Asia Pacific

Asia Pacific

Comprehensive Standards for the BPO / Data Centers

Asia Pacific

Todays agenda

The Business Case Popular and emerging standards Applicability Content Limitations

Discussions / Q&A

Asia Pacific

The conventional Outsourcing argument Free up internal resources for other purposes Reduce and control operating costs Improve company focus Leverage on world class capabilities

Asia Pacific

The real case for outsourcing

Competitiveness Developed countries and business entities have to market their

products in a competitive way to different countries to remain adeveloped country / sustain growth.

The developing country and business entities, to transform into a developed country, has to market its products to other countries in a competitive way.

The three dimensions of competitiveness Quality of the product Cost-effectiveness Product is in the market just-in-time

It is not about Exporting Jobs. It is about Importing Competitiveness

Asia Pacific

Factors affecting International Competitiveness

Multidimensional Three main factors Country Specific

advantages Technology Financial Infrastructural Status of economy

vis--vis competitors

Industry Specific advantage Fiscal and Monetary policies

Enterprise Specific advantages

Asia Pacific

Where does The Philippines stand?

Asia Pacific

So which are the key Asia Pacific Markets?

M

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k

e

t

s

Hong KongSingaporeJapanAustraliaNew ZealandKoreaTaiwan

MatureChina

UniqueMalaysia

Thailand

Indonesia

PhilippinesIndia

Mid-LevelSub-ContinentVietnamCambodiaLaosMyanmarEtc

Developing

Developed Logistics High Competition High Service

levels Lead time

pressure Lower Growth

Rapid Development

Undeveloped domestic

Increasing service levels

High Growth

Developing sophistication

Increasing competition

Increasing service levels

Varied Growth

Poorer infrastructure

Lower competition

Customs Ownership

Issues High GrowthC

h

a

r

a

c

t

e

r

i

s

t

i

c

s

Asia Pacific

IT Outsourcing Market attractiveness (Source: Gartner)

Is there a branding opportunity here?

Asia Pacific

Focus of existing Models / Standards

Information Security ManagementISO 27001 (BS 7799-2)

Sourcing (Service Providers / Clients)eSourcing Capability Model

Customer-Centric Service DeliveryCOPC IT Service ManagementISO 20000(BS 15000 / ITIL )

Data-driven Decision MakingSix Sigma

Business Continuity / Disaster RecoverySS 507

Workforce DevelopmentPeople CMMSoftware / Systems DevelopmentCMM for Software, CMMIQuality ManagementISO 9001

Focus AreaModel / Standard

Asia Pacific

Standards and Models in the BPO space

No dearth of models and standards Limitations: Do not address the entire

sourcing process Do not readily provide methods

to appraise capabilities and provide guidance for improvement in IT-enables sourcing services

Emphasize a level of structure that is either too flexible or too rigid

Asia Pacific

ISO 9001:2000 International Standard issued by ISO Generic in Nature Global Acceptability Needs Domain-Specific Supplementary Interpretation

Guidelines BPO relevant issues of Information Security, Service

Continuity, Performance Metrics, Relationship Management need to be additionally considered

Popular Standards in the BPO industry

Asia Pacific

COPC 2000 (Customer Operations Performance Center) Standard issued by Consortium of Users and Suppliers Standard based on Malcolm Baldrige Criteria and

addresses issues related to Leadership, People, Processes and Goals (Defines Performance Matrices)

Domain Specific (Contact Centers & Fulfillment Centers) High Resource and Certification Cost Requirements Does not address complete life cycle phases Training, Support and Certification controlled by COPC

Popular Standards in the BPO industry

Asia Pacific

ISO 27001:2005 (BS 7799-2) Standard released by ISO originally a British Standard Scope: Information Security Management System Addresses Security policy and Deployment, Risk

Management, Business Continuity and Disaster Recovery, Incident Management, Legal compliance and IPR Issues

Independent Third Party Certification Mechanism

Popular Standards in the BPO industry

Asia Pacific

Motivation for ISMS

Can a CEO confidently tell the board that the organizationis reasonably well protected from Information Security Lapses?

Information is an asset Assets need to be safeguarded

Information can exist inmany forms

Information Security Safeguard levels

ProductProcessManagement System

Information is valuable

Information Security system to preserve

of Information.

Asia Pacific

ISO 20000-1:2005 (BS 15000-1) Standard released by ISO originally a British Standard Scope: IT service Management Independent Third Party Certification Mechanism

Popular Standards in the BPO industry

Asia Pacific

ISO 20000 framework

CHECKMonitor,

measure andreview

CHECKCHECKMonitor, Monitor,

measure andmeasure andreviewreview

DOImplement

Service Management

DODOImplement Implement

Service Service ManagementManagement

ACTContinuous

Improvement

ACTACTContinuousContinuous

Improvement Improvement

Management ResponsibilityManagement ResponsibilityManagement Responsibility

Manage ServicesBusiness Requirements

Business Business RequirementsRequirements

Customer Requirements

Customer Customer RequirementsRequirements

Request for new/changed service

Request for new/Request for new/changed servicechanged service

Other processese.g business, supplier, customer

Other processesOther processese.g business, e.g business, supplier, customersupplier, customer

