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Page 1: GT_April_2012

GlobalizationToday»

Page 2: GT_April_2012

K N O W L E D G E C E N T E RSearch more than 1,000 articles, studies, white papers, reports, and conference proceedings in the industry’s premier repository.

C H A P T E R SShare your expertise and gain knowledge on best practices for specific industry segments, topics and geographic areas.

G L O B A L I Z AT I O N TO D AYRead about the latest trends, research and hot topics in the official magazine of IAOP.

VA L U E H E A LT H C H E C K S U RV E YOptimize the health and value in your existing outsourcing and/or shared service center rela-tionship with this diagnostic tool. G L O B A L S U P P LY R I S K M O N I TO R S M

Monitor, predict and manage various risks in your services supply chain across countries, cit-ies and suppliers in real-time.

B E S TO U T S O U R C I N G J O B S . C O MFind the industry’s best talent or your next career.

I M P R O V I N G O U T S O U R C I N G O U T C O M E S B Y C O N N E C T I N G Y O U T O T H E R E S O U R C E S Y O U N E E D .

IAOP® is the global, standard-setting organiza-tion and advocate for the outsourcing profes-sion.

With more than 110,000 members and affiliates worldwide, IAOP is the leading professional association for organizations and individuals involved in transforming the world of business through outsourcing, offshoring, and shared services.

A Global Community IAOP has members in nearly 50 countries. Each member has direct, online access to each other and to IAOP’s entire portfolio of services, including its vast chapter network, regional-level events, certifi-cations and corporate and professional devel-opment programs.

MEMBERSHIP

Customer Corporate Membership provides organization-wide access to the association’s research, training, certification and networking programs — all designed to help companies

achieve better business results through out-sourcing.

Provider/Advisor Corporate Membership pro-vides the same organization-wide benefits of Customer Corporate Membership, but also includes member-only sponsorship opportuni-ties that serve the marketing and business development needs of these companies.

Professional Membership is available to indi-viduals either as part of their company’s corpo-rate membership or on an individual basis. This membership serves the needs of practitioners working in the field of outsourcing whether as customers, providers or advisors. In addition, it provides these professionals with direct, per-sonal access to association services.

To learn more about IAOP membership or to become a member, visit www.IAOP.org.

M E M B E R S E R V I C E S

International Association of Outsourcing Professionals® (IAOP®) Tel +1.845.452.0600 Fax +1.845.452.6988 w w w. I A O P. o r g

IAOP membership85% of IAOP members credit IAOP for improved

outsourcing outcomes at their organizations

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GlobalizationToday��������������April 2012

T h e O f f i c i a l M a g a z i n e o f t h e I n t e r n a t i o n a l A s s o c i a t i o n o f O u t s o u r c i n g P r o f e s s i o n a l s

Also in this issue:China’s Crossroad Our Outsourcing Experts Look at Key Issues During IAOP’s China Week Page 18

How Diversey and Wipro are (R)evolutionizing IT Outsourcing? By Kate Vitasek Page 24

Is Cold Calling Dead? By Thom Mead Page 30

An End to Cash? By Jake Holloway Page 34

2012 STATE OF THE INDUSTRY

Page 12

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IAOP Founding and Corporate Members (as of print date) are in bold.

IAOP congratulates the 2012 “Global Outsourcing 100” and “World’s Best Outsourcing Advisors”

The 2012 rankings will

be announced in a special

advertising feature in the

July 23 Global 500 issue

of FORTUNE® magazine.

For more information

on the program, visit

www.IAOP.org/GO100.

International ��Colliers Global Corporate Solutions ��Compass Group ��Concentrix ��

Convergys ��Cross-Tab Marketing Services ��CrysTelCall ��CSC ��DATROSE ��Diebold

Integrated Services ��Donlen ��Donnelley Global Outsourcing ��EMCOR Group ��Emerio

GlobeSoft ��emids Technologies ��Endava ��EPAM Systems ��First Line Software ��

Firstsource ��Freeborders ��Genpact ��Getronics Workspace Alliance ��Grupo Prominente

��Harbinger Systems ��HCL Technologies ��Hexaware Technologies ��HGS ��hiSoft

Hunton & Williams ��Kirkland & Ellis ��KPMG ��Mayer Brown ��

Morrison & Foerster ��PA Consulting Group ��Pace Harmon ��

Pillsbury Winthrop Shaw Pittman ��PwC ��Quint Wellington

Redwood ��Zinnov Management Consulting

AbsolutData ��Accenture ��Aditya Birla

Minacs ��ADP ��Advanced Technology

Services ��Aegis ��Altisource ��Amdocs ��

Aon Hewitt ��AppLabs ��Artezio ��Auriga ��

Birlasoft ��Bleum ��Capgemini ��Cassidy

Turley ��CBRE ��Ceridian ��CGI Group ��

ChinaSoft International ��Ci&T ��CIeNET

Technology International ��HP Enterprise Services ��iGATE Patni ��Indecomm Global

Services ��Infosys ��Infotech Enterprises ��Insigma ��Inspur ��Intetics ��ISS ��

ITC Infotech ��Itransition ��Johnson Controls ��Jones Lang LaSalle ��Kelly

Outsourcing and Consulting Group ��LeasePlan USA ��LegalBase ��Lionbridge ��

Long View Systems ��Luxoft ��Nagarro ��National Medical Billing Services ��

NCR ��Neoris ��Neusoft ��Newmark Knight Frank ��NIIT Technologies ��

Océ Business Services ��PCCW Solutions ��Pitney Bowes Management

Services ��ReSource Pro ��Scicom ��Sodexo ��SoftServe ��Softtek ��

SPi Global ��Sutherland Global Services ��Syntel ��Synygy ��TEAM

International ��TeleTech ��TIVIT ��Towers Watson ��transcosmos ��

Unisys ��VanceInfo ��Williams Lea ��Wipro Technologies ��WNS

Global Services ��Xceed ��Xchanging ��Zensar Technologies

Alsbridge ��Archstone Consulting /

The Hackett Group ��Avasant ��

Baker & McKenzie ��Booz &

Company ��Deloitte ��DLA Piper

��Elix-IRR ��Ernst & Young ��

2012

®

2012

World’s BestOutsourcing Advisors

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www.globalizationtoday.com 3

INSIDEApril 2012

7 PUBLISHER’S NOTE

8 NEWS FEED What’s new and noteworthy in global commerce.

30 IS COLD CALLING DEAD? By Thom Mead

34 AN END TO CASH By Jake HollowayIs an end to cash really possible and do any of the new payments technologies, mobile apps and high-tech start-ups look like they are leading the way in the future of payments?

36 IAOP WORLD CONNECTION STATE OF THE INDUSTRYOutsourcing Leaders Weigh in On the Industry’s Status and Future By Sandy Frinton

12

HOW DIVERSEY AND WIPRO ARE (R)EVOLUTIONIZING IT OUTSOURCING

Our Outsourrcinnggg EEExxpppeeerrrrtttttsss Lookk at Key Issues Durriiinngg IIIAAAAOOOP’sChina Week

2418CHINAA’S CCRRROOOOSSSSSSRRRRROOOOOOAAAADDDDDDD

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FOUNDER & PUBLISHERAli Comelek

[email protected]

EDITORIAL and PRODUCTION

EDITORIAL DIRECTORAli Comelek

[email protected]

AD PRODUCTION MANAGERDonna Eastman

[email protected]

GRAPHIC DESIGN AND PRODUCTION Webstaze Design Studio

www.webstaze.com

EDITORIAL ADVISORY BOARD

Dr. Bruce Greenwald Prof. Asset Management and Finance

Columbia Business School

Dr. Matt Waller Prof. Marketing and Logistics

University of Arkansas

Dr. John Hindle Sr. Manager - Accenture, Adjunct Prof

Vanderbilt University

Mike Corbett Chairman - International Association of

Outsourcing Professionals

Matt Shocklee CEO & President - Global Sourcing

Optimization Services

Arijit SenguptaCEO of BeyondCore, Inc

Chair of the Cloud Computing Chapter of IAOP

Address:6501 E. Greenway Pkwy., Ste 103-494

Scottsdale, AZ, 85254, USAPhone:

1-602-492-4194

GlobalizationTodayPromote Your Business in

for FREE!

Get Listed in Globalization Today’s Buyer’s Guide

All Globalization Today subscribers have complete access to our Buyer’s Guides that allow them to quickly find and purchase outsourcing and offshoring related products and services. Globalization Today offers a free basic listing to providers in the following categories:

Go to www.globalizationtoday.com to get your FREE listing!

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PUBLISHER’S NOTE

www.globalizationtoday.com 5

STATE OF THE INDUSTRY

Our main story looks at industry’s current status and it’s future. Outsourcing has definitely changed a lot in the last two decades and sometimes it feels like you need a crystal ball to predict the future. To help us comprehend all the changes and get a better vision for the future, we asked few of industry’s top experts:

IAOP Hall of Famer William F. Concannon, President, CBRE, Global Corporate Services IAOP Hall of Famer Blanca Treviño, President and CEO of SofttekDr. Leslie Willcocks, professor at the London School of EconomicsSwaminathan Dandapani, Chief Executive Officer and Managing Director, Infosys BPO Limited Sonja McKeddie, Leader - Procurement Capability of Rio Tinto

Go to Page 12 to read more on the state of the industry.

As IAOP kicks of the China Week on April 23rd with numerous activities throughout the country, we gathered our thought leaders views on the direction this “sleeping” giant of outsourcing is taking. Check out page 18 for this feature story “China’s Crossroad” and summary of all the activities that will take place during IAOP’s China week.

I am a big fan of case studies. It brings real-world and usually recent business difficulties and an intensive analysis focusing on the set of solutions that you can learn from and possibly apply to your situation. In this issue, we are going to look at how Diversey and Wipro are (r)evolutionizing IT Outsourcing. This case study comes from University of Tennessee’s Kate Vitasek. Page 24.

Founder and PublisherGlobalization Today Magazine“Official Publication of IAOP”www.GlobalizationToday.com1-602-492-4194

Ali ComelekFounder and Publisher

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NEWS FEED

������������Today April 20126

The U.S. government is the poster child for big data and today President Obama is set to announce a $200 million research program to bolster the tools and techniques needed to access, organize, and glean discoveries from huge volumes of digital data.

