Outsourcing Issue #13

8/8/2019 Outsourcing Issue #13

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RM12, S$8, US$8KDN NO: PP14967/02/2009 (021381) MICA (P) 288/07/2008

PREMIER MAGAZINE ON BUSINESS AND TECHNOLOGY SERVICES INDUSTRY

I S S N 1 9 8 5 - 1 0 0 6

www.the-outsourcing.com>> ISSUE #13, 2009

Opportunities

inLegalProcess

Outsourcing

Workshop

onSourcingStrategie

s:Seeinsid

e

fordetails

INTRADE 2009:Great platformfor ICT firms

Using techtransformationas enabler of

business changeMore firmsmoving intoCyberjaya

Cloud Sourcing:The rise ofon-demand

businessprocessoutsourcing


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CONTENTS

10

20

14

Complexities,

Conflicts&

Contradictions

18

ITgo

ods

and

servic

es

2


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7

8

10

14

18

20

24

28

32

40

8

24

28

40


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LEGAL Process Outsourcing (LPO) is indeed graduallyaining acceptance among corporates today.

arket research rm, ValueNotes, estimates that LPOevenues will increase rom a projected US$640 million in

2010 to more than US$4 billion by 2015 refecting massiverowth in this airly new segment.

LPO allows corporations to streamline repetitive andocument intensive tasks through the use o lower costroessionals and sotware solutions to automate various

egal process tasks.umerous LPO providers, mainly rom India, have had

success over the years by making available services suchs document review, legal research and writing, drating oleadings and bries and providing patent services.

While cost and client pressures are primary drivers or

aw rms and MNCs to outsource, data security seems tobe the biggest concern to them.

Although the ones that oshore and the ones that doot oshore dier signicantly in terms o their comort

evel associated with oshoring, the apprehensionsre more or less on similar lines quality, security andondentiality, explains Neeraja Kandala in ourCovertory.

eanwhile in the Conversation segment, Managingirector o WNS Global Services, Dushan Soza, speaks onow Sri Lanka is successully harnessing its accounting

talent pool to position itsel as an attractive global locationor Finance and Accounting Outsourcing (FAO).

ushan one o the main speakers at the CharteredInstitute o Management Accountants (CIMA) WorldConerence held in Kuala Lumpur recently said theountry is wisely ocusing on a couple o key strengths,

such as accounting and nance rather than trying to beall things to all rms.

Its capital Colombo now has the worlds largest pool oK-qualied English speaking accounting proessionalsutside the UK itsel.

There is no doubt you will be hearing more rom thisSouth Asian nation more so with the painul 20-year civilwar rmly behind them. Sritharan Vellasamy

Managing Editor/Publisher:Sritharan Vellasamy

Consultant:Sundra Surian

editorial [email protected]

Sub Editor:Simon VellaArt Director:Steven ChooGraphic artist:Shafe OsmanContributors:Tamyne Menon,Dorothy Llew, Mohd ArshadCoordinator:James Wee

sales [email protected]

Vikraman Visno

Resh Nathen

contact [email protected]

WORDlabs MEDIA (001645509-W)

27-1, Metro Centre, Jalan 3/146,Bandar Tasik Selatan,7000 Kuala Lumpur;

Phone: +603 90564770, 90580971;Fax: +603 90564771, 90580972

Editorsnote

the eam

[email protected]

RM12,S$8,

US$8

KDNNO:PP1

4967/02/200

9(021381) M

ICA(P)140/0

7/2009

PREMIERMA

GAZINEONB

USINESSAN

DTECHNOLO

GYSERVICES

INDUSTRY

ISSN 198

5- 1006

www.the-out

sourcing.com

>>ISSUE#13

,2009

Opportu

nities

inLegalP

rocess

Outsourc

ingINTR

ADE

2009

Seeins

ide

fordeta

ils!

Interview:

DushanSozaof

WNSGlobalServ

ices

Usingtech

transformation

asenablerof

businesschange

GlobalITdeals

plungeinfirst

halfof2009

CloudSourcing:

Theriseof

on-demand

business

processoutsourc

ing


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8/486 | Outsourcing | July-August 2009

Outsourcing | news bits

The NaTioNal iCT Mnt (NiM)

2009 cmpgn rgnsd byPiKoM, Myss nrmtnnd cmmnctns tcngyssctn, s prjctd t gnrtRM750 mn n ss by yr-nd.

its crmn Dvd Wng NnFy sd t ntnwd mnt-ngcmpgn, tmd iCT enbngNw Sccss, rnrcd t s-sctns ky gnd t ps tcntrys cnmy p t vcn by vrgng n iCT.

evnts n NiM 2009 ncd tw-dy drsp smmt, nxbtn, n Wst rcycngcmpgn nd By onn cm-pgn.

in mnts tm tr tnc NiM 2009, w rcst tcptr ss RM260 mn,Wng sd t md brngtr t NiM nc t t Klmpr Cnvntn Cntr.

T vnt ws ctd by Sc-nc, Tcngy nd innvtnMnstr Dtk Dr Mxms Jntyongk. in cnjnctn wt NiM2009, Mtmd DvpmntCrprtn (MDC) nnncd tnc t MSC Mys Grt

iCT s, ts rst-vr iCT stnss trgtd t c sm ndmdm ntrprss (SMes).

its vc prsdnt ndstrydvpmnt dvsn, S BrMmd Smn, sd MDCws trgtng RM3 mn t RM5mn n tt ss rm tvnt.

T s w brng tgtr mrtn 50 vndrs t crt nqbnds prdcts nd srvcs r

SMes trg sy-t-sct, v-ddd stn bndng ptns,S sd.

T iCT s rns n cnjnctnwt NiM 2009 rm Jy 20 t ag20 n K lmpr, Pnng ndJr Br.

Malaysias Gross DomesticProducts (GDP) is expected torecover to 1 per cet i 2010followig a cotractio i 2009. Usage of e-procuremetservices is still low due tote cost costrait, lack ofawareess ad IT skills amogprivate sector. Te widespread laboursortage, ead utigpractices, upward pressure owages, log-term employabilityad loss of IP to competitors

are great cocers amog teICT players. Empirical evidece basedo a rural commuity studyrevealed tat tose witveracular laguage (Malay,Ciese, Tamil) prociecy avelower Iteret usage compareto tose familiar wit Eglis. Oly 3.4% of R&D i Malaysiaas bee commercialised. 14 types of ICT grats(provided by MOSTI, MDeC,MTDC, MATRADE adCradle Fud Sd Bd) are

available for te ICT sectortowards acial ideatio,prototype developmets,commercialisatio, marketdevelopmet, bradig adexports. Provisio of broadbad adsupply of quality graduatesare imperative for Malaysia toremai competitive ad moveup i te global iformatiosociety ladder.

Ogkl niM2009 a kckdo by the minis-ter on July 20 inKuala Lumpur.

MalaYSia VeNTuRe Cpt Mngmnt Bd (Mvcp)s cmmttd RM50 mn t ts tw tsrc prtnrs,astr Prtnrs Sdn Bd nd Qstmrk Cpt Mng-mnt Sdn Bd, mv tt cn rtr stmt grwtn t Mysn vntr cpt ndstry.

T tw vntr cpt mngmnt cmpns wrcsn bsd n tr strngts n trms xprnc,trck rcrds, ntwrkng, dmn r nvstmntnd v prpstn.

Wt t nds dsbrsd t r tsrc prtnrsw n trn nvst n g-grwt bsnsss, w gvntrprnrs t pprtnty t stbs nd grw bsnss bsd n nnvtv prdcts, Mvcp cxctv cr hsn S td nws gncy Brnm.hsn sd tt snc ts ncptn t otsrcPrtnrs Prgrmm (oSP), Mvcp s bn b tbd n xtnsv vntr cpt ndstry ntwrk nMys.

MalaYSia haS nvtd cmpnsrm t Mdd est t st psrvcs-bsd prtns n tStst asn ntn, prtc-ry t srv t rgn mrkt.

Mysn indstr Dvp-mnt atrty (MiDa) drctr-gnr Dtk J Bb sdpprtnts r nvstmnts byG Cprtn Cnc (GCC) nMyss srvcs sctr ncddbsnss nd prssn srvcs,ntgrtd gstcs, nrmtnnd cmmnctns tcn-gy (iCT) srvcs, dctn ndtrnng, t srvcs ndtrsm srvcs. T Mysn

gvrnmnt n apr nnncdt brstn 27 srvcssb-sctrs, wt n qty cnd-tns mpsd.

GCC cmpns r snvtd t st p rgn nttssc s prtn dqrtrs,ntrntn prcrmnt cntrs,rgn dstrbtn cntrs, r-gn cs s w rprsnttvcs t srv s ts ndsbsdrs n t rgn, Jsd t t pnng MiDa Dbc rcnty.

GCC grps Brn, omn,Kwt, Qtr, Sd arb ndt untd arb emrts.

Month-longICT campaign Key ndings ofPiKOM iCtStrategic Review

2009/10

MIDA enticesMideast rms Mavcap commitsRM50m to outsourcing


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The uNiTeD Kngdm wcms M-yss rcnt mvs n brstn t srvcs sctr nd pnng p t cnmy, Myss nws gncyBrnm qtd Brts hg Cmms-snr Byd McCry s syng.

Mys s bn vry sccss nscrng nwrd nvstmnt nd i knwtt t uK cmpns bsd r rdng w nd njy prtng n tsrgn. i m sr ts msrs wttrct mr nvstmnts nt Mys, sd.

McCry sd ts drng t pnng t Crtrd insttt Mngmntaccntnts (CiMa) Wrd Cnrnc

2009 d n K lmpr rm Jy13-14.

as t dng cnsmr cnmsbgn t sw dwn, s dd tr dmndr gds nd srvcs nd w cn s tmpct ts s vng n Mys, wt ty grwt ps r prcnt n2008 t prjctd dcn t mns rprcnt ts yr, sd.

T cnrnc, tmd T GbVg N Bndrs, N lmts,csd n mngng gb prtbtyn t dwntrn, tsrcng s cm-pttv strtgy, mngng csts, spngt tr, nd t mpct t crrntcnmc crss n gbstn.

BUSInESS processoutsourcig sector iPilippies is expected to

receive ample boost afterPresidet Arroyo urgedCogress recetly to passa law tat will create teDepartmet of Iformatioad Commuicatios

Tecology.I er 9t State of te

natio Address, Arroyo citedte role of te BPO adtourism sectors as egies ofgrowt i te coutry.

Se oted tat wileelectroics ad otermaufactured exportsrise ad fall i accordace

wit te state of te worldecoomy, te BPO sectoras remaied resiliet adcotiues to grow.

Wit earigsof US$6 billio ademploymet of 600,000,te BPO peomeospeaks eloquetly ofour competiveess adproductivity. Let us avea Departmet of ICT, tePresidet.

Te Pilippies BPOsector is projected to earUS$13 billio i reveues byext year, capturig 10% ofte global IT-BPO market,accordig to te BusiessProcessig Associatio of tePilippies (BPAP).

GloBal SoFTWaRe gnt SaP aG

s nsd n grmnt wt iTsrvcs cmpny Dtcm Sea SdnBd t stbs ccntr n Myst prvd bsnss prcss tsrc-ng (BPo) r dmnd gnrtn ndtmrktng srvcs cvrng mrtn nn cntrs n as Pcc.

i ws rprtd tt SaP ndd cn-trcts wt vndrs n nn cntrs nrdr t cnsdt ts tss ccn-tr r nd xpcts t gnrt bt200m rs (RM1b) n ss.

