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GlobalizationToday��October 2011

T h e O f f i c i a l M a g a z i n e o f t h e I n t e r n a t i o n a l A s s o c i a t i o n o f O u t s o u r c i n g P r o f e s s i o n a l s

Also in this issue:

Future of Outsourcing: Five trends to watch. 4

Not sure onshore, offshore, nearshore, farmshore...? Page 38

“Social Shadow: Social Media - Big Opportunity or not? Page 41

Page 14

Our Annual List of Industry’s

Top Professionals

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INSIDE

October 2011

7 PUBLISHER’S NOTE

8 NEWS FEED What’s new and noteworthy in global

commerce.

34 FUTURE OF OUTSOURCING: FIVE TRENDS TO WATCHby Michael GretczkoFuture of HR Outsourcing: Five trends to watch.

Michael Gretczko, a principal at Deloitte

Consulting LLP, analyzes the shifting in buyer

demand and intensifying provider competition

which has given rise to several trends that can

have a significant impact on how companies

approach the HRO process.

38 NOT SURE WHAT SHOREby Thom Mead

Our latest columnist and analyst, Thom Mead

(VP of Marketing, Alliances & Channels –

North America for Firstsource), analyzes why

it’s not the shore that matters.

41 BCSby Christopher HallChristopher Hall, VP Product Marketing -

InQuira, explains that social networking has

great potential for businesses but will only be

a shadow of what it can be without proper

knowledge management being applied.

42 IAOP WORLD CONNECTION

46 SCRAPBOOK

POWERHOUSE 25Globalization Today’s annual list of individuals that hold zation Today’s annual list of individuals that hthe most power in the outsourcing industry.

14

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Dr. Bruce Greenwald Prof. Asset Management and Finance

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University of Arkansas

Dr. John Hindle Sr. Manager - Accenture, Adjunct Prof

Vanderbilt University

Mike Corbett Chairman - International Association of

Outsourcing Professionals

Matt Shocklee CEO & President - Global Sourcing

Optimization Services

Arijit SenguptaCEO of BeyondCore, Inc

Chair of the Cloud Computing Chapter of IAOP

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Powerhouse 25

We are very excited about the inaugural Powerhouse 25 issue. Fol-lowing the nomination process, thousands of votes were cast and the competition was close with a single click sometimes separating nominees.

Our hats off to you for voting and helping to make the outsourc-ing industry even stronger.

This year’s Powerhouse 25 is an interesting mix of outsourcing customers, service providers, advisors and academia from around the globe from heads of their own businesses to chiefs of corpora-tions. To see the complete list, go to Page 14.

On Page 34, Michael Gretczko, a principal at Deloitte Consulting LLP, analyzes the shifting in buyer demand and intensifying pro-vider competition that has given rise to several trends that can have a significant impact on how companies approach the HRO process.

Next, we look at a column by our newest columnist and ana-lyst, Thom Mead, VP of Marketing, Alliances & Channels – North America for Firstsource. Thom analyzes why it’s not the shore that matters. This is on Page 40.

We round the issue with looking into a great article by Christo-pher Hall, VP Product Marketing – InQuira. Christopher explains that social networking has great potential for businesses but only will be a shadow of what it can be without proper knowledge man-agement being applied. You can read the whole story on page 43.

Founder and PublisherGlobalization Today Magazine“Official Publication of IAOP”www.GlobalizationToday.com1-602-492-4194

7

Ali ComelekFounder and Publisher

NEWS FEED

��Today October 20118

U.S. SENATOR URGES TWITTER DIPLOMACY IN LATIN AMERICAwww.reuters.com

The United States should move aggressively to use social media such as Twitter and Facebook to promote its agenda in Latin America and help newly wired citizens cement political gains, said a new U.S. report obtained by Reuters. Senator Richard Lugar said countries such as Cuba, Venezuela and Nicaragua still sought to curb economic and political freedoms, while other Latin American countries needed help buttressing emerging civil society groups. Social media tools on the Internet, which played a central role in the “Arab Spring” uprisings across North Africa and the Middle East, may be even more influential in Latin America, said Lugar, the top Republican on the Senate Foreign Relations Committee.

“Latin America does have the advantage of more mobile phone subscriptions, Internet users, broadband access, and secure Internet servers than the Middle East,” Lugar said in the preface to the report, which his office is expected to release on Wednesday. The State Department should do more to help Latin American countries address shortfalls in infrastructure and know-how, particularly as economic competitors such as China compete with the United States for influence in the region, it said.

“At a time when U.S. political influence is waning in the region, it is clear that U.S. driven technological trends could redefine relationships with many countries in Latin America,” the report said. The report by Carl Meacham, Lugar’s senior staffer

for Latin America and the Caribbean, recommends the United States support training programs in advanced software engineering as well as basic computer and online literacy programs in Latin America.

With only 12 percent of online resources available in Spanish or Portuguese, the report said the State Department should also support development of local websites and translation of other Internet resources. Led by Brazil, the region’s economic heavyweight, shoppers in many Latin American countries are snapping up computers and cell phones, making the region a major growth market for Internet giants including Google Inc. To reach even more of Latin America’s 600 million people, Lugar’s report said private companies and

governments should concentrate on low-bandwidth infrastructure, such as that needed for text messaging to social media sites, while developing content that can be used with slow connection speeds.

Alec Ross, Secretary of State Hillary Clinton’s adviser on innovation, said Lugar’s report was in harmony with U.S. government efforts to expand Internet access around the world through everything from “tech training camps” for bloggers to developing software that can bypass firewalls imposed by government censors. “For us, (social media) is a way of connecting and engaging with people who tend not to sit at mahogany tables in diplomatic conference rooms,” Ross told Reuters.

WHAT YOU NEED TO KNOW IN THE WORLD OF OUTSOURCING

NEWS Feed

NEWS FEED

globalizationtoday.com 9

Canadian companies are now 30% less dependent on exports south of the border than they were a decade ago, and if Canada’s economy wants to avoid a U.S. recession the best bet is to keep that trend going, according to a new report from CIBC World Markets. Canadian exports to the United States have slipped to pre-NAFTA levels, with emerging markets picking up the lion’s share of the slack. “You’re a Canadian company stuck with capacity that used to go to the U.S., but you still have to do something with it. The key message for Canadian CEOs is this is now a necessity, not just a nice-to-have,” Benjamin Tal, deputy chief economist with CIBC World Markets, said Monday. “In the past diversifying into emerging markets was a bonus but now it’s a matter of survival.” This is key, as it also suggests that Canadian corporate balance sheets have become less sensitive to U.S. exports, which bodes well for Canada’s ability to weather the debt storm brewing in the United States.

At the moment, about 75% of exports head south, but if current trends hold out that will slide to 60% by the end of the decade with emerging markets accounting for 90% of the gain on the other end. Charles St-Arnaud, economist with Nomura Global Economics, said the United States actually became a drag on Canadian growth coming out of the last recession. Commodity prices and the rising loonie played key factors in this trend shift, he said, noting that while exports in value have been flat since 2000, volumes have been declining. “If Canada was to diversify its exports, it would have likely benefited from both higher volume and higher prices,” he said from New York. “It would’ve had a bigger overall impact on the Canadian economy.”

Mr. Tal, however, does not see the loonie as the primary driver of change and investment in business growth, noting real imports of machinery and equipment have grown at about the same rate now as when the Canadian dollar was much weaker. “It’s

not a dollar story, but a necessity story,” Mr. Tal said. “The dollar is not just high against the U.S. dollar, but also the yuan.” Peter Hall, chief economist with Export Development Canada, said it does not really matter what caused the shift, what’s important is that businesses are finally embracing the idea. “Maybe it’s the catalyst, maybe not. But once they got a taste they did not go back,” he said. What is apparent is Canada must promote closer export ties with Asia and Latin America, and China and Brazil in particular. “Trade with China is outgrowing the rest, but it is still much less than it might be,” Mr. Hall said.

Overall diversification in the manufacturing and industrial products sectors has improved by 30% in the past decade. And in 30 of the past 36 quarters, Canadian companies have spent more on business investment growth than on growth in exports to the United States. This works out to an average annual growth rate of more than 4% compared with negligible growth in U.S. exports. Canada’s best bet to match up with China is to focus investments on natural resources and

in high-tech sectors producing quality, brand-name products, Mr. Tal said.

In Ontario, voters are currently faced with just such a decision, mulling between billions in investments in green energy as the industry of the future under the incumbent Liberals, or a more free-market approach with existing industries under the Progressive Conservatives. “For Ontario, being a leader in green energy and technology we can export that knowledge to China,” Mr. Tal said. “China may be polluting but it is also investing in green energy.” Mr. St-Arnaud warned that Ontario already faces steep competition from Quebec in energy production, and the issue of cost is a real one, especially with the Ontario government enticing green businesses to the province through expensive subsidies. “Subsidies can be very helpful in the beginning to help the startups, but they cannot be permanent,” he said. “If businesses [eventually] leave because they do not receive the subsidy, that means they are not competitive enough.”

CANADA WEANING ITSELF OFF EXPORTS TO U.S www.business.financialpost.com

NEWS FEED


HP ENTERPRISE SERVICES ANNOUNCED RENEWAL OF THEIR CONTRACT WITH THE FLORIDA

AGENCY FOR HEALTH CARE ADMINISTRATION (AHCA)www.outsourcing-center.com

HP has signed a renewal service agreement to manage the state’s Medicaid Management Information System. The $172 million, three-year renewal extension contract will help enable the

state to transition to a managed care environment and continue to prepare for pending program changes in a cost-effective manner. The agreement extends HP’s contract through June 2016.

DEUTSCHE BANK SELECTS TATA CONSULTANCY SERVICES FOR TRANSFORMATION INITIATIVE www.globalservicesmedia.com

We are committed to the success of this transformation initiative and will bring our very best capabilities to the engagement. said Mr. Ramanamurthy Magapu, Banking Industry Solutions Unit head at Tata Consultancy Services.

Tata Consultancy Services (TCS), consulting and business solutions firm announced that Deutsche Bank has selected the company as a strategic partner for their Production Management Transformation Initiative, within their Capital Markets Business Unit. To achieve this transformation, TCS will deliver a global application service desk, service operations and all other ITIL (IT Infrastructure Library) services to the bank at locations across seven countries - USA, UK, Germany, Hungary, Philippines, Singapore and India. TCS will partner with Deutsche Bank to transform to an ITIL aligned model, aimed at significantly improving service delivery through this framework of best practices. The team will leverage the concept of LEAN to eliminate non-value added activities and provide cost efficiencies to the bank. “Our extensive experience in IT transformation initiatives, industry leading domain capabilities in financial services and long term partnership approach allows us to offer superior value to Deutsche Bank as they look to leverage their strong market position. We are committed to the success of this transformation initiative and will bring our very best capabilities to the engagement. ” said Mr. Ramanamurthy Magapu, Banking Industry Solutions Unit head at Tata Consultancy Services.

&

NEWS FEED


GENPACT TO ACQUIRE EMPOWER RESEARCH www.business-standard.com

India’s largest business process outsourcing company, Genpact, on Thursday said it would acquire integrated media and business research firm EmPower Research for an undisclosed sum. The acquisition is likely to add significant expertise and intellectual property to Genpacts smart decision services business, comprising analytics, research, re-engineering and risk management services. The acquisition is likely to add significant expertise and intellectual property to Genpact’s smart decision services business, comprising analytics, research, re-engineering and risk management services. The deal was expected to close by the end of this month, subject to satisfaction of certain customary conditions, Genpact said in a statement. “We are seeing a significant increase in demand for our smart decision services,

and EmPower Research adds tremendous capabilities in extracting insights from social media, a fast emerging source of data about consumer behavior,” said Tiger Tyagarajan, president and chief executive officer of Genpact.

With the acquisition, the company also expects numerous cross-sell opportunities, particularly in the pharmaceutical and consumer packaged goods industries. EmPower Research provides a range of services, including social and traditional media monitoring and measurement, event impact research, brand tracking and data management. It has 360 employees

in New York, Bangalore, Cincinnati, New Jersey, San Francisco, and London. It was jointly represented by The Jordan, Edmiston Group, Inc (JEGI) and Veda Corporate Advisors. Veda is an India-based mid-market investment bank, while JEGI is a New York-based media investment bank. Genpact had earlier this year acquired Headstrong Corporation, an information technology consulting and services company, for $550 million.

NORTHERN TRUST SELECTED BY RCM FOR INVESTMENT OPERATIONS OUTSOURCING GLOB-

AL MANDATE TO SUPPORT OPERATIONS IN ASIA-PACIFIC, EUROPE AND NORTH AMERICA www.globalservicesmedia.com

Northern Trust announced that it has entered into an Investment Operations Outsourcing agreement with global asset manager RCM, a company of Allianz Global Investors. Under the agreement, Northern Trust will provide middle office services for RCM investment teams in three regions -- Asia-Pacific, Europe and North America -- on Northern Trust’s global operations platform. “This innovative agreement supports RCM’s strategy as a truly global asset management firm, operating on multiple continents across six time zones to offer a range of investment solutions,” said Peter Cherecwich, head of Global Fund Services at Northern Trust. “We worked closely with RCM to understand their business priorities, and demonstrated our capability to deliver middle office services efficiently and consistently by leveraging our global technology architecture and

operations expertise in markets around the world.” Services to be provided under the outsourcing agreement, approved in July 2011, include post-trade execution support, trade processing and settlement, data management, reconciliations, portfolio accounting, client valuations and administration for teams based in Hong Kong, London and San Francisco. Northern Trust’s outsourcing services will also

support RCM sales and relationship teams in Singapore, Taiwan, Tokyo and Frankfurt.

