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Mr. Hedayat brings 30 years of extensive experience both in Europe and the U.S. covering information systems & technology and finance. His clients have benefitted from his know-how and seasoned approach in strategic, operational, management and advisory capacities, as well as his deep knowledge both from a client’s and service provider’s perspectives.
ISG Role Prior to joining ISG, Mr. Hedayat spent 15 years on global roles working for E.I. Du Pont de Nemours, in roles such as Financial Audit, IT Service Delivery, IT Strategy, Communications, Executive Board Advisory as well as providing leadership for a $5billion outsourcing for DuPont I.T. Mr. Hedayat then joined CSC for 8 years where he held global project, delivery and business development roles, as well as working on mega-deal sized outsourcing engagements up to $8billion both in the civilian and defense sectors. He then joined Orange Business Services to build and lead their global Outsourcing Strategic Sales team, winning over $2billion worth of new business during his 6 years in Orange.
Career History
Mr. Hedayat’s multi-disciplinary breadth and depth of experience has allowed him to bring recognized and appreciated value and advisory guidance both at operational and Board level in areas such as strategy development, service strategy, service delivery, operations, very large service and outsourcing advisory; specific areas include finance, audit, security, organization, telecommunications and IT planning. Within ISG, Mr. Hedayat has led a number of sourcing transactions, developed sourcing and IT strategies, advised on critical global negotiations, supported set-up of Governance, Operations & Delivery and provided strategic advisory to a number of our clients. His experience covers a wide range of industries such as Manufacturing, Chemical Oil & Gas, Energy, Insurance, Aerospace, Banking, Finance, Consumer Goods, Telecommunications, Defense and Governments. He has supported our clients in the UK, France, Germany, Switzerland, Russia and Nordics.
ISG Experience
Mr. Hedayat is a Swiss national, has worked in Europe and U.S. and speaks fluent French and English, and understands German and Russian. He now shares his private life between Geneva where he lives, and Athens where his wife and her son both reside. He holds a degree from the Ecole Supérieure de Commerce of Geneva and has continuously refreshed and updated his expertise and thought leadership through executive education and development over 25 years. He is an active ultra-light, aircraft and helicopter pilot, remains engaged in the field of aviation, with a particular interest in the areas of human factors in aviation, resource management in flying duties, safety and training.
The global leader for a quarter of a century (25 years) for large tenders / RFPs, benchmarking and structuring leading edge outsourcing contracts and governance.
25 Years of Global Experience
10 Years of Service Integration Experience
21 Countries 75% of Forbes 1000 Global Companies
800+ Professionals 1,800 Clients
l Outsourcing l Strategy l Tenders/RFPs l Benchmarking l Contracts l Consulting l Transition l Transformation l Governance l Service Integration
According to service providers, 50% - 80% of transactions use an external advisor. This ensures objectivity, structure, process, discipline, and closure to signature.
► The Sourcing Advisor does not represent service providers, and does not seek transaction fees from service providers. Independence and discipline deliver clear strategy and outcomes.
► The Sourcing Advisor brings strong intellectual capital, a proven track record of success and a complete set of tools, methodologies and process.
► The Sourcing Advisor helps develop and drive the client’s Sourcing strategy based on extensive, proven experience, facts, and market and solutions objectivity.
Defining viable and beneficial service delivery and sourcing strategies and building effective operational service delivery organizations.
Why ISG ?
Independent advisor in Service Design, Assessment, Tender process and Implementation with over 25 years of practical experience.
Methodology covering the complete life cycle and spectrum of technologies and services from strategy, assessment to solutions, tender/RFP process and target operating model implementation.
Advisory
Independent
Pre-built modular framework which describes the majority of current I.T. services in the market and can be adapted to any client situation.
Team
International
Methodology
Comprehensive
Framework
Pre-build
Market Insights
Broad Broad market insight based on more than 11,000 projects across the globe and many client references that demonstrate our expertise.
International team of sourcing experts who have delivered to all major global companies and who bring practical lessons learned and experience.
What Service Integrators Vs. what Service Providers (Outsourcers) do
Some thoughts about the different perspectives, and perceptions of a Service Integrator versus a Systems Provider (Outsourcer)
► Service Provider (SP) delivers sustained and improving business value.
► An SP will take care of the client.
► An SP does Service Integration
► An SP will reach out, be pro-active, will have governance and deliver for business needs.
► An SP lives and breathes for Business Value.
The client expects the SP to provide guidance, experience, business value. The SP expects from the client governance, forward –looking strategies, collaboration.
► A Systems Integrator (SI) provides technology and services as per client specification.
► An SI will take care of the tasks.
► And SI does Systems Integration
► An SI will manage technology, respond to requests, and deliver to best support to I.T.
► An SI lives and breathes at the Service level.
The client expects the SI to provide technology, task performance, and technical expertise. The SI expects the client to pay.
Question: who will be more focused on SLA’s , overall performance, and client satisfaction ?
The business, technical, legal and governance dimensions of outsourcing are more intertwined than in most contracts. Both the outsourcing process and the resulting contract must anticipate and address this integration complexity to achieve success.
