networking events - sig - sourcing industry group |sig.org/docs2/sig dtsi 382016 webinar.pdf ·...
TRANSCRIPT
The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITSApril 19-21 – Orlando, FL
SYMPOSIUMSMar 24 – Minneapolis, MN
April 7 – Columbus, OHREGIONAL ROUNDTABLES
Mar 15 – London, UKApril 5 – Montreal, CANMay 12 – Sydney, AUS
For more information and to register for all SIG events:
www.sig.org
RECENT POSTINGS
The SIG Career Network is
bursting with opportunities.
New jobs are posted daily by some
of the best known global companies in the world for those
seeking careers in sourcing, outsourcing, procurement and
related functions.
For more information go to: www.sig.org/career-center.php
NEW to the Career Network!
• Westfield Group – posted March 7:
• Procurement Operations Leader
• LINAK U.S., Inc. – posted March 1:
• Bi-Lingual Sourcing Specialist
• Unum Group – posted Feb 26:
• Category Manager
• KinderCare Education – posted Feb 25:
• Sourcing Specialist• Ross Stores – posted Feb 18:
• Senior Analyst, Strategic Sourcing
• FedEx – posted Feb 17:
• Procurement Advisor
• Associate Sourcing Specialist
• Sourcing Advisor
• VSP Vision Care – posted Feb 16:
• Senior Business Analyst
• Essilor – posted Feb 16:
• Strategic Sourcing Manager
• Milliken – posted Feb 9:
• Indirect Sourcing Manager
• Lincoln Financial Group – posted Feb 1:
• Sourcing Manager
special member
benefits
• 6 months of free buy-side
access to the Vendor
Evaluation & Assessment Tool (NEAT)
• 2 free Market Intelligence
Reports
• 15% discount on direct
hire placement fees
For more information, go to: http://sig.org/member-discounts
• $20,000 discount on Enlighta
Govern or Risk pilot
• 5 relationship assessment
surveys
• 20% discount on assessment
or implementation services
• 20% discount on research
reports on Chinese cities,
technology parks, providers
and advisory services
• 50% discount off fees
associated with GSOS
Health Check
• 10% discount on all
annual subscriptions
• Complimentary 1-hour
consulting session
• SkillsVillage membership
and software test drives
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Join the discussion in SIG’s Peer2Peer Resource program too!
Stay connected with other SIG members through various social media channels
SOCIAL MEDIA
bit.ly/SIGBlog
New Topic Each Week
NEW TIME!!8:00 am PST
11:00 am EST
4:00 pm GMT
5:00 pm CET
Upcoming Free SIG Webinars:
March 10, 2016Solution Deep Dive: Using Market Intelligence to Drive “Right Pricing” for Contingent LaborPresented by PeopleTicker
March 24, 2016 Solution Deep Dive: An Eloquent Path to Supply-chain ResiliencePresented by Zycus
March 29, 2016 Procurement Automation: Are You Really Ready for All Your Processes to Run Faster?Presented by GEP
Register at www.sig.org
For more information and to register for all SIG events:
www.sig.org
Upcoming Town Hall Teleconference:
March 9th
Crowdsourcing: What it is, Why it Matters and
What the Future Holds
Presented by: Dawn Tiura
President & CEO
Sourcing Industry Group
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated
discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.
Calendar of Town Hall Teleconferences
Taking place at 1:00 pm Eastern on the following dates:
February 10 July 13 March 9 August 10 April 13 September 14
May 11 October 12June 8 November 9
For more information and to register for all SIG events:
www.sig.org
SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users
Symposiums 2016:
Silicon Valley, CA – Jan 14
Minneapolis, MN – Mar 24
Columbus, OH – Apr 7
San Francisco Bay Area – Sep 15Toronto, CAN – Sep 22
New York, NY – Sep 29
Regional Roundtables 2016:
Seattle, WA – Feb 2
Hartford, CT – Mar 3
London, UK – Mar 15
Montreal, CAN – Apr 5Chicago, IL – May 5
Sydney, AUS – May 12
For more information and to register for all SIG events:
www.sig.org
SIG Global Summits are semi-
annual events with 350-450
decision-makers in attendance
• Non-commercialized
• Hundreds of industry thought
leaders
• 70% buy-side
• 4-5 keynote sessions
• Global brands
• 3 days of networking
• Executive Roundtables
• Over 50 breakout sessions
69% of delegates are director level or above, of which 43% are VP/C-level
Recent speakers include:
For more information go to: www.siguniversity.org
Online learning environment
Sourcing and Governance certifications with Professional and Executive level courses
Modules with lessons, formative assessments, summative testing and final proctored exam
Certification good for 5 years
Certified Sourcing Professional course starts March 28, 2016!
Certified Governance Professional course starts May 2, 2016!