Mtmd Dvpmnt Crpr-tn (MDC) C exctv ocrDt Bdsm Gz wcmd tmv by SaP. Bdsm sd: MDC,bng t drvr t MSC Mysnttv, rs t Bst a Wrdsr bsnsss, c nd ntrntn,t st-p tr prtns r.

andrw P, Gnr Mngr

Dtcm Cnnct, sd: or xprnc

nd trck rcrd n t tcngy bs-nss ws crtc n ndrstndng SaPsnds. hwvr, r Mysn pr-tns ngg nd ctr dvrsty sw s tr cstmr srvc ts wsky t r sccss bd.

Wn MDC grd t spprt rtndr t brng ts bsnss t Mys,w rtr nncd r v prps-tn. T Mtmd DvpmntCrprtn ws n nvb prtnrn ts sccss,

as prt ts grmnt, Dtcmw mng nbnd nd tbnddmnd gnrtn srvcs ncdngtmrktng, d gnrtn, dtbsptmstn nd cnsng nd nsdss d gnrtn qctn. inddtn, Dtcm w prvd ndmng ss spprt tn r SaPscstmrs nd prspcts.

Arroyoout toboost BPObusiness

Liberalisation

to attract moreBritish investors

SAP telesales hub in Malaysia

news bits | Outsourcing

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Outsourcing | news bits

MiCRoSoFT Co-FouNDeR BGts sgt t y uS PrsdntBrck obms cncrns ttt amrcn jb mrkt cdb t bcs t tsrcngndstry.

i cnt mk ny prdctns.immgrtn pcy cd gtmr dct. it wd b bgmstk, sd Gts t n vntrgnsd by inds Ntn as-sctn Stwr nd SrvcCmpns (NaSSCoM) n NwD rcnty.

h ddd: T uS Cngrss svry tg n mmgrtn. Btwy nt mk n xcptn r

smrt pp? Fr xcng tnt s vry mprtnt

at t vnt, Gts s ddt sccss t indn iT nds-try, ddng tt t ws g tmt cntry cssd n g-ndrsrc nd dvpmnt tmntn t cmpttv dg.

at rst sm t iT bmws bt n w-cst br. and, crs, s tm gs n, ydnt wnt t v tt s tny drnttr nd ts nt sstnb tng, bcs trscn cm ng wt tt s w, sd, pntng t cmpttnrm tr ntns.

iNDiaS ReVeNue rm sr tsrc-ng w ky v sng-dgt grwtn t sc yr t Mrc 31, 2010, t

prsdnt t cntrys tp tsrcngtrd bdy sd.

T rcstd grwt w b ss tn nstmtd 14% t 16% grwt n tsrc-ng xprts n t yr t Mrc 31, 2009,nd r wr tn n t yr t Mrc 31,2008, wn grwt n xprts ws 29%.exprts ncd srvcs prrmd rcstmrs brd, bd n tr crrncy,wt t mny brgt bck t ind.

inds tsrcng ndstry s bnctd by cstmrs dy n ns-ng tsrcng bdgts, nd t vrswr grwt bsnss n ky mrktsk t uS., sd Sm Mtt, prsdnt t Ntn assctn Stwr ndSrvc Cmpns (Nsscm).

Prmnry stmts by Nsscmsggst grwt n xprt rvn w bbtwn 7 % t 12%, tg t s mr kytt t w b ss tn 10%, Mtt sd.

iNDiaN ouTSouRCeR insys BPo spnd ts rst brnc n t Pppnssng cbrtn tcngs rmCsc.

T nw cntr, wc w spprtmtp cnts n t tcngy ndstry,trs t iP-bsd Csc und CntctCntr. T ntr iT nrstrctr s bt

n Csc pt-rm nd ww cntnt xpnd tcntr, sdinsys Pp-

pns Mdsdn Mnn.Trg ts prjct, insys BPo Pp-

pns my mrg s n t rgst Cscund Cntct Cntr mpmnttns byt nd t yr.

insys Pppns brnc xtndst gb rtnsp btwn t twcmpns, wc bgn n ind n 2002nd nw ncds sx ggrpc dvrycntrs crss t gb.

Cscs rtnsp wt insys sstrtgc n ntr nd crsss vrs bs-nss rgnztns, prvdng trmndssynrgs r bt cmpns, sd Mrk

hmn, Gb oprtns snr drctrt Csc.

Indian outsourcingindustry to registersingle-digit growth Tough US

immigration policy

unfortunate:Gates

Infosys opensPhilippine

BPO branch

I cant makeany predictions.

Immigrationpolicy could getmore difcult. Itwould be a big

mistake.


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TeCh MahiNDRa, t nw wnr inds rd-t tsrcng rmStym Cmptr Srvcs, s nstngt p ng-trm prtnr BT Grps t sks t rbtt t cmpny,inds Fnnc Tms rprtd.

T uK tcms grp ds 31%stk n Tc Mndr, wc tkvr Stym n apr. it s ssstng wtsss sc s crprt gvrnncnd cnt rtns, ccrdng t C.P.Grnn, c xctv wt s nwcd Mndr Stym.

Snc w v BT Grp s nvs-trs n Tc Mndr nd w vMndr & Mndr t rnrcr cmmtmnt t gvrnnc,

w v rqstd tm tt tycn ppnt jnt nspctn tmnd d n nspctn n prdcbss, Grnn td t FinancialTimes.

Stym ws n inds tp vnrmtn tcngy cmpnsnt Jnry ts yr, wn ts cr-mn B. Rmng Rj cnssd txng t ccnts t nvnt uS$1bn cs p.

Gvrnmnt-ppntd drctrstk cntr Stym nt ty wrb t s t n d vd tuS$1.1 bn t Tc Mndr, prt t Mndr & Mndr ndstrgrp.

auSTRaliaS tsrcng mrkt s

tppd t rs t rt 4% pr yrvr t nxt v yrs, ccrdng tnw rsrc by iDC.

in rprt ttd, astr ot-srcng Srvcs Mrkt Frcst ndanyss 2009-2013, iDC vd ttsrcng mrkt t a$6.4 bn(uS$5.3b) n 2008, nd tppd cm-pnd nn grwt rt (CaGR) 4% vr t nxt v yrs, tkng tmrkts v t nry a$8 bn(uS$6.6b).

T grs ncmpssd sb-mrktsncdng ppctns mngmnt,dsktp mngmnt, std ppc-tns mngmnt, std nrstrctr

srvcs, iS tsrcng nd ntwrkmngmnt.

iDC snr iT mrkt nyst, MrnB, cncdd astrs tsrcng

rt s gr tn tr cntrs n t

as-Pcc rgn.as-Pcc cntrs v rvwdtr srvcs rcst dwn wr sastr s kpt t cnsstnt t rnd4%, s sd. W r st sng rv-ns fw n rm tsrcng cntrctstt v rdy bn sgnd nd ws xpct t s nw ds cmng ptwrds t nd t yr. Tr sst ptnt r grwt bt nt by tmc. W n prtcr vrtc sprn t tsrcng, sm nspyrs v ntrd t gm.

W r sng t trnd ct tnnc sctr s w s bsnss nyt-cs, wc s nc mmn, B sd.

Bt n gnr, t s cmng rm rs nd t nyn w s ng tpnc nd s rcnsdrng trntvtsrcng mds.

uNiSYS Crprtn nnncd ttStrbcks Crprtn s sctd un-sys t prvd dt cntr tsrcngsrvcs t spprt t c cmpnyscntnd xpnsn n Cn.

undr t tw-yr cntrct, unsysw prvd systms mngmnt,ntwrk mngmnt, sst trckng,nd stwr mg nd vc systmsmngmnt srvcs dvrd rmt unsys Gb Srvcs Cntr nSng.

T cntrct xpnds t xstng r-tnsp btwn unsys nd Strbcksn Cn. unsys s prvdd nd-srspprt srvcs, ncdng srvc dsknd ntnwd nrstrctr spprtsrvcs, t Strbcks rt strs, sp-prt cntrs nd mnctrng ctsn Cn snc 2007.

T nw d nbs Strbcks tsmpy ts iT mngmnt by wrkngwt n vndr r bt srvc dsknd dt cntr spprt.

IBM hAS offered US$1.2 billio icas for SPSS, a busiess softwarecompay tat elps busiesses toforecast treds by idetifyig sifts icosumer patters.

Te America computer

compays acquisitio of SPSS,wic is subject to sareolderapproval ad regulatory clearace,follows a spate of deals i recetyears i te busiess itelligecesector, suc as Oracles purcaseof hyperio, SAPs acquisitio ofBusiess Objects ad IBMs owdeal for Cogos.

Accordig to Iteractive Data,te market researc compay, teworldwide market for busiessaalytics software will grow by 4 percet to $25 billio tis year.

GEnERAL MOTORS aouceda major maagemet sakeuprecetly, ad CIO Ralp Szygeda isamog tose leavig te compay.

Te 60-year-old Szygedawill leave o Oct 1, after 13 years

i te role. heas bee calleda outsourcigpioeer.

Szygeda, wojoied GM at atime we EDSdomiated its IToperatios, was aoutsourcig adbusiess process

re-egieerig maverick wo cutbillios from te compays IT budgetad wo egotiated a $15 billiodeal a few years back tat was oftedescribed as te biggest i istory.

he will be replaced by Terry Klie,curretly GMs process iformatioofcer for product developmet.

his tird-geeratio outsourcig

pla was desiged to get outsourcigproviders to compete wit eacoter wile also streamliig teiroperatios by cooperatig ostadards.

Big Blueto snap upsPss

GM outsourcingpioneer retires

Tech Mahindra

enlists BTtoboostSatyam

Aussie outsourcingto grow steadily

Starbucks brews deal with Unisys

news bits | Outsourcing

July-August 2009 | Outsourcing | 9


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Malaysian iCT ector houd tkeu dvtge o the upcomginTRaDE M 2009 exhbtoto urther grow ther export mrket,d su Dev seor Drectoro Product d servce Deveop-met Dvo o M ExterTrde Deveopmet Corporto(MaTRaDE).

su d: inTRaDE 2009 cer-t de ptorm to etbhcotct d expore opportutewth bueme rom vroucoutre.

a uch, i woud ke to urgethe iCT ector to mke ue o thopportut to promote ther productd ervce order to peetrte theterto mrket.

inTRaDE M 2009, thethrd t ere, , orged bMaTRaDE t t Exhbto dCoveto Cetre (MECC) Kulumpur rom 10-12 nov.

i 2007, the ugur inTRaDEM wth the prtcpto oover 300 compe hd geertedpotet e o product d er-vce o RM3.38 bo.

Mewhe, the 2d inTRaDE

M t er w the prtcp-to o 350 compe d geertedpotet e o bout RM2.6 b-o.

she d: Thee ecourgg re-ut dcte the eectvee o trdeexhbto geertg potetexport buee ot o or rgecompe but o or sME.

su optmtc tht uch tredwoud cotue depte the curretecoomc dowtur. MaTRaDE trgetg the prtcpto o 300compe inTRaDE 2009 deptethe chegg bue evro-met. To dte, 90 per cet o the

booth pce h bee od d we recofdet tht the trgeted umber oexhbtor c be cheved.

she dded: Gve tht ter-to trde evet orged prct-c our bckrd Mcompe mut mke u ue o thptorm t cot eectve vehceto rech terto cet.