As part of the agreement, members of RCM’s operations staff in Hong Kong will join Northern Trust, where they will continue to support RCM as well as other clients that have recently selected

Northern Trust to provide Investment Operations Outsourcing services. The additions significantly strengthen Northern Trust’s presence in Hong Kong and increase its asset servicing capabilities in the Asia-Pacific region. “We selected Northern Trust to leverage the strength of its global operating model, which provides RCM with a platform for strategic growth while we continue to focus on investment

excellence,” said Michael Hooper, Executive Chairman UK, Chairman of RCM Global Operations Group. “Northern Trust’s commitment to Hong

Kong was also an important factor. We believe this agreement will strengthen our regional trading while providing a true ‘pass the book’ capability to support our global operations. We look forward to working with Northern Trust as RCM continues to grow in markets across the world.”

NEWS FEED


CAPITA GROUP BUYS VERTEX PRIVATE SECTORwww.globalservicesmedia.com

SINGAPORE COMPANIES TO OUTSOURCE MAJORITY OF IT INFRASTRUCTURE BY 2021http://www.datacentres.com

Capita Group PLC (CPI.LN), the BPO and integrated professional support service solutions provider, Monday said it has agreed to acquire the private sector division of Vertex for a cash consideration of GBP40.5 million on a cash free, debt free basis.

The acquisition will enhance Capita’s existing customer services capabilities, following the acquisition of customer contact centre specialist, Ventura, earlier this year. Vertex Private Sector is a contact centre focused outsourcing business, which is particularly strong in the retail, utilities and telecommunications markets. A global customer management outsourcing company, Vertex has 15,000 employees worldwide and clients across a range of sectors including financial services, utilities, private and local and central Government in Australia, the UK, India, the USA and Canada. The transaction will see around 1,400 people in the UK and

A new outsourcing wave is expected to emerge in a decade, a new survey has found.

By 2021, three-quarters of Singapore companies say they will outsource the majority of their IT infrastructure, of which half will move their infrastructure to the cloud. The top three cost savings, they say, will come from reducing IT infrastructure costs, implementing a cloud and virtualisation strategy as well as standardising their IT infrastructure.

Conducted by Vanson Bourne, a research firm, the survey polled 480 IT decision makers in Singapore, Germany, France, United States and United Kingdom. The study was commissioned by Savvis, a cloud infrastructure and hosted IT provider.

Singapore companies are already leading their global counterparts in IT outsourcing. Only 43 percent of respondents host their IT infrastructure in-house, compared with 59 percent worldwide. And among Singapore firms, 44 percent say dedicating resources

to develop and manage business critical applications will be their top priority.

“The adoption of outsourced IT infrastructure, in particular managed hosting and cloud computing, is a trend that Savvis has witnessed amongst our client base,” said Bill Fathers, president of Savvis, in a media statement last week.

“Singapore IT leaders are at the forefront

of outsourcing adoption and we expect to see the propensity to outsource increase further over the next five years as more enterprises experience the benefits it brings,” he added.

The survey also revealed that over half of Singapore companies are paying for excess capacity to meet peak demands, with seven out of 10 saying they have IT equipment that they regret purchasing, compared with

200 support staff in India from Vertex’s private sector business transfer to Capita. The transaction is subject to employee consultation in the UK. Commenting on the sale, Paul Sweeny, CEO of Vertex, said: “Our clearly differentiated private sector business brings real value to Capita in a

highly competitive market. “As a result of today’s transaction we will continue to focus on and grow in the areas where we are acknowledged as leaders – helping clients unlock citizen and customer value in the public sector and financial services markets in the UK.”

NEWS FEED


BRAZIL LEARNS TO SPEAK ENGLISHwww.globalpost.com

SAO PAULO, Brazil — “Stand in the wall, run through the net, pick up the ball, hit the wall, and throw up,” said the teacher, in English, at a recent tennis lesson for 6-year-olds at an international school here.

The kids stared back blankly. Then one spoke up: “I’m sorry sir, can you repeat that? I didn’t understand.”

The teacher, a little frustrated, just repeated the same muddled instructions.

English in Brazil is a work in progress.Until recently, Brazilians didn’t need to

use English at all. With a self-sustaining society and a history of military dictatorship that cut the country off from most outside contact for 21 years, Portuguese was the only language anyone needed.

But now that Brazil has landed two major games — the World Cup in 2014 and the Olympics in 2016 — that has started to change. After the government won the bids, it began to require public schools in Rio de Janeiro to teach English to all children between the ages of 6 and 8, with plans to expand the program to Sao Paulo next year.

Called Crianca Global — Global Child, in English — the government program has been put in place in order to “prepare these children so that they can actively participate in the opportunities that will open up because of the Olympics,” according to a statement from Claudia Costin, Secretary of Education.

And as the country takes a bigger role on the world stage, Brazilians’ interest in the global society has begun to shape national culture. Businessmen and women want

43 percent globally.Also, half of Singapore businesses

reportedly utilised 55 percent or less of their total capacity. This is notable because it means companies here are doing a better job at maximising their use of IT resources, given that utilisation rates in most organisations hover around 15 to 20 percent.

So what’s stopping companies from outsourcing? The study found that contractual obligations and company culture are the top culprits, though these reasons should surprise no one, especially when jobs are expected to be threatened in

to work for big, international companies. Young people want to study abroad in the United States, the United Kingdom and Canada.

The English language, at least in some Brazilian circles, has begun to be seen as more sophisticated than Portuguese.

“I really like the fact that English is getting more and more important in Brazil. It was about time!” said Gabriela Genovesi Gomes, a teaching assistant at a private international school in Sao Paulo who also studies education.

“It’s important for communicating with tourists and for traveling abroad, not to mention what it does for our language abilities and cognition.”

In Sao Paulo, the largest city in South America with over 11 million people, private English-language schools have sprung up on nearly every block with names like Wizard, Skill and Wise Up. If students are lucky, they get a native-speaking teacher. If not, they get a Brazilian who has already been out of the country and gets almost all of the grammar right.

It doesn’t come cheap. Private lessons tend to run from 50-100 reals ($26-$53) per hour, which is no easy feat to pay when minimum wage is R$545 a month (about $290).

And with such little time before people from all over the world jet into Brazil, it’s not clear whether the country will be as fluent in English as the government might like.

“I think they just have a lack of practice,” said John Milton, a professor of English literature and translation studies at the

any outsourcing deal.Interestingly, security and risk

management issues in IT outsourcing and cloud computing were not mentioned. Despite assurances from IT vendors, there is still significant trepidation over security, governance and risk management.

In fact, almost all companies that have moved to the cloud in the Asia-Pacific region have experienced some form of downtime from their cloud computing services, according to a separate study by CA. Failures in IT systems affected nearly three-quarters of surveyed organisations in the region.

University of Sao Paulo for the past 27 years. “There’s generally no need to use English in their day-to-day lives, so it’s difficult for Brazilians to find a place where they can actually speak the language.”

Some Brazilians have opposed the government push.

“Brazil should worry about the quality of the Brazilian curriculum subjects before even thinking about teaching another language at school,” said Marisa Mayumi Oliveira, a communications specialist in Sao Paulo who speaks fluent English.

“Most Brazilians barely speak Portuguese correctly. Besides, do we have enough qualified English teachers to teach proper English at these public schools? I really doubt it. We don’t have enough teachers with good qualifications in basic subjects.”

The government isn’t waiting for everyone to learn English. Signs all over major cities and main highways are now in Portuguese, Spanish and English, and some stores even have names in English, which has led at times to some confusion.

“There are signs for Parque do Ibirapuera [in Sao Paulo] that also say Ibirapuera Park,” Milton said. “What’s the point in that?”

Said Oliveira: “I think the Brazilian government is just trying to add some makeup to the surface without treating the real problem, just so they can promote our country as an international nation for the World Cup and Olympics”, she said. “After that, the government will hand out a very Brazilian solution: they will forget the subject forever.”

CA said the “high level of data loss” indicates a lack of readiness for these failures among businesses. Just a quarter say they have comprehensive disaster recovery plans and 38 percent say they have not achieved their disaster recovery objectives despite testing their disaster recovery plans at least once a year.

So while IT outsourcing and cloud computing will allow companies to focus on innovation and business critical applications without investing on resources just to “keep the lights on”, jumping on the bandwagon without addressing security, governance and risk is foolhardy.

Powerhouse 25 The Industry’s Most influential Revealed by our Readers

You clicked, you chatted, you connected and we heard you.

FIVE TRENDS TO WATCH


Thousands of votes were cast for our first annual Powerhouse 25 list. The competition was close with

single clicks sometimes separating nominees. Colleagues used Twitter, LinkedIn and other networking sites to get votes. And Globalization Today’s panel weighed in with their expert knowledge.

But ultimately, who knows better than you, our readers, who holds the most power in the outsourcing industry? So our hats off to you for voting and helping to make the

outsourcing industry even stronger. The Powerhouse 25 is an interesting mix

of outsourcing customers, service providers, advisors and academia from around the globe from heads of their own businesses to chiefs of corporations.

Their willingness to take risks, champion

and speak out for a cause; entrepreneurial and pioneering spirit; passion for their work and industry; and relentless pursuit of excellence are common traits you’ll see among these top influencers.

They are worldly, strategic, charismatic,

bold and visionary. Many have written books and articles, spoke at conference, serve on boards, and have been quoted in the news on outsourcing. These power players envision a bright future for the industry and the constant change they see ahead only

invigorates and excites them. But here’s the big secret…

Powerhouses understand that their power comes from partnering and

collaborating with other influence-yielding individuals. You help give them their power and they can help you. So if you want to gain some more clout in the industry, these are the people to get to know and learn some lessons from.



��

vved more quality The response from the individuals who made the Powerhouse 25 was overwhelming and we receivoo parts. Part 1 is feedback than we could publish in a single issue. Therefore, we decided to split the content into two

featured in this issue and Part 2 will be feature in the next issue. Be sure to get the next issue for the details of the rest of the Powerhouse 25.

Name Title Company

Aparup Sengupta Aegis

Alsbridge

Stancombe

Globant

Solutions

Sourcing

Johannes Giloth Nokia Siemens Networks

Julia Santos

Accenture

Shunee Yee



Guy Holden is a champion of envisioning the “art of the possible.”

Have an extremely ambitious goal? Holden is the man who will energize and drive teams to make the impossible possible. It’s what he has done since being appointed in 2005 to lead the Johnson Controls Global WorkPlace Solutions (GWS) business and has been a consistent part of his 28-year career in the real estate and facilities management industry, which includes 15 years of senior management experience in outsourcing.

Under his leadership, Holden completely transformed the Johnson Controls GWS business from being a separate, country-based facilities management provider with $1.8 billion in sales to being a market leader in the

provision of facilities management and workplace services to many of the world’s major corporations.

Today, Johnson Controls GWS is one of the world’s leading real estate and facilities management outsourcing businesses, with annual sales of in excess of $4.3 billion and more than 21,000 employees worldwide, providing a widely expanded scope of outsourced real estate, project management and facilities management services to support major corporate customers in more than 90 countries worldwide.

“The major accomplishments in my career in the outsourcing industry have been focused on personally being the driver of the transformational development and growth of businesses,” he says. “Throughout my career I have been passionate about how we improve

MEET THE MOVERS AND SHAKERS

Guy Holden

Vice President and General ManagerGlobal WorkPlace Solutions, Johnson Controls

Years of Experience: 28 years Major accomplishments: Transformed Johnson Controls Global WorkPlace Solutions (GWS) to a $4.3 billion market leader in the provision of facilities management and workplace services to the world’s major corporations.

Education: Bachelor of Science in Land Management from The University of Reading, England

Notable: During the last 10 years, Holden has overseen the delivery of more than $3 billion in savings for GWS customers and ensured the business continuity of the 1.5 billion square feet of real estate that the company manages.

Quotable: “Guy’s real passion and investment is in people. He understands that they are at the core of any business” - Dom Sherry, Vice President, Global Marketing Communications, Global WorkPlace Solutions

Personal: Guy is a qualified chartered surveyor and has been a member of the Royal Institution of Chartered Surveyors in the UK since 1986

Outsourcing Vision: Sees the industry responding to customers’ demands with more industry-specific outsourcing solutions that add strategic value

Connect: Read case studies from Holden’s business www.johnsoncontrols.com/globalworkplacesolutions www.makeyourbuildingswork.com/case-studies/

the scope and quality of the solutions we deliver to customers.”

Holden led the creation of the business strategy in 2006 that is the foundation for the transformation to meet customer demand from large corporations to find outsourced providers who could deliver consistent support services throughout the lifecycle of their building operations wherever they operate in the world.

Holden joined Johnson Controls in 1996 as Director of Marketing and Business Development for the company’s UK Integrated Facilities IFM business, after working for 13 years in the commercial property development and investment markets in the UK.

In 2001, he assumed responsibility for business development for IFM in Europe. In these roles, Holden helped double the company’s business during this period. In 2002, he was appointed Vice President and Managing Director for Johnson Controls EMEA West Region and was responsible for a business with 4,000 staff and revenues of more than $0.5 billion.

Holden sees the most marked trend in outsourcing will be in the demand for more specialist non-core services that can deliver greater strategic value.

