NETWORKING EVENTS - SIG - Sourcing Industry Group |sig.org/docs2/SIG DTSI 382016 Webinar.pdf · NETWORKING EVENTS GLOBAL SUMMITS April 19-21 –Orlando, FL ... technology parks, providers

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NETWORKING EVENTS

GLOBAL SUMMITSApril 19-21 – Orlando, FL

SYMPOSIUMSMar 24 – Minneapolis, MN

April 7 – Columbus, OHREGIONAL ROUNDTABLES

Mar 15 – London, UKApril 5 – Montreal, CANMay 12 – Sydney, AUS

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RECENT POSTINGS

The SIG Career Network is

bursting with opportunities.

New jobs are posted daily by some

of the best known global companies in the world for those

seeking careers in sourcing, outsourcing, procurement and

related functions.

For more information go to: www.sig.org/career-center.php

NEW to the Career Network!

• Westfield Group – posted March 7:

• Procurement Operations Leader

• LINAK U.S., Inc. – posted March 1:

• Bi-Lingual Sourcing Specialist

• Unum Group – posted Feb 26:

• Category Manager

• KinderCare Education – posted Feb 25:

• Sourcing Specialist• Ross Stores – posted Feb 18:

• Senior Analyst, Strategic Sourcing

• FedEx – posted Feb 17:

• Procurement Advisor

• Associate Sourcing Specialist

• Sourcing Advisor

• VSP Vision Care – posted Feb 16:

• Senior Business Analyst

• Essilor – posted Feb 16:

• Strategic Sourcing Manager

• Milliken – posted Feb 9:

• Indirect Sourcing Manager

• Lincoln Financial Group – posted Feb 1:

• Sourcing Manager

special member

benefits

• 6 months of free buy-side

access to the Vendor

Evaluation & Assessment Tool (NEAT)

• 2 free Market Intelligence

Reports

• 15% discount on direct

hire placement fees

For more information, go to: http://sig.org/member-discounts

• $20,000 discount on Enlighta

Govern or Risk pilot

• 5 relationship assessment

surveys

• 20% discount on assessment

or implementation services

• 20% discount on research

reports on Chinese cities,

technology parks, providers

and advisory services

• 50% discount off fees

associated with GSOS

Health Check

• 10% discount on all

annual subscriptions

• Complimentary 1-hour

consulting session

• SkillsVillage membership

and software test drives

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SOCIAL MEDIA

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New Topic Each Week

NEW TIME!!8:00 am PST

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Upcoming Free SIG Webinars:

March 10, 2016Solution Deep Dive: Using Market Intelligence to Drive “Right Pricing” for Contingent LaborPresented by PeopleTicker

March 24, 2016 Solution Deep Dive: An Eloquent Path to Supply-chain ResiliencePresented by Zycus

March 29, 2016 Procurement Automation: Are You Really Ready for All Your Processes to Run Faster?Presented by GEP

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For more information and to register for all SIG events:

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Upcoming Town Hall Teleconference:

March 9th

Crowdsourcing: What it is, Why it Matters and

What the Future Holds

Presented by: Dawn Tiura

President & CEO

Sourcing Industry Group

SIG Town Hall Teleconferences

bring a small group of buy-side ONLY attendees together for a facilitated

discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.

Calendar of Town Hall Teleconferences

Taking place at 1:00 pm Eastern on the following dates:

February 10 July 13 March 9 August 10 April 13 September 14

May 11 October 12June 8 November 9

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SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users

Symposiums 2016:

Silicon Valley, CA – Jan 14

Minneapolis, MN – Mar 24

Columbus, OH – Apr 7

San Francisco Bay Area – Sep 15Toronto, CAN – Sep 22

New York, NY – Sep 29

Regional Roundtables 2016:

