The International Association of Outsourcing Professionals® (IAOP®)

Global Standard-Setting Organization and Advocate for the Outsourcing Profession

Addressing the challenges that come with greater levels of outsourcing is going to take a new breed of outsourcing professional.

www.IAOP.org  Global Membership-Based Organization for Customers, Providers and Advisors

 Only Professional Quality Standard for the Field of Outsourcing

 Proven Track Record of Delivering Value – 85% of Customer Members Credit IAOP for Improved Outsourcing Outcomes

 IAOP® is the largest and fastest growing network of outsourcing professionals in the world

www.IAOP.org Most of the World’s Top Organizations are Leveraging IAOP’s Programs and Services

100+ Founding & Corporate Members, including: Abbott Laboratories, Accenture, Aegis, Affiliated Computer Services (ACS), Allstate Insurance, Alsbridge, American Express, Anthem BCBS (Wellpoint), Apple Inc, Applied Materials, Assurant, Atlantic Canada Atlantique, AT&T, Avasant Global Sourcing, Belcan Corporation, Best Buy Company, BeyondCore, Bleum, Blue Cross/Blue Shield of Florida, Blue Shield of California, Booz & Company, Boston University, Business Catalyst International, Cal State Fullerton, Cambridge Assessment, Capgemini, Capital One, Carnegie Mellon University, Cassidy Turley, CB Richard Ellis, Chris Disher & Associates, Cinteger LLC, Computer Associates, Copenhagen Business School, CORFO (Chile), Colliers International, CPA Global, Delve Group, Dextrys, Diebold, Discover Financial, Disney Institute, DNL Global, Duke Energy, Duke University, Enlighta, EquaSiis/EquaTerra, Expense Management Solutions, Express Scripts Inc, Fasken Martineau DuMoulin LLP, Firstsource, Foley & Lardner, GASSCOM/E.Services Africa, General Motors, Genmab, Gorrissen Federspiel, GSOS, Hinduja Global Solutions (HTMT), HCL Technologies, Hexaware Technologies, hiSoft Technology International Limited, Hospira, HOV Services, IDA Singapore, Information Technology Association of Jordan, Infosys, Innodata Isogen, Insigma Hengtian Software, Intel, Intetics, ISS A/S, Janeeva, Janus Associates, J & J Consumer Group, John Hancock Financial Services, Kelly OCG (BPO), Kenobi SRL, Kenya ICT, Kirkland & Ellis LLP, Kraft Foods, Liberty Mutual, LifeMasters, Loeb & Loeb , Marsh & McLennan Co, Mayer Brown LLP, Microsoft, Morrison & Foerster LLP, Multimedia Development Corp. (MDeC), NCS, Neusoft Corporation, Nike, Nordea Bank, North Dakota Dept. of Commerce, Océ Business Services, Orange Business Systems, Ortho-McNeil Janssen, PepsiCo, Pfizer Inc, Pratt & Whitney/UTC, Pretium Partners, PricewaterhouseCoopers, Procter & Gamble, Procurisource, Prudential, Qantas Airlines, Quint Wellington Redwood, ResourcePro, Rio Tinto, Roche, RR Donnelley, RTM Consulting LLC, Salmat, SAP AG, Service Corporation Intl, Singtel Optus (Australia), Sitel, SPi Technologies, State Farm Insurance, Sun Microsystems, Symantec, Syracuse University, TEKsystems, TeleTech, Thompson & Knight LLP, Thomson Legal & Regulatory, TransUnion Interactive, TPI, Trellis, Univ of Missouri, Univ of Salerno, VanceInfo, Vantage Partners, Vertex Business Services, Verve, Visa, Vodafone, Washington Gas, Whirlpool, Wipro Technologies, WNS Global Services, Xceed, and Yahoo!. 1000+ Professional Members ● 100,000+ Affiliate Members 40+ Chapters Around the Globe

www.IAOP.org IAOP Structure and Programs

 Strategic Advisory Board & Outsourcing Standards Board  Research, Training, Services, Advocacy & Outreach Committees  Geographic, Industry, Topical Chapters  Online Member Directory, IAOPNetwork & Customer-only IAOPNetwork  The Outsourcing World Summit®  Regional Summits - part of the Outsourcing World Summit Conference Series  Topical Forums as part of the Outsourcing Leadership Series  IAOP Member of the Year Awards  Outsourcing Hall of Fame Awards  IAOP Knowledge Center (Firmbuilder.com®)  Certified Outsourcing Professional® (COP) Program (Attending a chapter meeting earns COP’s 1 CEH towards recertification)  COP Master Class  The Global Outsourcing 100 ® Program (The Global Outsourcing 100 list and sub lists, World’s Best Outsourcing Advisors)  Outsourcing Professional Code of Ethics

www.IAOP.org COP Master Class – North America Bundle Special Limited seats available at this price!