“In the same way that past Federal investments in information-technology R&D led to dramatic advances in supercomputing and the creation of the Internet, the initiative we are launching today promises to transform our ability to use Big Data for scientific discovery, environmental and biomedical research, education, and national security,” said Dr. John P. Holdren, Assistant to the President and Director of the White House Office of Science and Technology Policy in a statement.

The White House Office of Science and Technology Policy and a number of key federal departments and agencies will be

part of the Big Data Research and Development Initiative.

The agencies and their particular input in the program include:

National Science Foundation and the National Institutes of Health: NSF is implementing a long-term strategy that includes new methods to

PRESIDENT OBAMA TARGETS $200 MILLION FOR BIG DATA BOOST www.networkworld.com

WHAT YOU NEED TO KNOW IN THE WORLD OF OUTSOURCINGNEWS Feed

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NEWS FEED

www.globalizationtoday.com 7

derive knowledge from data; infrastructure to manage, curate, and serve data to communities; and new approaches to education and workforce development. Specifically, NSF is: Encouraging research universities to develop interdisciplinary graduate programs to prepare the next generation of data scientists and engineers; Funding a

$10 million Expeditions in Computing project based at the University of California, Berkeley, that will integrate

three powerful approaches for turning data into information - machine learning, cloud computing, and crowd sourcing; Providing the first round of grants to support “EarthCube” - a system that will let geoscientists access, analyze and share information about our planet; Issuing a $2 million award for a research training group to support training for undergraduates to use graphical and visualization techniques for complex data. Providing $1.4 million in support for a focused research group of statisticians and biologists to determine protein structures and biological pathways.

NIH: The health agency is particularly interested in imaging, molecular, cellular, electrophysiological, chemical, behavioral, epidemiological, clinical, and other data sets related to health and disease.

Department of Defense: The DoD is “placing a big bet on big data” investing approximately $250 million annually (with $60 million available for new research projects) across the departments in a series of programs that will: Harness and utilize massive data in new ways and bring together sensing, perception and decision support to make truly autonomous systems that can

maneuver and make decisions on their own. The department is seeking a 100-fold increase in the ability of analysts to extract information from texts in any language, and a similar increase in the number of objects, activities, and events that an analyst can observe. In addition, the DoD will announce a series of open prize competitions over the next several months.

As part of the DoD, its Defense Advanced Research Projects Agency (DARPA) is beginning the XDATA program, which intends to invest approximately $25 million annually for four years to develop computational techniques and software tools for analyzing large volumes of data, both semi-structured and unstructured traffic. Central challenges to be addressed include: Developing scalable algorithms for processing imperfect data in distributed data stores; and creating effective human-computer interaction tools for facilitating rapidly customizable visual reasoning for diverse missions. The XDATA program will support open source software toolkits to enable flexible software development for users to process large volumes of data in timelines commensurate with mission workflows of targeted defense applications.

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NEWS FEED

������������Today April 20128

MindTree Limited (India: MINDTREE.NS - News), a global IT and Product Engineering Services Company, today announced that it will open its first major U.S. Development Center in Gainesville, Florida. MindTree’s expansion of its U.S presence is expected to bring some 400 new jobs to the Gainesville area beginning late this summer.

“The Southeast is an untapped region for MindTree from a talent and client acquisition standpoint. Setting up our first major U.S. Development Center in Florida gives us a foothold into this region,” said Scott Staples, President, Americas, MindTree Limited. “Gainesville, Florida is a great city with many positives: a thriving population of IT and engineering talent; a great place for our MindTree Minds to call home and; a strong partnership with the University of Florida.”

MindTree’s new U.S. Development Center reflects the Company’s strategy to broaden its IT and software consulting offerings to its clients in the U.S.

“This expansion is great news for both Gainesville and for the entire state of Florida,” said Governor Rick Scott. “MindTree’s choice to expand in our state confirms that our state is doing the right things to attract innovative businesses like those in the IT sector. I look forward to signing the legislation that will put my Job Creation and Economic Development Agenda in place and make Florida even more attractive to companies looking to expand in a business-friendly state like ours.”

“As we encourage Florida’s students to study science, technology, engineering and math, it is great to see high-tech companies like MindTree come to our state,” said Lt. Governor Jennifer Carroll. “In addition to making sure Florida has the best-educated workforce, our state is making sure business growth is not hindered by increasing taxes and burdensome regulation.”

MindTree will be renovating and repurposing an existing structure located across from Gainesville’s Innovation Hub and Innovation Square. This location will provide MindTree with close access to the

University of Florida’s Engineering and Computer Science programs.

“Gainesville is home to the State of Florida’s top research university, the University of Florida, which fosters the development of innovative businesses seeking to change the world,” said Michael Gallagher, chairman of the Gainesville Area Chamber of Commerce. “MindTree is just such a company, and we are thrilled to welcome its U.S. Development Center to our community. I believe the ecosystem formed between MindTree, the University of Florida and the Gainesville community will be a successful model many others will seek to follow in the future.”

MINDTREE TO OPEN NEW U.S. DEVELOPMENT CENTER www.business-standard.com

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NEWS FEED

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Government departments have received guidance from the Cabinet Office on awarding contracts under £100 million in a bid to increase SME participation. The guidance is intended to reduce risks from outsourcing to a single supplier while increasing competition. The guidance provided states that of open source and open standards should be employed and that designs, code and templates should be reused. Francis Maude, Cabinet Office minister, said: “We will end the practice of attempting to cover every requirement in great detail and cover every legal eventuality in

The European Commission proposed, on 28 March, to establish a European cyber crime centre to help member states detect illegal online activities, starting with fraudulent banking transactions. The objective is to guarantee an open, free and safe internet in the European Union.

The proposal has to be adopted by the management body of Europol, the European Police Office. The centre will be set up at Europol (the Netherlands), where it is expected to become operational in January 2013, employ up to 50 experts and have an annual budget of €3.6 million.

every project and contract, thereby increasing the procurement cost

“Criminals are getting more and more competent,” commented Home Affairs Commissioner Cecilia Malmström. Their illegal

and timescales to all parties to unacceptable levels”.

activities “disrupt the lives of consumers and Europeans” shopping online or participating in social networks.

UK GOVERNMENT MOVES TO OPEN UP PUBLIC SECTOR IT CONTRACTS TO SMES www.sourcingfocus.com

EUROPEAN CYBER CRIME CENTRE SET FOR JAN 2013 www.sourcingfocus.com

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STATE OF THE INDUSTRY

Outsourcing has come a long way in the past 20 years and with the fast pace of change it’s hard to envision what it will look like in the decades to come. To help give us a clearer vision for the future, we asked thought leaders on their views of where outsourcing is now and where it’s headed.Weighing in on these issues were two IAOP Hall of Famers William F. Concannon, President, CBRE, Global Corporate Services and Blanca Treviño, President and CEO of Softtek, along with experts Dr. Leslie Willcocks, professor at the London School of Economics, Swaminathan Dandapani, Chief Executive Officer and Managing Director, Infosys BPO Limited and Sonja McKeddie, Leader - Procurement Capability of Rio Tinto.

EMERGING INDUSTRY Is outsourcing still in in infancy, emerging or mature? Our experts all agree the industry is still emerging. Compared to baseball, outsourcing would still be in the third or fourth inning, says Concannon.

If you look at outsourcing versus mature industries like accounting, outsourcing still has a way to grow to develop a strong certification process that influences appointments to jobs, and a strong research base and discipline, says Willcocks.

The way Treviño sees it outsourcing should be viewed as “always emerging.”

“The value an outsourcing professional provides today is significantly different from solutions of a decade ago,” she says, noting that outsourcing professionals are in the early stages of leveraging cloud computing solutions, while Forrester predicts that by 2020 at least two thirds of every outsourcing engagement will have a significant Cloud-based component.

Infosys’ Dandapani views the outsourcing profession as “still young and still emerging.”

“It is really heartening to see more and more clients seeking ‘value enhancement’ versus ‘cost reductions’ through outsourcing and outsourcing professionals moving steadily from being

Outssourcing Leaders Weigh in On the Industry’s Status and Future

State of the Industry By Sandy Frinton

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STATE OF THE INDUSTRY

of outsourcing or will be seriously considering outsourcing as one of their key strategic business efficiency and effectiveness drivers.

DRIVERS INTENSIFY The experts see the same drivers continuing for outsourcing in the near-term, including short-term cost savings, innovation and flexibility, as well as new ones.

“The drivers will intensify,” says Concannon. “Cost pressures, competitive pressures, need for access to increasingly specialized skills and talent, and the desire for flexibility all seem likely to be with us for the long term – and all are drivers of outsourcing.”

Treviño anticipates that companies will outsource

‘transactional’ to being ‘transformational,’” she says.

Even with the continued growth and acceptance of outsourcing, the thought leaders don’t anticipate a time where 100 percent of customers surveyed will say they use it.

Treviño says this is because of the industry will always have emerging areas. “What is core today is best done by a partner tomorrow,” she says. “Outsourcing enables customers to focus on areas of differentiation, and outsourcing partners innovate in areas that can add value and synergies across a larger set of companies.”

While it won’t be 100 percent, Dandapani expects significantly large number of customers around the world will either already be users

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STATE OF THE INDUSTRY

more to innovate and launch products faster as Nike has done.

“While outsourcing will remain a viable way to achieve savings, the driving force for adoption will be shifting to increasing revenues and EBITDA,” she says.

In the near future, Willcocks says cost reduction will remain a main driver, leading to bigger moves into BPOI and eventually cloud computing, where there are more savings to be had than in ITO.

Looking ahead into the next five years, he envisions the we will see a continuing trend towards making partnering less rhetoric and more a reality, a continuous maturing of the retained capabilities needed for outsourcing, and improvements in outsourcing performance as the principles and good practices become more accepted partnerships.

While cost considerations will continue to be important, Dandapani says the drivers will significantly be around agility, speed to market new products and services in existing and/or new geographies and countries, business value realization, technology absorption and realizing innovation through collaboration.