Seattle, WA – Feb 2

Hartford, CT – Mar 3

London, UK – Mar 15

Montreal, CAN – Apr 5Chicago, IL – May 5

Sydney, AUS – May 12

For more information and to register for all SIG events:

www.sig.org

SIG Global Summits are semi-

annual events with 350-450

decision-makers in attendance

• Non-commercialized

• Hundreds of industry thought

leaders

• 70% buy-side

• 4-5 keynote sessions

• Global brands

• 3 days of networking

• Executive Roundtables

• Over 50 breakout sessions

69% of delegates are director level or above, of which 43% are VP/C-level

Recent speakers include:

For more information go to: www.siguniversity.org

Online learning environment

Sourcing and Governance certifications with Professional and Executive level courses

Modules with lessons, formative assessments, summative testing and final proctored exam

Certification good for 5 years

Certified Sourcing Professional course starts March 28, 2016!

Certified Governance Professional course starts May 2, 2016!

For more information go to: sig.org/student-outreach.php

Partnering with Universities

Introducing students to seasoned supply chain executives

Sharing thought leadership with students in class, SIG University courses and at SIG events

Giving access to internship and job postings on the SIG Career Network

Allowing students to get real world insight into supply chain careers

Finding tomorrow's supply chain professionals today

te

Reinventing Offshore Service Delivery

From the Philippines Using Hybrid Sourcing

March 8, 2016

Meet Today’s Speakers:

Sakshi Garg

Practice Director

Global Sourcing

Everest Group

Eric Simonson

Managing Partner

Research

Everest Group

Jeff Williams

Head GIC

Enablement

DTSI Group

12

About DTSI Group

13

DTSI BPO Clients DTSI GIC Clients

Internal delivery centersOutsourcing delivery centers

14

Reinventing Offshore Service Delivery

Some Key Topics We’ll Cover Today:

• Review GIC Model Types

• GIC Market Research Trends in Asia

• Assessment of Hybrid Sourcing Model

• Benefits of GIC Operating Model

• Key Factors in Establishing a GIC

15

- 16 -

a) Significant constraint

b) Moderate constraint

c) Limited impact

d) No impact

There is a range of “captive” or “global in-house center” (GIC)

operating model options that enterprises can use

GIC operating model options

De novo GIC (GIC)

Joint venture

Build-Operate-Transfer (BOT)

Virtual/assisted GIC

Model

100% controlled and managed entity

Typically a fully owned subsidiary of the parent,

established from scratch

Description

Co-invested operations between buyer and service

provider

Service provider provides capital and runs operations

in the initial stages

Option for transfer back to buyer at a later date

Buyer retains management control

Service provider manages operations

We will focus on the De novo GIC model in this webinar

17

Number of leading GICs

2007-2015; Number

GICs continue to be an integral part of the global services

delivery for enterprises

18

1,170

1,345

1,507 1,623

1,737 1,828

1,906 1,999

2,099

2007 2008 2009 2010 2011 2012 2013 2014 2015

Annual GIC set-ups and divestitures

2007-2015; Number

XXGIC divestitures to

third-party providers

102: 2007-15 avg.