The sME o mut udertdtht depte the ecoomc goom themut cotue wth ther promotoctvte order t compettved vbe.

a uque eture o inTRaDEM the iwrd Bug M-o (iBM) progrmme. Through tetwork o over 40 ofce wordwde,qut terto buer re -vted b MaTRaDE to prtcpte the bue meetg rrged wthM compe.

INTRADE 2009:

Great platformfor ICT firms

Thee buer re pre-creeedb MaTRaDE ofce overe toeure geue teret ourcgrom M.

su o ecourged competo regter er or the trde exhb-to d updte ther compprofe. she d: Er regtrtow gve MaTRaDE ufcet edtme to mtch M compewth the pproprte buer.

i ddto, the 3rd KliTF (Kliterto Trde Forum) wbe orged cojucto wth

inTRaDE 2009. Themed: leder-hp the Mrketpce throughCretvt d iovto, theevet w hot promet pekerd dutr expert to hre therexperece d vew o curretecoomc deveopmet d howcompe coud t hed wthovtve de.

For more det c +603-62754133or e-m: [email protected]

Focus exhibition: 300 exhibitors from 30 countries.

Incoming Buying Mission: Grab this opportunity to meet pre-screenedquality international trade buyers from around the world. This specialbusiness matching programme is organised by MATRADE through itsoverseas network.

Networking Opportunities: Enhance and strengthen your networkingbusiness and investment opportunities by interacting directly with international buyers.

Cost effective: Affordable to both Malaysian and foreign participants as well as highly efcientfor tapping global opportunities.

Promotion:A well-planned strategy involving extensive promotional campaigns to maximiseawareness and draw international trade buyers.

National Pavilions: Source new business and investment opportunities from various regionsand see the best of national pavilions showcasing their countrys capabilities and qualityproducts and services.

Government Support:A government backed trade exhibition aimed at promoting inter-national trade and investment. It is hosted by the Ministry of International Trade and Industry.

WHY PARTICIPATE IN INTRADE MALAYSIA 2009

Susila ... I wouldlike to urge the ICTsector to make useof this opportunityto promote theirproducts andservices in orderto penetrate theinternationalmarket.

Outsourcing | INTRADE 2009

10 | Outsourcing | July-August 2009


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14/4812| Outsourcing | July-August 2009

Outsourcing | InsIghts

By KhOO KOK YEOW

The ouTsourcing maktplaa matd apdly d tpat w ya a mt glbal 2000

Ui fewer applicaio

ouourc rov ere ver reaer ee

lald d-mak aa tp, t mpl d tta mpttv t.

o t t ad, maya, t xtt t w mltplppl a tld a -q lald d-mak

hi Co of Accumulaisupplier

mpa av amad a mplx twk mltpl ppl tmt t d. Ad all t t,maa t typ twk aat a d tma. s

Wa i e Moivaio?

te imple realiyi a mayouourcer ofADM ed oaccumulae

familie ofr. Ad a


15/48July-August 2009 | Outsourcing | 13

InsIghts | Outsourcing

wl aml ppl. Ad atm p, t a t t t.A t b tt p alatp, a wll a maat, lt md pptt m al.

T a al patal -

p ad by t-lka pjt maamt, tt, ad w t a may mvp a mltpl aa (..pma mt, pt, atablty) tat alt tly pjt v adfat patal dwtm.A a lt, lad by a at-al t mb ppl t ADM ptl ad attafaal bft pl a l m-plx vmt.

o a Ttal ct owp(Tco) ba, av 22 t 28%a b avd by wk wtw ppl. T ld bt-tm ad t d-t. F xampl, -tm ta b dd 35 t 40% by wk-

wt xt ppl tad w ppl, t av py, td, valat,lt, tat, tat-, tat, maa adv t addtal wk.T a laly dd t, by t at awa tm dt qaty tm.

r t a b dd20 t 25% a w tat, wv, ad w mplalat a maad, bt mtlym m al tat ablw pvd t mad m l t tlbal dlvy twk.

Complexiy Arii FromMuliple supplierT tal appa vlv tby adpt a t ap-pa bld t ADM pplptl. T ld: Limiting the number of suppliers,

by av tppl tat w ppl almt alway btt

Segmenting suppliers into strate- palt Ensuring appropriate scale neces-

ay t bld mtally bfallatp wt pplWl t appa d-

a ppl ptl applabla mt typ by aa-t, w t a ad patt ptl a tak mltplm.

tree neceary sep oCoider:By mt wk t ttp t apppatly maa m-

plxty ad t t aat-pf tat. T ld: Decide which organisational

tty tat wll b ldd. (..,tp lvl v pb t, ap)

Determine the engagementmdl

Manage and optimise day-to-daypat by ally maat ky aa: dv wk,p ad al, ad vamdl

sep for Oraii adOperai e PorfolioFt, t dtal t appald t aataltt ldd t ptma-t a t tal dat tatap t d. Wll ty

lt a tly tp-dv ap-pa twad ptmat vtat a w maj pad t xpad p?

T a lly lkdt t by aatal t-t, d-mak p,ad lt. Mt la by alkly t tat ptm tADM ptl by a tp tt t ld, btat, dply a w mdl aa ad t k t a pt ld t b t/ap.

sd, mpa ld val-at ad btw tw badamt mdl:

Harmonised: aq talt att bt p ad t by dft pmay tl ad p v dlvy.

Orchestrated:Atta ltm ppl t ddbjtv wl q t p-pl t dtm w t attalt.

Td, wt t pp a-

mt mdl, by mt maaad ptm day-t-day pa-t.

Division of work: lytdpdt dlvy at qmt dat,tby mpat pdtvty.

Scope and scale: t p wk td a mplat t mplxty aatd wtmaa t wk. Al, t xttt w t by pvd tppl al bft dtmt pttal t av.

Governance model: ata m pdtv vmt

t - iP/amwk.T lw bt -tm tad t aatd wtmaa pma mltplppl.

Watv a t may avb mltpl ADM ppl- t b, pma w ldat t vdba. W a mpay d atd lmt t mb ppl t ADM ptl, t aav fat bft aat b mpat, mpvdqalty ad pdtvty, ad tav.

Khoo Kok Yeow is a Director at Ac-centure where he leads the OutsourcingPractice in Malaysia.

In their attempts toleverage the benets ofADM, some companieshave amassed a complexnetwork of multiplesuppliers to meet theirneeds. And all too often,managing this type ofnetwork can create anenduring nightmare.

Whateverreasonsthere may

have beenfor using

multipleADMsuppliersin the

beginning,highperformersare nowconsolidatingtheir vendor

base.


16/4814| Outsourcing | Jul-August 2009

Outsourcing | Cover story

By Neeraja KaNdala

The oshore lgal vic indu-ty i vlving in tm t vicpvid capabiliti and vicing. A numb lgalvic pvid av mumdv t lat tw ya. T am tan 160 vic pviding lgal vic mdtinatin uc a India, t Pilip-pin and sut Aica.

evn a lgal vic utucing

Opportunitiesin legal processoutsourcing

despite buyerconcerns

lPo

h f

The condence inh mngmnteam and theoshore serviceproviders capability

and reputation areimportant factors forbuyers of oshorelegal services. Buyersneed to be condentthat the serviceprovider is reliable,can be trusted withtheir data and isdependable in termsof the delivery ofquality output.


17/48Jul-August 2009 | Outsourcing | 15

Cover story | Outsourcing

i gadually gaining accptanc,val law im till av ap-pnin abut nding tiwk . Accding t a cntuvy cnductd by ValuNt, alag numb law m, ipc-tiv ti iz, w itant abutnding wk t ant cunty.Wil ti d ult m lawynt bing cnvincd abut t bn-t ing, it al indicatctain cncn tat av nt bnaddd.

but av dcidd nt t ut.

T uvy ult und tatm tan al t pndntw nt awa t an nt ing. Wil ant laggup law m aid tat ty dnt l t nd t nd ti lgalwk t ant dtinatin, mly4% t pndnt indicatdtat ty (a cniding ) willcnid ing in t utu.

Why Lawyers Oshore?A in t ca mt buin,ct ductin i t pimay div ing lgal vic. Accd-ing t a Patnt Attny a NwYk bad law m, Pic i a vyimptant act diving ing.I knw I culd gt mn inxpn-iv t d m vy dtaild wk ata pic I culdnt gt in t Us.

sm lgal unctin quiquit a bit taining, but may blabuiu and mwat ptitivin natu. It i muc m cintand ct-ctiv t ttak. T glbal mltdwn and

dwindling pt i nly incaingt pu.

Cpat a m amnabl ting a ty av ubtantiallgal wk and a alady cmt-abl wit t cncpt ing.succul ing IT, BuinPc outucing, inanc & Ac-cunting and t pc avmad cpatin m cndntabut ing.

having undtd t bnt ing, cpat a nwpuing law m t u vic pvid. say a Patnat a Nw Yk bad Am Law 200im, W a nt divn t imply t av ct. Intad, w alikly t d it nly i a clint qutit i it mak n m t

7%

21%

21%

43%

50%

29%

14%

14%

21%

43%

36%

14%

29%

29%

7%

29%

50%

36%

7%

Increasing

Workload

Turnaround Time

Competitors

Offshoring

Client Pressures

Cost Pressures

Very High/Extremely Important High/Important

Moderately Important Low /Not at all important

Will consider

4%

Not required

36%

Don't Know

50%

Tried &

Rejected

10%

Source: ValueNotes report on Legal ServicesOutsourcing: What do Law Firms Think?

Exhibit:Why No to offshoring?

Low Perceived BenetsWil lgal vic ing acivd igniicant mdia yp,a lag pptin law m int Unitd stat d nt cniding lgal vic, and tii lagly du t lack intt andawan. T a val lawim w ag tat ingnd t b cnidd but a cu-ntly nt ady t d it. T at w av xpld ing(in t m pilt) in t pat,

Exhibit: Cost pressures The primary driver!

Source: ValueNotes report on Legal Services Outsourcing: What do Law Firms Think?



Outsourcing | Cover story

an. sval law m indicatdtat ti clint a incainglyuggting uing vicpvid. Undtandably, t m-

tiv bind clint puiing lawm i again lw ct.ot ignicant div includ

clint pu (t cut ct by -ing), incaing wklad, timdinc and cmptit dciint .

Law im tat cniddtunaund tim a an imptantdiv a lagly mid-izd andmall im and tat typically

t tm pjct. Ttim dinc i mt lvant uc m, a lking quicktunaund tim.

small law m a typicallyt n paalgal and attny.Givn t incaing wklad andmanpw tag, t imav tatd ing m ti wk t lw ct dtinatin.sm t mall m tat dnt cuntly aid tat tywill cnid ing dpndingn t vlum wk. I ti vl-um gw t t xtnt w ty

cannt andl t wk in-u wit ti Us-bad utuc,tn ty a mt likly t ndwk .

Drivers Outweigh ConcernsT m t b m awanabut t bnit m -ing, pcially amngt t w. hwv, t majity,t div d nt m t b tngnug. obviuly, t bnt dnt appa t b ubtantial t lpv-id ti cncn.

T auanc ct aving int nug t utwig m at-tny cncn abut ing. Apatn at a Us bad law m ay:Dpit t ct advantag, wutuc mt t wk t mall

law m and l pactitin int Us a a matt cnvnincand quality cntl.

