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BPO Business Plan PowerPoint Presentation

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Slide 1 - Competing in the Global Economy – Outsourcing is Key September 27, 2002 Dennis McGuire CEO Infosys – Milan 2002
Slide 2 - CONFIDENTIAL 2 Topic Outline Background Competitive Environment Sourcing Propensity – Self Test Retained versus Sourced Processes Discussion
Slide 3 - CONFIDENTIAL 3 Background TPI assists buyers with the evaluation, negotiation and management of sourcing transactions Since 1989, TPI has assisted with more than $300B TCV of sourcing transactions, ranging in size from $10M to $4B per year Outsourcing is a tool and not an objective When selected outsourcing is a “least worst alternative”
Slide 4 - CONFIDENTIAL 4 Competitive Environment Competing in a global economy is getting increasingly tough Key competitive advantages are “time to market” and cost Companies are focusing on: Core competencies that provide competitive advantage Improved “Time to market” Low cost variable cost structures Optimum use of capital Transforming their cultures to better compete Internal versus external sourcing decisions are being fundamentally affected by the view that during the next five years “off-shore” and “near shore” resources must be used to remain cost competitive.
Slide 5 - CONFIDENTIAL 5 Sourcing Propensity – Self Test – Three to five year view Key Levers Culture – professional, business oriented, metrics driven Self-Service – minimizes support of administrative functions Shared Service Centers – provides economies of scale Centers of Excellence – spreads costs, experts and tools Location – use of high cost versus low cost locations Labor/Talent – use of off shore and other lower cost alternatives Capital – availability of capital for cost cutting tools Policies & Practices – ability to implement standard practices IT Infrastructure & Systems – ability to implement new technologies Supplier Capability Yes Yes Multiple Yes Good Off shore Available Good; Enforced Robust Outsourcing decisions are dependent upon the Company’s anticipated ability to utilize the following nine levers more effectively than the Supplier. Anticipated Company Capability ? ? ? ? ? ? ? ? ? Most companies will decide to source major portions of non-core processes
Slide 6 - CONFIDENTIAL 6 IT HR Accounts Payable Purchasing Operations Etc. Governance Process Design Administration Systems Legend: = Client = Supplier Process Layers Process Examples Retained Versus Sourced Processes – How Much is Really Outsourced Varies for Individual Customers Strategy Governance Policy Decisions Design Development Reengineering Innovation Systems Technology Transactions Infrastructure Operations Administration Execution Context Source: G2 Research; TPI Note: Underlined - Italics are shared processes
Slide 7 - CONFIDENTIAL 7 Discussion
 

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