McKeddie says she expects labor arbitrage to reduce in overall importance, as organizations experience other business drivers that prompt them to explore outsourcing as a solution. These new drivers could include access to talent in constrained labor markets, ability to ramp up quickly to support growth objectives, and access to best practice tools and processes, such as procurement, she notes.

ASIA INFLUENCESHow will the geo-nomics of China and India affect offshore decision making and impact customer’s selection and provider’s options? (See our story in this issue on China’s Crossroads)

As a customer, Rio Tinto, a leading international mining group, looks to both its providers and analysts to provide insights on the impact of China’s emerging capability in BPO and how it will impact

the industry as a whole. “We will monitor trends and forecasts on wage

growth, and also read with great interest the investment that China is making internally, by supporting their own government organizations with Chinese outsourcing providers,” says McKeddie. “We expect the options for customers to be greatly enhanced in the next two to five years and providers must ensure they also have presence in that market.”

China will come on stream as a provider quite slowly, says Willcocks, who anticipated this rate in 2010 in the book China’s Emerging Outsourcing

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STATE OF THE INDUSTRY

Capabilities. Major Indian companies will

continue to move up the value chain and offshore themselves, as well as spread certain capabilities into client countries, he predicts.

“There are over 120 offshore ITO/BPO locations in the world and client companies will increasingly look to diversify their risks by using several locations, not least in the continuous search for more cost effective

arrangements,” Willcocks notes.Treviño notes that China

and India have two different strategies and market dynamics. While India is a powerhouse in ITO and BPO, China has focused on creating a strong electronics industry based on high-tech manufacturing, on top of other manufacturing supplies. For IT, China has a very strong and highly specific domestic market, but has struggled to create a

brand for offshore outsourcing, she says.

“What is common for both, as well as for most other destinations, is that value through labor arbitrage will continue to diminish,” she says. “Outsourcing professionals have constantly evolved to shift to results-oriented engagements. If you are just chasing the lowest rate card, you will eventually run out of places to go.”

Increasingly, customers and outsourcing professionals will sharply differentiate between “Outsourcing” and “Offshoring,” Dandapani predicts.

“When customer’s expectations move from ‘transactions’ to ‘transformation’ customers will seek out global talent, best in class practices and global benchmarks, both in the developed and emerging economies,” she says.

This change will impact not just India and China but several other emerging economies that will see an impact in their offshoring ecosystem due to increased local and global demand, leading to competition for good quality talent, according to Dandapani.

However, countries like India and China will continue to “Enhance the GDP” (Growth, Differentiation and People) of offshoring by their sheer focus on human resources, scaling them up to provide differentiation and through this differentiation spur industry growth, she says.

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������������Today April 201216

STATE OF THE INDUSTRY

CLOUDS CLEARING The value of cloud computing has not yet been fully reached and will accelerate, the leaders says.

“Today the building blocks are networks, routers, servers, desktops and applications – Platform as a Service,” Treviño says. “Tomorrow, the building blocks will be applications, applications and applications, and how you connect them quickly and securely to support ever changing business process innovation and improvement. On top of those applications we will start to see platform-enabled horizontal solutions. Cloud is a real game changer for the next phase of the outsourcing industry evolution.”

The lack of organizational readiness and the recession has delayed cloud’s takeoff, Willcocks says, who anticipates the technology use accelerating now through 2015 where it will be used for both cost savings and innovation.

The impact of cloud computing will be shared services, multi-tenancy, pay per use, focus on minimizing CAPEX, outcome-based pricing models and technology being seen as a journey to drive business outcomes versus technology being seen as a destination, according to Dandapani.

McKeddie expects that customers will become more sophisticated when it comes to their expectations from providers, as they develop their own understanding of how to best leverage the cloud.

Items such as governance suites and mechanisms could be deployed via the cloud, enabling customers to access best practice tools at low cost, she says.

“Providers would benefit from deploying a standard suite, streamlining their own internal efforts when it comes to engagement management,” McKeddie says.

PROFESSIONALISM ON THE RISE The use of certified outsourcing professionals with designations such as IAOP’s Certified Outsourcing Professional (COP) will continue to increase, our

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STATE OF THE INDUSTRY

leaders predict. Softtek’s Treviño said

customers are increasingly recognizing the value of having these professionals on the team managing outsourcing relationships.

“The curricula of outsourcing professionals will be geared towards how professionals can contribute more value and in a more disciplined way to drive innovation and achieve the customer’s end goals,” she says.

“That brings us back to the absolute need of organizing work differently, with the right processes and IP to drive real innovation in outsourcing. If the service delivered is staffing, the value added by the partner will be limited to individual contributions – with little differentiation and economies of scale.”

Infosys’ Dandapani sees certification and specialization in tandem being in demand.

“As outsourcing gathers momentum and new innovative operating and outcome models are introduced outsourcing professionals with domain capability in vertical industries being able to understand the nuances of the business of their clients and their industry drivers will be key to success,” she says.

Among the service areas where functional expertise will be extremely relevant in verticals industries are finance and accounting, sales and

delivering strategic critical activities and managing more end-to-end processes. However, this will depend on the maturity of governance, partnering, contracting and skills needs to leverage outsourcing into these performance areas.

The biggest change will be companies realizing the value of outsourcing by positively impacting their gross margins versus being used to control costs, Dandapani says.

One thing is certain, change will be constant.

Sandy Frinton is a staff writer at IAOP.She is an experienced PR and media specialist with strong journalism and writing background, with acombination of nearly 20 years of PR and journalism experience.

Sandy has written bylined news and features stories, traditionaland Web 2.0 press releleasses, employee communicaatitioons, e-newsletters, corporate letters from CEOs, annual reports and other communications in a wide range of business sectors. She also has managed communications and media relations for international businesses for major acquisitions, plant closures and business restructurings in the U.S. and globally. You can reach her at:[email protected]

Sandy Frinton IAOP

fulfillment, strategic sourcing and procurement, customer services, HR Services, and analytics and reporting services.

Rio Tinto’s McKeddie notes that while many organizations assign people a role in managing their outsourcing engagement based on their line management experience, those skills don’t necessarily match what is required.

While it hasn’t seen higher traction yet, McKeddie sees increased use of professionals coming. Increased visibility and recognition of certifications will make it easier for companies to find resources with the appropriate skill sets to support strategic initiatives, she says.

THE BIG PICTURE What one major change do we expect to see in outsourcing in a near future?

Into the future, experts see greater integration of outsourcing into the business, outsourcing increasingly delivering bottom-line value and more customers seeking strategic counsel.

“The combination of a consultative solution offering combined with outsourced execution is a growing trend we are keeping a close eye on,” according to CBRE’s Concannon.

Willcocks sees outsourcing providers becoming more involved in the business and

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CHINA’S CROSSROAD

������������Today April 201218

CCHHIINNAA’S CROSSROAD

Have an interest in CChhiinna’s outsourrccing market? Be sure not to miss these evveennttss aat locaattions around the country with key industryy leaders aimed at advancing the indussttrryy during IAOP’s Chinaa WWeeeek.

China Week at a Glance

April 26 - Beijing Chapter Meeting, chaired by Neusoft

Corporation. Themed “The Future of Outsourcing in the

Era of Transformation,” the event to relaunch this chapter

will be held from 9 a.m. to noon at the Shangri-la Hotel in

Beijing.

Beijing Chapter Chair Angela Wang, Senior Vice

President & Board Secretary, Neusoft, will provide a

keynote address on “Leveraging Outsourcing to Enhance

your Innovation Ability to Lead Both the China and

Global Market.”

A panel discussion looking at China’s attractiveness

in outsourcing when the cost advantage is diminishing

will be led by Nielse Jiang, Head and Chief Consultant,

ISG China. Also speaking at the event will be Michael

Rehkopf, Partner, North Asia, ISG as well as IAOP CEO

Debi Hamill and Chairman Michael Corbett.

April 24-25 - Hong Kong Chapter

Meeting, Louyang Dongshan Hotel

Convention Centre, Dongshan Longmen

in Louyang. Themed “The Rise of Service Outsourcing

in China,” the event will address the key

trends of outsourcing in the region and

China; how people, technology and

process working together to achieve

excellence; the importance of governance,

service contract and stakeholder communication; and creating strategic

alliance through effective outsourcing.

��������������������Tod

April 27 - Qingdao/

Shandong Chapter

Meeting, 2 to 4 p.m., at

the Qilu Software Park in

Jinan, Shandong Province.

The meeting is chaired by

ResourcePro and sponsored

by Jinan Commerce Bureau.

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CHINA’S CROSSROADCHINA’S CROSSROOADD

China’s Crossroad

April 23 - Shanghai Chapter Meeting,

3 to 7 p.m., chaired by Bleum, Inc. with

the America Chamber of Commerce.

The meeting will take place at Bleum

Headquarters, Cloud 9 Mansion 19F, 1118 W.

Yan’an Road, Shanghai.

This meeting will look at the “Value of

Governance and Governance Best Practice”

with remarks by IAOP CEO Debi Hamill and

president/founder Michael Corbett. Edge

Zarrella of KPMG, Bleum CEO Eric Rongley

and Corbett also will participate in a panel

Q&A discussion. Drinks and networking will

conclude the program.

As IAOP kicks off China Week April 23-27 with numerous chapter activities throughout the country, our thought leaders shared their thoughts on where this economic powerhouse is headed as a market as well as a destination for offshored services.

“China, the sleeping-or not so sleeping giant of outsourcing, always attracts discussion when outsourcing professionals gather,” says IAOP’s Director of Thought Leadership Jag Dalal. “It also

draws comments and criticism when politicians talk with offshoring versus outsourcing often confused.”

Among the topics that are still not well understood by business people in discussing China’s role in becoming a leader in offshoring locations are Intellectual Property protection and pervasive use of English as a business language.

“China is at a cross road – economically, politically and socially,” Dalal says.

China has the highest numbers of cell phone users in the world and boasts graduating the most technically trained professionals.

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CHINA’S CROSSROAD

In recent times, we have seen political and social changes as a result of the use of new technology that would have been impossible for the outside world to have observed a few years back.