Wil ct and clint pua pimay div law m t, data cuity i t biggtcncn. Quality wk dlivdwa t mt cncn t lawm tat av nt xpimntdwit ing a. Wil tcncn lik clint cnfict and cul-tual dinc al xit, ty alativly l intn.

Altug t n tat and t n tat d nt di ignicantly in tm ticmt lvl aciatd wit -ing, t appnin a m l n imila lin: quality, cuityand cndntiality.

Exhibit: Important factors while selecting a service provider

Source: ValueNotes report on Legal Services Outsourcing: What do Law Firms Think?

Push button Asin the case of mostof businesses, cost

reduction is the primarydriver for oshoring

legal services.

Smaller lawrms aretypically

short onparalegalsandattorneys.Given the

increasingworkloadandmanpowershortage,theserms have

startedoffshoring

someof theirwork to

lower costdestinations.



Cover story | Outsourcing

Factors for selecting providerso lgal vic pvid a atvaying lvl in tm attibutlik calability, dmain knwldg,pc matuity, n pnc,

tc. Law im av t c avic pvid bt alignd t mtt tatgic tactical bjctiv ing. sinc vic p-vid capabiliti di ignicantly,cing t igt patn tndpnd n t pcic bjctiv t law m.

T managmnt tam a -vic pvid i ankd a t mtimptant paamt wn dcidingt . Accding t a patn a Nw Yk bad Law im, T ia lt t quid int lctingt igt ppl t d t wk andlping tm undtand wat tynd t d and giving a pci t intuctin. I yu intnd n alng-tm cntact, dnitly g a viit. Gt a n ttcnlgy, cmputytm and cuitymau takn by tvic pvid.

T cnidnc int managmnt tamand t vicpvid capabilityand putatin a im-ptant act buy lgal vic.

Buy nd t b cndnttat t vic pvid iliabl, can b tutd witti data and i dpndablin tm t dlivy quality utput.

Altug m pndntmntind tat it i pablt wk wit vic pvid- wit Us pnc, npnc a nt bn accddgat wigtag a cmpadt t act. Wil ti at-tibut i nt a ig piity clint, vic pvid av tanyway build an n pnc

in d t tabli tut.Inttingly, UK bad law m

gav n pnc a igpiity, citing t nd cland cntinuu intactin witvic pvid vn in t ca ing lativly impl viclik ctaial uppt vic.Ti pblm i l acut in t ca t Us makt.

Many t law im icntact attny and utucwk (witin ti wn cunty patin). At tim, law m gtug dcumnt viw pjct wittigt timlin. Ty av pjctmanagmnt xpti but a un-abl t xcut t pjct bcau manpw tag. hnc ty ut-uc t cntact ta witin ti

mcunty. svic

pvid, by aving an n- pnc dnitly tand tgain. Clint, t tat wit, migtb m cmtabl utucing

t vic pvid in ti mcunty at tan ingdictly t ant cunty.

Huge OpportunityT UK and Us-bad law m,and in-u lgal cunl at ky buy lgal vic.Cpat and law im vayignicantly in tm vlum wk bing utucd d. Tday, t vlum wk d main lativlylw almt all t vic acmpad t vlum utuc-ing witin t Us UK tam vic.

Dpit t buy cncn,t xit a ug makt t lgal vic induty.

ut, wil a ignicant num-b buy av lw cmtlvl du t lack amiliaity witt pc ing, a lagnumb law m a yingaway m ing lack awan. Mt t buy a

imply nt awa ing, tpc and t bnt. Wil tlw lvl intt and awa-n may appa dicuaging,ti i an indicat t untappdptntial in ti makt.

Wit t iing ct pu,cpat a wll a law m willadpt ing a pat tibuin tatgy. Ging wad,t mmntum will build uput nc ucint matuityi acivd bt by buy andvic pvid.

Neeraja Kandala is the PrincipalAnalyst, Legal Services at ValueNotes,a leading research provider focused onthe outsourcing industry.

There are several law rmswho agree that oshoringneeds to be considered butare currently not ready todo it. There are others whohave explored oshoring inthe form of pilots in the past but have decided not tooshore further.

Interestingly,

UKbased

lawrms

gaveonshore

presencea

higherpriority

,

citingtheneedfor

close

andcontinuousinterac

tions

withservicepr

oviderseven

inthecaseofo

ffshoring

relativelysimp

leservices

likesecretarial

orsupport

services.


20/48

Complexities,

Conflicts&

Coradicio

18| Outsourcing | July-August 2009


BYADItYA Bh LLA

uman beingsrepresent a kindo paradox: they preer simplicitybut are ascinated by complexityand complex creations. We seeexamples o that in every aspectaround us including work places

and processes designed withinorganisations.

When conronted with anegative situation one o theproven strategies is to nd a wayto eliminate it.

Complexity and complexscenarios pose one such negativesituation to us and our behaviourtowards them typically ollows therecommendation eliminate it atthe earliest.

So that should be good, right?Not quite. This strategy may backre i we apply to a situationwhere both negative eectsand positive outcomes existat the same time. Suchsituations are reerred toas contradictions or dilemmas or paradoxes.

Department handling specialisedresources. The appraisal policy createsa contradiction or him as he wouldlike to give top ratings to all his direct

reports or having ar exceeded thesti perormance targets set or them,but HR policy mandates that heollow the bell-curve perormanceappraisal system and rate 10% o hissta as poor perormers.

The Head o Department ap-proaches HR department to presenthis case but he is told that the policycannot be diluted and sacricing aew good employees is an unortunatereality o corporate lie.

From HRs perspective even thoughthey can empathise with the limita-tions o the one-size-ts-all approachto perormance appraisal they opt ora compromise or tradeo. However,the ripple eect that ollows goeslargely unseen by many in organisa-tions.

The negative consequences o thistradeo can imply loss in employeemorale and condence (impactingtheir ability to perorm), employeechurn (which is a big loss in thelong run) and other subtle ways oinimical human behaviour rom anorganisation perspective.

This places greater pressure onHR to create more complex systemsto check and correct such inimical

behaviour exhibited by employees.More complex systems however, onlyaggravate the negative behavioursas it now becomes a cat-and-mousegame between the oppressed andthe oppressor.

Not identiying a contradiction orincorrect handling o contradictionscan create more complexity andsow the seeds or confict within theorganisation (between departmentsor within departments) or outside(with other stakeholders o the busi-ness ecosystem).

The igure illustrates the pathtowards conlict through incorrect

handling o contradictions or para-doxes encountered every day.

Consider the response to recessionby dierent organisations. Falling orstagnant revenues and/or high costbase does impact the nancial vi-ability o an organisation but comingout with simple responses to cut costscan have many negative unintendedconsequences.

For example, some organisationshave adopted a worldwide reeze onIT investments o any type. On thesurace it will stem the tide o risingcosts and orce people to managewithin the existing setup but it alsoignores the negative aspect by paint-ing all IT investments in the samecolor.

Recession has provided organisa-tions an opportunity to integrate

Let us consider a ew scenarios tounderstand this.

Complex peomeo,s

mp e Mo e

HR comes out with a bell-curveperormance appraisal systemthat requires rating 10% o sta as

excellent perormers, 10% as poorperormers and the remaining inbetween.

The positive intent o HR is tocreate an objective perormancerating system based on merit.

Let us take the case o a Head o

ontradiction

mplexity

onfict

mpromise

or Trade-o




HumanChecker

Sotware

ApplicationChecker

Data EntryOperator 2

Data EntryOperator 1

take i ou Ourbeaviour owardcomplexiyad complexceario ypicallyfollow erecommedaio elimiae i a eearlie.

systems to provide seamless con-nectivity. Such changes will helpcreate agile operations that provideadditional beneits through aster

request ulllment or instance. Freez-ing IT investments will ensure thatoperations continue to perorm ine-ciently and provide poor customerservice at a time when they should beexcelling to stem the loss o customersto competition.

simple peomeo,Complex ModelThis situation is also commonlyound in organisations. Simple re-quirements are met through complexsystems that continuously evolve oncomplexity, sometimes without themanagers realising it.

A very commonly ound examplein the industry is the concept oMaker-Checker.

The Maker is the person who hasto perorm a task like entering datainto a system and a Checkers job isto do a 100% check o the quality othe work done by Maker.

breeds more complexity by requir-ing an entire new administrativesetup to manage such an unwieldyprocess.

Compromises or trade-os donot lead to elegant solutions butcomplex creations that are anawe to look at rom a distance buta terrible headache to understandand manage rom within.

CocluioWhen conronted with contradic-tions organisations that opt or

compromises or trade-os end upcreating complex systems thatare cumbersome and unwieldy tomanage.

This then becomes the genesiso conlicts within the businessecosystem.

Aditya Bhalla is a Consultant withQAI Innovation Practice. He is a SixSigma Master Black Belt, and MATRIZLevel 3 certifed. He can be contactedat [email protected].

Some organisations have addedcomplexity to the process by mak-ing two people enter the same data(called double data entry) and thenhaving a system perorm the roleo the Checker (reer gure). I thesystem nds any discrepancy then

it is reerred to a Human Checker ormanual checking.

The original positive intent othe business operations team was toprevent errors rom creeping in.

Using a low-skilled resource toperorm the task provides the beneto low cost operations but createsthe negative consequence o errorscreeping in.

This is a contradiction and thestrategy or handling it should bedierent.

However, the reactionary modetowards eliminating the negativeinfuence has bred an entire industrypractice o Maker-Checker that iswrongly interpreted as Best practiceas it is passed down rom one genera-tion o managers to another.

In reality it is a Bad Practice that



Outsourcing | conversation

Do you believe organisations willoutsource more in response to theglobal fnancial crisis?Outsourcing probably was in thebackburner in the rst and secondquarter o the year as many decisionmakers were uncertain with regardsto the depth o the economic abyss.However, ater the second quarterthe picture is a little clearer and weare indeed seeing greater stability.Thus, we are actually seeing more

outsourcing activities happeningamong corporate biggies.

At the end o the day, theresguaranteed cost savings when itcomes to outsourcing, be it duringthe gloomy times or otherwise. Inmy opinion, any company withdirects costs such salary bills whichcould cost up to about 40-45%o their total revenue should seeoutsourcing a strong component totheir business.

Why is Sri Lanka an attractive des-tination when it comes to FAO?It is due to the talent pool, in myopinion. Plainly put Sri Lanka hasalways been know as a countingcountry or some reasons. It isinteresting to note that most o the

CEOs in the country, nearlo them, are nance graduates.

At the same time, allow me to saythat Sri Lanka did not have muchstrength in the general outsourcingspace at the start compared tocountries like India or Philippines.This is due to the limited number opublic higher education institutesin the country.

Consequent to this, many students are let out o the public educa-

tion system due to high competitionor the little seats available to urthertheir tertiary education. So, a largenumber o them naturally lookedtowards alternative courses. One othe most popular avenues o studiesthey look into is accounting thisis due to the qualications market-ability and employability.

In comparison, an engineeringgraduate may see a tougher time inthe domestic job market. Whereas,accounting graduates are able towork not only in nancial account-ing or management accountingdomains, but also could play a partin the marketing side o a business.So its this fexibility that spurs manyto take accounting studies in SriLanka.