As organizations are increasingly forced to seek the ‘next level’ of operating efficiency, Holden believes a greater number will seek industry-specific outsourcing solutions that are not only cost-effective but also add value so they can focus on their core business.

Dom Sherry, Vice President, Global Marketing Communications, Global WorkPlace Solutions, who nominated Holden, called him a “pioneer of outsourcing in the corporate real estate and facilities management industry.”

“Guy’s real passion and investment is in people,” said Sherry, who has worked with him for 15 years. “He understands that they are at the core of any business, especially a service business like Johnson Controls. Guy’s leadership has fostered a culture where integrity and health and safety are paramount, hard work is rewarded and talent is invested in and nurtured. He’s genuinely inspirational and dynamic leader with incredible charisma and business acumen. He’s sharp, fair,



Described by his global teams as a leader who is “strong, bold, passionate and fair,” Accenture’s Mike Salvino sets the bar high and expects to get business results with accountability.

And under his leadership as group chief executive Business Process Outsourcing (BPO) since 2009, Accenture continues to meet and exceed those very highest standards.

Salvino oversees Accenture’s portfolio of cross-industry and industry-specific BPO services and drive innovation and next-generation services as the outsourcing industry continues to expand its influence on the performance of businesses around the world.

His “power” doesn’t just impact the services practice he leads with a team of some 38,000 professionals and its

500 clients around the world, he also is influencing the entire industry.

“Whether measured by the numbers or by customer loyalty, Accenture is one of the leading outsourcing providers in the world, and our innovations and leadership have, without exaggeration, shaped the entire outsourcing industry,” Salvino says. “We believe that outsourcing is not only reshaping the operations of the business; it is reshaping the way businesses are defined, organized and operated. This is a significant responsibility, but one that I and my teams are approaching with strength and awareness.”

And bragging rights are deserved. Under Salvino’s tenure, the company has significantly extended its reach, scope and scale. For the fourth consecutive year, Accenture have been named the #1 global outsourcing service provider by IAOP, among many other outsourcing excellence awards and personal accolades.

Salvino understands that being a “Powerhouse” also means that a leader has obligations to colleagues, the organization and the community.

He practices and shares every day with his teams around the globe some straight-forward key leadership principles: stay true to your word, be direct, test your ideas and treat others with respect.

“Having your name associated with any business means that your reputation is on the line,” he says. “It’s imperative to always follow through on your promises. I also believe in business it’s very important to be open honest, and fair. And it works both ways - I always ask my team for feedback on my performance. A leader must both teach and learn.”

Salvino also values the contributions of others. “In working with people around the globe, be sensitive to cultural differences and take the time to say thank you and appreciate people for what they do for you every day,” he tells his team members.

professional and a pleasure to work with.”Says Holden: “I believe in

open, straightforward and honest communication, without any ego. At Johnson Controls, we have a culture of strong accountability and I believe this is

essential to achieving business results. In building a global business, I fundamentally believe in having management that believes in ‘we’ more than ‘me’.

Michael (Mike) Salvino

Group Chief Executive – Business Process Outsourcing Accenture

Years of Experience: 20 years Major accomplishments: Drives innovation and next-generation services for businesses heading Accenture’s cross-industry and industry-specific BPO services practice, which has built a portfolio of more than 500 clients around the globe served through a Global Delivery Network of more than 50 delivery centers across five continents.

Education: Bachelor of Science degree in Industrial Engineering from Marietta College, Ohio

Notable: Under Salvino’s stewardship, Accenture has been ranked as the world’s number one outsourcing provider by the International Association of Outsourcing Professionals for the fourth year in a row.

Quotable: “Your word means everything. Having your name associated with any business means that your reputation is on the line. It’s imperative to always follow through on your promises” – Mike Salvino’s words to his team members

Personal: Counts his father, who ran a business for 25 years, as one of his mentors. He also has been a commissioner and coach for youth football in his North Carolina hometown and is an active member of the Charlotte Touchdown Club supporting High School Athletics in Charlotte.

Outsourcing Vision: Sees a new “fifth-generation” of BPO emerging that combines the newest in technology platforms like cloud-based and SaaS-based solutions with consulting expertise.

Connect: Read “Deeper in the Value Chain” by Salvino: www.accenture.com/us-en/outlook/Pages/outlook-journal-2011-deeper-value-chain-outsourcing.aspx

It was a textbook problem in the volatile world of

retail. In the summer of 2009, a major US music

distributor experienced a sudden spike in demand

for the CDs of one of the artists in its back

catalog. How could it ramp up production to

meet immediate needs without creating excess

inventory in the future?

This company had an edge, however—a

longstanding outsourcing arrangement in

place that, over a period of several years, had

turned its supply chain into a finely tuned,

industrialized engine. Moreover, the engine came

equipped with a predictive analytics capability

that could do more than just tell the company

that manufacturing could not meet supply. The

analytics could also identify how to solve the

problem, leveraging insights across multiple

domains beyond the supply chain, including

finance and CRM.

In short order, the music distributor had

pinpointed the source of greatest demand. The

company was able to make informed and timely

decisions about where to boost production and

where the most cost-effective and profitable

locations were to locate inventory. Net result:

Instead of the costly alternative of increasing

production everywhere in the world—which would

have resulted in excess inventory and expensive

shipping to redistribute products later—the

company had an accurate, just-in-time, precisely

targeted delivery approach that met customers’

needs for a dramatically lower cost.

Sophisticated toolsThis is one of a growing list of examples where

the intelligent use of analytics in business

process outsourcing environments is making a

significant impact. As with all applications of

analytics, it leverages sophisticated tools and

techniques for statistical surveying, root-cause

analysis and optimization. Unlike many advanced

analytics applications at some companies,

however, BPO analytics begins on what is already

a strong foundation of comprehensive data about

a business process and how it’s performing.

Where does such a foundation of high-quality data

come from? From outsourcing relationships in which

providers are already highly motivated to produce

timely data that helps them know, nearly in real

time, how efficiently a supply chain, a procurement

function, a global finance organization or other

business processes are performing.

Three ways analytics drives business advantageThe analytics capabilities built on the existing

foundation of data from a BPO relationship help

companies realize significant benefits in at least

three ways.

1. Improving the operational engine

The first advantage in building an analytics

capability on the back of a BPO relationship is

that companies can go to a single source for

high-quality data about the performance of a

process or function—data that is measured and

recorded consistently.

An outsourcing provider that is helping to deliver

essential business processes such as finance and

HR is well placed to analyze the performance of a

process end to end, across both client and provider,

discovering where inefficiencies and risks exist,

then working to drive time and waste out of the

process and standardize wherever possible.

2. Discovering hidden insights A second critical area where analytics can deliver

greater value as part of a business process

outsourcing arrangement is in generating

additional insights by tracking data across

different parts of the organization. Such a

capability can optimize results or help balance

apparently competing or contradictory objectives.

A common example is the balancing act

companies face in reconciling the needs of

the procurement and finance organizations. A

procurement professional will want to push for

early payments to get discounts from suppliers.

But a finance professional will look instead to

hang on to cash as long as possible. How can

both sides of that equation win?

The answer is that they cannot—not exactly.

But with an analytics capability in place as part

of an outsourcing arrangement that bundles

procurement and finance, a company can be

assured of finding the precise point at which

the benefits on both sides of the equation are

balanced, helping to generate as much business

value as possible by improving cash management.

3. Innovations to drive revenue

The third area where BPO analytics offers

distinctive value is in helping companies manage

data—from the front office, the back office or

both—in such a way as to generate innovations

or improve time to market to increase revenue

For example, one major company in the health

and life sciences industry has established an

outsourced center for the testing and assessment

processes known as pharmacovigilance. This

approach has helped the company to increase

productivity by as much as 40 percent. The

outsourced analytics capability has enabled

the company to collect and analyze data

faster, shaving significant time off the approval

cycle, more readily identifying drugs with no

marketplace potential and getting approved

drugs to market faster.

Hard to duplicateIs an outsourcing arrangement the only way

to make business process analytics effective?

Certainly not. But the foundation of data

and process industrialization upon which

an outsourcing provider works, using highly

sophisticated tools and talent, is hard to

duplicate using internal resources alone.

Companies that effectively use an outsourcing

relationship to embed analytics into their

business processes have an opportunity not only

to reduce costs and improve process efficiency

but also to generate the insights that can lead

to market breakthroughs faster and with greater

assurance. Outsourcing providers gain enormous

insight into the way a client company works, at

extremely detailed levels. It would be a missed

opportunity if organizations failed to use those

insights for competitive advantage.

This article is based on ‘The analytics advantage,’

which originally appeared in the October, 2010

issue of Outlook, an Accenture publication. Used

with permission.

You can read the full article at: accenture.com/analyticsadvantage

BPO and the Analytics AdvantageBy Mike Salvino and Barbara Duganier

© 2011 Accenture.

All rights reserved.

companies on the purchase of outsourced services worth billions of dollars, and its founder and chief has revolutionized the way companies buy and manage hardware, software, IT infrastructure services, application services, business processes and cloud computing.

As Alsbridge continues to advise its Global 2000 clients on outsourcing transactions ranging from $20 million to over $1 billion, Trowbridge stays personally involved in guiding the firm’s

Both in business and in his life, Alsbridge founder and CEO Ben Trowbridge works to emulate the ideals of Army General and President Dwight D. Eisenhower.

“By deploying a diverse team with very different interests and motivations, Eisenhower was able to get though one of the most complex business and strategic military problems to come back from being 0-4 to win the game,” Trowbridge says.

Each year under Trowbridge’s leadership, Alsbridge advises hundreds of



Ben Trowbridge

Founder and CEOAlsbridge, Inc.

Years of Experience: 20-plus years Major accomplishments: As founder and CEO of award-winning sourcing advisory and benchmarking firm, Alsbridge, Trowbridge has revolutionized the way companies buy and manage hardware, software, IT infrastructure services, application services, business processes and cloud computing.

Notable: Trowbridge has been personally involved in hundreds of outsourcing transactions with a combined estimated value of over $15 billion as a provider and advisor of outsourcing services.

Quotable: “The global sourcing industry will hit another stage of maturity, destruction and growth. This radical destruction of the old and creation of a new market provides opportunities for both buyers and providers of outsourced services” – Ben Trowbridge

Personal: An avid biker, Trowbridge burned 180 miles of asphalt between Austin and Dallas with 249 of 249 of Dallas’ most influential business people, political leaders and philanthropists in the “Texas Tough 250” to collectively raise $1 million dollars for Passion for Children’s, a 503c charity whose focus is raising money for the Children’s Medical Center of Dallas. He also serves on the board of PEP (Prison Entrepreneur Program), a program designed to significantly change the re-imprisonment rate of Texas felons and through character changing events guide them into becoming productive members of our society.Outsourcing Vision: New and emerging niche players who are using cloud technologies to deliver high-quality services will shake up the outsourcing landscape in the future

Connect: Join Trowbridge’s discussions on LinkedIn: www.linkedin.com/groups?about=&gid=2467914 Preview Ben’s book “Cloud Sourcing the Corporation”: www.alsbridge.com/cloudsourcing/ View a recent Webinar hosted by Trowbridge:www.outsourcingleadership.com/knowledgebase/eseminars/ cloud-sourcing-the-corp

Good advice for any professional from this leader who counts his father, who ran his own business for 25 years for teaching him “laser focus,” as one of his mentors along with Accenture’s leadership team.

In 2006, Salvino rejoined Accenture from Hewitt, where he had served as global sales and accounts co-leader for Hewitt’s HR outsourcing group. He also served as president of U.S. operations for Exult prior to that company’s acquisition by Hewitt where he indulged his passion for helping businesses grow. With Salvino, Exult grew from start-up to a publicly-traded company.

Prior to these roles, he served from 2006 to 2009 as Accenture’s managing director of BPO and when first joining the company spent 12 years at Accenture as a senior executive focused on IT outsourcing and building start-up businesses.

A well-regarded thought leader, he has contributed to a number of books, including “Human Resources Business Process Outsourcing: Transforming How HR Gets Its Work Done.”

During Salvino’s tenure, he has expanded Accenture’s offerings into several new areas, including marketing, supply chain and engineering services. Salvino sees the future of BPO services in offerings tied to specific industry needs and opportunities.

Salvino is moving Accenture’s practice toward industrialized solutions for a range of industry needs including network communications, mortgage credit services, health industry care management, pharmaceutical solutions and capital projects management for the utilities industry.

Into the future, he sees a “fifth generation” of BPO emerging that combines using technology and developing new cloud-based and SaaS-based solutions to drive additional efficiencies and business value with consulting expertise.

“We believe in and are striving to realize a vision where successful BPO providers will create value for clients by owning these technology platforms, delivering services with insights, outcomes, commercial flexibility, and global delivery at scale,” he says.



interaction with Tier 1 service providers, ensuring large contracts yield mutually beneficial results, long term relationships are repaired and both the buyers and providers of outsourced services enjoy a healthy return on their investments.

Trowbridge is recognized as an acclaimed industry advisor, a published author and a frequent speaker on trends and forecasts in the sourcing, benchmarking, and telecom management markets. He has been named “FAO Superstar” by FAO Today in 2007 and 2008, and was a finalist for Ernst & Young’s “Entrepreneur of the Year” award in 2010.

Trowbridge draws on his own military background in his leadership at Alsbridge. Prior to his civilian career, he served in the U.S. Marine Corps attaining the rank of Captain, serving as Company Commander on four separate occasions and leading one of the Marine Corp’s first Special Operations Capable Raid Companies.