For example, when the high speed bullet trains derailed in the summer of 2011, the ground-swell of criticism through Chinese social media application forced the Central government to take public action of contrition and investigation in the cause.

To cover some of these interesting and timely topics, Globalization Today brought together two of the prominent China-based outsourcing executives for a roundtable discussion.

Eric Rongley, a long-time resident of China, is CEO of Bleum, Inc., an engineering and high-end technical software services provider based in Shanghai. Matt Bruno also is a long-time China resident and is President of ResourcePro, based in Qingdao. ResourcePro is a BPO service provider to the Property and Casualty insurance back office operations. Both Bleum and ResourcePro are perennially recognized in the Global Outsourcing 100. Eric and Matt are also active IAOP members and lead chapters in their respective cities in China.

Jag: Eric and Matt, thank you for taking time from your busy schedule to shed some light on topics of interest to IAOP members and readers of Globalization Today. Let’s get right into the topics.Jag: What differentiates China from other Asian outsourcing destinations (excluding India)?

Eric: China has the largest and best qualified software engineering talent pool in Asia. With the right management and a disciplined development environment, the quality of the software code that these engineers can develop is second to none. Matt: The scale and scope of size that China has is clearly a differentiator, but also the uniformity of the infrastructure is a major plus for China. What I mean is that not only is China big with a massive population, but you can go almost everywhere in

the country and find good transportations and communication infrastructure. You can find a broad base of college educated talent and expanding universities. I also think the partnership with local and regional governments supported by the central government is a big plus in China. China is trying to make the move to a service-based economy so the government is supporting service-based industries like outsourcing. On the central level, this means national policies. On the local level, it means that the government really works with companies like us to help solve problems.

Jag: There are quite a few foreign (U.S. and India) based service providers with China operations. Do you see China headquartered providers growing to be competitive globally? What is your prediction for them?

Eric: Chinese companies should be competing in the quality end of the spectrum and/or focused on outsourcing for the northern Asia-Pacific Markets (Chinese, Korea and Japan). Those companies that are doing this are already beating the Indian-based firms with operations in China. Many sophisticated companies are understandably worried about the geopolitical risks with Indian vendors and want to diversify their exposure to a strong Chinese headquartered company. We continue to see strong demand and clients will always want to work with quality suppliers.

Matt: I believe over time Chinese headquartered providers will become competitive globally. Some already have and this trend will continue.

Jag: What are some of the challenges faced by China based suppliers?

Eric: Chinese based suppliers – indeed, all suppliers in China who are working for Western multinationals -- still have to ensure that the English skills of their workforce are up to standard.

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CHINA’S CROSSROAD

In addition, there is still a perception that security may be an issue in China. Ultimately though this issue comes down to the outsourcing firm you are selecting and how they manage these risks.

Matt: I think the biggest challenge for Chinese suppliers on the global front, remains language. Most Chinese companies do not have strong English or other second language capability. For many who are focused on the large and fast growing domestic market, this may not be important. But for those who want to do business globally, they need to have a strong capability in English (or the language of whatever market they want to focus on). They also need to have more than just the language, they need to be able to have cultural acumen as well and be able to understand the need, nuances and subtleties of their customers.

Jag: There is a lot of discussion about restrictive IP related issues. Is it constraining business? What steps some of the companies are taking to protect themselves and not be involved in an IP issue? Eric: At the macro level, the Chinese Government has made significant investments in ensuring that IP is now much better protected than it has ever been. Courts are making much faster decisions and independent research shows that IP court decisions are now dealt with much more swiftly in China than in India. At the micro level, you have to look at the security environment of the vendor you are working with; this varies as extensively in China as it does in India. Choosing the right vendor has to be important for every company.

Jag: Recently, there is a lot of publicly expressed tension between U.S. and China on trade issues. Has that affected any business decisions for your clients/prospects?

Eric: We have not seen any change in the business demand from U.S. or European companies as a result of the public posturing on trade tension

issues. Ultimately, most companies have to answer to shareholders and if the right vendor who can produce better software happened to be based in China then that is where a company will turn to. China also is a huge potential market for many of these U.S. based firms so getting (or expanding) on their toe-hold here has to make sense for management teams and shareholders.

Matt: I think the public attention has not affected the specific decisions of any clients or prospects, but overall the background noise does have some effect on us. Understanding of the business environment, culture and real situation on the ground in China is very low in America. One of the things we do is we bring prospects and clients to our office in China. This has an amazing effect on their impressions of China and our company. They are amazed at how similar the cities look to American cities, how modern the infrastructure is, and how friendly and professional the people are.

Jag: Thanks again to these outsourcing leaders for sharing their expertise with us.

Eric Rongley currently serves as the Chair of the International Association of Outsourcing Professionals Shanghai Chapter and is the former Chair of the Ethics and IT Committee of the American Chamber of Commerce in Shanghai. He is founder and CEO of Bleum, Inc

Matt founded ReSource Pro in 2003 after moving to China to teach English in 2001. He currently serves as Managing Director of the company’s China Operations. From 1999-2001, Matt was a Product Development Analyst for Distinguished Programs Group, where he specialized in the implementation of new insurance programs, designing procedures, reports, and workflows. As Director of Operations of ReSource Pro’s China office, Matt brings together an understanding of U.S. insurance agency operations, client services, technology and the Chinese business environment. Matt speaks fluent Chinese.

Page 24: GT_April_2012

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Page 25: GT_April_2012

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A “VESTED OUTSOURCING “CASE STUDY

The (r)evolution in the Outsourcing Industry is happening. Innovative win-win outsourcing relationships are replacing traditional competitive procurement methods. We call these innovative approaches “Vested Outsourcing,” because the company and the service provider work together to align the success of the service provider with the achievement of success for the client’s business. Each party employs its core competencies to accomplish what each could not achieve on its own.

The problem is that many companies are quick to say win-win partnership – but they are not contracting for true partnership and are falling short in unleashing the real potential of a fully Vested Relationship. This is particularly true in the Information Technology space where University of Tennessee research failed to find any companies in their initial research that indicated they were practicing Vested Outsourcing. Long time Industry leaders such as Marty Pine, who has held senior executive positions on both the buy and sell sides of outsourcing deals, agrees. “The IT

A “Vested Outsourcing “Case Study

How Diversey and Wipro are (R)evolutionizing IT OutsourcingBy Kate Vitasek

sector is behind the curve in adopting progressive outsourcing approaches. This is because IT has only really been outsourced since the 1990’s while other sectors such as logistics, facilities management, and contract manufacturing have been outsourcing for much longer.”

When Diversey and Wipro heard about the University of Tennessee’s pioneering research on highly successful outsourcing deals they decided to take part in what UT researchers have coined a “Deal Review,” which does an in-depth diagnostic to determine the improvement opportunities into

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A “VESTED OUTSOURCING “CASE STUDY

how a deal is structured. This includes a deep dive into pricing model, governance structure, performance metrics and overall relationship trust levels.

“Diversey was already thinking about our IT outsourcing efforts as a continuous improvement effort,” explained Brent Hoag, Diversey’s CIO. Hoag, who took the helm as CIO in 2009, was keenly interested in how he and his team could take their Wipro outsourcing efforts to the next level. “We already had great success and were about to embark on the third generation of our relationship

with Wipro. Our results from outsourcing had exceeded our expectations after each of our major step change efforts. As such, we were very intrigued with the University of Tennessee’s Vested Outsourcing concept and wanted to learn more. Wipro gladly supported our efforts to participate in the University of Tennessee’s Deal Review process as a way to help us learn how we might take our outsourcing relationship to the next level. We feel that the findings and our journey to Vested Outsourcing are a great example for the IT industry, which many others might be interested in.”

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A “VESTED OUTSOURCING “CASE STUDY

THE JOURNEY BEGINS

In 2005, Diversey found itself in a very difficult situation. Faced with heavy debt and flat sales, a new CFO launched a mandate that tasked IT to lower their spending from about 5 percent cost as percentage of sales to 2.5 percent. At that time, DiverseyLever had merged with Johnson Wax Professional and the newly merged joint companies had about 600 IT people globally, spread across several decentralized organizations. The two companies had deployed very different technologies.

In 2006 Diversey signed a five-year, over $100 million outsourcing agreement with Wipro, a global IT Service Provider. When CIO Matt Peterson signed his first outsourcing agreement his No. 1 goal was cost reduction -- “and it was a long way down the list to get to No. 2,” he said. The contract spanned Diversey’s entire IT management including IT infrastructure management, application development and support, and small project management – all done in a classic “Lift and Shift” approach. A key strategy for the deal was to ensure Wipro “kept the lights on” at a lower cost. The plan included reducing IT costs by outsourcing non-core services, centralizing the IT organization and consolidating data centers. Wipro partnered with Unisys to provide the global language needs required by Diversey for Service Desk and Deskside services. The Diversey / Wipro plan paid off. Wipro ramped up to 170 locations supporting 800 IT systems in 12 months.

By year two of the five-year deal Wipro had delivered the targeted financial and organizational benefits that Diversey sought. The companies had developed what many outsourcing relationship strive for – trust and respect.

With success under their belt, both parties agreed they were ready to embark on the next leg of their journey and spend more time working with Diversey managers on strategic new projects. The companies turned to end customers and the business groups for guidance. Throughout 2009,

they conducted interviews and surveys to get both subjective and objective feedback. The parties set out for the following goals:

Improve quality and business value of IT servicesAchieve more balance in the IT spend portfolio between infrastructure and value-added servicesReposition IT to support business innovation and growth.

The transformational focus has led both parties to embrace changes that can drive positive impacts. “The only thing for certain is change – and change is a great catalyst and opportunity for improvement. We embrace change in how we look at our outsourcing relationships and the benefits they can drive.” explained Werner Graf, Wipro US General Manager of Consumer Products. It was this philosophy that led the companies to embrace Cloud Computing and move to what Hoag refers to as their third generation (r)evolution aimed at creating a “pay as you go” environment based on the concept of a Business Service Catalog.