5qu:Duh sz s Glbl Delving into the subject of Finance and Accounting Outsourcing (FAO), SritharanVellasamyshares a conversation with Dushan Soza the Managing Director of WNS

Global Services at the sidelines of the recent CIMA World Conference 2009 in KualaLumpur. A graduate of UKs Reading University, Dushan spearheads WNS BPOoperations in Sri Lanka. He is responsible for the set up of the countrys rst Financeand Accounting Centre of Excellence, employing a talent pool of over 375 nance andaccounting professionals as well as setting up a legal services pool of 100, all engaged inproviding high-end Finance & Accounting and Legal services to a host of global clients.

The WNS group, which is listed in NYSE, employs over 23,000 professionals operatingfrom a number of locations spread across India, Philippines, Sri Lanka, Romania, USAand UK. Soza, a former professional cricketer, had earlier given an in-depth presentationon Outsourcing as a Competitive Strategy at the high-prole event.

ch so that, students whoare going to varsity or their courseso choice are also doing accountingas a parallel course o study.

I must say that there is a huge UKinfuence in this matter. We havenumerous UK accounting institutesrunning in Sri Lanka such as CIMA,ACCA and others that help churnout quality talent pool in goodquantity.

Today, Sri Lanka is a viable place

or UK-based outsourcing buyers asthey could easily see a parity betweena UK accountant and Sri Lankaaccountant.

In your opinion, to what extendthe recent deeat o LiberationTigers o Tamil Eelam (LTTE) willimpact the outsourcing industryin Sri Lanka?We surely see that much o thenegative perceptions are changingor the better. We are also seeingmany travel advisories or the Britishnationals being lited due to thedeeat o LTTE. Previously there weremany advisory against travel tothe north o the country. Travelingaround the country is surely saernow thus aking sure theres a

hgud gwh m uug,b dug hglmy m hw,y Duh.



conversation | Outsourcing

ree and easy connectivity betweenthe east and the north.

At the same time, I would like to

stress that during the course o ourve year operations there havenever been a terrorism incident thataected or delayed our operations inColombo. The capital has alwaysbeen insulated rom the terrorismwhich plagued the North. So it hasbeen business as usual or us inColombo.

Perhaps with the deeat, hopeullythe international community willchange its perception o the country.For the Sri Lankans, the terrorismissue is completely out o scope inthe country right now.

What is your opinion on Malay-sias emergence as an outsourcinghub?Malaysia has a good case to projectitsel as a viable outsourcing location.Especially so with many incentiveshanded out by the governmentthrough its MSC Malaysia initia-tives. Most importantly, the countryhas a great socio-political stability,excellent inrastructure and a goodbusiness environment or companiesto thrive.

It is also heartening to see manycorporations such as IBM, HSBC,

DHL, Shell and a host o others bluechip organisations setting up theirglobal hubs in Malaysia. Perhapsthe country could nd more waysto leverage on these brand names inorder to urther market the location.I must say that in Sri Lanka, we donot have this advantage to leverageas yet.

What is your opinion on the uturesurvival o small FAO players inthe region. What should be theright strategy to market theirservices?In my opinion, the smaller players

are holding up quite well in the FAOspace.

A smaller operation enables themto really ocus and ensure remark-able service or their clients.

Some may eel that only the bigprovider will survive in the long runas they tend to consolidate and buyover the smaller players, however Ieel that its not necessarily so.

Small players will have muchroom to survive, as not all FAOdeals are huge. In act, in some casescustomers avour smaller playersdue to the exclusive attention asbig players tend to have multiplecustomers in the same vertical.

This sense o exclusivity is some-times very important in a outsourc-ing buyers decision making.



Outsourcing | Capability Development

MSC MalaySia s dedcted towrdenbng the countrs trnsormton nto knowedge-bsedeconom through the use o iCTn vrous ndustres, ss Ng WnPeng the recent pponted COOo Mss Mutmed Deveopment Corporton (MDeC).

Wn Peng sd MSC Mshs ws supported the doptonnd mpementton o ndustrbest prctces mong Msn iCTcom nes nd iT roessons.

veopment deprtment Dr Kr Ngsd CDPs mn go s to rsentern competences mong occompnes to ensure ther contnu-ng compettveness n gob iTmrkets.

CDP so works wth severprtners to mprove the cpbtes

o Msn compnes nd to s-sst them n chevng certfctonsmore es nd cost-eectve. Ourprtners ncude SEi, PMi, CiMaMNCC C iM tSMF M s

Drggrr gnumber nd proesson cbreo iT rchtects n Ms. Thsevent s n nvube ptorm orknowedge shrng nd normtondssemnton bout the currentgob best prctces, test meth-odoog nd emergng trends n iTrchtecture.

She sd the trget o iT rch-tecture s to ddress nd resoveths ssue o gnment between iTnvestment nd busness requre-ments. Throu h iT rchtecture

An ITarchitect

r ngs anunder-

standingof and

appreciationfor businessor orga-

nisational



Capability Development | Outsourcing

f iC d usss srgThemed Enterprse i novton through

archtecture Resence, the 5th iT RCMs 2009 ttrcted more thn 400deegtes ncudng iT proessons romHong Kong, i dones, Sngpore, Thndnd Vetnm.

iaSa Ms Chpter Presdent HsnGnn sd the purpose o iT archtecture s

to gve structure to the process o pnnng,cqurng, budng, modng nd depo-ng iT resources cross n orgnston.

it s new re n the word o iT ndn m o non the wreness eve s st

grton pth to new technooges.He sd: We understnd tht through

roper ppcton iT cn hep n orgnson meet ts gos, mprove productvt orroftbt nd hep the compn workore eectve. an iT rchtect brngs

n understndng o nd pprecton orbusness or orgnston needs, gos

nd objectves, nd cn ssess the vue oiT nvestments n terms o the returns thebrng nd the opportuntes the enbe.

iaS as Pcfc Chrmn aron Tnn sd iT roessons must embrce

vue to hs orgnston, s he wsensures n iT project s not bt but w o genertng new revenue or reducngover expendture.

Durng the event, iaSa so unched theCertfed iT rchtect (CiT ) Foundtonproesson certfcton. The CiT cert-fcton hs been deveoped over our ers

through cose coborton between iaSacdem nd ndustr. Our Msnchpter ws ke per n deveopngCiT , sd Tn Dn.

CiT s the words frst vendor-nde en-



Outsourcing | perspective

BycK Mah

Front line mpys a h sad pmay avus pacusms xpc h au yu svc. th accusms hav wh mpys ca cs dcyfucs cusm sasac adh ds puchas.

i s ssa cmpas cuag a cducv pac wk mpys, sha hy u, ca cmpg

ca cs as a cs c wh gav u--vsm.Ah ky cs m s h p-dc ag ad sucs qud maa a hgh svc v a as chagg vm w pduc kwdg ad hghcusm xpca. esabshga ca c usucg pa-shp wh a puab ad pvvd ca sgcay duc suchsk by sug cuus svcmpvm v a pd mwh kpg cs cd a a

rl oon:

cll nououngbuyg xpc cusms.

Sc ca cs hav such sg-ca mpac wads h suvvaad pmac a cmpay,sm maagm may csdca c usucg b hghsk.

Hwv, h upkp a sa-sacy ca c basd vvvg cusm xpca adqums, cudg shpducs cyc, cas a hugcs bud.

tha s why ms cmpas vw

Ououng ll nn l ood lnng u nognon o go oug.



perspective | Outsourcing

agd v.

connuou imomnousucg ca cs a sabshd su cuussvc v mpvm v acacua u. Cuusmpvm svc v ca b

sabshd m yu cusmxpcas by mpvg s casu wh cuagg hvau pps g sgm yu cusm. Cu-us svc v mpvm cab mpmd hugh cvopaa Pcss Maagmad Pmac Maagm.

Operational Process Manage-ment is the establishment of: proper functions or processes, structured and documented work

fw, well dened policies, and structured (relevant) work infor-

ma.

Performance Management canbe achieved through: setting clear and definitive

bjcv, constant coaching by a trained

supvs, individual specic key perfor-

mac dca csayappas mpys p-mance (call resolution rate, salestarget etc), and

appropriate reward system tocuag h sp cu-us mpvm.

Low co pooonthugh pp paa adpmac gvac, ca cpducvy may b maad bympvg ca ags cvss.Ca ags may b m cvad pducv by:(1) providing training with e-

ag mdus whch hp duc cs;

(2) reducing call handling time withady avaab ma a ca ags; ad

(3) improving sale targets with ef-cv cachg ad sas basdwad sysm.

By -psg ca cs as

a p sad cs cs, acmpay ca maxms h s h cusm vau cha as pa h gasas g- maksagy add maagg av casg pag cs.

Customer Centric, Proft

Foud cll cnF ms cmpas, a aydv asma a cs-basd ca c a p g-ag ad cusm cusd qus sgca vsm adppuy cs. exsg sa has b ad, w sas-abdag mds hav b dv-pd ad apppa suppgsucus hav b pac.

ousucg a ca c cahp avd h sp agcuv a gasa has ghugh ad aw -badg asa ga pa h sasam wh cag a addap avu h cmpay asa wh. th ma sgma adcsy makg -bad asm gav pcps a ca c ay may b

eblng lln ououngn w ubl ndon ndocan signifcantlydu k.



Outsourcing | perspective

avdd by asg h paa adpmac maagm ca cs a sabshd ad pv usucgvd.

A h sam m aws c hughcacd svc vs, pmacmaagm ad sas ag masum h ca ags pmac. Fuhm, hs appach mvs h addamakg bud pm h mag

h ca c ad mg h p-mac h ca c ad s ca ags.Sm h ky bs m usucgca cs a:

Service Level Improvement Call agents are empowered to make deci-ss a h p d by gvg hmdsca pw basd ca svcv ag ad pmac ags. Clear sales target with associated sup-p qums cuag cusmwshp.

Benchmarked Performance Call agents are benchmarked againstsma ca cs h g ad agash spcv cupas hugh dsg ad ha mg. Call agents are rewarded for generatingdas mpv h busss hus caga cmpg vm shag

das ad ccps.

Economies of Scale Call agents or supporting functions withinca cs may h svcs sv-a cmpas wh sma qums.Ms usucg vds hav mupca c cusms ad hav pppaa maagm pcsss pac pvd ca cs shad svcs. ths

ca hp mga scaag cs whsug ha ca ags pay a gagg h cusms wh spccsas ags.

Effective and Proven ManagementEstablished call centre outsourcing vendorshav a wah xpc maaggca ags by cmmucag ca busssdcs ad pvdg h apppawkg vm h ca c uc a a vs. Outsourcing vendors actively supportad mpm gd das ad ccps mpv quay svc by cpagpu m a vs sa hugh cvmpys cmmuca chas

Skilled Resources Turnover rate of call agents are reducedas h svcs a vaud. Proper and relevant training resources are

avaab wh h usucg vdgasa sucu. A w dcumdca pgss wh ca cs hps a h wkc Performance incentives and reward sys-ms a pac mpv svc quayad cuag wk ddca

i summay, ca cs may b asyasmd m a ada busss

supp uc whch s gadd as acs c bcm a p gagsas gasa ha s mak dv,cusm dy ad svc d. oada appach wud b asmsuch ca cs ay usg xsgasucu ad hugh gagg hsvcs csy ca c csuas.

i days cs-pssud cmc -vm ad svc-d csumscy, usucg ca c s a chap,ss sky y pv ad cv p su h succss asmg cac a sas- dv gasa ha scusd wads cusm sasac.