Trowbridge also gains inspiration from every major CEO in the market. As they negotiate the turbulent waters of current market conditions, Trowbridge says he makes it a point to learn from each of their decisions that either make or seal the fate of their companies.

He’s even drawn on techniques used by the government to increase collaboration in outsourcing. Trowbridge introduced Alsbridge’s Sourcing Alignment System™ (SAS) based on collaborative techniques originally developed by NASA as part of the race to the moon.

Due to the success of this innovation, similar approaches have been adopted across the industry, but Alsbridge boasts it is the only one with a “zero divorce” record, meaning no outsourcing relationship that Alsbridge established has been terminated prematurely.

Prior to his experience as an outsourcing advisor, Trowbridge had many successful years leading teams at various outsourcing service provider firms. After his military career, Trowbridge began his civilian career in 1990 with Electronic Data Systems (EDS).

During his six years at EDS, Ben held a number of senior leadership positions, including Division Vice President where

he developed, sold, and managed the first transformational outsourcing contracts to clients such as SeaLand Services, Bulk Materials Incorporated (BMI), American Association of Railroads and Federal Home Loan Administration (Freddie Mac).

Through his work on these early deals, he not only demonstrated that it was possible to outsource in a variety of vertical industries, but also established EDS (now HP) as a preferred provider in each of these industries.

In 1996, Trowbridge was recruited by Ernst &Young (E&Y) to build and lead its first outsourcing practice. He led the hiring of the remaining partner team, the creation of all operational, financial and marketing positions and then structured a series of joint venture-based outsourcing contacts that defined an era of outsourcing that was more creative and sustainable.

These contracts were exemplified by a unique joint venture structure owned by Shell and Ernst & Young with a total value of over $1.6 billion as well as a major transformational ITO deal created through a joint venture between FarmLand Industries and Ernst & Young with a total value of over $2.1 billion.

Over the next four years, Trowbridge grew E&Y’s outsourcing practice, held the roles of Managing Partner and COO of their Global Outsourcing Business, and with his group grew annual global outsourcing revenue to over $600 million. This extremely successful business was sold as the part of the sale of Ernst & Young’s consulting business to Capgemini in a multi-billion Euro transaction in 2000.

Today, as the technology landscape continues to evolve with the advent of cloud computing, Ben’s vision and innovation have propelled Alsbridge to the forefront of the cloud sourcing advisory market. Alsbridge’s cloud sourcing and benchmarking services are positioned to enable today’s IT and business executives to make informed and actionable decisions to leverage cloud computing.

In early 2011 Ben published “Cloud Sourcing the Corporation,” to provide unbiased advice for IT executives on their journey to the cloud. The book includes the Cloud Sourcing 100 Index, a classification

and rating system that allows cloud sourcing buyers to make knowledgeable decisions through reviews of the cloud solution type, provider type, degree of customer control and unique features and characteristics of 100 different cloud provider delivery models.

Alsbridge has now established a cloud sourcing methodology that is complementary to its outsourcing advisory methodology and is currently influencing the buying decisions of CIOs through both direct engagements, roundtables and the soon to be released 2012 edition of the Cloud Sourcing 100.

Trowbridge sees cloud computing technology dramatically impacting the delivery and purchasing of outsourcing services in the next three to five years.

“The global sourcing industry will hit another stage of maturity, destruction and growth,” he says. “Businesses and their underlying computer support networks are undergoing a radical shift driven by an amazing range of lower cost outsourcing cloud services. This radical destruction of the old and creation of a new market provides opportunities for both buyers and providers of outsourced services.”

“Cloud sourcing, which is rapidly merging with and replacing legacy outsourcing, today presents a clear trend for companies, ranging from the world’s largest corporations to small and medium sized businesses,” Trowbridge says.

As a result of cloud sourcing, Trowbridge says many smaller niche players that can deliver high-quality services will continue to emerge who can put significant pressure on larger established outsourcing players.

“The new cloud business model is not based on low cost offshore labor, but instead on maximizing the use of hardware and software to a point that was not possible just a few short years ago,” he says.

By using virtualization and other automation, as well as extraordinary investments in new data centers to drive 80 to 100 percent utilization of computing resources 24 by 7, cloud providers are once again creating fundamentally different industry economics, according to Trowbridge.



You can have it all in outsourcing! That’s the message University of Tennessee faculty member, author and consultant Kate Vitasek wants to shout from the roof tops.

Outsourcing buyers can have higher service AND lower costs; AND suppliers can have higher margins.

“My personal vision is to educate others so effectively that they learn to achieve things they never thought before were possible with outsourcing,” she says. “This is the power of Vested Outsourcing.”

Vitasek is on a mission to show people that Vested Outsourcing—a hybrid sourcing business model by which companies that outsource and service providers can work together more effectively -- is not a “fairy

tale” but a strategy that companies like Microsoft and P&G and McDonalds are using in their very best outsourcing deals.

With Vested Outsourcing, Vitasek has ignited a new business model that will improve outsourcing procedures much like the way Six Sigma and Lean improved production processes in the 1980s and ’90s.

Based on a research study with the University of Tennessee and the United States Air Force, Vitasek has identified 10 structural flaws inherent in conventional outsourced business models and shows organizations how to rethink their outsourcing relationships in a way that will lower costs, improve service and increase innovation.

She has devoted the last six years to

Kate Vitasek

Faculty, University of TennesseeFounder of Supply Chain Visions.

Major accomplishments: An internationally recognized innovator in the practice of supply chain management and outsourcing, Vitasek is the lead researcher in the award-winning concept of Vested Outsourcing based on research with the University of Tennessee.

Education: Graduated summa cum laude from the University of Tennessee with an MBA in logistics. She also holds a bachelor’s in Marketing.

Notable: Vitasek is co-author of two books: Vested Outsourcing: Five Rules That Will Transform Outsourcing and Vested Outsourcing Manual: A Guide for Creating Successful Business and Outsourcing Agreements. She has written more than 200 articles on the topic of Vested Outsourcing in various trade press.

Quotable: Vitasek’s philosophy is to “teach a company to fish” rather than to present findings that languish in vinyl binders or to implement change from the outside.

Personal: An early influencer on Vitasek is author Max Dupree for his classic book The Art of Leadership. She also admires writer Malcolm Gladwell for his flawless style of pulling together concepts that just make sense.

Outsourcing Vision: Dreams of a future where Vested Outsourcing -- a hybrid sourcing business model by which companies that outsource and service providers can work together more effectively -- will become the standard for worldwide adoption.

Connect: Read Vitasek’s blog: www.vestedoutsourcing.com/category/from-the-blog

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worked for P&G, Microsoft, Accenture’s Logistics Strategy Practice, and ModusLink a global service provider. As a practitioner, she has served in marketing, operations, and general management roles, including Director of Marketing, Director of Supply Chain, Vice President of Operations Services, and Vice President and General Manager for Global Accounts.

As a faculty member at the University of Tennessee’s Center for Executive Education, Vitasek teaches executive development courses and serves as a mentor to students. She has given hundreds of speeches at industry groups and universities on the topic of Supply Chain Management, Performance Management and Vested Outsourcing.

The Supply Chain Council recognized her Vested Outsourcing work and the University of Tennessee Center for Executive Education as the recipient of the 2011 North American Supply Chain Excellence Academic Advancement Award for its work on performance-based approaches.

In addition to her faculty role at UT, she is the founder of Supply Chain Visions, a small consulting practice that specializes in supply chain strategy, outsourcing and education. Her practice has also won numerous awards, including being one of the Top 100 Supply Chain Partners and being recognized as “one of the top 10 coolest supply chain management boutique consulting firms.” She also was a finalist for a Stevie Award for Entrepreneur of the Year for a small woman-owned business.

Vitasek is described by others as a visionary. A participative leader and educator, she sees a future state, describes it, enthusiastically teaches it, and works with others to use their own abilities and talents to achieve that vision.

“I find that much of today’s workforce is stuck in an activity trap -- heads-down, going to work every day, doing the same things they’ve done every day,” she says. “As a leader and educator, I like to help people out of the activity trap and challenge them to get to focus on outcomes, not activities. I also passionately believe that it is vital to look long-term. A leader needs to have the courage to manage for the long term despite the constant pressure to focus on short term priorities.”

Rohit Kapoor considers himself a transformational leader.

As President and Chief Executive Officer of EXL Service, the company he co-founded in 1999, he motivates his team of 17,000 throughout the world to continuously reinvent themselves and be more effective and efficient.

Using multiple channels of communications from informal “Coffee with Rohit” chat sessions and CEO Open Houses to walking the floor, and meeting with the top 300 employees regularly to build a personal rapport with his current and future leaders, he effectively communicates the company’s goals and strategies wherever he goes.

“I motivate them to move in the direction of company’s vision of being the most preferred partner for

Rohit Kapoor

President and Chief ExecEXL Service

Years of Experience: 20Major accomplishmen

in 1999 and built it intopublicly listed providerOutsourcing services towith over 200 clients inoffices in eight countrieemployees.

Notable: As CFO, led the launch of EXL’s IPO and iNASDAQ which was considered the most success

Quotable: “I draw my inspiration from the employextraordinary capability in creating greater value Kapoor

Personal: Launched an appreciation program “Heand encourage everyday heroes at EXL and createContribution Initiative that allows employees to ptoward social development.

Outsourcing Vision: Sees continued growth in thgovernment and the economy impacting the indmattering less than service, and greater partnerin

Connect: Read Kapoor’s comments in the Times ohttp://articles.timesofindia.indiatimes.combusiness/29786499_1_bpo-sector-indianRead a Q&A on mergers and acquisitions www.exlservice.com/Library/PDF/rohit_B

studying hyper successful outsourcing deals and educating companies how to structure their deals. Her books, Vested Outsourcing: Five Rules that will Transform Outsourcing and the follow up book The Vested Outsourcing Manual: The Guide for Creating Successful Outsourcing and Business Agreements, helps business executives discern the ailments permeating their outsourcing relationships, and from them determine the causes of many of their current problems.

Her research studied some of the world’s most successful outsourcing relationships, including Microsoft and Accenture’s IAOP/SSON and Outsource Center award-winning relationship on their OneFinance program; Procter & Gamble (P&G) and Jones Lang Lasalle’s highly successful real estate and facilities management deal; and Jaguar’s transformational deal with Unipart for supply chain management that lead Jaguar from worst to first in JD Power rankings for customer loyalty for service parts.

By studying these progressive companies that challenged conventional outsourcing business models, the pioneering research found five key tenets of these very successful outsourcing relationships.

In vested outsourcing, companies and service providers work collaboratively to develop a performance-based partnership in which both parties’ interests are aligned, and each becomes vested in each others’ success.

“The Vested model derives its name from its hallmark collaborative approach through which companies and their service providers gain a vested interest in each other’s success,” says Vitasek, who believes Vested will do for outsourcing what lean did for manufacturing.

The World Trade Magazine included Vested Outsourcing and lead researcher Vitasek in its list of Top 50+1 Most Influential 2011 Trends. She was recognized as “Woman on the Move in Trade and Transportation” by the Journal of Commerce for her leadership in the profession, and was honored as “Woman of International Influence” by Global Executive Women. DC Velocity Magazine dubbed Vitasek a “Rainmaker” for her efforts in helping to build the logistics and supply chain profession.

Prior to joining academia, Vitasek



its stakeholders,” he says. “I draw my inspiration from the employees, who display extraordinary capability in creating greater value for our clients.”

Under Kapoor’s leadership at the helm of the company since 2008 and playing multiple key roles throughout the organization to shape its growth and culture, EXL Services has grown into one of the fastest growing publicly listed providers of Transformation and Outsourcing services to Global 1000 companies with over 200 clients in all the five continents, offices in eight countries and over 17,000 employees.

Driven by an entrepreneurial spirit and years of experience as an investment banker, he co-founded EXL. Prior to that, he was a business head at Deutsche Bank and led a marketing team that serviced

Republic in 2009; insurance policy administration application LifePRO through the acquisition of PDMA, Inc. in 2010 and a comprehensive suite of finance and accounting capability through the acquisition of Outsource Partners International in 2011.

The company’s relentless pursuit of excellence reflects itself in the many awards it has received over the years, including “America’s 100 Best Small Companies” by Forbes; The 2010 Global Outsourcing 100 by IAOP; 2011 Global Services 100 Companies by Neo Advisory and Global Services; Top 20 IT-BPO Employers in 2011 by NASSCOM; and Top BPO Employer 2011 by Dataquest among others.

A Member of the NASSOM BPO Forum in India, Kapoor also has been a speaker at various technology conferences and shares best practices, learnings and thoughts about how the industry should equip itself to capitalize on the opportunities in the future.

Kapoor sees continued industry growth in the vertical segments, government and the economy impacting the industry, location of providers mattering less than service, and greater partnering with providers.

“Outsourcing companies will no longer be mere service providers but act as active business partners to their clients. The change has already begun,” he says, noting that EXL has started adopting a business impact pricing model moving away from the traditional services based model.

Kapoor says he is always thinking of ways to keep EXL ahead of its client’s knowledge about their own industry while keeping an eye on the competition and maintaining a ”superior smartness quotient.”

“Today, I stand atop a strong line of leadership that runs very deep in the organization which will help the organization navigate into the future,” this Powerhouse says. “We are ready to go to the next level of outsourcing services, now.”

clients in Europe, the Middle East and the Indian Sub-continent.