If you are a Professional Member of IAOP and have attended any IAOP Chapter Meeting in the past 12 months, you may purchase any COP Master Class Bundle seat in any North America public class at the special price of $3,500.

Contact [email protected] for registration details.

www.IAOP.org Other IAOP Upcoming Dates of Interest

 2011 Outsourcing Hall of Fame Open Nomination Period June 1-July 31, 2010. Contact [email protected] for online nomination form.

 2011 Outsourcing World Summit – Call for Papers Look for more information end of May – beginning of June

 2011 Global Outsourcing 100 Applications Open September 1, 2010

 2011 Outsourcing World Summit February 21-23, 2011 – Indian Wells, California

www.IAOP.org New Member Services from IAOP

At IAOP, we are always looking for programs & services that will add value to your membership and we have three new offerings for you!

 Value Health Check Survey – An exciting new diagnostic tool that will enhance the value of your outsourcing contracts & relationships! Each IAOP Corporate Member receives two complimentary survey’s as part of their annual corporate membership – Call us today to learn more!  BestOutsourcingJobs.com – Companies seeking the best talent for outsourcing jobs, as well as professional looking for employment opportunities, can benefit from our new online portal for outsourcing jobs!  OperatorEvaluator – An exciting new solution available as part of our suite of outsourcing skills and professional development offerings. Call us today to find out more about this dynamic service!

Contact Michael Forbes at [email protected] for more detailed information on any of these service offerings!

www.IAOP.org With more than 100,000 members and affiliates worldwide, IAOP® is leading the effort to transform the world of business through outsourcing.

If you are not already a member, you can begin taking immediate advantage of IAOP’s programs and services by going to www.iaop.org.

www.IAOP.org Value Creation for Government – Services Sourcing & Sustaining Value

www.IAOP.org UK Home Office SSC – Support Functions

The Issue/s The Objectives The Decision/s

 HO had installed eBusiness software  Reduce costs of operations for HO  Implemented Oracle eBusiness ERP for HR, Finance, Procurement &  Increase production efficiencies platform Operations in 2006  Remove duplicity and redundancies with  Employed Fujitsu to undertake creation  25000 Users impacted processes, technology etc of SSC and technology integration  Key Needs surrounding requirement to  Create accurate management  Developed and implemented a joint streamline cost management of information for decision-making vendor strategy operations  Reduce payment timelines for claims  Fujitsu for ERP, application hosting,  Consolidation and improvement in  Create more self-service functions desktop maintenance production efficiencies sorely needed on  Atos Origin for network & infrastructure a standard platform services  Joint ownership by Fujitsu, HO, Border  GBP 300 Million Protection Agency Deal Value & Timeline  5 Years

Value Created

 Cost Savings: GBP 40-50 Million p.a  24000 IT Users Serviced Seamlessly  Improved Production Efficiencies by over 20%  New self-service functions developed  Reimbursements paid out within 3-4 days and all outstanding by end of month [from pervious timelines of well over 90 days]

www.IAOP.org UK Home Office SSC – Support Functions

The Issue/s The Strategy The Objectives The Decision

 Multiple Statutory Boards  Consolidate Finance, Procurement & HR  Solutions that reduce complexity while  Invited Multiple Vendors To Bid Duplicating Support Functions Functions for All 8 Stat Boards recognising the unique missions and needs of  Accenture, IBM, Perot Systems, of HR, Finance & Procurement  Show Clear Cost Reductions for each agency. Infosys, NCS, SCS, PwC  Deployed Similar Business & Government as a whole  As much standardisation in terminology,  Joint bids Permitted Technology Platforms That  Initiate Inter-Ministry Billing for Services workflows and processes as possible.  Multiple Options Required To Be Could Be Consolidated for Rendered by the Shared Service  Optimize and reduce resources used in Submitted Separately Removal of Redundancy Organization performing transactional administrative tasks,  Awarded Consulting Work to  Multiple Ministries Involved  Scope of Work: such as by leveraging on automated IT PwC Hence Consolidation Not  supply consultancy services, solutions or web-based employee self-services  Awarded Deal to Vendor Seamless  conduct a requirements study and  Reduce total cost of ownership of IT systems, Consortium Accenture-SCS  Envisaged Cost Savings  develop the tender specifications for such as through adoption of commercial off-the Who Bid Jointly for Significant but unclear of a shared Common Enterprise ICT shelf solutions with minimal customization Implementation source System (CES) to be developed, or for while meeting the agencies’ needs for the  Boards Involved Were: an external Service Provider (SP) to common administrative functions; Singapore Land Authority provide IT services for common  Develop integrated end-to-end customer (SLA), Public Utilities Board administrative functions via a centric processes to support outcome (PUB), Health Promotion shared CES. driven HR, Finance and Procurement policies Board (HPB), National  Owned by MoF and administered by iDA as  Business process improvements aligned with Heritage Board (NHB), the Govt. CIO industry best practices to support strategic Deal Value & Economic Development Board  Model Options: Either Owned by Govt. or activities such as talent management, balanced (EDB), People’s Association Implemented as an ASP Model scorecard and risk management Timeline (PA), Inland Revenue Authority of Singapore (IRAS) and National Parks Board (NParks), Value Created  SG$ 50 Million  Seamless Integration of support functions of 8 Statutory Boards  5 Years  Cost Savings: SD$ 12-15 Million p.a  Improved Production Efficiencies by over 36%  New self-service functions developed  All Procurement and Finance activities centralized for efficiency and effectiveness  No job losses – redeployed

