees s •2 /CEO

O IOs/CF panies • 75+ C 500 Com roviders e n u t r o • 50+ F er vice P Top 10 S ’s ld r o • 6 of W

2011 CLOSING KEYNOTE: THE NEW GLOBAL ECONOMY Dr. Lawrence Summers Director, White House National Economic Council for President Barack Obama, 2009-2010; President, Harvard University, 2001-2006; Secretary of the Treasury, 1999-2001; Chief Economist of the World Bank, 1991-1993 Nearly 40% of humanity is now living in countries where standards of living will double in a little more than a decade and will likely increase 100-fold within a single human life span. The transformations underway in what used to be called the developing world particularly in India and China may rank with the Industrial Revolution and the Renaissance in terms of their historical significance. Dr. Summers suggests several scenarios for how the global economy could evolve and points out both the opportunities and challenges for businesses, investors and American public policy.

LEADERSHIP TEAM World BPO/ITO Forum Chairman; SVP, Talisman Energy; Former VP, Strategy & Operational Excellence BP plc Former President, SIM

World BPO/ITO Forum ViceChair; Chairman, SIM NY; Partner, Exigen Capital; Former CTO Deutsche Bank

World BPO/ITO Forum Vice-Chair; Executive Director Center for CIO Leadership

Wendell Jones

World BPO/ITO Forum Vice-Chair; CEO, SIM International

WWW.WORLDBPOFORUM.COM JUNE 26–27, 2012 | NYAC OVERLOOKING CENTRAL PARK | NEW YORK, NY STRATEGIC PARTNERS

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United Nations Office for Partnerships In Support of UN Millennium Development Goals

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