For more information go to: sig.org/student-outreach.php
Partnering with Universities
Introducing students to seasoned supply chain executives
Sharing thought leadership with students in class, SIG University courses and at SIG events
Giving access to internship and job postings on the SIG Career Network
Allowing students to get real world insight into supply chain careers
Finding tomorrow's supply chain professionals today
Meet Today’s Speakers:
Sakshi Garg
Practice Director
Global Sourcing
Everest Group
Eric Simonson
Managing Partner
Research
Everest Group
Jeff Williams
Head GIC
Enablement
DTSI Group
12
DTSI BPO Clients DTSI GIC Clients
Internal delivery centersOutsourcing delivery centers
14
Reinventing Offshore Service Delivery
Some Key Topics We’ll Cover Today:
• Review GIC Model Types
• GIC Market Research Trends in Asia
• Assessment of Hybrid Sourcing Model
• Benefits of GIC Operating Model
• Key Factors in Establishing a GIC
15
There is a range of “captive” or “global in-house center” (GIC)
operating model options that enterprises can use
GIC operating model options
De novo GIC (GIC)
Joint venture
Build-Operate-Transfer (BOT)
Virtual/assisted GIC
Model
100% controlled and managed entity
Typically a fully owned subsidiary of the parent,
established from scratch
Description
Co-invested operations between buyer and service
provider
Service provider provides capital and runs operations
in the initial stages
Option for transfer back to buyer at a later date
Buyer retains management control
Service provider manages operations
We will focus on the De novo GIC model in this webinar
17
Number of leading GICs
2007-2015; Number
GICs continue to be an integral part of the global services
delivery for enterprises
18
1,170
1,345
1,507 1,623
1,737 1,828
1,906 1,999
2,099
2007 2008 2009 2010 2011 2012 2013 2014 2015
Annual GIC set-ups and divestitures
2007-2015; Number
XXGIC divestitures to
third-party providers
102: 2007-15 avg.
New GIC set-up activity seems to be picking up again after a
slow period in 2012-13
19
113 108
104
116 114
91
78
93 100
2007 2008 2009 2010 2011 2012 2013 2014 2015
1 10 8 2 2 4 1 1 2
High
Low
Imp
act
delivere
d
Low cost set-up
Scaled internal
provider
Strategic entity
driving innovation
Value addition
partner
Key focus
Innovation and new
products/services
Addition to revenue
streams
Global leaders for
the enterprise
Process
standardization
Teams for select
anchor functions
Multiple pilots and
transitions in
process
Predictable and
hi-quality delivery
Process efficiency
Capacity
augmentation
Transformational
process
improvements
High skill capabilities
Vendor management
Products for
emerging/ local
markets
Value drivers
Cost
Business
Strategic
Time
GICs are evolving to increase the impact delivered to the
enterpriseEverest Group’s GIC maturity assessment framework
Drive competitive
advantage
Extend
influence across
organization
Build robust
delivery
capabilities
Prove the concept
20
Distribution of GICs by delivery location
Up to 2015; Percentage
20%
10%10%
10%
10%
4%
Asia
LATAM2
CEE1
MEA3
100% = 2,099
59%26%
10%5%
1 Central and Eastern Europe
2 Latin America
3 Middle East and Africa
India has the highest share among GIC
locations globally
The key locations for GIC set-ups in CEE
are Poland, Ireland, Czech Republic, and
Romania
Within LATAM, the top locations are Costa
Rica, Mexico, and Chile
While limited in share, increased GIC set-
up activity is seen in MEA locations, such
as Israel
Asia continues to be the leading location for GIC set-ups with
~60% share
21
GICs in Asia
Up to 2015; Number
100% = 1,229
9%
91%
GICs in Asia delivering BPS1
Up to 2015; Number
100% = 509
The Philippines is the 3rd largest location in Asia for GIC set-ups; it plays on its strengths in the BPS
area – even in the GIC segment
GICs in Asia delivering voice
BPS1
Up to 2015; Number
100% = 217
16%
84%
26%
74%
The Philippines Rest of Asia
1 Business process services
The Philippines is a major delivery location for business process
services among GIC locations in Asia
22
Bacolod
Metro Manila
Metro Cebu
Baguio city
Majority of GIC activity is concentrated in Metro Manila; few
players have diversified beyond Metro Manila
Meycauayan
Metro Cebu, Baguio city, Meycauayan, and
Bacolod are few other cities in the
Philippines where GICs have been set-up
Key reasons for setting up GICs in tier-2
cities:
– Up to 10-25% lower costs than Metro
Manila
– Diversification of geographic risk
– Access to additional talent pool
– Competitive market in Metro Manila
23
What is hybrid sourcing?