He also managed the venture capital and private equity investments of several Ultra High Net Worth clients in start-up companies both in the U.S. and Indian TMT sectors, where he successfully raised several rounds of venture capital funding for various companies and was also involved in the structuring of their investments. At the start of his career, he worked for eight years with Bank of America in Private Banking in New York and Corporate Banking in India.

At EXL Services, Kapoor has further institutionalized his sharp focus on business execution and adopted an aggressive inorganic growth strategy. He also has long been a champion of innovation and building unique capabilities in areas such as risk management, decision analytics and process reengineering services, which today stand out as key differentiators for the company.

“His vision and decisions over the years have played a key role in achieving a spectacular growth for the organization and providing a sustainable and effective business model for the players in this space,” said Shailendra Singh, Senior Assistant Vice President Marketing Communications, who nominated him.

As CFO, Kapoor led the launch of the company’s IPO and its subsequent NASDAQ listing, which was considered the most successful IPO on NASDAQ in 2006.

He also has been instrumental in scripting a series of acquisitions over the years to make EXL’s domain led capabilities even more effective. These include adding world class analytical capability through Inductis in 2006; a broad spectrum of travel industry capability through the acquisition of American Express’ Global Travel Services Center operations in India in 2009; transportation and logistics domain capability through the acquisition of Schneider Logistics’ operations in Czech

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Outsourced Manufacturing & Supply Chain Consulting

...because the worldreally isn’t flat.

Ron Keith

Chief Executive OfficerRiverwood Solutions

Years of Experience: 24 yearsMajor accomplishments: Founded global outsourced manufacturing consultancy and services firm Riverwood Solutions in 2008. In 2011 alone, Riverwood Solutions’ clients will spend a combined $73.1 billion on outsourced manufacturing services.

Notable: Riverwood’s newly launched “Outsourced Manufacturing Academy” brings together users and providers in a unique independently moderated education forum.

Quotable: Lives by the advice he received about providing outsourced service to “focus every day on how to make your customers more competitive…in the end, everything else about the business will work itself out.”

Personal: Keith gets his professional inspiration from Apple CEO Steve Jobs for transforming the company and creating tremendous shareholder value.

Outsourcing Vision: On the horizon is Outsourcing 2.0, which will require outsourcing service providers to deliver more than great cost-effective execution but necessitate a higher level of intellectual interaction, collaboration, and strategic consultation with their customers.

Connect: Read Keith’s article” The Changing Landscape of EMS”: www.evertiq.com/news/13844

Frankenstein author Mary Shelley, Army General George Marshall, 9-11 hero Todd Beamer, Venezuelan Major League baseball player Omar Vizquel, Margaritaville musician Jimmy Buffett and Apple CEO Steve Jobs are some of the people Ron Keith admires who have influenced his life personally and professionally.

But perhaps one of the most influential moments in Keith’s entire 20-plus year career was a two-minute conversation he had once with Mike McNamara, the current CEO of outsourcing firm Flextronics International who at the time was the COO of that company.

The advice he gave Keith with great conviction about providing outsourced service – was simply, “focus every day on how to make your customers more competitive…in the end, everything else about the business will work itself out.”

Keith says he has repeated that line 1,000 times over the years – and yet it

remains today more true than ever. It is a fundamental tenant of how he runs his firm Riverwood Solutions – and perhaps the reason he is so willing to swim counter to prevailing currents, pushing his clients to reexamine their long standing approach to outsourcing.

After 20 years of working in outsourced manufacturing as both a customer and a provider, Keith founded Riverwood Solutions in 2008 with colleagues from the outsourced manufacturing industry to provide advisory services, implementation support and ongoing managed services for OEMs that utilize an outsourced model.

Under his leadership, Riverwood has quickly become recognized as one of the most knowledgeable and capable firms in outsourced manufacturing consulting and managed services, with more than four dozen associates in offices on three continents helping a broad range of OEMs optimize the value of their outsourced

manufacturing strategy.His firm’s approach, advice and

implementation diverges from other advisory firms that have historically focused on unit price, negotiating techniques and getting the lowest price from providers versus value creation.

“Thoughtfully designed outsourcing that is well executed should never be about slicing up the pie and arguing over the crumbs - it should be about baking a pie with a lot more filling,” says Keith, who has a reputation as an innovator, team builder, creative problem solver and strategic thinker who delivers straight talk and strong results.

Over the next five years, he sees leading service providers differentiating themselves by delivering game-changing levels of collaboration and intellectual and strategic contribution.

“Those outsourced providers that are able to reach into their customers’ organizations and most effectively move from being simply a lower cost option to a non-core function and more towards becoming an enabler of some competitive advantage will emerge as the new leaders in outsourcing 2.0,” Keith says.

Prior to forming Riverwood Solutions, Keith served in a number of executive management roles at Flextronics International where he provided outsourced manufacturing services to leading OEMs such as Cisco, Motorola, Kyocera, Nortel, Litton, W.L. Gore, TCL, JDS Uniphase and others.

As vice president and general manager at Flextronics, he ran outsourced manufacturing operations with more than 6,000 employees generating $1.5 billion a year in revenue for the then $16 billion outsourcing provider.

Prior to joining Flextronics in 1996, Keith spent nearly a decade in manufacturing and operations at Alcatel in Dallas, Texas, where he first became involved in outsourcing as a consumer of outsourced manufacturing services.

Over the past 20-plus years, this Powerhouse has participated in, and to some small degree helped to shape what has become one of the largest outsourcing industries in the world – the $350 billion outsourced electronics manufacturing industry.

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ADF I R M B U I L D E R . C O M

The industry’s premier repository of outsourcing

information, housing more than 1,000 articles,

studies, white papers, reports, and conference

proceedings.

C H A P T E R S

Through IAOP’s chapter network, members

share their expertise and gain knowledge on

best practices for specific industry segments,

topics and geographic areas.

VA L U E H E A LT H C H E C K S U RV E Y

A diagnostic tool to assist buyers and providers

in rapidly identifying opportunities to enhance

business value obtained from their outsourcing

relationships.

W W W. B E S TO U T S O U R C I N G J O B S . C O M

Helping customers source and hire the most

qualified outsourcing professionals and provide

outsourcing professionals with the best job

opportunities in their respective fields.

G L O B A L I Z AT I O N TO D AY

The official publication of IAOP for the growing

ranks of outsourcing professionals.

I M P R O V I N G O U T S O U R C I N G O U T C O M E S

B Y C O N N E C T I N G Y O U T O T H E R E S O U R C E S Y O U N E E D .

IAOP® is the global, standard-setting organiza-

tion and advocate for the outsourcing profes-

sion.

With more than 110,000 members and affiliates

worldwide, IAOP is the leading professional

association for organizations and individuals

involved in transforming the world of business

through outsourcing, offshoring, and shared

services.

A Global Community IAOP has members in

nearly 50 countries. Each member has direct,

online access to each other and to IAOP’s

entire portfolio of services, including its vast

chapter network, regional-level events, certifi-

cations and corporate and professional devel-

opment programs.

MEMBERSHIP

Customer Corporate Membership provides

organization-wide access to the association’s

research, training, certification and networking

programs — all designed to help companies

achieve better business results through out-

sourcing.

Provider/Advisor Corporate Membership pro-

vides the same organization-wide benefits of

Customer Corporate Membership, but also

includes member-only sponsorship opportuni-

ties that serve the marketing and business

development needs of these companies.

Professional Membership is available to indi-

viduals either as part of their company’s corpo-

rate membership or on an individual basis. This

membership serves the needs of practitioners

working in the field of outsourcing whether as

customers, providers or advisors. In addition,

it provides these professionals with direct, per-

sonal access to association services.

To learn more about IAOP membership or to become a member, visit www.IAOP.org.

M E M B E R S E R V I C E S

International Association of Outsourcing Professionals® (IAOP®) Tel +1.845.452.0600 Fax +1.845.452.6988 w w w. I A O P. o r g

IAOP membership85% of IAOP members credit IAOP for improved

outsourcing outcomes at their organizations

D. Zachary Misko

Vice PresidentKelly Outsourcing & Consulting Group (KellyOCG)

Years of Experience: 20 yearsMajor accomplishments: Works with Fortune 500 companies throughout the world to develop and implement processes that improve and drive Human Resources and workforce solutions through outsourcing, including Talecris, State Street Bank, CitiBank, Johnson & Johnson and General Electric.

Notable: Misko is Lean Six Sigma certified and an industry expert in applying “Lean Methodologies” in the talent acquisition and outsourcing process.

Quotable: “My passion for the outsourcing industry is high and easily seen though my commitment to educate and involve others. Providing solutions that make companies and people perform better is a great job!” -- Zachary Misko

Personal: Credits Debi Morton then of Lands’ End with helping him understand and appreciate Human Resources and teaching him how to engage and teach others in a meaningful way. Also was motivated to want to speak and share best practices with others by author and speaker Beverly Kaye.

Outsourcing Vision: Companies will increasingly outsource HR functions to tap into a vast global talent pool, especially at times of labor shortage, freeing them to focus on corporate goals while experienced partners efficiently handle an ever broadening and complex set of HR functions.

Connect: Read a lean white paper by Misko: www.kellyocg.com/Knowledge/White_Papers/Embracing_a_LEAN_Culture/ See video of Misko on Ask The Expert Show, June 2011: bcove.me/dp98fsue

Zachary Misko can relate. He viewed outsourcing from the buyer side for 10 years before joining Kelly Services Outsourcing & Consulting Group (KellyOCG) so he can understand what a client wants.

“My passion for the outsourcing industry is high and easily seen though my commitment to educate and involve others,” he says. “Providing solutions that make companies and people perform better is a great job!”

Misko works with Fortune 500 companies throughout the world to develop and implement processes that improve and drive Human Resources and workforce solutions through outsourcing at KellyOCG, a global leader in innovative talent management solutions.

After working for a decade in HR and management in a variety of industries, including direct merchant, retail, biotechnology, life sciences and staffing services, Misko joined KellyOCG in 2002.

Among his prior positions was senior training manager at Lands’ End, where he credits Debi Morton with helping him understand and appreciate Human Resources and teaching him how to engage and teach others in a meaningful way.

Gaining his motivation for speaking and sharing best practices with others from author and speaker Beverly Kaye, Misko has delivered and spoken at 200-plus seminars and conferences on a variety of human resource topics.

Certified in Lean Six Sigma certified, Misko is known as an industry expert in applying “Lean Methodologies” in the talent acquisition and outsourcing process. He has been since lean philosophy within outsourcing business processes since 2006 to help both KellyOCG and its client improve their efficiency and processes, and increase satisfaction.

Misko began his outsourcing career managing one client – General Electric - as a program manager; moved quickly to management of multiple programs as a Regional Manager; then became a Regional Director and Global Director; and most recently was named to Vice President.

His ability to forge long-term relationship with clients can been seen with GE, where he worked with multiple parts of the business over six years, including assisting in launching the

outsourcing program for its mortgage loans and consumer lending business in 2004; and handling hiring and managing an outsourcing team when GE entered Guatemala.

For the work and partnership he managed at GE Money, Misko was recognized with the “Outsourcing Customer Relationship of the Year” award in 2009 by HRO Today magazine.

Misko contributed to the book, Best Practices in Talent Management, published in December 2009 that outlines the implementation and management of a successful outsourcing relationship, best practices and lessons learned. For the last four years, he also has contributed to the research of a global report on recruitment process outsourcing (RPO) published in August 2011.

Misko sees outsourcing of HR becoming

more important to organizations to tap into a vast global talent pool, especially at times of labor shortage, freeing them to focus on corporate goals while experienced partners efficiently handle an ever-broadening and complex set of HR functions

The new work environment will “require practitioners who are able to exploit networks and resources across multiple locations, and who can apply the best of their knowledge to the benefit of a local enterprise,” he says. “It will also require organizations to continue to explore outsourcing functions to providers with the global reach to enable their workplace strategies.”

“Outsourcing some of the functionality can free time and resources for people to start to look at how they are meeting more important corporate goals,” Misko says.



Atul Vashistha

Chairman & CEONeo Group Inc.

Years of Experience: 21 yearsMajor accomplishments: Vashistha has worked with over 100 clients personally in his career in over 30 countries to help them better leverage global services and outsourcing, including Home Depot, Visa, Sony Pictures and Warner Brothers.

Notable: He has led outsourcing engagements that have a total contract value of over $10 billion, yielding an estimated savings of over $3 billion to $4 billion to clients.

Quotable: “My goal in life has been to make a difference in whatever I do. Making a difference to me means that you help people accomplish their goals while achieving my own. I get great satisfaction from inspiring people to do the same” - Atul Vashistha

Personal: All royalties from Vashistha’s first book, The Offshore Nation, are donated to the World Education Foundation.

Outsourcing Vision: Sees more regional hubs for outsourcing services emerging, a major consolidation wave among suppliers, and increased demand by buyers for professionals with skills in leading and managing global services operations.

Connect: Read Vashistha’s column in Globalization Today Read articles by Vashistha at: http://www.neogroup.com/articles.php and www.vashistha.com Follow Vashistha on Twitter at: twitter.com/avashistha

Outsourcing advisor and author Atul Vashistha is inspired by people that help make the lives of others better like Nelson Mandela, entrepreneurs at socially-conscious companies like TOMS, Moral Eyes, Holstee and GreenStart, as well as business leaders that take their leadership skills to non-profits like Teach for America.

This Powerhouse also can also be considered an inspiration to others for making a difference as one of the leading advisors on globalization and outsourcing.