“We wanted to shift the focus and make IT an enabler to the business” stated Hoag. “By creating a Business Service Catalog and leveraging cloud computing, business units would have access to a wide variety of services. Our vision was that business units would be able to ‘pay as you go’ for the services they wanted, when they wanted, at service levels they wanted and valued. If we could do this we felt IT would be seen as adding value to the business versus being an overhead.” he continued.

With these major changes in front of them, a new service delivery model was born which required contractual adjustments. .” In January 2010, both companies signed an early renewal of the agreement, which extended their contract to December 2014. The scope of the contract was expanded to achieve the above objectives – including fully integrating Service Desk and Deskside support services and adding a Depot Solution.

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A “VESTED OUTSOURCING “CASE STUDY

As the parties began to embark on this stage of the evolution, they wanted to make sure they were incorporating best practices. It was during their research they heard about the University of Tennessee’s “Deal Review” process. “Our supply chain group had just gone through a Deal Review and were impressed with the learning. We felt a review by a neutral third party would be good. Both Diversey and Wipro felt that we were doing all the right things, but we wanted to make sure we had all the pieces of the puzzle in place that would motivate both parties to most effectively achieve our Desired Outcomes.” Hoag said.

The “Vested Outsourcing Deal Review” does an in depth diagnostic to determine the improvement opportunities into how a deal is structured. This Certification Program evaluates the relationship between two (or more) companies in an outsourcing agreement based on the 360-degree methodology. It includes a deep dive into written documentation (contracts, scorecards) about the pricing model, governance structure and performance metrics but expands into interviewing the key resources and evaluating overall relationship trust levels through an online survey.

Steeped in research conducted by the University of Tennessee and funded by the United States

The Deal Review revealed both companies were well on their way to creating a highly collaborative win-win Vested Outsourcing relationship. The overall diagnosis with the Diversey/Wipro deal received an overall deal effectiveness score of 3.7 out of 5 – with 3 being “good” and 5 being “Great” with both parties operating in harmony and delivering transformational results and value beyond what either party could deliver themselves. “We are not surprised by the findings of the Deal review. In fact, we welcomed the neutral third party perspective. The

Air Force, the Deal Review scores the existing relationship against five key rules and 10 elements for a successful Vested Outsourcing agreement. It provides the companies with recommendations that can create a true vested partnership and can yield significant benefits for both parties.

A diligent analysis of the trust survey, artifacts and interviews was undertaken, which scored four major components (Foundation, 10 Elements, Trust and 10 Ailments). The main focus of the evaluation is to prove the following:1. Whether a flexible framework

exists that will allow the parties to successfully navigate a dynamic business environment,

2. Whether there is focus on business outcomes and results and not simply on performing service transactions,

3. Whether a strong governance structure offering insight exists that focuses on managing the business and not just the supplier,

4. Whether the parties have established high degrees of trust that can enable them to feel confident to chart new courses such as developing innovation or tackling wicked business problems that rely on the best of the best competencies from each company.

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A “VESTED OUTSOURCING “CASE STUDY

Authorr,, educcator and bussininess consulttant Kaate Vitasek is an internattioi nally recognized innovatoor r in ttheh practice of supply chahain mannagagement and outsourcing. V itasek is aa fafacucultltyy member at ththe e University of Tennessee’s Center f foro Executive Education and is author fof thhe popular book Vested Outsourcing:

Five Rules that will Transform

Outsourcing.

Kate Vitasek

University of Tennessee’s Deal Review process helped us to see the shortcomings clear in front of us and get a sense of urgency to address them.” says Kiran Vedak, Chief Technology Officer at Diversey. “Getting it right is important to both Diversey’s and Wipro’s success and it was especially important given the fact that are embarking on a long term contract.” Together, Diversey and Wipro

have come a long way since their initial cost focused outsourcing agreement was signed in 2005. In less than five short years, Diversey’s IT has gone from old school and expensive to nimble,

cost effective and greener. In September 2010 Diversey was listed by InformationWeek as one of the top 10 U.S. manufacturers that are leading innovative deployment of information technology. Overall, Diversey was among the top 200 companies recognized for technology innovation in the world. “Diversey’s recognition in the

InformationWeek rankings is a significant achievement and reinforces our commitment to find new and innovative ways to make our business more efficient and deliver added value to our customers,” said Norm Clubb, Executive Vice President and CFO, Diversey. “Our pioneering work in cloud-based computing is improving collaboration among our 10,500 employees while also demonstrating the ways that IT can reduce the environmental impact of our operations.”Despite all these great

achievements, both companies are continuing to improve and grow together. “The University of Tennessee Deal Review process was definitely worth the time, effort and costs. It was a remarkable value that has already added significant value as Diversey and Wipro strive to mutually invest in innovations that will bring mutual gain for both companies. The UT process also highlighted something that is crucial to our success within the next year – the importance

of having a contract as a flexible framework. Sealed Air is currently acquiring Diversey and although Sealed Air used Wipro – you never know what the future will bring. We set out to structure our agreement as flexible and it has stood the test of time allowing both parties to respond effectively to changes in the business.”, Hoag stated. Werner Graf echoes the importance of a flexible framework and trusting business relationship. “As Diversey enters into a period of known unknowns I can’t think of two better components to have – a flexible contractual framework and a trusting business relationship. At the end of the day this team will be able to accomplish whatever the business demands.”

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THOUGHT LEADERSHIP

for any skilled salesperson. That is not to say all do it well, or professionally, or are even successful. There is an element of process, certain key things to do to enhance your chances of success, and then there is the art of it all. Sort of like putting…you need proper technique, but you must have feel also.

Now to be clear, we were not discussing the hardcore, blind, “one and done”, technique of hard closers from the timeshare industry. They must have a method that works well enough that they keep repeating it. What we were discussing is the

I recently had the opportunity to attend the IAOP World Outsourcing Summit in Orlando in February. It is one of the single largest gatherings of outsourcing professionals that happens every February. People from around the globe… buyers, suppliers, advisors, lawyers and other representing dozens of countries and industries. I’d like to see some more networking opportunities and a little less trade show atmosphere. Maybe that’s just me…maybe they should survey the attendees. In any event, if you’re on a limited conference budget and can only attend one or two a year, this should certainly be on your short list.

While I was there, I had the pleasure to play golf with Dave Salazar, CEO of AXIS Data Solutions. Dave had mentioned that at a breakfast discussion that morning, people were

bantering about whether Cold Calling is dead and obsolete in today’s world. There was one individual from the buyer side who was apparently livid and dressing down the suppliers who were present, telling them to stop calling unless they know him, and his business, and their needs, and had done some research to know how their product or service would solve his problems. In his opinion, cold calling was a (expletive) waste of time. Neither I nor David was of the belief that it was dead. Quite to the contrary, it is an essential business skill

IS COLD CALLING DEAD?

By Thom Mead

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THOUGHT LEADERSHIP

practice of cold calling as a way to initiate the sales cycle. As a product of the EDS Sales Development Program from the 1980’s, I was schooled well to make cold calls to C-Level executives and their direct reports. Training that served me very well in the years that followed. I have been on the other side of the phone too and have received more than my fair share of unsolicited cold calls…though my assistants took many more, I am sure of it.

The essentials of successful cold calling remain the same. Here’s what I have found to work well through the years, even in today’s highly networked, social media laced business world. While it may not soothe the ire of the individual from the buyer side that had breakfast that morning with David, it will enhance a caller’s chances for success, and make the call more intriguing when you call us.

1. It helps to Prepare: Now I am not saying you need to dive into endless pages of market research and company data, the 10K, the 10Q, studying the company’s website (which often is more misleading than helpful), reading executive bios and such. Statistically, if you make 100 cold calls a day, it will be a great day if you actually speak to the people you are trying to reach, 25 times in a day. A good day would be 20 times, and a fair day would be about 15 connects. Most of the time you will connect with the admin/gate keeper, or you will get voicemail, and about 20 will be either a wrong number or the person is no longer in the position or with the company. Don’t use preparation as an excuse to not call, or to postponing calling. Go with what you have. When I ran an executive search business, once 9am hit, we turned off our PCs, and picked up the phone. We knew we would learn far more by speaking with the prospect about their business needs and future plans than we would by reading stale research or a website that was not updated in the last 2 years.

2. God gave us two ears and one mouth: This is so as salespeople we would listen twice as much as we speak. Good salespeople are good listeners (bad salespeople do too much talking). We should ask good, open ended probing questions, let the prospect speak, and listen for what their need is and what value our product or service can provide. There may be 6 or 7 key benefits of our product or service…but typically only 2-3 are relevant to any one buyer. Over selling may overwhelm and hurt your goal…to peak their interest only. As a salesperson for EDS, I had a simple Excel spreadsheet I created for each call. It contained about a dozen fields of information to be completed, mostly from publicly available sources. It was a rudimentary business assessment as to the benefits of Outsourcing and compared

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THOUGHT LEADERSHIP

all CFOs one week, all CEOs the next week, all CIOs the next week, than to try to call everyone and anyone with no particular focus. People in an industry, and in a profession, have a language they speak. They can quickly decipher if you might know enough to be credible. Tailor your message to each audience, everything from your intro, to the body, to the close, and even your voicemail if you need to leave one. First time through, don’t leave a voicemail. Leave the voicemail after the 3rd attempt without connecting live with the intended person. But only count the call as successful if you spoke to the person for whom the call was intended. Speaking with their assistant, or being cut off and redirected to an underling does not count as a successful call. In the words of Eleanor Roosevelt, “Never accept NO from anyone who does not also have the authority to say YES”. While you don’t need to leave a voicemail until the 3rd call, be sure to listen to the voicemail of the number you called. Is it the same person you thought you were calling? Is there someone new at that

the prospect to the “typical” EDS customer in that industry. People who were afraid to call would criticize the assessment saying, “it is not completely accurate”, “my prospects have a different profile”, or some other lame excuse…completely missing the point of the tool…to start a conversation and gather good, timely data. In one such case, I called the former CFO of AFLAC, Norm Foster. I explained why I was calling, discussed my comparative findings and asked for an appointment to see him. He agreed. When I arrived at his office and sat down, he said, “Thom, I agreed to meet with you because you said you did some research on my company and what you said sounded interesting. If it was a ruse to see me, I’ll have security escort you out of the building in 5 minutes. If you have something to discuss, I will give you the 30 minutes I promised to you.” I was there 90 minutes and invited to come back.