CK Mah specialises in the area of infrastructureoutsourcing, application outsourcing andbusiness process outsourcing. He is a memberof the International Association of OutsourcingProfessionals (IAOP).

sn ll nhave such signifcantm owd ul ndfomn of company, certainmanagement mayond ll nououng o b ofg k.

For most companies, an internallydriven transformation of a cost-based

call centre to a prot generating andcustomer focused one requires signicantinvestment and opportunity cost.


29/48

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By Atul VAshIsthA

Its been ovr a dcad iccorporaio ard lvragigouourcig o r maagcapaciy, co, qualiy, rik adpd o mark. From ohor-ig o maagd rvic, hrha a dramaic voluioi corporaio hikig aououourcig.

Corporaio ar challgigxiig ui modl a hyk way o pd iovaio,ocu o hir cor compci,ad cal o capiali o op-poruii ad oupac compi-or. today, may corporaioar lookig yod ack-oc,laour-iiv ak o ou-ourc mor complx ui

proc rom ivm ad pric-ig aalyic o ivory maag-m o aircra gi maiacorcaig.

I i o logr a da a owhhr o ouourc u rahrwha ucio ca ouourcd.A a ui coula, I har oaou compai ailii o achivco ad/or capaciy advaag,ad y, may ar ill o aid.For om, i ha o giv hmmuch advaag rom a compiivadpoi ad or ohr i i jumovig h co aroud. thi i whaI har o rom ui whwill I igica valu?.

I i o hard o udrad whyh quio o valu i ill raidwh you coidr ha odayouourcig modl hav om

CodsorciThe rise of on-demand business process outsourcing

ihr limiaio ha rduch ovrall gai compai caachiv: low workr rio, lack ocorol ad viiiliy or cli, adlog, ifxil agrm o covrxcuio ad ivm rik oroh pari.

th iu ar mor prooucddu o rc rd i ir adocial workig capailii hahav u rhikig ouourcig roma gography gam (i.. chap laourorc) o a gam o kill ad xpr-i (i.. rcruiig a am o all-arxpr). Fw ui uuri oridury pudi would argu hah populariy o ocial workig,collaoraio ool ad h prvaiv- o W-ad applicaio rommail o CRM hav giv corpora-io grar viiiliy, corol, ad




pd ha vr or.W hav com accuomd o

alway o rvic ad giv lilhough o h ackd procha dlivr ho applicaio o ourlapop i ju happ. I i whamay popl oday rr o a cloudcompuig.

I liv hr i a lo o valu ia ouourcig modl ha orrowa pag rom cloud compuig o-dmad, pay-a-you-go, uoud ygographic corai, ad whrak ar aigd o a am o di-riud workr. sriouly, whao o lik? I call hi x pha iouourcig, cloudourcig.

Cloudourcig comi o-dmad ui proc ouourcig(bPO) wih crowdourcig cholo-gi o al compai o purcha

qualiy bPO rvic o-dmadhrough a pay-pr-u modl.Cloudourcig allow corporaioo lauch w ui procwork yp, cal ad iovai Ir im ad maiairal-im viiiliy ad corol omiimi rik. Furhr, i alcorporaio o hav immdiaacc o h righ workr, wih hrigh kill, a h appropria pricpoi, rgardl o locaio.

For ho i h couligworld, hr i o dou ha hworld i ruly fa a thoma Frid-ma prd o vividly i hiook. Wih cloudourcig, th

Fla World com mor viilad h craio o o-dmadworkorc ca ralid. Imagiig al o hir wha kill youwa, wh you wa ad orhow log you wa! thi o olycovr your xd co o a vari-al rucur u alo alyou o lauch w programmi ir pd roadad, ocour! Cloudourcig alo albPO ad idividual who havparicular kill or xpri wavu o or hir rvic o-dmad.

so wh will cloudourcig a

raliy? Irigly, hr ar x-ampl o work ig dployd ihi modl oday. tak or iac,LivOp, a silico Vally chologycompay ru y Mayard W,h ormr Chi Opraig Ocro bay. I ha cloudourcighrough a virual workorc o morha 20,000 idpd corac-or, ad rcly lauchd a wwork markplac, LivWork, a aplaorm or o-dmad uiproc ouourcig. Whil hcompay provid o-dmadcoac cr rvic o a widrag o ui, h impaco cloudourcig i illuradwih h rvic hy provid wihaural diar mrgcy rlior whr a rpo o huprdical i h orm:

Wh Hurrica Kariahi h Gul Coa o h Us i2005, a oll-r commuicaiocr wa urgly dd opu vicim i ouch wih hiramili. evry ohr ouourcrha wa approachd o providcommuicaio rvic dclido ak o h projc, cauhy could moili aga ough. Wihi hr hour,LivOp lauchd a call crwih ovr 300 idpd, hom-ad ag rady o hlp ruivicim o Hurrica Karia wihhir amily mmr. th virualcall cr, wih o xd iv-

m i uildig or chologyirarucur, wa alihd wihkill workr i hour ad huquly woud dow whwork wa do.

Coidr wha all o himay ma or your ui oridury a railr durig i highao ig al o cal o mcall volum, a chology com-pay dig o rapidly a upi mail cuomr uppor am irpo o a w produc rla,or a gamig compay diga o-dmad workorc o aug-m hir xiig am o hlp

modra hir oli charoom.th poiilii ar hug ad willlad o mor work yp igouourcd.

I liv wih hi w rd,compai ow may al oachiv igica gai y akigadvaag o o-dmad bPOmodl ha icra vlociy adagiliy ad hu cra uaialcompiiv advaag.

Atul Vashistha is Chairman o neoIT,a leading global services and sourcingmanagement consultancy. He is alsoCEO o NeoGroup, a frm ocused onoutsourced programme monitoringand reporting services or governance,regulatory and compliance initia-tives.

Karia aferma liveOp, a

siico Vaey ecfrm specialisedi codorci,aced a cacere wii reeor wi over300 idepede,ome-baedae readyo ep reievicim ofhrricae Kariawi eir famiymember.

Cloud-sourcingallowscorpora-tions to

launchnewbusinessprocessworktypes,

scale andinnovateinInternettime and

maintainreal-timevisibility

andcontrol tominimiserisk.




By Imraa Ka

Cloud Computing s

asrea wh ay ech-y vers v ake areay eerrses. may baservce rvers sch as Accere,As or, de, EdS, tCS, aWr have esabshe a/rsrehee her c reswh yra c ers. Se he are he very rece erassch as Cae, a usys.may servce rvers, sch asCza, s see w heraa eerrse srcservces es. A he res sch asgeac wa exerea w wa a he kks aresrahee.

Wh he rw a c servces, he exece rwhea hs see s he.i 2009, wrwe c-servcesrevee s exece crss uS$56.3

Cloud Compuie o omaireamIn 2009, worldwide cloud-services revenue is expected tocross $56.3 billion, a 21.3% increase from 2008 revenue

of US$46.4 billion, according to Gartner. At that rate, it islikely to reach US$150.1 billion in 2013. Business processesdelivered as cloud services are the largest segment of theoverall cloud-services market, accounting for 83% of theoverall market in 2008

Wi erowiadopio ofcloud ervice,e expecedrowpoeial ofi eme iue.

Interestingly, in cloud-services engagements,buyers just need tocare about the servicewithout worrying aboutits implementation.




b, a 21.3% crease r 2008revee uS$46.4 b, accr garer. A ha rae, s key reach $150.1 b 2013. Bs-ess rcesses evere as cservces are he ares see he vera c-servces arke,acc r 83% he veraarke 2008.

i he c-servces e, heservce rver s ree se heback-e evre as a whe rve w he cs. A he

byer es w, cr, secy,aae r erace wh ay e-ab eches r reae besracces a ehes se byhe servce rver b, evera r he c servces.

ieresy, c-servceseaees, byers js ee care ab he servce wh wrry- ab s eea.

As, he c-servces e,everyh ca be cvere aservce. Here are se he sere rs c servces: Infrastructure-as-a-Service (IaaS)

ces bh rasrc-re whch csers caey c acas asearae rasrcre sch asvrase hs a ysrae

Platform-as-a-Service (PaaS) it

s a exera hse servcesrv cee ar creae, r a erae aca-s

Software-as-a-Service (SaaS) has a cee acaha ca be csse by hecser a evere ver heiere,

Web-as-a-service (WaaS) theseare rch iere acas,whch are evere va heWeb.

i s ca efe everyhas er csers ees sea hav ayers servce ers,ees Rss dae, Che techyofcer, Hp. is ra hkab he cha wr, a heac s ha caa resrcesare be evere as servce. Hphas a hsry servce-cercit. We have bee er SaaS aiaaS, r exae, r years. ia, here are rae Web as aservce avaabe sch as maC he c-base Web servce r hecsers r he bsh secr whch hes csers bshaazes.

Accr garer, whe ch he bcy r c ccrrey ceres syses ra-srcre evere as a servce, s

s a eary-sae arke. i 2008,sch servces acce r y 5.5% he vera c-servces arkea are exece acc r 6% he arke 2009. irasrcreservces revee was uS$2.5 b 2008, a s esae reachuS$3.2 b 2009.

the c-base rasrcreservces are he eary saes evee a he ex fveyears, sch servces w c ress ha 10% he vera c-

servces arke, a he ac c rev w be re ahe aca, ra absess-rcess eve hrh hecrea ew servce bsesses, recass garer.

o he c servces, SaaS s hes cy ere servce byhe it servce rvers. Hwever, heew he SaaS sace s ha ayit rvers are er sry-secfc c servces.

i a, paaS s he ajrarea eres. B it-servces r-vers ce rve csa evee sr he hecsers ars rvers.iBm s a b exce, a Wr sv as hs sace, accr pa Rehr, Ser Aays, itServces, Frreser Research. gbaServces

Itsimportantto think

about thechangingworld, andthe fact isthat compu-tational

resourcesare beingdelivered as

service.




y Deepak Bharathan

Today, lrge glbl rgnistinsce mn chllenges. In itin tthe chllenging ecnmic envirnment, the cmpetitive lnscpehs been ricll ltere b smllbut gile plers. Fr instnce,phrmceuticl cmpnies hvebeen hit b slwing pipelines, whilesmller bitech rms hve isruptethe mrket with innvtive pructs, rcing expensive cquisitins.o gnistinl trnsrmtin tmeet these chllenges is prmuntr lrge rgnistins. The bil

Uicfomio bl ofbui c

Itgoods

and

servic

es

enaBLIngtransFOrMatIOnBusinesses leers sscite technl-g with spee n ecienc. Thisperceptin must be leverge t en-ble IT units t le rgnistinltrnsrmtin. IT mngers sme-times see rgnistinl trnsrm-tin s thret; rther this shul beembrce s n pprtunit r ntjust rgnistinl chnge, but lst increse the prle the IT unitwithin the rgnistin.

Md & ViioThe rst step in enbling chnge ist crete the Mnte & Visin.

This entils: Creating the Mission Statement ening the business objectives

r pertins ening success parameters

The utcme rm this quickphse shul be n ctinble visinsttement. all stkehlers, ntjust IT leers, nee t be invlvein builing n cmmunictingthis visin. orgnistinl bu-inis essential for success. Since busi-ness cnitins chnge smetimesrmticll s in the pst er thevisin nees t unerg periicvlitin ginst with ltest pert-

ing environment. So, it is importantt pt fexible rmewrk.