After working as Senior Vice President of International at Cardinal Health, Vashistha drew on his international expertise and relationships to found Neo Group (formerly neoIT) in 1999 with the mission of helping enterprises grow their business and improve operations by leveraging outsourcing and globalization.

Vashistha and his firm founded the first offshore advisory firm for global services.

Prior to its entry in the marketplace, all sourcing advisors were focused on the U.S market only. The leading sourcing advisory firm, TPI’s, offshore practice was founded by Neo through an alliance.

A supporter of numerous economic development, human development and corporate social responsible initiatives such as Echoing Green, World Education Foundation and local schools, all royalties from Vashistha’s first book, The Offshore Nation, are donated to the World Education Foundation.

In addition to working with more than 100 clients personally in such areas as defining global sourcing strategy and leading the sourcing process, he also has advised the governments of governments of Colombia, Mauritius, India, China, Jordan, Brazil, Peru, Australia, Poland and Hungary and trade bodies on how to be better destinations for outsourcing.

He has helped shape the outsourcing industry through his thought leadership articles, books, white papers, methodologies and participation on key industry associations.

“My goal in life has been to make a difference in whatever I do,” he says. “Making a difference to me means that you help people accomplish their goals while achieving my own. I get great satisfaction from inspiring people to do the same.”

Vashistha serves on numerous boards and advisory boards, including the U.S. Defense’s Business Board; IDEA; QuickStart Global; Center for Services Leadership at Arizona State University; Shared Assessment (BITS); LiveOps Marketplace; Stanford University’s Reuters Digital Vision Program; TiE Silicon Valley; Samasource and GreenStart. He also chairs the Nearshore Executive Alliance and YPO Norcal.

A founding member of the International Association of Outsourcing Professionals, he serves on the association’s Latin America regional advisory board and holds the prestigious Certified Outsourcing Professional designation.

Media and Wall Street analysts such as CNN, ABC, CNBC, Merrill Lynch, Goldman Sachs, HRO World, Fortune, Forbes, Business Week, Wall Street Journal, Investors Business Daily, Economist, CIO, CFO and other global organizations value Vashistha’s opinions.

Vashistha continues to be a vocal proponent of globalization and has taken on the critics, such as Lou Dobbs and his “Exporting America” segment on CNN. After writing “The Offshore Nation,” which focuses on the services globalization mega-trend and its economic and human impact on nations and firms in 2006, he wrote Globalization Wisdom: The 7 Secrets of Great Globalizers and Outsourcing Wisdom: The 7 Secrets of Successful Sourcing in 2009. His fourth book is underway.

Without doubt, Vashistha and his firms are redefining how nations create competitive advantage in global services and how firms and individuals can leverage this mega-trend to build better futures for all.

Be sure to get the next issue for the details of the rest of the Powerhouse 25.



Trend #1: SaaS-powered HROThe advent of software-as-a-service (SaaS) as a mechanism for delivering human capital management (HCM) solutions may have a profound impact on HRO service delivery models. Historically, outsourced HR services have been tightly coupled with an enterprise resource planning (ERP) solution hosted or delivered by the provider, giving organizations few options if they wanted to adopt an alternative technology. However, the growing size and maturity of the SaaS-based HCM market has prompted some HRO providers to develop a new service delivery model designed to provide outsourced HR support using the SaaS-based solution of the customer’s choice.

This model can be very compelling for large organizations that already have a

large HRO footprint, as it can allow them to combine a cutting-edge technical solution with the outsourced service delivery model already in use. One challenge organizations may face, however, is figuring out how to combine SaaS with outsourcing without having to completely reimplement the HRO solution. Organizations should work closely with their HRO providers to jointly develop a solution that will meet the organization’s needs at a viable price.

For buyers that use different vendors for the technological and operational components of an HR process, the ability to integrate a variety of solutions across vendors becomes critical, as does the ability to effectively coordinate vendor services. Because no single vendor “owns” the entire

process, an organization that uses a multi-vendor approach may want to reclaim oversight responsibility in areas such as HR data management and end-to-end process execution. Such an organization may wish to strengthen its in-house technical capabilities for managing integrations with non-HR systems and solutions. It may also consider coordinating more closely among its internal departments, as well as with vendors, to manage system and service changes due to patches and upgrades. Finally, a multi-vendor approach makes it even more important to precisely define roles and responsibilities in executing both customer-facing and back-office processes, as well as cross-process activities such as audits, compliance, and data integrity.

Having learned from experience what kinds of solutions are most likely to meet theirr needs, today many HRO buyers are increasingly demanding – and receiving – tailored, mature HRO servicess that specifically address their organizations’ requirements. Many HRO providers, in turn, are responding with innnovative products designed to capture the interest of these newly sophisticated buyers in an increasingly crowdedd HRO market. They are switching from broad solutions aimed at providing “everything to everyone” to moree focused, discrete solutions that leverage their core strengths. The confluence of shifting buyer demand and intensifyiing provider competition hasgiven rise to several trends that can have a significant impact on how companies appproach the HRO process.

“The customer is always right.” This age-old adage, however outdated and clichéd, is taking on new meaning in the HR outsourcing (HRO) space.

The future of HR outsourcing: Five trends to watchBy Michael Gretczko

FIVE TRENDS TO WATCH IN THE HRO SPACE



intake, management, resolution, and/or routing solutions – even though many organizations place a high priority on reducing their HR staff ’s time and effort spent on these activities.

In response to these drivers and constraints, HRO providers are beginning to offer what might be called “service center wrap” solutions to buyers looking to facilitate the transition to an HR service center model. Essentially, this approach “wraps” outsourced delivery of customer-facing HR services, such as inquiry-related services, around in-house execution of more complex HR transactions. Buyers may find that a service center wrap can help them speed the implementation of in-house service center capabilities, improve the end-user experience, more effectively leverage the company’s “one-off ” investments in single process technology, and more effectively deploy their in-house HR specialists to improving the organization’s internal HR shared services capabilities. By outsourcing the customer-facing aspects of HR, a company can

gain the necessary cover and capacity to consolidate and standardize its back-office HR processes as part of the transition to an HR service center model – while shielding customers from the disruptions in service that these efforts could entail.

The service center wrap seems poised to not only continue to be used, but potentially become a preferred method for HR service center implementations. Buyers seeking service center wrap solutions should consider the extent of any investments in service center technologies and infrastructure the provider may require; the solution’s potential for reducing the duration and effort needed to onboard customer service representatives; and the solution’s ability to reduce the time internal HR specialists need to spend on setup and transition activities. Buyers that are willing to accept the tools, processes, and knowledge supplied “off the shelf ” by the provider, making only those changes that are absolutely required, will likely be able to make the most effective use of a service center wrap solution.

Trend #2: The “service center wrap” as an HR service center implementation toolIn recent years, we have observed a distinct shift in buyer preferences with regard to HRO services. Fewer companies appear to be looking for traditional, full-blown, multi-process outsourcing solutions, choosing instead to outsource individual processes or sets of processes on a more piecemeal basis. Often, such outsourcing takes place in the context of an overall HR service center strategy in which a single consolidated entity (the service center) draws upon a combination of outsourcing and in-house shared services capabilities to deliver HR services to the entire enterprise. The frequent catch is that, while most organizations understand the potential cost and quality benefits that an HR service center can deliver, many are surprised by and unprepared for the effort it takes to establish and run one effectively. In particular, few companies we have seen have the ability or resources to develop their own end-to-end inquiry



pursue larger clients where their products can scale accordingly. As a result, the middle market will likely have increasing access to one-to-many services on a pay-as-you go basis. Because many of these solutions are delivered through the cloud, buyers can obtain them at relatively little upfront cost with short implementation times – critical considerations for the middle market. In terms of service offerings, many HRO providers are aiming to address the middle market’s specific challenges of regulatory compliance, talent management, and globalization, as well as provide technologies – such as workforce analytics and integrated talent management applications – that can help support strategic value creation.

At this time, many of the solutions being pitched to the middle market are technology-focused, paying little attention to business process delivery. We expect this to change in the moderate to long term, however. A growing number of providers are offering SaaS-based solutions along with related support services such as call centers, employee lifecycle support, and related transactional services. For middle-market buyers, this may mean starting small and planning to phase in additional HR processes and modify their outsourcing portfolios as business needs change.

Trend #3: The rise of the middle marketFor more than a decade, many multiprocess HRO providers have focused on large buyers (15,000 employees or more) with complex, customized requirements, leaving the middle market to be served by single-process providers specializing primarily in payroll and benefits. Today, however, middle-market companies are starting to demand the same kind of mature, sophisticated, and innovative solutions that were previously available only to larger companies. At the same time, HRO providers are facing a leveling-off and possible decline in demand for large-scale multiprocess HRO deals, making the middle market more attractive as a new frontier for growth. In fact, according to Nelson Hall’s June 2011 analysis of the multiprocess HRO (MPHIRO) industry, “MPHRO will continue to grow slowly for the next 2-3 years and then gain more momentum as the economy strengthens with growth starting to come from the mid-market.”

Many HRO providers are likely to gain a more balanced client portfolio between middle-market and large-market clients over the next few years. Providers that have traditionally catered to large companies will likely develop service offerings targeted to mid-size companies, while many small-market providers will typically continue to



them upon contract expiration, namely:1. Renew – extend the existing contract

as is2. Renegotiate – maintain the existing

contract language but change the scope of services

3. Restructure – change the contract language and consider changes to the scope of services

4. Recompete – search for a new provider

5. Repatriate – bring formerly outsourced services back in-house

To better understand which of these paths to pursue, buyers should engage in a structured analysis of their HR service delivery strategy and the role of HRO in that strategy before their existing contract expires, thus reducing the risk that time pressure will force them into an unsatisfactory decision. This analysis should consider the organization’s needs and tolerance in specific areas such as technology flexibility (e.g., highly customized vs. standard), governance (e.g., the use of formal service-level agreements and/or metrics vs. Informal agreements), and the provider’s service style (e.g., consultative vs. operational). A thoughtful exploration of questions like these can help buyers not only address the question of whether or not to renew its current HRO contract, but also better understand the role of outsourcing in its business and HR service delivery strategy for this year and beyond. It can also identify specific areas in which the organization both needs and can tolerate change, as well as clarify how to address these areas in a way that aligns with business and HR strategy.

Trend #4: Greater variation in buyers’ service delivery choices According to one estimate, more than 60 percent of MPHRO contracts were or will be up for renewal in 2011 and 2012. That’s a staggeringly large number of organizations that will need to figure out what to do next in a market that has changed significantly since many of these deals were signed in the mid-2000s. Almost everything that can change, has changed – including providers, technology, and service availability – giving organizations the incentive to carefully evaluate their options when deciding on their next move.

With so many organizations taking stock of their HRO investments in so short a time, the HRO marketplace may experience a phase shift driven by buyers’ desire to improve upon the status quo. The exact direction of this shift may not be known for some time, but we believe that some degree of change is well-nigh inevitable.

Buyers facing contract expirations today and in the near future are in a position to use the lessons learned from past experience to their advantage. Their greater understanding of what “works” for them will likely lead them to consider a wider range of options for HR service delivery than has been typical in the past. While the common tendency several years ago was to renew HRO contracts with the same provider(s) and for the same services as were already in place, organizations today may consider contract expirations as an opportunity to reevaluate their entire HR service sourcing strategy and, if necessary, drive constructive change. They will likely make increasing use of the full range of the five options available to



closely with their clients’ in-house HR organizations. They may seek to use social media to enable virtual communities of employees, vendors, and alumni whose members assist each other by asking and resolving questions and sharing knowledge. Through such collaboration, the boundaries of in-house HR shared services organizations and Centers of Expertise can become more porous as they evolve into communities of practice that extend beyond the organization. As these communities grow, the HRO industry may move to a ”crowdsourcing” model in which buyers and providers spec, bid on, and subcontract work – including knowledge-based as well as transactional work – using social media tools. This model can help both buyers and HRO providers to more easily leverage occasional workers distributed across the globe.

More widespread adoption of social media in HR may prompt in-house HR professionals and end users alike to expect HRO providers to act as integrators, able to provide a seamless experience across a diverse service and provider landscape. Buyers are likely to seek providers that can not only aggregate different SaaS technology solutions into a single user-friendly environment, but also create a single interface for interacting with the disparate collection of providers that a buyer may hire for different processes such as compensation and benefits, payroll, and so on.

HRO providers may also respond to buyer and end-user interest in social media by transforming HR portals into interactive HR “platforms.” The HR portals of today – which primarily house a collection of static content and support a limited number of predefined transactions – may give way to employee engagement

Trend #5: The social media revolution in HRO service deliveryAs social media becomes increasingly ubiquitous in our personal and professional lives, it may have a considerable impact on the way HRO services are sourced, delivered, and used. Both HRO buyers and providers – as well as end users – will expect access to virtual communities of like-minded colleagues; tools that enable quick and easy information-sharing; and a personalized, on-demand, user-centric experience. Using technologies such as mobile applications and cloud computing, savvy HRO providers may address these expectations by offering buyers services that leverage social media to more effectively meet business needs.

The first wave of this phenomenon will likely involve the integration of social media into existing HRO offerings. Many providers will introduce social aspects into their services in each HR functional area (recruitment, onboarding, and so on) in order to collaborate more

platforms, primarily social in nature, that can aggregate personalized HR content to create a customizable mashup. These platforms have the potential to enable interactions as well as transactions: They will not only give employees improved self-service capabilities, but enable them to interact with colleagues, vendors, HR, and alumni, among others, for HR-related purposes.

