Sarah Clayton & Eric Simonson May 16, 2012

Vertical Industry Strategies in Shared Services and Outsourcing

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SSON & Everest Group Survey Partnership 2012

Vertical industry peers

Going beyond F&A

Survey January 2012 – multiple industries/horizontals/vertical functions

Over 600 responses

Report and industry fact sheets released

Peer networking today plus a prize drawing for an iPad 3

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What we covered…

Hi-tech Hospitality & tourism Industrial products

Information services Insurance

Life sciences Media & entertainment

Metals & mining Non-profit/NGO

Oil & gas Retail

Telecom Travel & transportation

Utilities

Aerospace & defense Agriculture Automotive

Banking Capital markets

Chemicals Consumer durables

Consumer packaged goods Education

Engineering & construction Freight & logistics

Government Healthcare payers

Healthcare providers

28 industries

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What we covered…

Finance & accounting

Human resources

Procurement

Customer support

Knowledge services

IT infrastructure services

IT applications for corporate functions

IT applications for business units

8 horizontal functions

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What we covered…

Banking Retail banking account open/closure and servicing | Commercial banking account open/closure and servicing | Loans & mortgage origination | Loans & mortgage servicing | Cards business acquisition & application processing | Cards servicing and statement processing | Transaction processing (Check processing, remittances, lock-box etc.) | Risk and FX management, regulatory reporting, fraud management Capital markets Custody, fund administration, fund accounting | Trade reconciliations and settlements | Application processing, account servicing | Risk and FX management, regulatory reporting, fraud management | Investment operations, order management Insurance Underwriting and actuarial data processing and analysis | L&P policy creation, enrollment, and premium collection | L&P policy servicing and records management | L&P claims processing and management | P&C policy creation, enrollment, and premium collection | P&C policy servicing and records management | P&C claims processing and management | Claims adjudication, disbursements, subrogation | Eligibility, verification, fraud detection and management Media & entertainment Content development and organization | Publishing and distribution management | Advertising sales support | Advertisement creation | Subscription and order management | Digital rights management and storage Telecom Sales and marketing support | Channel management | Account and contract administration | Order management and provisioning | Trouble ticket management | Billing & collections support Hi-tech Sales and marketing support | Order management and fulfillment | Supply chain planning & support | Master data, customer data, vendor data management | After-sales service support Information services Editorial and production support | Content collection and organization | Sales and marketing support | Subscription and order management | Billing & royalty support Oil and gas Engineering and research administrative support | Supply chain planning & support | Asset and inventory management support | Marketing and retailing support | Commodity trading support | Environmental, Health & Safety administration Metals & mining Engineering and research support | Administrative support for operations and maintenance | Storage, logistics and distribution administration | Marketing and retailing support | Commodity trading support | Environmental, Health & Safety administration Agriculture Marketing & sales support | Master data, customer data, vendor data management | Supply chain management support | Administrative support for operations and maintenance | Order processing and fulfillment | Environmental, Health & Safety administration | Commodity trading support Utilities Field services and meter data administration | Order management | Meter-to-Cash (billing, payment processing, credit and collections) | Smart metering and smart grid services | Grid/operations support Life sciences Drug discovery and research support | Clinical trials and pharmacovigilance administration | Sales force and marketing support | Equipment / asset management services | Drug tracking, incidence reporting and complaint management | Distribution planning and analysis, defect handling, and reverse logistics Healthcare payers Underwriting and risk assessment support | Member on-boarding, records management | Pharmacy and provider network administration | Authorization, pre-approvals, disease management | Claims processing and management | Claims adjudication, disbursements, subrogation Healthcare providers Revenue Cycle Management (eligibility, billing, coding, receivables, payer services) | Healthcare Information Management (records management, electronic health record) | Clinical support services (patient transport, pharmacy, clinical engineering) | Other administrative support (e.g., laundry, facilities, food, security) Aerospace and defense Engineering support services | Program and life-cycle data management | Asset management | Support services for maintenance and repair operations | Inbound / outbound / reverse logistics support Automotive Engineering support services | Master data, customer data, vendor data management | Asset and inventory management support | Order processing and fulfillment | Inbound / outbound / reverse logistics support | Warranty management support | Dealer network support Chemicals Engineering support services | Master data, customer data, vendor data management | Inbound / outbound logistics, reverse logistics | Administrative support for operations and maintenance | Order processing and fulfillment | Environmental, Health & Safety administration Consumer packaged goods Engineering support services | Support for marketing and brand management | Support for sales, trade promotion, stores management | Order processing and fulfillment | Inbound / outbound / reverse logistics support | Asset and inventory management support | Master data, customer data, vendor data management Consumer durables Engineering support services | Support for marketing and brand management | Support for sales & marketing | Order processing and fulfillment | Inbound / outbound / reverse logistics support | Asset and inventory management support | Master data, customer data, vendor data management Industrial products Engineering support services | Sales and salesforce management support services | Order processing and fulfillment | Inbound / outbound / reverse logistics support | Asset and inventory management support | Master data, customer data, vendor data management | After-sales service support Engineering & construction Engineering support services | Project accounting | Materials sourcing and planning support | Document and record management Education Recruitment and marketing support | Eligibility and registration | Academic and learning support | Change of circumstance processing | Records management and support (transcripts, inquiries) Federal / State / Local government Application processing | Status change processing and admin | Disbursement / benefits management | Records management Non-Profit/NGO Fundraising administration | Disbursement management & administration | Affiliate administration | Service operations support Hospitality & tourism Front office / guest services support | Support for PR, marketing and sales activities | Housekeeping, food & beverage administration | Loyalty program administration | Real estate and facilities management | Workforce management administration Retail Merchandising analytics and support | Advertising and marketing support | Logistics and supply chain administration | Store operations & property services | Loyalty program administration | Deductions management Travel & transportation Sales and reservations support | Loyalty program administration | Support for revenue management & price optimization | Operations and fleet administration | Records and document management | GDS data administration Freight & logistics Rate quotes and order management | Document processing | Billing | Distribution and forward logistics processing | reverse logistics processing | Fleet and crew management