Outsourcing Contract - General Characteristics
� An outsourcing contract is “similar” to: � Sale of an operating division:
Your internal business processes Your IT operations
� AND… a Long-term services contract: For the processes or operations by the sold division
� …But that is where the similarities end: � Contract itself is very different than others you have seen:
No “product” at the end of the process (not buying a “Thing”, buying a Service”)
Outsourcing services are not commodity services No natural “leverage” for customer once contract is signed Must regulate a long-term, evolving relationship and business environment
Our overarching goal is to help our clients develop a contract that accurately reflects the supplier’s solution and the needs of the business and anticipates the future.
Outsourcing Contract - Areas of Coverage
► General: Contract addresses four key areas: 1. Establishing the relationship 2. Managing the relationship 3. Paying for the relationship 4. Terminating the relationship (and transitioning to
a new relationship)
► Unique aspects of an outsourcing contract: � Long-term arrangement with fixed unit prices � Clear description of what is in-scope and what is out-of-scope � Clear description of the services and service levels for in-scope services � A contract for flexibility for variability of demand and continuous improvement,
adapting to change in business and IT needs. � Delegation of important operating functions to a third party
of services and description of supplier’s solution 3. Performance Measurement: Service level agreement 4. Pricing Schedule: Pricing constructs, Baseline Volumes, definitions, unit prices, etc. 5. Governance: Structures, processes, procedures and protocols 6. Human Resources Schedule: Terms regarding transferred personnel 7. Inventory Schedules: Lists of equipment, software, contracts and people
We’re on-budget and getting the services we signed up for, but my customers aren’t getting what they need to run the business. Now what?
Common Problems - General
► Start-up points: � “Our lawyers/negotiators didn’t understand the underlying basis of the deal and the
value we hoped to achieve.” � The business people from either or both sides don’t understand the full implications
of the contractual terms and conditions. � “We’re constantly in frequent, contentious negotiations about all the wrong things.”
► The contract doesn’t support the deal’s value proposition: � Scope is inadequately described; responsibilities are not clear � Service Level regimes are incomplete or generally meaningless for a successful
relationship � No thought to how the service is going to work operationally - measurement,
governance, interaction, etc. � Lack of flexibility to meet the inevitable changes in your business
Defaults happen when Services Levels are not met based on the clear rules. Not every Default means a Service Credit. Penalties/Credits do not motivate service.
4 Examples of Defaults
Example 1: Many Expected SLAs Defaults. Normally, a Service Credit is only after 3 Defaults in rolling 12 mths. Example 2: Minimum Service Level Default Example 3: Expected Service Level Default after a Minimum Service Level Default
Can we recover from a Service Level Default ? Yes: the Service Level Methodology allows for an “Earnback” of Service Level Credits. This motivates good service !
Earnback methodology is essential (recovering from SLA default).
For an Expected/Minimum Service Level Default, the due Service Level Credits can be earned back when:
The average of the Service Levels in the previous contract year lies above the Expected Service Level
Volkswagen AG removes a Service Level before the end of the previous contract year
¨ The Earnback process rewards the Supplier to prevent additional Service Level Defaults and to improve the stability of the service delivery, so that the Earnback can be obtained.
ISG ARC/RRC mechanism: an integrated approach for variability of volumes during contracts (=Variations from initially declared volumes model for RFP purposes).
ISG’s Methodology allows our clients to conduct sourcing transactions in a structured, documented, and process-based manner, with clear outcomes.
Checkpoint Walk-through EAS MVD Q&A Due Diligence
1. Initiate
6 – 12 Weeks
2. Discover (RFP)
9 – 12 Weeks Example Times
Typical Steps & Deliverables
Interaction examples
12 – 14 Weeks
3. Define (Proposal)
12 – 16 Weeks
4. Contract
D E M W
RFP(s) ready and released on Market
C
C
C C
NDA, Management / Board level alignment
Signature process Final Agreement
Q&A’s, Proposals, Workshops, Updates
Proposals Reviews Report Cards
Revised (BAFO) Proposals
Draft Agreement Negotiations
Transition Launch
Q
Walkthrough(s) (MVD)
Q&A: responds to Service Provider’s specific questions regarding the RFP Walkthroughs: are used to clarify and improve Service Providers’ proposals
Executive Alignment Sessions (EAS): focus on establishing and maintaining Executive relationships Mutual Value Discovery (MVD): collaboration sessions focus more on Scope and Impact of Requirements than Solution
Due Diligence: allows Client to confirm Service Provider’s capabilities and allows Service Provider to validate Client’s environment
EAS MVD MVD
Q&A Due Diligence Q Q D D
M M M E W W
Due Diligence (DD) & Supplier DD Report
Finalize Sourcing Strat,, RFI, Short List, RFP draft
Program Initiation Sourcing Strategy
Manage sourcing journey program, market presence, tender process governance and results, selection, transition and implementation.
► Organizations often pursue outsourcing for financial reasons. � Desire to reduce costs (short-term and long-term) � Ability to better address variable demand by shifting from a fixed-cost structure to a
variable cost structure � Lack of capital for business process and/or IT infrastructure improvement
► Organizations also implement outsourcing solutions to improve flexibility to address competitive pressures. � Moves focus to the core business for existing and new markets � Removes internal issues related to the challenges of new solutions, change,
standardization and efficiencies � Suppliers are able to scale to provide the level of service required, when it is required
► Organizations typically consider an outsourcing solution when they are going through change (mergers, acquisitions, divestitures, growth) and/or trauma (restructuring, downsizing, bankruptcy, deregulation).