In the future, HRO providers may even offer social media tools for soliciting feedback and comments directly from their clients’ employees, making it unnecessary for a client representative to gather and communicate such information to the provider. This capability can give providers valuable data to support continuous improvement, as well as give buyers another potential performance metric to track the value that an HRO provider brings to the table.

THE FUTURE IS NOW

The HRO landscape has changed dramatically since its inception, and it continues to evolve. New technologies, evolving buyer demands, and greater provider attention to customer preferences are driving shifts in the way HRO relationships are selected, negotiated, and executed. Buyers today should not settle for a “one size fits all” outsourcing solution, but rather consider looking for providers that are sensitive to their needs and preferences, able to craft solutions that effectively support the HR function’s operations.

Grateful acknowledgements to Dan Sundt, Derek Polzien, Peter Ackerson, Susan Leal, Joseph Press, and Jessica Kleiner for contributing insights to this piece.



Michael Gretczko, a principal at Deloitte Consulting LLP, leads the organization’s Human Capital Outsourcing Advisory practice. He has over 12 years of experience in human resources transformation consulting, with a focus on HR outsourcing advisory and implementation services. Please reach out to Michael at [email protected] with any questions or comments, or visit www.deloitte.com for further information.

Michael Gretczko Deloitte Consulting LLP

HR


by the post millennium recession and the true commercialization of the Internet, many companies shed their captive centers giving rise to the BPO industry in India. But as noted author Gary Hamel stated in his book, Competing For The Future, “Success is guaranteed to nobody”. While they attained, and held, the position as the #1 destination for BPO for nearly a decade, the number one spot for global BPO is now firmly held by The Philippines. Who will hold that spot in 2020?

Lately, with the ever present demographic shift occurring in the US, the Latin American countries have taken the spotlight as the destination of choice. Sutherland, Genpact and other s have set their sights on Colombia. With the 3rd largest population in Latin America, a well educated workforce, and government incentives and significant commitment to grow the Outsourcing industry in that country, Colombia has emerged as the destination preferred by leading companies, both vendor and outsourcer.

But is Latin America, or even Colombia

WHAT SHORE?


Onshore, offshore, nearshore, farmshore, rural sourcing, home agents, rightshoring…are just some of the terms vendors use to try to differentiate themselves in a crowded field of more than 2000 outsourcing companies globally. The leading outsourcers, and savvy buyers of outsourcing services know it’s not the shore that matters, it is the solution offered that addresses a client’s need that ultimately matters. Legal teams and the Business Continuity Planners would contend otherwise, and they would be partially right. While factors such as working conditions, communications infrastructure, IP protection laws, crime, political stability, currency fluctuations, propensity for natural disasters and other factors need to be considered…they are just that…considerations to figure into the risk-reward mix. But in the end, it is the solution that matters, not the geography.

Long before India came on the Outsourcing scene, the large outsourcers like EDS, IBM, CSC, Unisys and ACS already had an offshore presence in multiple locations, many including

India. The acquisition of EDS by General Motors in 1984 transformed EDS from a multi-national company to a truly integrated global powerhouse. Many of the leading outsourcers already had nearshore facilities in Costa Rica, Mexico, and Colombia and other countries. This was a way to distribute work globally to attain 24/7 effort, reduce costs and to supplement their dominant presence in onshore outsourcing. Companies such as ACS were performing BPO work in Mexico, Colombia and Ghana in the 1990s, while many were doing claims administration, client administration and customer service dating back to the late 1960s. Unlike most Indian outsourcers, at India based Firstsource, while their work is spread across 46 centers around the globe, 70% of their revenue is derived by delivering services in the same geography as their customer.

India achieved its prominence largely from the significant contribution it made rewriting systems to address the Y2K challenge. Attracted by the labor arbitrage and aided

NOT SURE WHAT SHORE?

By Stanton Jones Lorem Ipsum is simply

dummy text of the printing

and typestting industry.

Lorem Ipsum

the answer? No. It is merely an option. There is no silver bullet, no universal solution. As Esteban Reyes, CEO of VSI, a Colombian based ITO/BPO outsourcer is astutely points out, “Colombia is an excellent destination and has many advantages. But at VSI we are competing in the global market with India, China, Poland, Philippines, Russia, and other Latin America Countries for the same business. We design our service excellence to be on par with the world’s best. Our prices need to be competitive with every country for the value we deliver. We need to solve problems for customers by offering solutions that meet current and future needs, not just providing commodity services. We do not compete only with other Colombian or even Latin American companies exclusively. If we compete at that level, we will win our share of the business. The whole world is our field of competition in my eyes.”

For the buyers of Outsourcing services, throw out the hype and personal preferences and cast a wide net, irrespective of geography. Clearly define the problem you are trying to solve and let the outsourcers bring you their best solution, without predefining too many of the variables, such as location. While the Procurement/Sourcing department plays an important role, the strategy of what to outsource, why, where, and what is the expected outcome needs to owned and driven by the business unit. You can hold outsourcers accountable, but you cannot outsource your accountability for delivering the business result.

WHAT SHORE?


ABOUT THE AUTHOR

Thom Mead is VP of Marketing, Alliances &

Channels – North America for Firstsource, a

leading global provider of BPO solutions for

the Banking, Financial Services, Insurance,

Healthcare, Telecommunications & Media,

industries. With nearly 30,000 employees across

more than 45 delivery centers around the world,

Firstsource delivers both onshore (70%) and

offshore (30%) solutions for its clients. Prior to

Firstsource, Thom was CMO for EXLservice, SVP -

Sales for Spherion, VP of Sales and Marketing for

Unisys Outsourcing and VP of Global Marketing

for ACS where he also served as president for an

ACS BPO subsidiary. Thom has been a key figure

in structuring and closing more than $17B of

outsourcing transactions in his career.

Thom can be reached at:

770-769-7795

[email protected];

www.linkedin.com/pub/thom-mead/0/224/a98

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The global adoption of social networking

has gained momentum and more and more

consumers now turn to social communities for

information and advice. With over 500 million

users of social networks such as Facebook

and over 1.5 million pieces of content shared

on Facebook every day it is by far the greatest

marketing arena online and businesses are

desperate to harness this. However, whilst

marketers already recognise the importance

of social media to their success, it is time

customer support organisations

woke up to this reality.

Customers now consume information in different ways and the majority of people believe businesses should not only have a presence in social media but they should be interacting with their customers in these networks. This highlights the need for social customer relationship management (CRM) to become part of the DNA of the customer service cycle.

Social CRM is an opportunity for organisations to be part of pure pier-to-pier interaction with customers about the real issues they need to resolve, as and when they arise. The huge growth in the mobile only internet population and the ability for consumers to update their social media profiles anytime, anywhere has huge implications for customer services and means businesses need to focus on increasing dialogue with their customers, fostering the sharing of customer knowledge and responding with appropriate answers to the issues customers face in the manner most convenient to them.

Creating a competency to effectively use social media as a support channel, however, requires fundamental retooling of systems and processes. With 25 per cent of search results for the world’s top 20 largest brands now linking to user generated content it is crucial for businesses to migrate from a business-centric approach where customers call them for answers to a customer-centric one where support answers are created in the social community with or without the blessing of the company.

Customers are becoming the experts in the products and services they use as they become more savvy and outspoken about their experiences and businesses need to focus on the knowledge and data that can be gleaned from monitoring, understanding and analysing customer conversations in social networks carefully. This includes networks outside the boundaries of an organisation such as Twitter, Facebook, LinkedIn, Bebo and MySpace.

Many businesses have jumped on the social networking bandwagon and have rushed into implementing technologies such as Lithium which allow them to monitor customer feedback and queries within their

organisation but are finding they have a huge amount of knowledge from these technologies and do not have the solutions in place to make use of that knowledge.

Few companies are set up to both monitor AND harness the insights and value of social conversations. It is this second step in harnessing social knowledge that underpins the success of using social communities to benefit the bottom line. A social media strategy that is not supported by a knowledge strategy to harness social conversations and feed answers back into social conversations will fall short of impacting customer satisfaction levels and helping companies cost-effectively scale their support organisation. This may be the reason for such high levels of customer dissatisfaction.

It is vital for customer support experts to have the policies in place to be able to use the knowledge and expertise from their customers. It is also crucial for businesses to be able to manage the information that is being dissipated through these social networks. Very often incorrect and damaging information can snowball through these networks if an organisation is not ready to respond and disseminate the correct answers.

Key to social CRM is taking these issues that organisations face in supporting customers and using the capabilities of a number of technologies that allow businesses to be able to monitor all social conversations, incorporating misspellings, sarcasm and colloquialisms; and feeding this information into a CRM solution which can distinguish the context of comments rather than just the tone and provide a much deeper search capability and more accurate knowledge base.

Social is only a shadow of what it can be without knowledge management, without which organisations can’t manage their customer interactions appropriately but just simply facilitate them.

Businesses that can utilise knowledge appropriately will be able to take advantage of their savvy customers and feed that expertise back into their organisations for other customers to benefit from. Consequently rather than paying to train staff to become experts in a particular product, businesses will be able to take advantage of their customer’s knowledge and, with recent research finding the cost of solving a customer query online just $0.06 on average compared to an average cost of $162 for dealing with a customer query over the telephone, social CRM can offer businesses huge return on their investment.

We expect to see more organisations looking towards their customers in the future. Social CRM is something that is proliferating through the business world right now and it’s vital for business to understand the knowledge to be able to deliver better answers and information to their customers, the true experts.

SOCIAL IS ONLY A SHADOW OF WHAT

IT CAN BE By Christopher Hall

ABOUT THE AUTHOR

Christopher Hall has over twenty years of business

experience as a senior marketing and product

strategy professional in the enterprise software

industry. Prior to joining InQuira, Hall was the Vice

President in charge of the global product strategy

initiatives at KANA Software. Earlier, Hall was Vice

President of Worldwide Marketing for Chordiant,

where he pioneered the company’s customer experience (Cx)

branding and he was Senior Director of Product Management for

Silknet Software, which launched a successful IPO in 1999. InQuira

Inc. is a leading provider of enterprise knowledge solutions and was

founded in 2002 and is headquartered in San Bruno, California


SOCIAL SHADOW

WELCOME NEW IAOP MEMBERS

IAOP is pleased to welcome new and re-newing corporate and professional mem-bers from: A.P. Moller Maersk; Accedeo; Accenture; Allstate Insurance Company; APAC Customer Services; Applied Ma-terials; Assenda; AstraZeneca; Backyard Leaders, LLC; Bancolombia; Capgemini; Charles Schwab & Co.; Chubb; Clear Har-bor; CME; Columbia Univsersity; Covidi-en; Credit Suisse; CSC; Eli Lily; GPS Group, Inc.; Hess Corporation; Hewlett Packard; Hospital Corporation of America (HCA); Infosys; ISS Facility Services; Join Innova-tion Technology Co., Ltd; Kelly OCG; Kraft Foods; Kromann Reumert; Lawson Soft-ware; Lear Communications; Lexis Nexis; Manulife Financial; McKenna and Associ-ates; Microsoft; Morrison & Foerster; NCO Group, Inc.; NCR Corp.; Neusoft Corpora-tion; Nordea Life & Pensions; Northern Works; Oakton; Orange Business Services; PHH Corp.; PwC; Softtek; SunGard Asia Pacific; Symantec; TCS; The Goodyear Tire & Rubber Company; The Guardian; The Results Companies; TPI; University of Mis-souri - St. Louis; VanceInfo; Vangent, Inc.; Vodafone; Washington Gas; Whirlpool; Wipro Technologies; WNS; and Zurich Fi-nancial Services.

For information on IAOP membership, please visit www.IAOP.org/membership or email [email protected].

IAOP’S CHINA CHAPTERS

ANNOUNCE FIRST EVER

“CHINA WEEK” EVENT

WHAT’S HAPPENING AT THE IAOP


Join us October 11-14 as IAOP’s China chapters tackle

critical topics in the outsourcing industry at individual

chapter meetings held in Hong Kong, Shanghai, Qingdao

and Beijing. For more information, visit www.IAOP.org or

email [email protected].

CONFERENCES & EVENTS

IAOP MEMBER FORUM: USE OF ADVANCED TOOLS & TECHNOLOGIES IN OUTSOURCING

View the program at www.IAOP.org/MemberForum

IAOP invites you to join its Chicago Chapter, Midwest Chapter, Cloud Computing Chapter and Tools & Technology Innovation Chapter for a one-day IAOP Member Forum at the offices of Kirkland & Ellis in downtown Chicago, IL on November 10, 2011 where leading outsourcing customers, service providers and advisors will share their experiences and best practices in the use of advanced tools and technologies to improve the value from outsourcing and/or shared services.

MEMBERSHIPMembership in IAOP provides access to an extensive array of services, and just as importantly distinguishes organizations and professionals as lead-ers in the field of outsourcing. IAOP membership demonstrates a commit-ment to innovative thinking, continuous performance improvement, and to the sustaining development of outsourcing as both an industry and as a profession.

CUSTOMER CORPORATE MEMBERSHIPOrganizations that are currently outsourcing or are considering one or more outsourcing initiatives should become Customer Corporate Mem-bers of IAOP. This membership provides organization-wide access to the association’s research, training, certification, and networking programs - all designed to help companies achieve better business results through outsourcing.

PROVIDER/ADVISOR CORPORATE MEMBERSHIPOutsourcing service providers and advisory firms should join IAOP as Provider/Advisor Corporate Members. This membership provides the same organization-wide access to IAOP’s research, training, certification, and networking programs as Customer Corporate Membership, but also includes member-only sponsorship opportunities that serve the marketing and business development needs of these companies.