New GIC set-up activity seems to be picking up again after a

slow period in 2012-13

19

113 108

104

116 114

91

78

93 100

2007 2008 2009 2010 2011 2012 2013 2014 2015

1 10 8 2 2 4 1 1 2

High

Low

Imp

act

delivere

d

Low cost set-up

Scaled internal

provider

Strategic entity

driving innovation

Value addition

partner

Key focus

Innovation and new

products/services

Addition to revenue

streams

Global leaders for

the enterprise

Process

standardization

Teams for select

anchor functions

Multiple pilots and

transitions in

process

Predictable and

hi-quality delivery

Process efficiency

Capacity

augmentation

Transformational

process

improvements

High skill capabilities

Vendor management

Products for

emerging/ local

markets

Value drivers

Cost

Business

Strategic

Time

GICs are evolving to increase the impact delivered to the

enterpriseEverest Group’s GIC maturity assessment framework

Drive competitive

advantage

Extend

influence across

organization

Build robust

delivery

capabilities

Prove the concept

20

Distribution of GICs by delivery location

Up to 2015; Percentage

20%

10%10%

10%

10%

4%

Asia

LATAM2

CEE1

MEA3

100% = 2,099

59%26%

10%5%

1 Central and Eastern Europe

2 Latin America

3 Middle East and Africa

India has the highest share among GIC

locations globally

The key locations for GIC set-ups in CEE

are Poland, Ireland, Czech Republic, and

Romania

Within LATAM, the top locations are Costa

Rica, Mexico, and Chile

While limited in share, increased GIC set-

up activity is seen in MEA locations, such

as Israel

Asia continues to be the leading location for GIC set-ups with

~60% share

21

GICs in Asia

Up to 2015; Number

100% = 1,229

9%

91%

GICs in Asia delivering BPS1

Up to 2015; Number

100% = 509

The Philippines is the 3rd largest location in Asia for GIC set-ups; it plays on its strengths in the BPS

area – even in the GIC segment

GICs in Asia delivering voice

BPS1

Up to 2015; Number

100% = 217

16%

84%

26%

74%

The Philippines Rest of Asia

1 Business process services

The Philippines is a major delivery location for business process

services among GIC locations in Asia

22

Bacolod

Metro Manila

Metro Cebu

Baguio city

Majority of GIC activity is concentrated in Metro Manila; few

players have diversified beyond Metro Manila

Meycauayan

Metro Cebu, Baguio city, Meycauayan, and

Bacolod are few other cities in the

Philippines where GICs have been set-up

Key reasons for setting up GICs in tier-2

cities:

– Up to 10-25% lower costs than Metro

Manila

– Diversification of geographic risk

– Access to additional talent pool

– Competitive market in Metro Manila

23

What is hybrid sourcing?

What it often means

An unintentional mixing of the

GIC and third-party provider

model

Models are used based on

availability and suitability in a

given situation

What it should mean

An intentional approach where

different sourcing models are

stitched together to complement

capabilities, optimize costs, and

generate additional value

24

Three variants of hybrid sourcing can be seen in the industry

Skewed model Segmented model Integrated hybrid model

Low HighExtent of overlap/intersection of functions

Bias towards a preferred

sourcing model, which

can be:

– GIC-centric

– Outsourcing centric

Only limited functions are

performed by both GICs

and third-party providers

Clear segmentation of

work between sourcing

models with limited

overlaps

Believe that certain types

of work are best

performed by a particular

model

Clear segmentation of work

between sourcing models

with significant overlaps

Sourcing models

intentionally compete or

complement

Combinations of sourcing

models can sometimes

provide increased value

25

Best practices for adopting hybrid sourcing model for buyers

26

Don’t let a thousand flowers bloom

Develop an end-state vision and target operating model1

Keep your hybrid sourcing strategy neat

Communicate hybrid sourcing benefits and align the business2

Plot your course

Invest in hybrid governance organization model and performance metrics3

Make the most of what you’ve got

Reskill talent to manage sourcing and hybrid governance program4

Reinventing Offshore Service Delivery

Some Key Topics We’ll Cover Today:

• Review GIC Model Types

• GIC Market Research Trends in Asia

• Assessment of Hybrid Sourcing Model

• Benefits of GIC Operating Model

• Key Factors in Establishing a GIC

27

Benefits of GIC Operating Model

• Enablement of Advanced or Mission Critical Core Services

• Desire for “End to End” Control of Full Cycle Service Delivery

• Requirement for Control of Confidential IP and Processes

• Improved Access and Retention of High Quality Skilled Talent

• Direct Control of Risk and Regulatory Compliance

• Governmental Tax Holiday and Incentives

• “Blend” BPO and GIC services into a HYBRID Model

28

- 29 -

a) Quite simple

b) Some challenges, but not bad

c) Moderately challenging

d) Very difficult

Philippine GIC Survey Findings

30

Key Factors in GIC Establishment

1. GIC Decision Process

2. Evolution of GIC Economics

3. Corporate Formation

4. Facilities Design, Build and Management

5. Transition Management

6. IT Solutions & Configuration

7. Talent Acquisition & HR

8. Training

9. Operational Management

10. Licensing & Accreditation

11. Regulatory & Compliance

Covered today

In appendix

31

1. GIC Decision Process

Phase 1

Data Gathering for target services

Phase 2

Cost estimate for GIC build

out

Phase 3

Implementation Time Line for

targeted services

Deliverable is complete Cost Estimate and

Time Line for a GIC build in the

Philippines

Educate appropriate stakeholders as to the benefits and

rewards regarding the implementation of the GIC model

32

2. Evolution of GIC Economics

Traditional GIC Build out model requires

significant CAPEX investment

Compelling, innovative new GIC build model is now

possible

Facilities build out, management, IT

infrastructure and asset inventory for GIC’s

available

As-A-Service

Possible to devote investment to build out

and operate core business not creation

of GIC

33

5. Transition Management

34

7. Talent Acquisition and HR

Utilize multiple proven sources to

identify appropriately

educated talent

Ongoing Operational

interaction to ensure employee

and program development

Payroll and Employee

administration services

Creates Employee handbook &

company policies to adhere to local

labor laws & client culture

Verify with professional and security check

Administer key aptitude &

screening tests

35

8. Training

36

9. Operational Management

37

Eric SimonsonManaging Partner

[email protected]: +1-214-451-3030 | M: +1-214-616-8294

www.everestgrp.com | research.everestgrp.com

Sakshi GargPractice Director – Global Sourcing

[email protected]: +1-214-451-3030 | M: +1-781-298-1498

www.everestgrp.com | research.everestgrp.com

For further questions, we are reachable at

31

[email protected]: +1-925-315-5895 | M: +63-920-917-0955

www.dtsigroup.com

Jeff WilliamsHead – GIC Enablement

Appendix

32

3. Corporate Formation

Incorporation of Philippine entity: SEC registration, local bank account

and TIN creation

Local Legal knowledge regarding all Municipal and Federal requirements

Local Permit processing: Business, Sanitary, Operational, etc.

Philippine Bureau of Internal Revenue (BIR) and Value Added Tax (VAT)

Registration

Employee Governmental benefit Registration: SSS, PhilHealth, etc.

Philippine Economic Zone Authority (PEZA) registration

40

4. Facilities Design & Build

FACILITY SERVICESTurnkey Facility or Managed Facility Customized Office Design

& Build out Office Partitions Furnishing Equipment

INTELLIGENT BUILDING SOLUTIONSStructured Cabling Video Surveillance Credential Based Access

Control Display Solutions Fire Detection and Alarm

MANAGED IT SERVICESMaintenance Monitoring Reporting Service Desk Remote

and On-site Support Incident Management

41

6. IT Solutions & Configuration

NETWORKINGRouting Switching Firewall Wireless Systems Optimization

Gigabit Passive Optical Network (GPON)

TELEPHONYUnified Communication Voice and Screen Recording Intelligent Routing

IVR Dialer Audio and Video Conferencing Communication as a Service

IT COMPUTINGEnd User Computing Servers Storage Software System

Management Computing Peripherals Document Management Solution

Disaster Recovery Solution Visual Analytics

42

10. Licensing & Accreditations

Licensing & Accreditation

personnel and tracking

platform

Prepare and manage Accreditation

Process, Audits & compliance

Obtain various Accreditations for

Philippine Operations

Obtain appropriate staff licensure & certifications (i.e.

AAPC Coding, State Specific Licensure

for RN’s, CPCU) Support renewals, endorsements,

continuing education and

conversion to active status

Track and maintain all required licensure:

Current

Active

Unrestricted

43

11. Regulatory & Compliance

44