0 copyright © 2007, technology partners international, inc. all rights reserved maturing client...

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Copyright © 2007, Technology Partners International, Inc. All Rights Reserved

Maturing Client Offshore Operations

Speed to Innovation & Scale

Copyright © 2007, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.

Peter AllenPartner and Managing Director

TPIFebruary 8, 2007

Christopher WalshDirector, Partner Relationship Mgt

Telstra

Paul SchmidtPartner, Global Service Delivery

TPI

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Introductions

Paul Schmidt

Leads TPI’s Global Service Delivery Team

Expert on software development and startup technology businesses.

Proven offshore advisory capabilities.

Representative TPI clients include: British Petroleum, Bank of America, ING, International Paper, United Airlines, British Petroleum, Kraft Foods Global, General Motors and Motorola.

Previously, CEO of Offshore Development Group, assisting clients in leveraging global resources in strategic and emerging markets.

TPI and Telstra have worked together on initiatives to enhance and expand the use of offshore delivery resources and models.

Chris Walsh

Responsible for Telstra’s outsourcing strategies and relationship management

Operational scope for Shared Services, including BPO and ITO

Previously, led outsourcing and offshore operations for Qantas Airlines and Westpac

Industry experience in Retail, Financial Services, Telecommunications, Transportation

Peter Allen

Leads TPI’s Market Development – Research, Industry Relations, TPI Index

Innovation Agenda for the Global Outsourcing Industry

Provides counsel to Clients on complex change programs, including P&G, Wyeth, McDonalds, Starbucks, GMAC

Led TPI’s portfolio of BPO services

Previously, CEO of Data Dimensions, an offshore AD/M provider with operations in Ireland

CSC – Global IT Service Delivery for JPMorgan

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Our Topic

Many organizations are facing the challenge of taking inaugural offshore operations to the next level of productivity and scale.

Inaugural Captive or Outsourced

Offshore Operation Deeper Capabilities

Broader ApplicationEnhanced Productivity

Accelerated PerformanceGlobal Footprint

Measure Output, not Effort

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Roadmap

Client Motivations & Challenges Peter Allen

Evolving an Offshore Capability Chris Walsh

Discussion / Q&A All

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TPIFebruary 8, 2007


Telstra


TPI

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TPI Line-of-Sight

54 69 75113

1425048

64

78

98

2002 2003 2004 2005 2006

Repeat Clients New Clients

2002-2006 Unique Clients Served

Organizations across the world rely on TPI for strategic sourcing advice.

Our Clients

TPI has served 50 clients in the Fortune Global 100 (50%)

172 clients in the Fortune Global 500 (34.4%)

US$20B TCV awarded 2006; Current pipeline of US$19B

144183 187

220256

2958 70

146

223

2002 2003 2004 2005 2006

ITO BPO

Engagement Profile

Transactions44%

Service Governance

17%

Sourcing Strategy

15%Assessment

24%

Nature of Engagement

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Seminal Observation . . .Corporations that possess experience with offshoring are better prepared to evaluate the range of service delivery alternatives, all with an eye towards increasing competitiveness.

The Industrialization of Services

Information-based services today can be standardized, built to order, assembled from components, picked, packed, stored, and shipped.

Establish a Captive Offshore Center

Outsource

Setup a Shared Services Operation

Transform the Organization Offshoring

placed within a broader agenda for change

Company Facing Internal and External Pressures

The Shared Services Mandate

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97

70

52

50

33

73

71

48

37

35

25

Cost Reduction

Growth Strategy

Competitive Pressure

Access to Skills

Industry Convention

Improved Service Quality

Business Process Redesign

Introduction of Disruptive Competitive Tactic

Increased Speed to Market

Business Resiliency

Access to New Markets

The Changing Motives for Outsourcing & Offshoring

Source: Offshoring research Network; Duke University Fuqua School of Business; 2006

Prevailing Motivations for Outsourcing & Offshoring

In contrast to the recent past, today’s reasons for evaluating alternative service delivery models are increasingly about competitive enhancements. Emphasis on Service over Process.

= Primarily Competitive Motivation

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Growth through Innovation:What Roles do Outsourcing & Offshoring Play?

In searching for avenues for growth, corporations look towards outsourcing along the spectrum of tactical/strategic, depending on their aspirations.

Near-Term Cost Savings

Capital Expense Avoidance

Converting Fixed Cost to Variable

Pathway to New Markets

Access to Specialized Expertise

Platform for Mergers, Acquisitions, Divestitures

Achieving Economies of Scale

Lever for Organizational Change

Positioning for Survival Positioning for Market Leadership

Tac

tica

lS

trat

egic Human Capital

Strategy

Motivations

Tim

e H

ori

zon

s

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Staff Augmentation

Opportunities to Leap-Frog

On-Site Staffing

Projects

Long-Term Offshore Contracts

Transformational Partnership

Client Impact

• Alignment with business strategy

• Organizational change consideration

• Management capability

• Potential investment

TPI’s clients seek supportto make this

transformation

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In Summary

Operational► Lower and variable costs► High quality and productivity► Faster time-to-market► Desired service levels

Strategic► Flexibility to adapt, vary, extend

and evolve► Predictability in execution,

delivery and innovation► Business-technology alignment

Outsourcing & Offshoring are here to stay as essential tools for realigning services operations to enhance competitiveness.

“If the rate of change outside your business exceeds the rate of change inside your business, the end is in sight.”

Jack WelchChairman

General Electric, 2003

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TPIFebruary 8, 2007


Telstra


TPI

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www.tpi.net


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