What it often means
An unintentional mixing of the
GIC and third-party provider
model
Models are used based on
availability and suitability in a
given situation
What it should mean
An intentional approach where
different sourcing models are
stitched together to complement
capabilities, optimize costs, and
generate additional value
24
Three variants of hybrid sourcing can be seen in the industry
Skewed model Segmented model Integrated hybrid model
Low HighExtent of overlap/intersection of functions
Bias towards a preferred
sourcing model, which
can be:
– GIC-centric
– Outsourcing centric
Only limited functions are
performed by both GICs
and third-party providers
Clear segmentation of
work between sourcing
models with limited
overlaps
Believe that certain types
of work are best
performed by a particular
model
Clear segmentation of work
between sourcing models
with significant overlaps
Sourcing models
intentionally compete or
complement
Combinations of sourcing
models can sometimes
provide increased value
25
Best practices for adopting hybrid sourcing model for buyers
26
Don’t let a thousand flowers bloom
Develop an end-state vision and target operating model1
Keep your hybrid sourcing strategy neat
Communicate hybrid sourcing benefits and align the business2
Plot your course
Invest in hybrid governance organization model and performance metrics3
Make the most of what you’ve got
Reskill talent to manage sourcing and hybrid governance program4
Reinventing Offshore Service Delivery
Some Key Topics We’ll Cover Today:
• Review GIC Model Types
• GIC Market Research Trends in Asia
• Assessment of Hybrid Sourcing Model
• Benefits of GIC Operating Model
• Key Factors in Establishing a GIC
27
Benefits of GIC Operating Model
• Enablement of Advanced or Mission Critical Core Services
• Desire for “End to End” Control of Full Cycle Service Delivery
• Requirement for Control of Confidential IP and Processes
• Improved Access and Retention of High Quality Skilled Talent
• Direct Control of Risk and Regulatory Compliance
• Governmental Tax Holiday and Incentives
• “Blend” BPO and GIC services into a HYBRID Model
28
Key Factors in GIC Establishment
1. GIC Decision Process
2. Evolution of GIC Economics
3. Corporate Formation
4. Facilities Design, Build and Management
5. Transition Management
6. IT Solutions & Configuration
7. Talent Acquisition & HR
8. Training
9. Operational Management
10. Licensing & Accreditation
11. Regulatory & Compliance
Covered today
In appendix
31
1. GIC Decision Process
Phase 1
Data Gathering for target services
Phase 2
Cost estimate for GIC build
out
Phase 3
Implementation Time Line for
targeted services
Deliverable is complete Cost Estimate and
Time Line for a GIC build in the
Philippines
Educate appropriate stakeholders as to the benefits and
rewards regarding the implementation of the GIC model
32
2. Evolution of GIC Economics
Traditional GIC Build out model requires
significant CAPEX investment
Compelling, innovative new GIC build model is now
possible
Facilities build out, management, IT
infrastructure and asset inventory for GIC’s
available
As-A-Service
Possible to devote investment to build out
and operate core business not creation
of GIC
33
7. Talent Acquisition and HR
Utilize multiple proven sources to
identify appropriately
educated talent
Ongoing Operational
interaction to ensure employee
and program development
Payroll and Employee
administration services
Creates Employee handbook &
company policies to adhere to local
labor laws & client culture
Verify with professional and security check
Administer key aptitude &
screening tests
35
Eric SimonsonManaging Partner
[email protected]: +1-214-451-3030 | M: +1-214-616-8294
www.everestgrp.com | research.everestgrp.com
Sakshi GargPractice Director – Global Sourcing
[email protected]: +1-214-451-3030 | M: +1-781-298-1498
www.everestgrp.com | research.everestgrp.com
For further questions, we are reachable at
31
[email protected]: +1-925-315-5895 | M: +63-920-917-0955
www.dtsigroup.com
Jeff WilliamsHead – GIC Enablement
3. Corporate Formation
Incorporation of Philippine entity: SEC registration, local bank account
and TIN creation
Local Legal knowledge regarding all Municipal and Federal requirements
Local Permit processing: Business, Sanitary, Operational, etc.
Philippine Bureau of Internal Revenue (BIR) and Value Added Tax (VAT)
Registration
Employee Governmental benefit Registration: SSS, PhilHealth, etc.
Philippine Economic Zone Authority (PEZA) registration
40
4. Facilities Design & Build
FACILITY SERVICESTurnkey Facility or Managed Facility Customized Office Design
& Build out Office Partitions Furnishing Equipment
INTELLIGENT BUILDING SOLUTIONSStructured Cabling Video Surveillance Credential Based Access
Control Display Solutions Fire Detection and Alarm
MANAGED IT SERVICESMaintenance Monitoring Reporting Service Desk Remote
and On-site Support Incident Management
41
6. IT Solutions & Configuration
NETWORKINGRouting Switching Firewall Wireless Systems Optimization
Gigabit Passive Optical Network (GPON)
TELEPHONYUnified Communication Voice and Screen Recording Intelligent Routing
IVR Dialer Audio and Video Conferencing Communication as a Service
IT COMPUTINGEnd User Computing Servers Storage Software System
Management Computing Peripherals Document Management Solution
Disaster Recovery Solution Visual Analytics
42
10. Licensing & Accreditations
Licensing & Accreditation
personnel and tracking
platform
Prepare and manage Accreditation
Process, Audits & compliance
Obtain various Accreditations for
Philippine Operations
Obtain appropriate staff licensure & certifications (i.e.
AAPC Coding, State Specific Licensure
for RN’s, CPCU) Support renewals, endorsements,
continuing education and
conversion to active status
Track and maintain all required licensure:
Current
Active
Unrestricted
43