Attractiveness fit webinar

Optimizing Your Workforce Across Global Delivery Centers

Hemant Puthli, Partner & SVP, Neo Group Pankaj Dheer, Senior Director, Neo Group October 29, 2015

NEO INSIGHTS SERIES

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TODAY’S PARTICIPANTS 3

Hemant Puthli, Neo Group Partner & SVP, brings around 30 years of experience in Management Consulting and IT Services. Hemant leads key engagements globally and works with clients to assist them in the development of outsourcing strategies and governance models. Hemant’s key areas of eminence include sustainable business and technology strategies.

Pankaj Dheer, Neo Group Senior Director, has 25 years experience that includes buy side and provider side of IT Services. Pankaj’s recent assignments are in media, telecom, gaming and banking sectors. These include health check and scalability reviews, benefits modelling, governance frameworks and target operating model. He is a Six Sigma Black Belt, trained by COPC for contact centers, possesses advanced PMP qualification from ESI International.


AGENDA 4

Ø Context

Ø  Influential Factors in Sourcing

Ø  Introducing: The Attractiveness & Fit Analysis

Ø How It Is used

Ø Case Study

Ø Benefits


A company (“Client”) has one or more Global Delivery Centers (GDCs) at one or more remote locations, from where ITO/BPO services are currently being sourced

–  A GDC could be a Global In-house Center (GIC) aka “captive” or a sourcing vendor’s Offshore Dedicated Center (ODC)

–  Either way, the GDC is situated in a low-cost sourcing destination located in a specific geographical region, and hires from the regional talent pool

CONTEXT 5


It is felt that there are new areas of opportunity within Client organization to move work to a low-cost destination

–  Client needs to evaluate where the opportunities exist within the enterprise, and also, whether existing GDCs are ideally suited to host and deliver new work

–  Client has an option to approach suppliers of global services with a Request for Proposal (RFP), or even consider setting up a new GIC of their own, but would like to evaluate existing supply base first

Client needs independent and objective discovery of sourcing opportunities across the enterprise and assessment of current supply base to optimally meet this growing demand

CONTEXT (CONTD.) 6


FACTORS THAT TYPICALLY INFLUENCE SOURCING STRATEGY 7

Tolowercosts

•  Sendtolowcostloca0ons

•  Onlylowendrepe00vejobs

Toimprovequality

•  Piecemeal,notendtoend–onsitestaffdon’tliketheseanyway

•  Callcenterwork,imageprocessingworkthatishighfa0gue

Managementdirec0ve

•  Drivenbycorporate

•  Drivenbyheadcountreduc0ontargets

TheWhy

TheWha

t

•  Leveraging a structured, data-driven approach to support strategic sourcing decisions has proven to yield greater benefits and minimize the risk exposure to clients over time.


•  Neo’s Attractiveness & Fit Analysis is a structured, objective, data-driven approach to support strategic decisions

–  Attractiveness is a measure of the potential benefits of moving a given role or function, relative to the ease or difficulty of moving such a role/process

–  Fit represents the extent to which a specific GDC is suitable for hosting a given role or function that has been identified as attractive

INTRODUCTION TO NEO METHODOLOGY 8


•  Criteria that determine Attractiveness typically include:

–  Customer/Cultural Affinity –  Partner/Ecosystem Affinity –  Unique Expertise –  Costs

•  Criteria that determine Fit typically include: –  Talent Availability (Scope + Scale) –  Costs –  Process Maturity –  Location Risks

INTRODUCTION TO NEO METHODOLOGY 9


DECISION QUADRANTS

ReviewotherGDCop0ons

MovetogivenGDC

Evaluatelater

Low

Low

Hi

Hi

Fit(givenGDC)

A4rac7vene

ss

Donothing

•  Roles with low affinity for being in the US are “Attractive” to move out to a low-cost destination (pitcher)

•  Attractiveness scored basis detailed interview feedback

•  Fit represents the extent to which a specific GDC is suitable for hosting a given role or function identified as attractive

•  Fit scoring basis offshore market knowledge/research

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QUICKPOLL #1

QUICKPOLL

What method do you follow to discover new opportunities and positions that can be sent to your GDCs? Poll Results:

Opinion of GDC leaders 0%

Check with other companies 25%

Internal data-driven approach 50%

Hire Consultants 25%

Prior experience of onsite Managers 0%


QUICKPOLL #2

QUICKPOLL

What are your decision criteria for process selection to offshore functions to your GDCs? Poll Results:

Check with other companies 0%

Q&A sessions and interviews with onsite management 50%

Corporate directive 25%

Specific methodology 25%

Market research 0%


CASE STUDY: GAMING COMPANY

A gaming company gained a GDC in Bangalore, India, thanks to a previous acquisition, and needed to evaluate which processes might be sourced from offshore and whether existing offshore resources were appropriate to manage those tasks. In addition, could the offshore center in Bangalore handle future growth if the company started using it more extensively now?


14 GAMING INDUSTRY VALUE CHAIN

Supp

ort

Research StrategizePre-produc0on

Produc0on

Post-produc0on


•  Roles categorized as: –  BS: Business/Strategy –  CD: Creative/Development –  ET: Engineering/Technology –  OS: Operations/Support

•  Roles may be “Attractive” to pitch from US and “Fit” to catch elsewhere –  Roles with low affinity for being in the US are “Attractive” to move out

to a low-cost destination (pitcher) –  Roles that are easy to hire/train and retain (offshore) are “Fit” to be

located in the offshore facility (catcher)

•  Roles scored for “Attractiveness” and “Fit” on a scale of 1 to 5 –  Attractiveness scored basis interview feedback –  Fit scored basis offshore market knowledge/research

NEO METHODOLOGY 15


PARAMETERS & SCORING 16


ROLES DISTRIBUTION USING NEO METHODOLOGY 17

1.00

2.00

3.00

4.00

5.00

1.00 2.00 3.00 4.00 5.00

Attra

ctive

ness

Fit

AttractivenessvsFit

Low High

Low

H

igh


BENEFITS OF A STRUCTURED APPROACH 18

When taking decisions on globalization to GDCs, using a structured approach yields

the following benefits:

•  Realistic assessment of globalization aspirations

•  A location agnostic methodology to be used in future initiatives as well

•  A blue print for project planning •  Effective onshore/offshore operating model •  Validation of globalization benefits case


•  Feasibility of moving a function or a role from a high-cost location to a GDC in a low-cost location is determined by two factors: Attractiveness and Fit –  Attractiveness represents the “push” factor at the

source (where the work is presently being done) –  Fit represents the “pull” factor at the destination (where

the work could potentially move to)

•  Parameters that characterize Attractiveness and Fit may vary, but broadly range across: economics, talent availability and ease of acquisition and retention

KEY TAKE-AWAY’S 19


THANK YOU 20

NEO GROUP GLOBAL HEADQUARTERS 340 S. Lemon Ave., #3252 Walnut, CA 91789, USA ASIA-PACIFIC HEADQUARTERS No.13, B-2, 1st floor, C Block Embassy Heights, Magrath Road Bangalore-560 025, India AMSTERDAM, NETHERLANDS ATLANTA, USA AUSTIN, USA BOGOTA, COLOMBIA LONDON, UK NEW YORK, USA SAO PAOLO, BRAZIL SILICON VALLEY, USA SYDNEY, AUSTRALIA

HEMANT PUTHLI Partner & SVP [email protected] PANKAJ DHEER Senior Director [email protected] www.NeoGroup.com www.SupplyWisdom.com [email protected]

Data & Analytics

Attractiveness fit webinar