3. The more refined is you calling list, the greater the likelihood is that you will relate better to the person you are calling. It is better to call

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THOUGHT LEADERSHIP

number, possibly doing the same job? Does Robert prefer to be called Spanky? Does Cathy actually go by Cassie? Knowing what to call them is one of the immediate triggers for failure if you get it wrong. I had a colleague at EDS who tried for 2 years to call on Tokio Marine and Fire in New York City. More accurately, he was assigned the company, but he never called them. One sales meeting the salespeople agreed to horse-trade companies where they were not successful. Mike offer up Tokio Marine & Fire stating as he opened the annual report page showing the names of the officers of the company, “Anybody want this one? I can’t even pronounce their names.” Having lived in Japan, and married to a Japanese woman, I took it. I was meeting with them within 30 days.

4. It’s all about THEM. Make no mistake about it…your call should be focused on the buyer, not rattling off some mundane, irrelevant specs about your offering. That’s like shooting in the dark hoping you hit something. Learn to ask open ended questions. Those are the ones that encourage dialogue and show interest. Once your prospect is qualified, and there is a need you can satisfy, you will be able to focus the conversation on what is important to THEM.

5. Know your value. Too many salespeople that I have known and interviewed through the years, are feature heavy, merit light, and benefit void. If you cannot translate the features and the merits of those features into the value the buyer is likely to receive, then you might as well just recite the phone book. Don’t list features hoping the client will draw their own conclusion as to the value and how your company and its offering are uniquely differentiated. Your role is to make the product/serve relevant.

6. Email, mass mailing and direct mail is the tool of choice for those who are afraid to

engage. Bean counters like it too because it is a relatively cheap solution…and like the lottery, if you get lucky it will have a good payback…and you won’t have to pay for salespeople. It is anonymous…you don’t have to face rejection. Taking a few man days to craft an award winning email, it is blasted out to the masses, waiting for the phone to ring with buyers from the 1-2% that actually read the email and didn’t just delete it when it appeared in the Outlook Preview Pan. Waiting for the interested buyer to call is not selling, it is order taking.

7. Social Media is a great tool for enhancing your cold calling…but it does not replace it. People are not ordering deals, potentially sourced in another country, or without an understanding of the ROI, just because you had an intriguing Tweet, a slick Facebook page describing your product or a LinkedIn banner ad. But used correctly, Social Media can be a great resource to enhance your cold calling success…a force multiplier.

8. I have done my fair share of cold calling and have also worked with some who do it better than me. So, best not to judge the merits of cold calling by the 95% of salespeople who do it abysmally. If you are looking for gold, you don’t get discouraged by the tons of dirt you have to move to find those few precious ounces of gold. Good prospecting everyone!

ABOUT THE AUTHOR

Thom has been a key figure in structuring

and closing more than $17B of outsourcing

transactions in his career. Thom was VP of

Marketing, Alliances & Channels – North

America for Firstsource, CMO for EXLservice,

SVP - Sales for Spherion, VP of Sales and

Marketing for Unisys Outsourcing and VP of

Global Marketing for ACS where he also served

as president for an ACS BPO subsidiary.

Thom can be reached at:

770-769-7795

[email protected]

www.linkedin.com/pub/thom-mead/0/224/a98

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AN END TO CASH?

PROBLEM 1: TRUSTDo I trust Google, Samsung and some Silicon Valley whiz kids with my money? First of all, amongst all this tech-led frenzy how about something mundane and very human – trust. Recent reports suggest that the public by-and-large isn’t ready to accept new players in the payments market just yet - with only 19.6 per cent of respondents expressing trust for Google, versus 39.6% for Visa. (http://tinyurl.com/3so28a2) This is not surprising considering that it took two generations before the wider public were comfortable with credit cards – and many still will not use them online for fear of fraud.

Widescale acceptance of new payment methods takes time, but not as long as it takes for old payment methods to wither and die – as you can see by the delays in the end of cheques – first used in 1659 and forecast to end around 360 years later in 2018 at the earliest! (http://tinyurl.com/5tbaymg)

PROBLEM 2: UNIVERSALITYWith all the different methods available, paying for a skinny soya-milk latte in Silicon Valley is now probably the most confusing checkout process in the world. If your coffee shop is signed up with Facecash, can you use your Google wallet? Is your NFC phone the right type? Can Square take Diners Club? Or should you just pull out those trusted dollar bills from your pocket? Even Google Wallet is restricted to people with a specific phone on a

specific network paying in certain shops only. These new methods and the businesses behind them are not necessarily interoperable – so pulling together a payments infrastructure with the universal acceptance of cash is probably unrealistic.

Lower tech schemes maybe have an edge. Look at M-pesa in Kenya with over 14 million customers and two million transactions a day - all on the back of basic mobile phones and, importantly, delivered through trusted community-based agents across the country.

PROBLEM 3: IS THERE A DEMAND FOR THE END OF CASH?There is no doubt that more and more people go out shopping without cash – but the queues at the ATMs don’t seem to be getting any shorter. Most of these new methods merely wrap a little high-tech magic around two existing methods; bank transfers and card payments. Will they deliver enough extra benefits over plastic to push cash out the picture? Or will they provide additional alternatives that extend the number of methods by which we can pay for things, transport and peer-

AN END TO CASHBy Jake Holloway

Payment transfer is a hot subject amongst investors in high-tech. Barclay’s recent

launch of Ping-it, a mobile App that allows person-to-person transfers, re-energises

the talk of an ‘end to cash’. Jake Holloway, Head of e-Commerce, Xendpay.com, writes

about the realities of the ‘end of cash’.

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AN END TO CASH?

to-peer money transfers?Furthermore, what is in it for the retailer? If your

smartphone tells you that the product you are just buying is cheaper next door, how many will want their customers to be quite that well informed right at the point of purchase!

PROBLEM 4: BAD PEOPLE WILL HAVE A FIELD DAYSince the days of Archimedes working out how to stop people passing off base metals as gold and silver, nothing brings out the bad guys like new payments technology. While some of the new methods may indeed offer better levels of protection than cash or straight cards, the sheer volume and frenzy of scams, phishing, hacking and theft stories could throw up an almost insurmountable barrier of fear.

Losing your phone is already a nightmare. How much worse will it feel if it contains payment methods that could clean you out in milli-seconds?

CASHLESS IS THE NEW PAPERLESSPersonally I am as convinced by the twenty first century promise of a completely cashless society as

ABOUT THE AUTHOR

Jake Holloway is Head of eCommerce for RationalFX, Europe’s leading online foreign exchange and international payments company. His responsibilities include online marketing and the company’s money transfer platform, Xendpay.Jake has over 25 years experience in IT,

marketing and business and has spent over 10 years in online marketing and development. He has been involved in around 100 ecommerce and online developments in several different industries such as Holiday-Rentals.com (Travel) and Fridaysmove.com (Legal Services). Jake has a BSc in physics from Nottingham University and is a notable specialist in the area of conversion optimisation and multi-lingual search engine optimisation (SEO).

f

I was by the twentieth’s assurance that a paperless society one was imminent. It was never realistically going to happen, but we sure communicate a lot differently nowadays!

That new payment technologies will change how we transfer trillions of pounds worth of payments is certain. But it would take a superhuman effort of joined up thinking, systems integration, innovation and human behavioral and cultural change to remove cash entirely.

And, even if we could, do we really need to?

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CONFERENCES & EVENTS

CHINA WEEK 2012April, 2012

Join IAOP and its China chapters as they tackle critical topics in the outsourcing industry at individual chapter meetings held in Beijing, Shanghai, Hong Kong, Qingdao/Shandong. For more information email [email protected].

THE 2012 LATIN AMERICA OUTSOURCING SUMMITOctober 1-2 at Hotel Unique in Sao Paulo, Brazil

Building on the momentum of the first Latin America Outsourcing Summit, held in Colombia in 2011, which drew over 300 outsourcing

professionals, we are excited to announce The 2012 IAOP Latin America Outsourcing Summit, which will bring the thought-leadership and global network of the International Association of Outsourcing Professionals® (IAOP®) together with leaders from across the Latin American business community. An exceptional opportunity for individuals and organizations involved in outsourcing as customers, providers, and advisors with operations in the region or looking to do business in this exciting region to both understand and leverage the explosion of outsourcing taking place across this part of the world.

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MEMBERSHIPMembership in IAOP provides access to an extensive array of services, and just as importantly distinguishes organizations and professionals as leaders in the field of outsourcing. IAOP membership demonstrates a commitment to innovative thinking, continuous performance improvement, and to the sustaining development of outsourcing as both an industry and as a profession.

CUSTOMER CORPORATE MEMBERSHIPOrganizations that are currently outsourcing or are considering one or more outsourcing initiatives should become Customer Corporate Members of IAOP. This membership provides organization-wide access to the association’s research, training, certification, and networking programs - all designed to help companies achieve better business results through outsourcing.

PROVIDER/ADVISOR CORPORATE MEMBERSHIPOutsourcing service providers and advisory firms should join IAOP as Provider/Advisor Corporate Members. This membership provides the same organization-wide access to IAOP’s research, training, certification, and networking programs as Customer Corporate Membership, but also includes member-only sponsorship opportunities that serve the marketing and business development needs of these companies.

PROFESSIONAL MEMBERSHIPProfessional Membership is available to individuals either as part of their company’s corporate membership or on an individual basis. This membership serves the needs of practitioners working in the field of outsourcing whether as customers, providers, or advisors. In addition, it provides these professionals with direct, personal access to association services.

For information on IAOP membership, e-mail [email protected].

MEMBER SERVICES IAOP membership provides access to a wide range of services designed to help you and your organization improve outsourcing outcomes. Many of these services are included as part of IAOP’s Professional or Corporate Membership, with discounts available for use beyond the level provided. Some services are also available individually at non-member rates.