ItsyIT Strategy is an often-misused term.Put simply, IT Strategy lays out,in iscrete terms, the technlgrmp r chieving the busi-ness vision. An IT Strategy exerciseshul tpicll le t the llwingeliverbles: Technology Roadmap: Lays outrgnistinl technlg lnscpen hw it will chnge ver the nextthree/ve ers Projects & Stafng: Denes indi-viul prjects n resurces Business Case for Change: Dem-nstrtes vlue rm the chnge,in ech wrkstrem, ginst theinvestment.

IT strteg cn be successull

it surcing prgrmmes withintechnlg units t be vehicler chnge t rive rgnistinltrnsrmtin is verlke bexecutives.

Frrester estimtes tht glblpurchses IT gs n serviceswill be US$1.9 trillion in 2009 equivlent t but 3% the wrlG P. But eectiveness technlginvestment is mesure in terms perting metrics. This is missepprtunit s the IT unit cn, nshul, ct s the river trnsrmtin. There exists cmmnrmewrk r trnsrmtin nt chieve the best results rm the

ill b9 % of

Businessleadersassociatetechnology

dy.

on

deo

ani-




cmmunicte vi simple visu-ls tht chrt ut ke elements organisational ambition. The Casefor Change will be the action planr the IT unit. The rmp lsut vrius wrkstrems which reuse t quli uture prjects nqunti investment n benets.

While builing the prject prt-li, quick win prjects whichgenerte cst svings shul becreull exmine. Best chnge pr-grmmes becme sel-sustiningb elivering signiicnt svingswithin 12-36 months.

IMpLeMentIng the

transFOrMatIOnEven the best-li strteg cnmunt t nthing i eectiveimplementtin es nt mke ithppen.

govcGvernnce is nt just but hiring

tilre t the exct nees thergnistin, might be g ie.But unrtuntel mn rgnis-tins nt tie success mesures the gvernnce bck t enblingbusiness chnge. This ilutes theimpct the chnge inititive nles t it being seen s rin nresurces.

once the gvernnce mel isset up, it nees t be cntinuuslmnitre n empwere t mke

ecisins.

sym rioliioMst businesses hve evlve b cmbintin rgnic ninrgnic grwth, which hs let cmplex mesh IT sstems.The intent sstems rtinlis-tin exercise is t rst generte thetrue vlue the IT sstems in thergnistin n use this metric trive rtinlistin.

a sstems rtinlistin exer-cise shul nt be n terthughtt surcing inititive; rther itshul be thught s the rst step

twrs lw-risk surcing mel.accring t mrket reserch,an estimated 59% of outsourcingcntrcts il. a cmplex IT envirn-ment increses the risks iluresubstntill. T minimise the risk,sstems rtinlistin bere surc-ing is require.

The ke elements sstemsrtinlistin exercise re: Generate the value proposition

rm technlg cnslitin Systems Roadmap: Details retire-

ment, retentin n surcing sstemsa g sstems rtinlistin

exercise will ensure tht the thereis cler mpping between thebusiness bjectives, nees n theIT sstems use t chieve these.Research on causes of system down-time rerms this belie. over 55%

the right mngers, but ls cretingthe right mel. There re tw keelements t eective gvernnce: Organisational Design: Mps

wrking reltinships betweenierent tems n ties them ttrnsrmtin rmp.

Business Relationship Model:Mels the chin pertinsbetween technlg n businessunits. anther ke cmpnentis the rmewrk r mnging

business expecttins.orgnistins use ierent tpes mngement templtes t me-sure success. accring t mrketresearch, over 49% of the Northamericn cmpnies use custmin-huse rmewrks r mngingIT initiatives. Custom templates,

rod o ucc Mo buiv volvd by combiioof oic dioic ow,wic ld o comlx mof It ym. ti of ymioliioexercise is to frst

u vlu of It ym i oiiod u imic o divioliio.

Governance is notjust about hiring theright managers, but

also creating the rightmodel.




the ttl sstem wntime iseither ue t pplictin errr r uet the service prviers inbilit tcpe with the cmplex pplictinenvirnment.

Bunling the sstems rti-

nlistin s the rst step in thesurcing prgrmme hs inherentvntges IT venrs, eger temnstrte vlue in the hne-mn peri the el, cn beencurge t iscunt this exercisehevil.

This exercise shul be cnuctein phse mnner with ver-cmmunictin t the rgnistin.a simpler IT lnscpe incresesthe prbbilit success r thevenr tht mkes the exercise win-win r ll.

transFOrMatIOnaLsOUrCIngIn the lst tw eces, surcinghs emerge s centerpiece inbusiness strteg. TrnsrmtinlSourcing refers to examine this

cet business thrugh the lens business trnsrmtin.

souciBusiness mngers hve striven trge successul supplier reltin-ships. But, ke spect surcingprgrmme chnge mngement which cn rive rgnistinlchnge is still nt cpitlise.

Sourcing, especially in the ITspce, nees t be irectl linket the trnsrmtinl bjective.Piecemel surcing els m tem-prril mke lie esier r mng-

ers b llwing quicker el ccle,but ultimtel results in incresespen in prcurement, mngementn supprt unctins.

The verll intent rm surcing isestblishe b trcking the inititives

on the Transformation Roadmap.Capability analysis of the organi-stin gives cler picture thestrengths n weknesses within thergnistin t cmplete ientieinititives. The mst eective wt mnge surcing is t trck it nthe rmp n link utcmes the ech iniviul surcing prjectt the verll success mesures trnsrmtin.

tfomiol pojcother trnsrmtin prjects, be-n surcing, shul be trcke in

Pieceme

al

sourcing

deals

maytemp

orarily

makelife

easier

formanag

ersby

allowinga

quicker

dealcycle,but

ultimately

results

inincrease

dspend

inprocur

ement,

managem

entand

supportfu

nctions.

In thelast twodecades,

sourcinghasemerged

as acenterpiece

in businessstrategy.Transfor-

mationalSourcing

refers toexaminethis facetof businessthroughthe lens of

businesstransfor-mation.




the trnsrmtin prject prtli.It is imprtnt t scpe these ertserl t ptimise the wrkl nmngers. There shul be ls cler lter, bse n business nees,t etermine i prject is trns-

rmtinl prject. althugh it ishr t ictte the ptiml number trnsrmtinl prjects r nrgnistin, usull threshlof effectiveness is reached at 2-5simultneus trnsrmtinlprjects.

The surcing prgrmme shulnever be just cst-cutting inititive.Rather savings should be consid-ere s n uxilir result theprgrmme tht trnsrms theorganisation. Since majority of thehr llr svings re relisein this stge, surcing mkes kecntributins t mke the trnsr-

mtin prgrmme sel uning.Timely investments in a ServiceMngement orgnistin will helppreserve the benets n cntinuusbsis.

tIeIng It aLL tOgetherThe mst imprtnt spect success-ul chnge is the cncept wner-ship. The chnge wrkstrem ties llerts n the rmp tgether npresents cler n unerstnblemessging t the rgnistin.

C Wom &

CommuicioThe chnge wrkstrem shul beepicte n the prject rmpwith rles n respnsibilities clerlrticulte. The success the verllchnge ert shul be ul trcken crprte blnce screcrs rther quntiible mesurementtls.

There exists vst untppeptentil t enble technlg unitsin lrge rgnistins t be kechange agents. Change in any form business prcess, methlg reven phsicl lctins re pinuln cme with risk mismnge-

ment. Fining the right prtners, beit the surcing supplier r visrs,is s imprtnt s implementing thechnge.

Deepak Bharathan is a Principal at PAConsulting Group a global strategy,management & technology consultingfrm.

t ouci omm ouldv b ju co-cuiiiiiv. r vi ould bcoidd uxiliy ul of omm fom oiio.



Outsourcing | BASIS BAY

There is always an alternativeto lower the costs of hardwaremaintenance. These alternativestrategies are aligned forachieving high standards ofreliability at the most competitivecost. In a climate where

change is constant there isno compromise for efciency,reliability and up time. Highstandards of availability are nolonger an option and it can beachieved even after the standardmanufacturers maintenanceservice life. Industry expertshave estimated that 60% of ITspending today is dedicated tomaintenance. By outsourcingyour maintenance to reliablethird party maintenance (RTPM)providers, you stand to savean average of 40% on yourmaintenance cost. Typically,

manufacturers maintenancecharges increase over time asolder models become obsoletegiving way to the production ofnewer models. The benetsare apple to apple but you getmore control coming your wayas RTPMs promote the idea ofhaving total control over yourhardware.

In creating a balancebetween reliability andaffordability, RTPMs are ableto provide continuous support.RTPMs offer competitive pricesand exibility required by usersto address the IT environmentwith timely expansion plans.Given this fact, they are capableof providing matching, if notbetter response times and

Staggering Industryexperts have estimatedthat 60% of IT spending

today is dedicated tomaintenance.

The end orbeginning of the end

Summary for Reliable Third Party Maintenance

Youre standing in the aisle of the Data Centre and youre wondering about your next beststep. The long meetings and presentations make sense, but it all signicantly means the

same Cost Savings and Operations Efciency building evident lines to huge BusinessOpportunities. How much more can you stretch it out and ensure that your next step is asustainable solution for your organisation? You also want to leverage on the strengths of yourexisting systems while addressing the triple-bottom-line of People, Prot and Planet. Youvegot a heavy maintenance cost coming your way for the various IT equipment and missioncritical systems sitting on your decision. What do you do? Read on for Basis Bays advice oncollaborative partnerships with a Reliable Third Party Maintenance (RTPM) provider.

availability through conventionalsupport lines with a single point ofcontact, expanding service hours tomeet existing demands.

Imagine having a single vendorwith capabilities in preventiveand remedial maintenance in

a multi-vendor environmentavailable at your convenience. Inreality, RTPMs provide coverageand services that rival those ofmanufacturers by leveraging onengineers trained in test labswith cross platform experienceranging up to mainframe levelfor hands-on training and areconstantly updated with newtechnology advancements. Witha stringent spare parts policythat ensures readily available andadequate parts, RTPMs are ableto ensure timely deployments.Other than maintenance, RTPMs

provide multiple-services rangingfrom operating system support,installation, upgrades, relocation tomulti-platform enterprise serversand peripheral support.

Today, were in the Green Agepursuing a higherpurpose focusedtowardsminimumimpact on theenvironmentwithmaximumefciencybuilt intoour daily

operations and businessdecisions. RTPMs can also helporganisations extend the life ofyour enterprise hardware, henceavoiding an untimely disposal ofthe equipment. As cost savingsand bottom-line ROIs are criticalfactors, discuss with a RTPM onways you can save cost and theenvironment today.

Basis Bay provides ManagedMaintenance and EngineeringServices for Enterprise HardwareMaintenance, System Support

and Managed Maintenance

Services, among others.As a quality IT infrastructureoutsourcing company, BasisBay also offer Data Centre andDisaster Recovery Servicesfrom several locations andoperates the state-of-the-art Basis BayGreen Data Centrein Cyberjaya.For moreinformation, visitwww.basisbay.com or contact+603-76206250.

Byoutsourcingyourmaintenanceto reliablethird partymaintenance(RTPM)providers,you standto save anaverage of

40% on yourmaintenancecost.


