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THE GLOBAL

INSIDE: Six Ways to Make Outsourcing Work: S2 Leading the League: S14 A Ranking of Rising Stars: S17

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o matter how ground-breaking or Outsourcing Professionals carving out niches,” says cutting-edge a business practice expects the BPO market to Jagdish Dalal, principal at reach $1.2 trillion in 2006). JDalal Associates, an out- Nmay seem, you know it’s gone main- Outsourced tasks include sourcing stream when even the government is doing call centers, data manage- in Connecticut. “Wherever ment, product engineering, a very intense skill set is it. Consider outsourcing. When the City of insurance claims process- required, such as in data Chicago decided in 1998 that the best way to ing, and even medical mining, there is an oppor- research. Finance and tunity for a specialized handle its information technology systems accounting outsourcing is provider to take on that was to let someone else oversee them, it gaining traction too. The task.” By outsourcing these number of companies out- kinds of processes, a com- outsourced the job to Corp., which sourcing three or more pany doesn’t have to make was already managing IT systems for a functions—including ac- a big investment in an area counts payable, accounts it may know little about; long roster of corporate almost always done in- receivable, general ledger, instead, Dalal says, “it and government clients. house. “Over the past 20 and financial reporting—is takes advantage of some- The decision not only took years, companies have expected to reach 150 in one else’s investment.” a burden off Chicago’s mostly been outsourcing IT, 2006, more than double Outsourcing offshore is shoulders, but put money but within the past five or the number last year, ac- also attractive because of back in its coffers. Over the six years, they’ve started to cording to FAO Research, a the savings potential. Labor next 3 1/2 years, the city outsource services like hu- Cambridge, Mass., research costs overseas can be dra- would save $6 million to man resources and other firm that focuses on the matically lower than they $10 million in IT manage- business processes,” says finance and accounting are in the United States. For ment and support costs. Chris Disher, a vice presi- outsourcing market. a long time, the go-to desti- Better yet, as costs went dent at Booz Allen Hamilton, nation was India. While it down, efficiency went up: a global strategy and tech- Business Boom still dominates the offshore Chicago reduced the time nology-consulting firm. It’s no surprise either market, other countries, in- it took to deliver services Business process out- that, as more tasks are cluding China and Mexico, to citizens by 35%. sourcing, or BPO, as it’s outsourced and more are gaining traction. Eastern It’s easy to see why out- called in industry parlance, industries—energy, bank- Europe is emerging too, sourcing is such a tempting may be a new market, but ing, insurance, and auto- particularly in information proposition. It enables it’s growing rapidly. Esti- motive companies in technology outsourcing. you to focus on your core mates of its size vary particular—embrace the “IT departments are work—the things you do wildly, ranging from a few concept, a growing num- increasingly expected to best—by having others hundred billion dollars to ber of providers are com- achieve the impossible— manage the noncore well over $1 trillion (the ing onto the scene. “There working with tight budgets, processes; areas in which International Association of are a lot of smaller players limited resources, and time they may have a lot more constraints,” says Sergei expertise than you do. The Levteev, president of IBA benefits are twofold: Your THE VALUE QUOTIENT Group, a Prague-based employees are freed to The success rate of outsourcing deals from the client IT services provider with concentrate on the critical and vendor perspectives. customers in more than 6% 7% tasks that can grow your 30 countries. “Outsourcing business; meanwhile, non- 12% to Eastern Europe, where core jobs—like operating labor costs are lower and the computer help desk— Difficulty 38% talent is plentiful, can are run more efficiently. Mixed bag serve as a key strategy Little wonder, then, that 82% Successful 55% in addressing these outsourcing is moving into challenges.” Yet offshore new areas, covering tasks Source: Booz providers know that if that until recently were CUSTOMERS Allen Hamilton PROVIDERS they’re going to stand out S2 Our solutions power, and service high performance businesses.

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THE GLOBAL Special Advertising Feature OUTSOURCING