Globalization Today - The official publication of IAOP creates the largest and best informational publication on outsourcing by uniting and tapping the collective intellect of individuals from around the world. IAOP Members receive a free subscription plus the opportunity to get published, promote products/services and advertise.

IAOP’s Knowledge Center - This online repository houses more than 1,000 articles, including chapter meeting presentations, conference proceedings, industry whitepapers, research articles and more.

Global Chapter Network - Through its active and expansive chapter network, IAOP members can share their expertise and find knowledge on best practices for specific industry segments, topics and geographic areas within outsourcing.

Conferences & Events - IAOP hosts the world’s best-known and most highly-respected executive conferences on the topic of outsourcing, including The Outsourcing World Summit®.

Outsourcing Professional Certification Frameworks (OPCF) - RIAOP’s trainings and certifications are the industry’s de facto. Members receive substantial discounts.

Value Health Check Survey - This web-based diagnostic tool provides outsourcing customers and service providers with rapid insights to realizing outsourcing value.

NEW! Global Supply Risk Monitor - A unique web-based product that enables clients to monitor, predict and manage the various risks in their services supply chain (captive centers and outsourced services such as ITO, BPO, KPO etc) across countries, cities and suppliers, in real-time.

BestOutsourcingJobs.com - Companies seeking the best talent for outsourcing jobs, as well as professionals looking for employment opportunities, will benefit from this IAOP member service.

For more detailed information on each of these member services, visit www.IAOP.org/MemberServices.

With Brasscom as our partner, the support of our members in Latin America, and São Paulo, Brazil as the backdrop, this event will unlock the power of outsourcing for all of Latin America and for the global community of outsourcing professionals.

For information on sponsoring or speaking, email [email protected].

THE 2013 OUTSOURCING WORLD SUMMIT® February 18-20, 2013 | JW Marriott Phoenix Desert Ridge | Phoenix, Arizona

97% of 2012 Summit delegates rated The Outsourcing

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CORPORATE & PROFESSIONAL DEVELOPMENT

GLOBAL OUTSOURCING TRAINING FROM IAOPIAOP Training- Maintain Your Competitive Advantage

“Outsourcing is a highly strategic, complex, and ever changing process that requires constant governance, due diligence and monitoring on the part of clients and service providers. Keeping up with changes in the field and implementing best practices is critical to outsourcing success - IAOP provides state of the art instructor led and online training on outsourcing best practices for both clients and service providers. IAOP training delivers the knowledge and skills outsourcing practitioners need to keep up with the ever changing field of outsourcing.” Jim Shea, COP-GOV

A new year brings expanded opportunities for individuals and companies to incorporate IAOP outsourcing training into their plans for exceptional development. Expanding on the success of the globally lauded COP Master Class, IAOP is adding new training opportunities, both live and online, that will appeal to outsourcing professionals at every step of their career pathway. IAOP offers:

COP Master Class (Live public or on-site private, online) - the de facto end-to-end global training for outsourcing professionals. (leads to IAOP aCOP or COP Certification) Outsourcing Professional Course Catalog Accredited course offerings through our training partners, such as the eSCM Capability Model courses from ITSqc, or the Sourcing Governance Foundation course (leads to IAOP COS-FP Certification)Governance Workshop (Live public or on-site private, online) - gain comprehensive, cutting-edge knowledge on all aspects of creating and sustaining successful relationships with your outsourcing partners (leads to IAOP COP-GOV Certification) Service Provider Business Development Workshop (Live on-site private, online) - provides service providers, large and small, with the knowledge and skills to deal with complex and rapidly changing market realities and challenges needed to win and survive (leads to IAOP COP-BD Certification)

Tailored training packages from 1 - 10,000 – for more information contact [email protected].

CALENDAR OF EVENTS

IAOP CHAPTER MEETINGS

APRIL 12 TRANSBOUNDARY SOURCING CHAPTER WEBINAR ON “RESPONSIBLE SOURCING: SOCIAL IMPACT WITH ECONOMIC VALUE”

APRIL 12 CONTACT/CALL CENTER CHAPTER WEBINAR ON “NOT GATHERING AND ANALYZING VOICE OF THE CUSTOMER DATA CORRECTLY”

APRIL 19 CANADA (TORONTO) CHAPTER MEETING ON “STRATEGIC CSR”

APRIL 23 SHANGHAI CHAPTER MEETING ON “VALUE OF GOVERNANCE AND GOVERNANCE BEST PRACTICE” - PART OF CHINA WEEK

APRIL 24 MIDWEST CHAPTER MEETING ON “OUTSOURCING IN HEALTHCARE”

APRIL 24 MINNESOTA CHAPTER MEETING

APRIL 24-25 HONG KONG CHAPTER MEETING ON “THE RISE OF SERVICE OUTSOURCING IN CHINA” - PART OF CHINA WEEK

APRIL 26 BEIJING CHAPTER MEETING - PART OF CHINA WEEK

APRIL 27 QINGDAO/SHANDONG CHAPTER MEETING ON “THE IMPORTANCE OF INFORMATION SECURITY FOR ITO COMPANIES”- PART OF CHINA WEEK

MAY 8 NORDIC CHAPTER MEETING ON “NEW BUSINESS MODELS IN OUTSOURCING”

MAY 17 UNITED KINGDOM & IRELAND CHAPTER MEETING ON “BUILDING BETTER BPOS: ISSUES AND TRENDS IN BUSINESS PROCESS OUTSOURCING”

The calendar is frequently updated – to stay current, check IAOP’s website

for details at www.IAOP.org/calendar.

IAOP Professional Members may attend an unlimited number of chapter

meetings. IAOP also offers complimentary Associate Membership which

allows non-members the opportunity to attend up to two chapter

meetings as IAOP’s guest.

Go to www.IAOP.org/chapters for more information and to register.

World Summit ‘good to excellent’ when compared to other industry events. We aren’t surprised. Every year, hundreds of outsourcing executives from across the industry and around the world who are seeking the very latest insights and ideas attend the Summit. Educational sessions deliver specific actionable solutions to current challenges faced by experienced professionals. Case studies feature actual experiences and the lessons learned, and discuss new ideas, approaches and opportunities. The Outsourcing World Summit has become the event that executives attend each and every year to stay informed of the latest developments affecting the outsourcing industry and their profession.

For more information and to register, visit www.IAOPorg/Summit.

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COP MASTER CLASS & GOVERNANCE WORKSHOP SCHEDULE

The COP Master Class is a great option for earning up to half (75 points) of the Knowledge and Training points needed for COP certification, and fully completes the required training for the aCOP designation. Completing the one day Governance Workshop is worth another 15 COP Certification points.

Professional development is an important part of staying ahead in your career. Whether you are a novice in the outsourcing profession or a veteran, the COP Master Class continues to provide new content to improve your skill set with our training offerings. With our multi class locations and online options, there is an option for everyone.

2012 CLASSES CURRENTLY ACCEPTING ENROLLMENT ARE:

North America Trainings

JUNE 25-28: KINGBRIDGE CONFERENCE CENTRE, TORONTO, CANADA *SEPTEMBER 17-20: INVERNESS HOTEL AND CONFERENCE CENTER, DENVER, CO (NEW!)*

*Register now for any North American COP Master Class Bundle and SAVE $750 off the regular price. These classes include the 3 day COP Master Class and 1 day Outsourcing Governance Workshop. Those who attend the above classes will earn 90 of the Knowledge and Training points needed for certification, 20 recertification CEHs for COPs, or fully complete the required training for the aCOP designation.

Please visit www.IAOP.org/training_calendar for a full list of classes and current discounts and specials.

Global TrainingsAPRIL 16-19: ASIA E-UNIVERSITY, KUALA LUMPUR - CONTACT BOBBY VARANASI AT [email protected] 9-11: HARBOUR PLAZA METROPOLIS, HONG KONG - CONTACT WINNIE CHOW AT [email protected] 11-14: ASIA E-UNIVERSITY, KUALA LUMPUR - CONTACT BOBBY VARANASI AT [email protected] JULY 23-26: ASIA E-UNIVERSITY, KUALA LUMPUR - CONTACT BOBBY VARANASI AT [email protected] 17-20: ASIA E-UNIVERSITY, KUALA LUMPUR - CONTACT BOBBY VARANASI AT [email protected]

Online TrainingsIAOP also offers the COP Master Class Online along with the Outsourcing Governance Workshop and the Service Provider Business Development Workshop. For further descriptions and information on how to register please visit the online training section of the IAOP website.

During The 2012 Outsourcing World Summit, IAOP’s Regional Advisory Board stated that the Outsourcing Professional Body of Knowledge (OPBOK) should be the official guide for all outsourcing professionals in every country, globally. The print OPBOK is widely available and made more affordable by purchasing it through the IAOP bookstore at www.iaopbookshop.com. Every member of your team should have a copy at hand.

CERTIFICATION

IAOP, through our Outsourcing Professional Certification Framework (OPCF) is addressing the needs of individuals who work across the global outsourcing industry from entry level positions focused on the delivery of outsourced services through to senior executives leading global outsourcing programs at customer, provider and advisor organizations.

IAOP certifications are now available at every step in the career pathway:

Certified Outsourcing SpecialistsCertified Outsourcing Specialist-Transaction Processing - (COS-TP)Certified Outsourcing Specialist-Finance & Accounting - (COS-F&A)Certified Outsourcing Specialist - Human Resources - (COS-HR)Certified Outsourcing Specialist - Foundation Principles (COS-FP) New!

Certified Outsourcing ProfessionalsAssociate Certified Outsourcing Professional (aCOP) Certified Outsourcing Professional - (COP)Certified Outsourcing Professional - Governance

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For more information on any of IAOP’s programs and services, email [email protected].

10-QUESTION QUIZ: FIND OUT IF YOU HAVE WHAT IT TAKES TO BECOME CERTIFIED

Are you prepared to successfully manage outsourcing initiatives? Do you have the knowledge and experience needed to join the industry’s most elite Certified Outsourcing Professionals? Begin your journey to earning one of IAOP’s most distinguished designations by testing your outsourcing professional skills with IAOP’s 10 question quiz at www.IAOP.org/Quiz.