Service DeskService DeskService Desk

Other teams e.g.Security, IT Operations

Other teams e.g.Other teams e.g.Security, Security, IT OperationsIT Operations

Business resultsBusiness resultsBusiness results

Customer Satisfaction

Customer Customer SatisfactionSatisfaction

New or changedservice

New or changedNew or changedserviceservice

Other processes e.g. business,supplier, customer

Other processes Other processes e.g. business,e.g. business,supplier, customersupplier, customer

Team and people satisfaction

Team and people Team and people satisfactionsatisfaction

PLANPlan serviceManagement

PLANPLANPlan servicePlan serviceManagementManagement

Asia Pacific

SS 507:2005 Singapore Standard likely to transition to ISO Addresses Business Continuity and Disaster Recovery

targeted at BC/DR Service Providers Companion Standard TR 19 targeted at Business

Continuity Management Few certifications outside of Singapore Key focus area in most emerging Standards

Popular Standards in the BPO industry

Asia Pacific

In teg ra te im p ro vem en ts in p ro cess an d w o rk force

S et p rio rities fo r im p ro vin g w o rk fo rce

m an ag em en t cap ab ility

B rin g H R & th e b u s in ess to g eth er to d e ve lo p th e

w ork fo rce

As sess w o rk fo rce m an ag em en t cap ab ility

P -C M M F ram ew ork

H ave an d en ab le th e

ta len t req u ired to execute

yo ur bu s iness s tra tegy

B eco m e an em plo yer o f

cho ice

C entra l Issues

B usin ess O u tcom es

Supporting P eop le inO rgan izational C han ge

A void ingT u rnoverIn teg ra te im p ro vem en ts in

p ro cess an d w o rk force

S et p rio rities fo r im p ro vin g w o rk fo rce

m an ag em en t cap ab ility

B rin g H R & th e b u s in ess to g eth er to d e ve lo p th e

w ork fo rce

As sess w o rk fo rce m an ag em en t cap ab ility

P -C M M F ram ew ork

H ave an d en ab le th e

ta len t req u ired to execute

yo ur bu s iness s tra tegy

H ave an d en ab le th e

ta len t req u ired to execute

yo ur bu s iness s tra tegy

B eco m e an em plo yer o f

cho iceB eco m e an em plo yer o f

cho ice

C entra l IssuesC entra l Issues

B usin ess O u tcom es

Supporting P eop le inO rgan izational C han ge

A void ingT u rnover

Popular Standards in the BPO industry

People CMM A framework to address People Centric Issues

Asia Pacific

eSCM-SP (eSourcing Capability Model for Service Providers) Model developed by ITsqc at Carnegie Mellon

University Scope includes all BPO services Addresses all Life Cycle Phases Independent Third Party Certification

Mechanism First certifications 2003

Popular Standards in the BPO industry

Asia Pacific

eSCM-SP v2 Best Practices Model

84 Best Practices Example Practice Statements (High Level) Establish and implement procedures to meet security

requirements Assign roles and responsibilities to personnel based on

appropriate personnel competencies Establish and implement procedures to track and control

changes to the technology infrastructure Identify, control and provide the information that personnel

need to perform their work. Requirements and Guidelines covered in next levels

Asia Pacific

Comparative Model Coverage(Source ITSqc, Carnegie Mellon University)

= fully = largely = partially = not covered

Service Transfer

Service Delivery

Service Design & Deployment

Contracting

Threat Management

Technology Management

Relationship Management

Performance Management

People Management

Knowledge Management

COPCCMMIBS 15000ISO 9001CobiTeSCM-SP

Asia Pacific

Which Quality Model to use?

Addresses the user-specific quality issues Encourages organizations to

implement adequate QMS Allows integration with other

standards Easy accessibility to certification

process and agency Credible Certification Program Cost Effective

Asia Pacific

The need for standards

It may be years before it becomesclear how much benefit companiesget from outsourcing.

In the meantime, expect a lot of trialand error.Source: Is outsourcing On the Outs?Business Week Online, Oct 4, 2004

Intelligent use of Standards help mitigate the risks in an outsourcing relationship

Asia Pacific

About UL

UL Background: 110 year old, independent not-for-profit

Conformity Assessment Body with a global presence

Unparalleled expertise in standards development

Evaluated millions of products and business management systems across the globe

Participated in development of ISO 9001, ISO 14001 & QS 9000

Integrity hallmark of ULs existence. UL Mark Recognized & Trusted by the public, clients, their customers

as well as regulatory authorities.

Asia Pacific

For further Information:

JC SekarAsia Pacific General ManagerManagement Systems Registration ServicesTel: + 65 9125 4695 Mail: JC.Sekar@sg.ul.com

Fredrick SyAsia Pacific General Manager Knowledge SolutionsTel: +63917-536-5360Mail: Frederick.C.Sy@hk.ul.com