www.IAOP.org Key Lessons

 Focus on Performance: The primary motivation for the introduction of shared services should not be cost savings but rather improvements in service delivery and quality;  Complex & Need Assistance: The introduction of shared service models is often costly and complex requiring detailed research and the development of a business case which includes comparisons with existing modes of delivery, workforce impact and service delivery assessment;  Risk Management is Key: There is a high risk that hasty imposition of an inappropriate model might dissipate, rather than harness, corporate memory, knowledge and skills  Engaging Stakeholders is Vital: Consultation and meaningful engagement with unions and employees is vital for the success of any shared services program;  Ramifications need to be Understood: While costs savings can be achieved, savings targets are rarely met and the main source of savings is normally significant job losses; The costs of shared services are often under estimated because implicit costs and externalities are often not measured; the benefits of shared services are often over estimated;

 Negative Impacts need to be proactively planned for: Job losses in regional areas are a likely consequence of centralization of functions. This will have a negative impact on the viability of regional communities;  SS Model is Limited but Effective: Shared services may be a viable method of providing some business services, but they are not appropriate in all situations due to the diversity and complexity of services that need to be provided; and  Conduct Assessments Thoroughly and Use Outside Expertise: The information collection phase is vital in determining the appropriateness of shared service models to ensure that risks are identified and managed.

 Staff Morale is Vital: The introduction of inappropriate shared services arrangements is likely to damage staff morale at a time when the public sector needs to position itself as an employer of choice to retain and attract skilled workers in the face of growing skill shortages.

www.IAOP.org OM Thoughts On Way Forward

COLLABORATE TO CO-CREATE SOCIO- EDUCATION, MARKETING & LEARNING ECONOMIC VALUE

 Marketing & Positioning Benefits: Identify, Initiate & Develop Coherent and  Driving Adoption: Invite & Engage with Govt., Implementable Strategies Aimed at Increasing Local Adoption of Sourcing Ministries, Agencies, GLCs and GLICs to Collaborate Models for Performance Effectiveness and Cost Efficiencies While for Driving Adoption & Growth of Sourcing Industry in Remaining Nimble, Socially Accountable & Responsive to Citizen Needs Malaysia

 Demystifying Sourcing to Govt. Stakeholders: To engage government to  Co-Create Sourcing Models for Government: further educate and emphasize on efficiency gains through sourcing Collaborate & Develop Sustainable Sourcing Business models and to demystify the notion that outsourcing equates losing jobs. Models for Govt. and Related Stakeholder Entities to  Continuous Education & Engagement: Industry Through OM to Engage in Create Longer-Term Value and Contribute to Govt’s Providing Education and Requisite Advisory Support for Govt. to Adopt Endeavor at Transforming Into a Knowledge Economy Sourcing Models incl. Obtaining Industry Inputs into Policy Structures,  Industry Inputs to National Modernization Programs: Frameworks and Necessary Strategic Support Structures Required To Industry Works Closely with MAMPU and other Develop Local industry Entities to Enable Standardization, Removal of  Going Global: Working with Govt. to create compelling strategic “thrust” Redundancies, Increase Performance, Establish programs Incl. Funding/ Grants for Creating Global / Multinational Optimal Cost Structures, Create Tangible Benefits Malaysian Owned Companies That Can Accrue on Citizen Services

www.IAOP.org With PEMANDU Emphasizing on Business Services, Within Which Sourcing by Government Has Been Deemed Key Enabler – What are the Next Logical Steps? What Should Industry Do To Support The Endeavor at Enhancing Performances?

www.IAOP.org