Once you have completed the quiz email it to [email protected] for your results. Those who submit the quiz will receive a complimentary electronic sample of the Outsourcing Professional Body of Knowledge (OPBOK) from IAOP partner Van Haren Publishing.

THE COP DIRECTORY IS YOUR GUIDE TO THE MOST QUALIFIED OUTSOURCING PROFESSIONALS!

Want to see who the COPs are in your company? Looking to work with the industry’s most elite professionals? Head on over to the NEW COP Directory where you can search by Name, Country and Company! For current COPs this is a great way to keep your information up to date at all times. Just login to your MY IAOP and enter your updated information into your Member Profile. It will automatically update in the directory. Check out the new COP Directory: www.IAOP.org/COPDirectory.

PROFESSIONAL DEVELOPMENT RESOURCES AVAILABLE

No matter what industry you are in, IAOP has resources available for all outsourcing professionals. For the latest titles from IAOP, ITSqc and others please visit www.iaopbookshop.com, and get 15% off of any title you order. Also new from IAOP are titles from the American Bar Association found at the IAOP/ABA Legal Bookstore (www.ababooks.org/affiliate/iaop).For more information on any of IAOP’s programs

and services, email [email protected].

(COP-GOV) New!Certified Outsourcing Professional - Business Development (COP-BD) New!Certified Outsourcing Professional - Human Resources - (COP-HR) Currently Under Development

WHY CERTIFICATION WILL BENEFIT YOU

As the management practice of outsourcing continues to mature, achieving a professional certification will ensure that outsourcing professionals are capable of meeting the design, implementation and management demands of projects across the globe. The use of outsourcing within organizations has increased as companies are starting to see that to build a bigger and better structure within, outsourcing is one of the most important pieces.

Be prepared to take on the gravitational changes to outsourcing by becoming a Certified Outsourcing Professional or Associate Certified Outsourcing Professional. Don’t just follow the trend; lead your company to success by initiating it.

For more information on any of IAOP’s programs and services, email [email protected].

FREE WEBINARS: THE INS & OUTS OF CERTIFICATION

Want to understand your certification options and how one of IAOPs designations can benefit you and your company? Regular complimentary webinars are held on COP Certification/Master Class, COP Recertification, and the OPCF Framework of Certifications. Companies can request a special webinar for their teams. Space is limited and pre-registration is required. All attendees will receive a special gift from IAOP. Recorded versions are also available for 24/7 replay. Contact Courtney Coon at [email protected] for dates and registration information.

*All COP or aCOP applications opened before May 1, 2012 will be valid for 18 months. After May 1, 2012 applicants will have 12 months to complete their application requirements.

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NEWSWIRE

Outsourcing Demonstrates its Maturity with Record Attendance at 15th Annual Outsourcing World Summit®

Annual Survey Shows Steady Growth for Industry Despite Economy

The outsourcing industry is “coming of age,” the annual membership survey from the International Association of Outsourcing Professionals® (IAOP®) reveals, showing steady volume, revenue and employment in the industry.

As another sign of the industry’s maturity, a record number of nearly 800 delegates from 38 countries gathered for the association’s recently concluded three-day Outsourcing World Summit in Florida.

Despite the past year’s economic conditions, 70 percent of customers said they plan to either increase or maintain their current outsourcing volume, according to results from the association’s annual member survey, based on inputs from its more than 110,000 members and affiliates worldwide. This is the same rate as last year’s response.

More than 55 percent of customers want to use outsourcing to increase flexibility and help meet corporate business plans, while nearly 50 percent expect short and long-term cost savings from outsourcing.

Average revenue for outsourcing providers listed in the 2012 Global Outsourcing 100, also released at the conference, was $1.6 billion, with a growth rate of 6 percent versus 13 percent in 2008.

“The growth of the outsourcing industry over the past 25 years has been phenomenal,” said Jagdish Dalal, IAOP Managing Director, Thought Leadership. “Outsourcing is now a mature industry, which means it’s more readily accepted as a general business principle versus there being reluctance by top leadership to engage in outsourcing.At the same time, current economic factors will determine the industry’s future, said Dalal in presenting the findings during a keynote address at the Summit’s 15th anniversary. These key factors include:

The same number of employees -- 17,400

employees -- were engaged in providing outsourcing services in 2012 as 2008, even though revenues have declined, indicating profit pressureThe wage gap between China and U.S. manufacturing is expected to close in five years, according to the Boston Consulting Group. This will potentially impact the service levels requirements and locations for outsourcing“Economic factors at work – such as the wage gap closing and revenues decreasing – can slow the growth of the industry as a whole,” he said

Other results from the survey conducted with the support of Accenture include:

The future of cloud-based computing as a platform to deliver outsourcing services is still mixed. Almost one-third of customers said they have no plans for cloud-based service acquisition – almost the same number as in 2010. Meanwhile, 80 percent of providers indicated that they either offer or are considering offering cloud-based servicesBoth customers and providers are not concerned or do not see an impact of political rhetoric around outsourcing, and customer’s view of “corporate social responsibility” was largely unchangedOverall, the number and characteristics of Outsourcing Professionals remain unchanged. However, more companies indicate they have a higher number of employees involved in outsourcing

MEMBERS HONORED

The association also honored as Members of the Year: Eric Rongley, CEO of Bleum; Mary Lacity, Professor of Information, College of Business, University of Missouri; and Rene Herlaar, COP, Head of Network, Technology Networks, Vodafone, The Netherlands for their work to advance the industry and the association.IAOP announced the dates for its next summits: The 2012 Latin America Outsourcing Summit, Oct. 1-2, at the Hotel Unique in São Paulo, Brazil; and The 2013 Outsourcing World Summit, Feb. 18-20,

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at the JW Marriott Phoenix Desert Ridge, Phoenix, Arizona.

Outsourcing Professionals Highly Rate 15th Annual Outsourcing World Summit for Networking and Education

Collaboration and Innovation are Among Takeaways Delegates will Focus On

A record number of nearly 800 outsourcing professionals from 38 countries came together at the recently completed 2012 Outsourcing World Summit in Orlando to network and learn.

With 97 percent of delegates rating the event good to excellent, this year’s Summit stood out for its education and networking value. The Summit was the 15th annual industry gathering of the International Association of Outsourcing Professionals® (IAOP®).

“IAOP’s Outsourcing World Summit was an excellent opportunity to meet global sourcing executives and service providers,” said Siegfried Richter, Vice President, Global Sourcing of Prudential. “I thought the keynote speakers were exceptional, the booths were very informative, and the small group and one-on-one opportunities for discussion were absolutely invaluable! I definitely plan on attending next year.”

“The 2012 Outsourcing World Summit may be the best I’ve ever attended,” said John Hindle, Outsourcing Marketing, Accenture. “The content was very strong this year. The structure was organized to address a diversity of interests and issues in the growing field of outsourcing, and, as always, the logistics and execution were very, very professional. It’s a challenge to keep it fresh, and IAOP succeeds year after year.”

Attendees also spoke about the value of the event to their jobs and to their companies. Energized by the new connections they made and by the insights of industry thought leaders, delegates said they are returning to their jobs ready to focus on building collaborative relationships and looking at innovative new ways of solving today’s business

challenges through outsourcing.“As it was my first Summit, I wasn’t sure what to

expect. I have to say I was delighted with both the way the Summit was run and how much I learned. It was a great chance to meet so many others facing similar challenges and opportunities to myself. I will be back in 2013 and will be bringing colleagues with me,” said Tim Lyons, General Manager, ManageChina, Shanghai, China.

“We are pleased with the feedback from delegates that shows many outsourcing professionals left the Summit with new insights, strategies, best practices and contacts that they are putting to work in their day-to-day jobs,” said IAOP CEO Debi Hamill. “As a result of their participation, their businesses and the outsourcing industry continue to grow stronger.”

Keynote speaker Peter Sheahan, Founder and CEO of ChangeLabs, who spoke on innovative business thinking, telling delegates to “go after the non-sexy stuff as it really unlocks the most value” was the highest rated session, according to delegate survey results.

Other top educational main sessions included a presentation on Outsourcing in Global Transition by F. Warren McFarlan, Baker Foundation Professor, Albert H. Gordon Professor of Business Administration, Emeritus, Harvard University, as well as talks on the state of the industry and corporate social responsibility (CSR).

Delegates spoke highly about all aspects of the event from the interactive sessions and broad range of topics to the practical lessons shared by leading companies, as well as the networking at the awards luncheon, receptions and throughout the event.

“After 15 years, the Outsourcing World Summit continues to grow and remains the world’s best known and most highly-respected event of its kind in the industry,” said the association’s founder and chairman Michael Corbett. “The best testament to its value is the many delegates who have attended every Summit and return year after year. The feedback we receive helps us shape future programs and services to best serve professionals in this ever-changing industry.”

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PAGE # COMPANY NAME URL

14, 15 Accenture www.accenture.com

27 BCS www.bcs.org

0, 2, 43 International Association of Outsourcing Professionals (IAOP) www.IAOP.org

22, 23 Kelly Outsourcing & Consulting Group (KellyOCG) www.KellyOCG.com

ADVERTISER INDEX

Outsourcing Professional Certification FrameworkTM (OPCF)The OPCF is designed to address the needs of individuals who work across the global outsourcing industry from entry level positions focused on the delivery of outsourced services through to senior executives leading global outsourcing programs at customer, provider, and advisor organizations. At each stage in an individual’s career there is an opportunity for both professional development and professional recognition. The OPCF is made up of three families of certifications:

� Certified Outsourcing ExecutiveTM (COE)� Certified Outsourcing Professional® (COP)� Certified Outsourcing SpecialistTM (COS)

BENEFITS OF CERTIFICATION� Certification establishes a level of professional recognition essential in a field as complex and risk-based as outsourcing.� When working together across the customer-provider relationship, certification brings a common framework for success that benefits both organizations involved.� Certified individuals command greater respect within the industry and their companies, higher compensation levels, and expanded and enhanced career opportunities.

Training programs are available at the individual and corporate level. For more information, visitwww.IAOP.org/OPCF.

I’M A COP*Expect better, more consistent results with me.

*