164 vertical functions

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How to learn more Visit SSON site or research.everestgrp.com

8 industry fact sheets also available

Summary report available for download (52 pages)

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Highlights of results

1 Services industries include more vertical functions than product-oriented industries

2 Mature organizations have mastered process and increased focus on other value levers

3 “Best fit” sourcing strategy is more talk than reality

Proprietary & Confidential. © 2012, Everest Global, Inc. 8

Services industries have a higher representation of vertical functions Representation of horizontal and vertical functions Average number of functions included

3.4

3.3

2.1

1.2

Services industries

Product industries

Horizontal functions

Vertical functions

1

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Mature organizations increasingly look for value beyond process improvement

F&A approach is end-to-end

48

31

Collaboration with users

Priority initiatives Successfully implement change

80

39

48

61

Consolidation

57

12 Less mature

Mature

Percentage of responses from enterprises

2

Proprietary & Confidential. © 2012, Everest Global, Inc. 10

Now for the peer networking!

Objective: meet other attendees and increase your personal network for beyond this this

AND

Provide your business card – not only will you be entered in a drawing for an iPad 3, after the event you will also receive the contact details of the other members of your group

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Breakout locations for peer networking St

age

Life sciences YELLOW

Banking, Fin. serv., & Insurance GREEN

Communications & technology RED

Manufacturing BLUE

Consumer goods & retail

ORANGE

Communications & technology: Vinoo Mehera

Manufacturing: Katleen Cokelaere

Life sciences: Grant Farrell

Other/White: John Hall

BFSI: Mehmet Collu

Consumer & retail: Elka Gupta

Other WHITE

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Be sure to turn in your business cards!

Drawing for iPad3 at 9:53 am!

Proprietary & Confidential. © 2012, Everest Global, Inc. 13

How to learn more Visit SSON site or research.everestgrp.com

8 industry fact sheets also available

Summary report available for download (52 pages)

Proprietary & Confidential. © 2012, Everest Global, Inc. 14

About Everest Group

Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms in six continents across all industry categories. For more information, please visit www.everestgrp.com and research.everestgrp.com.

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Everest Group Leading clients from insight to action

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