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

MEMBER SERVICES IAOP membership provides access to a wide range of services designed to help you and your organization improve outsourcing outcomes.

Many of these services are included as part of IAOP’s Professional or Corporate Membership, with discounts available for use beyond the level provided. Some services are also available individually at non-member rates.

Globalization Today - The official publication of IAOP creates the largest and best informational publication on outsourcing by uniting and tapping the collective intellect of individuals from around the world. IAOP Members receive a free subscription plus the opportunity to get published, promote products/services and advertise.IAOP’s Knowledge Center, Firmbuilder.com® - This online repository houses more than 600 articles, including chapter meeting presentations, conference proceedings, industry whitepapers, research articles and more. Chapter Network - Through its active and expansive chapter network, IAOP members can share their expertise and find knowledge on best practices for specific industry segments, topics and geographic areas within outsourcing.Conferences & Events - IAOP hosts the world’s best-known and most highly-respected executive conferences on the topic of outsourcing. Certified Outsourcing Specialist Family of Certifications - Receive 50 complimentary COS tests each year.Value Health Check Survey - This web-based diagnostic tool provides outsourcing customers and service providers with rapid insights to realizing outsourcing value.BestOutsourcingJobs.com - Companies seeking the best talent for outsourcing jobs, as well as professionals looking for employment opportunities, can benefit from this IAOP member service provided through BestOutsourcingJobs.com (BOJ).

For more detailed information, visit www.IAOP.org/MemberServices.

CALENDAR OF EVENTS

IAOP CHAPTER MEETINGS

OCT 10 SWITZERLAND CHAPTER MEETING ON “APPLICATION DEVELOPMENT AND MAINTENANCE OUTSOURCING: FROM NEW COMMERCIAL MOD-ELS TO OFFSHORE STRATEGIES”

OCT 12 SHANGHAI CHAPTER MEETING

OCT 19 MIDWEST CHAPTER MEETING ON” BUILDING ITO AND BPO BUSINESS-ES IN THE MIDWEST - CHALLENGES AND OPPORTUNITIES”

NOV 23 NORDIC CHAPTER MEETING

IAOP Professional Members may attend an unlimited number of chapter meetings.

IAOP also offers complimentary Associate Membership which allows non-members

the opportunity to attend up to two chapter meetings as IAOP’s guest.

Go to www.IAOP.org/chapters for more information and to register.



COMPLIMENTARY WEBINAR ON THE VALUE HEALTH CHECK SURVEY (VHCS) ON October 27th at 8 a.m. EDT

If your organization is involved in global outsourcing and/or shared services, don’t miss the upcoming webinar. Learn how your organization can quickly and affordably perform an outsourcing relationship health check! Recent research indicates that over half of all business executives polled believe that they’re not getting the business value they originally contracted for or need today from their existing portfolios of outsourcing and/or shared service center relationships!

The Outsourcing Relationship Health Check ProcessTM is a proven approach to quickly, effectively and affordably perform a health check on outsourcing relationships. Using the web-based Value Health Check Survey (VHCS), IAOP members and non-members are now performing relationship health checks that can positively impact value in the relationship ranging from 5% to 30%+ of annual contracted spend.

If your organization isn’t performing periodic relationship health checks on its outsourcing relationships, you’re probably leaving significant business value on the table and you may be at risk of not maintaining a healthy overall relationship! Attend this webinar for one hour and learn all you need to know to be on the path to healthier and higher performing outsourcing relationships!

The webinar is open to IAOP members and non-members. Registration is required.

To register please visit www.IAOP.org/MemberServices.

The forum is complimentary for IAOP members, but you must reserve your seat at www.IAOP.org/MemberForum. Non-members may register for $250 at www.IAOP.org/MemberForum_Tools. Attendance is limited to the first 150 registrationsAttendance is limited to the first 150 registrations.

Global ClassesOCTOBER 19-21, 2011: HARBOUR PLAZA METROPOLIS, HONGNOVEMBER 21-24, 2011: KUALA LUMPUR, MALAYSIANOVEMBER 23-25, 2011: MAASTRICHT, THE NETHERLANDS - New! Only a few seats left.

Please visit www.iaop.org/training_calendar for a full list of classes and current discounts and specials.

CORPORATE MEMBERS INTERESTED IN TRAINING YOUR TEAMS?

Our in-house training calendar is filling up fast with companies who have seen the value of holding a private COP Master Class for their employees. Don’t get left behind - book your company training today!

“The COP program was selected due to its global recognition and application across all of our outsourcing practices, “says Rolf Kleiner, Sr Vice President, KellyOCG. “This will help reinforce thought leadership, credibility and our knowledge of the outsourcing marketplace.”

Ask your account executive about private, onsite COP Master Class training & certification for your teams of ten or more. Customers, providers or advisors who are not corporate members may email [email protected] for more information.

CORPORATE & PROFESSIONAL DEVELOPMENT

COP MASTER CLASS & GOVERNANCE WORKSHOP SCHEDULE

The COP Master Class is a great option for earning up to half (75 points) of the Knowledge and Training points needed for COP certification, and fully completes the required training for the aCOP designation. Completing the one day Governance Workshop is worth another 15 COP Certification points. IAOP is actively registering now for the following classes:North America Classes

March 26-29, 2012: Rizzo Executive Center, Chapel Hill, NC. Register now for this COP Master Class and SAVE $500!



THE 2012 OUTSOURCING WORLD SUMMIT®February 20-22, 2012 | Disney’s Contemporary Resort & Conference Center, Lake Buena Vista, Florida

Early Bird Rate: Register today at www.IAOP.org/Summit to save $350 PLUS get a $150 Amazon Gift Card!

Outsourcing Beyond the Horizon: Turning Today’s Opportunities into Tomorrow’s Successes

The financial and economic crisis has reshaped and transformed the outsourcing industry. It has also created never before seen opportunities. The 2012 Summit addresses how to capitalize on these opportunities to maximize success at your organization.

Learn what the latest innovations are and how to implement them Hear industry best practices and lessons learned from leading practitioners and visionaries Stay current on the latest outsourcing tools and technologies, including the cloud Meet and evaluate vendors in the Global Services Mall (or showcase your company as an exhibitor!) Network with 700+ outsourcing professionals from around the globe

You’ll also get access to The OWS12 HUB -- a networking site just for Summit delegates. Open to all registered delegates, this is the place to meet other delegates, get current information about sessions, networking, special events, and more. You will be able to customize your agenda, arrange meetings with delegates, sponsors, exhibitors, and keep your calendar – all in one place!

Want to attend The Summit for Free? Become a Corporate Member and receive two full-access passes to the summit. In addition, receive organization-wide access to IAOP’s research, training, certification and networking programs.

Provider/Advisor Corporate Members also receive complimentary exhibit space. For more information, email Renee Preston at [email protected].

Join companies like: Accenture, Allstate, American Express, Ameriprise, Applied Materials, Avasant, Blue Cross Blue Shield, Capgemini, Capital One, CB Richard Ellis, Colliers, Convergys, Deutsche Bank, Diebold, Firstsource Solutions, Fuji Xerox, Hewlett Packard, Heineken Netherlands, Infosys, ISS, John Hancock, Johnson & Johnson, KellyOCG, Kirkland & Ellis, Kraft, Liberty Mutual, Long View Systems, Manulife, MDeC, NCR, Nike, Orange Business Services, Pfizer, PricewaterhouseCoopers, Procter & Gamble, Quint Wellington Redwood, Rogers Communications, SAB Miller, Oracle, Symantec, Unisys, US Department of Labor, VADS Berhad, Vodafone, Whirlpool, Wipro, Xerox, and Zurich Financial Services.

10-QUESTION QUIZ: AND FIND OUT IF YOU HAVE WHAT IT TAKES TO BECOME CERTIFIED

Are you prepared to successfully manage outsourcing initiatives? Do you have the knowledge and experience needed to join the industry’s most elite Certified Outsourcing Professionals? Begin your journey to earning one of IAOP’s most distinguished designations by testing your outsourcing professional skills with IAOP’s 10 question quiz at www.IAOP.org/Quiz.

Once you have completed the quiz email it to [email protected] for your results. Those who submit the quiz will receive a

complimentary electronic sample Outsourcing Professional Body of Knowledge (OPBOK) from IAOP partner Van Haren Publishing.

NEW COP DIRECTORY

Want to see who the COPs are in your company? Looking to work with the industry’s most elite professionals? Head on over to the NEW COP Directory where you can search by Name, Country and Company! For current COPs this is a great way to keep your information up to date at all times. Just login to you’re MY IAOP and enter your updated information into your Member Profile. It will automatically update in the directory.

Check out the new COP Directory: www.IAOP.org/COPDirectory.

PROFESSIONAL DEVELOPMENT RESOURCES AVAILABLE

No matter what industry you are in, IAOP has resources available for all outsourcing professionals. For the latest titles from IAOP, ITSqc and others please visit www.iaopbookshop.com, and get 15% off of any title you order. Also new from IAOP are titles from the American Bar Association found at the IAOP/ABA Legal Bookstore (www.ababooks.org/affiliate/iaop).

AWARD & RECOGNITION PROGRAMS

APPLICATIONS OPEN: THE GLOBAL OUTSOURCING 100 AND WORLD’S BEST OUTSOURCING ADVISORS

IAOP annually conducts an independent assessment of the capabilities of outsourcing service providers and advisors, and based on this assessment, publishes The Global Outsourcing 100 and The World’s Best Outsourcing Advisors and various sub-lists. Applications for the annual independently judged, opt-in ranking are being accepted now through Nov. 1, 2011.

Companies apply for inclusion on the list by completing an online application. Applications are then judged by an independent panel of experienced outsourcing buyers on four critical characteristics: size and growth; customer references; organizational competencies; and management capabilities.

For complete details and FAQ’s about the 2012 rankings and to apply, visit www.IAOP.org/GO100.



This year’s Summit was held in Indian Wells, California — adjacent Palm Springs — where the surroundingmountains and verdant golf courses created the perfect backdrop for networking.

��Today December 201020

YEAR IN REVIEW

Industry leaders will come together to discuss how advanced tools and technologies are transforming outsourcing at a forum hosted by IAOP® on November 10, starting at the Chicago offices of Kirkland & Ellis at 300 North LaSalle. It is open to all outsourcing customers, providers and advisors.

Participants will share best practices in using advanced tools and technologies to improve value through outsourcing and shared service relationships. Industry leaders will discuss how these tools impact outsourcing financial performance, service quality, capabilities delivered, risk/compliance and overall relationship governance.

“Where labor arbitrage was a key contributor to the financial impact of outsourcing in the late 90’s and early 2000’s, technology arbitrage will likely be a key differentiator in an organization’s ability to impact financial performance of outsourcing relationships in the future.” said IAOP Chairman Michael Corbett.

“We are witnessing a fundamental shift from traditional Business Process Outsourcing to Cloud-enabled Business Process as a Service. The Symposium brings together leading players in the outsourcing ecosystem as they try to jointly understand and navigate this shift,” said Arijit Sengupta, CEO of BeyondCore and chapter chair of IAOP’s Cloud Computing Chapter.

A wide range of general business and global sourcing professionals are expected to attend the IAOP Member Forum, including CIO, COO, VP and Director level management from disciplines such as procurement, finance, IT, risk management/security, audit and service delivery.

“In a competitive global economy the ability to exchange best practices and learn about new directions in outsourcing from other practitioners and disciplines will make this symposium well worth attending, said Rich Etzkorn, Executive Managing Director with Cassidy Turley and chair of IAOP’s Midwest Chapter. “Participants will be able to hear from practitioners from a variety of perspectives about the latest applications in tools and technologies space and the use of the ‘Cloud’ to further leverage outsourcing solutions.”

The forum kicks off with a continental breakfast at 8 a.m. and ends with a networking reception from 5 to 6:30 p.m. Admission for IAOP Professional Members is complimentary. The registration fee for non members is $250. Seating is limited to 150 attendees and advance registration is required at: www.IAOP.org/MemberForum_Tools.

To learn more about how to get involved, visit www.IAOP.org/

MemberForum.

IAOP Member Forum: Use of Advanced Tools & Technologies in Outsourcing

PAGE # COMPANY NAME URL

18, 19 Accenture www.accenture.com

21 Alsbridge www.alsbridge.com

40 BCS www.bcs.org/opportunity

4, 30, 47 International Association of Outsourcing Professionals (IAOP)

www.IAOP.org

24, 25 Kelly Outsourcing & Consulting Group (KellyOCG)

www.kellyocg.com

33 Neo Group Inc. www.neogroup.com

29 Riverwood Solutions www.rwsops.com

2 Thunderbird School of Global Management www.thunderbird.edu

ADVERTISER INDEX

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� Certified Outsourcing ExecutiveTM (COE)� Certified Outsourcing Professional® (COP)� Certified Outsourcing SpecialistTM (COS)

BENEFITS OF CERTIFICATION� Certification establishes a level of professional recognition essential in a field as complex and risk-based as outsourcing.� When working together across the customer-provider relationship, certification brings a common framework for success that benefits both organizations involved.� Certified individuals command greater respect within the industry and their companies, higher compensation levels, and expanded and enhanced career opportunities.

Training programs are available at the individual and corporate level. For more information, visitwww.IAOP.org/OPCF.

I’M A COP*Expect better, more consistent results with me.

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