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Outsourcing | survey

OutsOurcing activity o-e o be oed b dmoeoom odo, depe poe o oe he mp ohe eeo hoh o d ee , od otPi, o d d dom.

the tPi idex, whh mee

omme oo oed us$25 mo o moe,od h he o mbe oo wd e 7.5% om he qe o he eod qe,o 135. Whe o o e(tcv) oe bo 5% eqeo us$20.5 bo, aed co- ve (acv) tcv dded bhe do o he o e5% om he peo qe ous$3.6 bo.

comped wh he xmoh o 2008, whh w eodee o o , he m-ke he h o 2009 wded11% ewe o wh 22% owetcv d 28% owe acv. Dhe dee wee edo me-de Eope we owe ped ob o bepoe oo (BPO).

O he bh de, demd o itoo (itO) emed beboh eqe d e-oe-e he ame d aP. i ddo, ee de, d Deed F-, tpoo, re dteeom, eed he dopoo oo d he h

o 2009.the eod qe o e-

eed ome e d e-o d eoph ed. nop, he bk eo,do he dope ooo ee, h owed he wkeo e . O &g, Food & Dk d comeDbe, o me ew, he omped 2009.

B he me me, he De-ed F, tpoo,re d teeom eo hebee e he dopo oo ee. Fo e, he26 o wded b tpo-o ompe he h o2009, wh be Eope, MddeE d a (EMEa) edhe w, epeeed 44% e-

Global ITcontact plng22%in fit half of 2009oe-e owh. i teeom, hembe o o dd o heb, b tcv d acv ehdobed e-oe-e. thoe oeo oehe o bo 37%o he mbe o o d 47%o tcv wded h e.

the Q2 tPi idex eeed - deee mo eo. O-

o mke EMEa deddow he ob mke, wh j53 o wh tcv o us$8.8bo. Boh e wee mo heowe he eo eoded oe he e qe.

Weke EMEa w oe bo peome a P,whh hd eod be qeee wh tcv p 200% oe eo. uhe, wo oeh me de d x o 15 meeohp he bee wded he eo h h e. i heame, he tcv peome hbee moe ee dbed dee qe h Eope.Howee, he eod qe, heame weed eqe oo 35% b tcv, d o oe mede h bee ed he eoe 2009 be.

Th bankingcto,taditionall aha adoptof otocingic, halowd it actiitsignifcantly inth wak of lat

years fnancialcii.



survey | Outsourcing

altHOugH OrganisatiOns eo o de dow he oit bde 2009 om 2008, 2010 wodwde owe bdew ee, od o eb ge, i. the e howedh oo p o eehe owe bde o ee1.53% 2010.

ge eed ppoxme1,000 it poeo wodwded ap d M 2009. re-pode wee ked whehe heexpeed he 2010 it bde o bebeow, be he me o exeed heit bde o 2009. th pe e oompe a/P, 28% noh ame, d 25% Eope,Mdde E d a (EMEa) d

a stuDy b Ke see, wok-oe meme ee dhm eoe omp, eeedh he ood be be-wee wok d peo e w mjo po o moe h 68%o M epode.

Moe h 90% o Mepode o od he Kegob Wokoe idex h mobeommo ehoo, h mphoe d pop, hempoed he peo pod

d, o m, he omedhe wok-e be.

addo, 80% o epoded he b o wok ode he o-e, e em o o,hd bee poe deeopme,ee hoh mo h wee wokoe ho.

the Ke gob Wokoe idexobed he ew o e 100,000peope 34 oe dmo 2,000 M.

Mh o he omo wokoe beho bede b he oe eeo owoke - geeo y (e 18 - 29e) d geeo X (e 30 - 47e).

Ke see (M) sdBhd ve Pede co ge-e Me Me nom,d h he expoo o mobe

Gatn point topoiti

oftwa pnding in 2010he expeed he 2010 it bdeo ee.

Wh ed o ped expe-o o owe b eo, nohame expeed o dee2.06%, d EMEa o hpoe 0.45% o 2010 ompedwh 2009.

sowe bde lame w e 2.54%, d a/P, owe bde w

ee 4.34%, how epoe ed e heowe ped 2010. ge d h efeo o heee m o he mke.

gee, he e odowe ped o be hodod, d oeqe, ge

eommed h edo wokowd hep e kow wheehe o d bee eeoe o ow ew bdeeddo o o he.

sowe edo hodoe o bd, d d e owe e d mkepomme, ee d hmke odo o mome d expd eee

oppoe, d Joe coe,M ve Pede ge.a mke dow dpeh ee e mke de oppoe o oopeped o ke de o heh pod, mke pomd d.

Nw tchnolog impo

podctiit: s

d d dee w hep oee mh moe fexbe ddpbe wokoe, d oe hw moe pode.

Emb he powe o om-pe d wee ehoo,empoe ook podfexb boh em o wokho d ow empoee owok om home.

M empoee ow hehe p o wok om home ow om he oe, hoo he d, d h po po-e o pod d wok-ebe. Ee hoh ome ewok oe ho, h eoe b he ee eedom dfexb o he wokpe,nom exped.

Manyemployees

now havethe capacityto workfrom homeor awayfrom theofce, at

any hourof the day,

and thisis provingpositive

for produc-tivity andwork-life

balance.



Outsourcing | management

By Dr arLyne DiamonD

In thIs rapidly developig worldcage i ieviable. no logerare we mall village, iy ow,or eve iolaed ciie. Ideed ie buie world, oe courymerge io aoer daily. Cae uique culure o sigaporead Malayia remai uariedwi e iux o ew people, ewidea, ew value, ad ew wayo addreig oe i auoriy? Iik o.

Look, or example a tailad.Were are all e wome i eirbeauiul aive dre? tey are owwearig weer jea, ad lieigo MtV. I Cia McDoald arceca be ee everywere. te ciie oIdia ave become o Americaieda oer a e cadece o evoice awerig e call cerepoe, e ma wo call imelJo, mig be livig i Iowa.

Buie a become iera-ioal. Wa wa oce exraordiaryad called ouourcig i ow

commo ad i called globaliaio.Ju look aroud you. Wo i work-ig beide you? I e or e omeoerom your village?

Were i e Corporae ead-quarer? Were are you i a-oer coury alogeer?

sice we are ow mixig wi omay oer people rom o mayoer area o e world, we mulear o adap ad icorporaeome o eir value, yle, way o

alkig, walkig ad doig buieio our ow ju a ey eed oadap o u.

toe o u elpig culuraladapaio kow all oo well omeo e problem aociaed wicage. te ormal erm are oureeze, cage ad rereeze.

ti mea a e ir epi makig cage i o covicee orgaiaio a e preeway o doig buie eed o bemodifed uroze.

For people livig i culure aave bee omewa iolaed weree rig way a bee fxed oro log, i i e arde par.how do you, a a global maagercovice your people wo aveaced a cerai way perap orgeeraio a ey mu modiyeir beaviour?

Oce i i accomplied, peopleeed o be elped o icorporae ecage io eir daily rouie.

For America comig o Aia,learig o bow, o be coureouad repecul demad ew be-

aviour.sadard o imelie eed obe modifed o a we ca workamicably ogeer wiou geigupe abou e oer pero co-cep o imelie. Qualiy meadiere ig o diere peoplead o maager eed o deail eexac requireme or compleioo a ak or produc.

Aumig ucceul cage,doe guaraee a ee will

ow be e commo paer. terei alway e edecy people aveo go back o e beaviour wiwic ey are amiliar paricularlyi ey are uder re. ti cocepi called regreio o e mea.

Age ad campio o cageeed o be midul o i auraledecy ad fd raegie o mai-ai e ew cage. ti cocepi called rereezig.

te cage proce ca be evolu-ioary i a i appe lowly, orrevoluioary a appe we erei a oile akeover i a coury, ora war. Weer evoluioary orrevoluioary, eac o u ubjecedo a cage require u o learad adap o ew way.

too may compaie ry o orcecage raer a go roug acareully deiged ad implemeedcage proce. some o e mocommo error made: Not convincing people of the

imporace ad urgecy o eeed o cage.

Not creating a well-respected team

o campio ad cage ageo guide e cage. Not creating a solid, exciting and

uderadable viio. Not removing obstacles to the new

viio. Not creating a series of short-term

wi (ucceive approximaio)wi reward ad celebraioalog e way.

Not recognising that changedid appe ju becaue youmadaed i o declarig vic-ory oo oo.

Not anchoring changes in thecorporae culure i o perma-

e uil i rereeze ad peopleik ad ay, i i e way wedo ig aroud ere.toe coula (like me)

maagig cage ave developeda workable proce. Aloug oabolue, e maer i wiccage i maaged really elp.tee age are:

C h d f ch. Establishing the sense of ur-

gecy. Getting people to examine seri-

ouly e compeiive realiie. Identifying crisis, potential crises,

or major opporuiie

C h ts Creating the guiding coalition

e eam o campio adage

ivblf ch

all wlks f lf Sc w w x whs hppl fs h

s f hwld, w usl dpd cps f hvlus, sls,ws f lk,wlk d dbusss uw jus s hd dp us.



management | Outsourcing

Putting together a group witheoug power o lead ecage.

Getting the group to work togetherlike a eam.

C h Vs Developing a transformational

viio ad raegy. Making sure the vision helps to

direc e cage eor. Developing strategie s for achiev-

ig a viio.

Cuc Communicating the change vi-

io Using every vehicle possible to

coaly commuicae Role modeling the needed behav-

iour

ac Empowering a broad base of

people o ake acio

Get rid of the blockers obstacleso acio

Change systems, structures,

procee, procedure a u-dermie e cage

Encourage risk-taking and non-radiioal idea, acio, adaciviie.

rwds Create short-term wins Plan for some visible performance

improveme Visibly recognise and reward

people wo make wi poible.

Csld gs dPduc m chs Use increased credibility Hire, promote, develop the right

people Create new processes, change

age, ad eme Institutionalise new approaches

o culure

Create better performanceroug cuomer-orieed be-aviour

Articulate the connections be-wee ew beaviour ad frmucce.

Develop means to ensure leader-ip developme ad ucce-io.

ach nw Ch Culu Management must work to make

i par o e culure Must be reinforced by policies,

reward, irig pracice, evalu-aio ad raiig.

Dr ArLyne Diamond is an Organi-sational Development and HumanResource Consultant with over 30 yearsexperience. She can be contacted [email protected]

Dvs Bussshs bc

l.Wh ws cxdd clldusucs w cd s clldlbls.Jus lk udu.

Too many companiestry to force change ratherthan go through a carefullydesigned and implementedchange process.



Outsourcing | happenings

Finance drtors wr told thtbussss must ot ol otu to

dlvr gst short-trm dmdsbut lso vst or th log-trm ordr to g dg ovr th om-ptto wh th world oomstrts to rovr.

now, mor th vr, w mustrll lst to our ustomrs dstrv to b frst or thm. But tob bl to dlvr or ustomrs,ou d to gt th bss rght:mg sh d osts rull.Bussss whh dlvr gstths short-trm dmds whlstotug to vst or th uturwll b ommdg posto tobft wh th oom strts to

rovr, adrw Hggso, ceO oTso Rtlg Srvs, sd t thrt ciMa World cor, Kul Lumpur.

nrl 600 dlgts rom 30outrs ttdd th or,whh ws thmd Th Globl Vl-lg no Boudrs, no lmts.

addrssg dlgts hs

Documents

Outsourcing Issue #13