in an increasingly busy their outsourcing results, pack, they must offer not according to a survey by THE INDUSTRY HALL OF FAME only the tools companies Booz Allen Hamilton. want, but the flexibility The problem is that he International Association of Outsourcing they need. That means many companies fail to Professionals (IAOP) and FORTUNE Custom suggesting a range of busi- grasp the amount of work T Projects are pleased to announce that ness models—whatever that needs to go into out- Filippo Passerini, Global Services Officer and makes the customer feel sourcing, before and during CIO at Procter & Gamble, and Paul Spence, CEO comfortable working with the life of the program. of Outsourcing Services at , have been a provider thousands of “Outsourcing is much more elected to the Outsourcing Hall of Fame. The miles away. “At IBA, we use than a bidding process,” award recognizes executives around the world a combination of onshore, says Disher. “Companies for their contributions to business and society near-shore, and offshore don’t do enough analysis through outsourcing. delivery models to provide before they jump into it.” Under Filippo Passerini’s leadership, P&G services to our customers,” Nor do they do enough to streamlined its global business operations, saving says Levteev. “We also put oversee the process once the company hundreds of millions of dollars while special emphasis on long- it gets started. “The old ensuring that every P&G employee continued to term relations with our mindset of outsourcing is, have the opportunity for personal and professional clients, which provides for a ‘This is a headache; let growth and development. higher degree of trust and a someone else handle it,’” At Capgemini, Paul Spence has focused on better understanding of the says Disher. winning the hearts and minds of employees who client’s business needs.” The challenge—for com- join the firm through outsourcing—by making For many customers panies that are considering Capgemini a global leader in critical social issues the most effective model outsourcing for the first such as human rights, the environment, labor is a mix of onsite (mean- time, as well as those that rights, and the elimination of discrimination. ing, at their own location) want to get it right the sec- and offshore services. ond or third time—is to As Levteev explains: find ways to improve the companies in the biotech- the critical nature of out- “We’ll put our project process, so that the results nology and health-care, sourcing. For customers, manager onsite locally, of outsourcing live up to its commercial and industrial outsourcing routine activi- but have a team working promises. That’s no easy real estate, education, enter- ties creates the freedom to offshore. By being so task, but complicating mat- tainment/hospitality, finan- focus on the critical parts of close to the customer, ters further are the time, cial services, manufactur- their business.” That in turn the project manager and competitive pressures ing, technology, and makes them more innova- can understand exactly companies are under to transportation industries, as tive and competitive. what the customer wants, work out the kinks. well as public and govern- But before they can reap and better lead the staff “There is a continuous ment entities. “The contin- the true benefits of out- overseas.” drive for efficiency,” says ued globalization of the sourcing, many companies Frank MacInnis, chairman economy and the need for are going to have to change Bottom Line and CEO of EMCOR Group, domestic companies to the way they think about it. Benefits which services and main- compete with firms from a The short-term savings may It would seem, then, that tains more than one billion whole host and range of be enticing, and real, but outsourcing presents a square feet of facilities for countries continues to drive when companies view out- no-lose situation for com- sourcing as simply a quick panies. In theory costs go way to cut labor costs, they down and efficiencies go “Outsourcing is more than a miss the bigger long-term up. So here, perhaps, is the payoff. “Outsourcing should real surprise: Outsourcing bidding process. Companies be an intensely strategic de- hasn’t been successful for cision,” says MacInnis, “and everyone. In fact, more don’t do enough analysis one in which the outsourc- than 30% of customers ing provider is a trusted have been dissatisfied with before they jump into it.” partner. When the provider S4 Quicker. Sharper. Lighter.

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understands the customer’s management at Unisys. “If what they do well, and strategic goals, it can pro- the customer doesn’t see know their true costs vide expert suggestions on this, they can’t integrate before they sign on the how to enhance, broaden, with us in a way that will dotted line. “Today most and deepen the relationship work for them.” Flexibility customers have lived and add value.” All too of- means that although a through one, even two or ten customers view their provider has standards three cycles of outsourcing, provider as a distant vendor, and best practices for how and they’re getting smarter working in isolation, instead it does the work, it can about it,” says Renzi. of as an integrated part of modify its procedures to “They’re learning that the team. Yet when the cus- better meet the customer’s sometimes it pays to tomer and the provider needs. “Successful out- 1Think assign functions to differ- work together and share sourcing is about achiev- Strategically ent providers who have information, outsourced ing the customer’s goals, expertise in specific areas. processes can be made not saying, ‘Here’s my The first thing to under- They also realize that there more efficient and success- solution,’” says Smith. stand about outsourcing is needs to be someone at ful and can be expanded But visibility and flexibility that it’s not an instant fix for the governance level to into new areas. “In out- must work in tandem with a broken process or internal manage all projects and sourcing, the best results the third factor: relentless- problem. It can only work if measure results.” come from taking advan- ness. “That means work- the function turned over to What many companies tage of this sharing of inside ing hard every day to make an outside firm can be don’t realize is that out- information,” says MacIn- sure the solution succeeds mapped out step by step sourcing doesn’t succeed nis. “That’s what leads to by continually improving and easily transferred. In- overnight; it has to be true long-term savings and the value we deliver to the deed, not every process is a tweaked and nurtured other tangible benefits.” customer.” good candidate for out- over time. For this reason The good news is that In a lot of ways, out- sourcing. There will always it needs the buy-in and outsourcing providers sourcing is like a marriage: be proprietary and special- support of top manage- are adapting their own What you get out of it de- ized tasks that a company ment. Senior officials are business practices to help pends on what you put into will simply do better than the only ones who can forge deeper, more inte- it. Vendors may be adapting any third party it hires. “In provide the commitment grated relationships with to give the relationship the late ’90s, we saw a lot of and company resources their customers. Unisys, better odds of success, but companies that failed to un- that outsourcing requires. for example, is focusing their customers need to put derstand the intricacies of In the past, programs were on three themes: visibility, a lot of effort and strategic outsourcing,” says Jeff typically initiated by the flexibility, and relentless- thinking into it as well. Only Renzi, global vice president CIO, who could get the ness. “Visibility means then will outsourcing’s pay- of sales and marketing for program started but often the ability to see how we off match its potential. For- Perot System Corp., which couldn’t keep it going, execute outsourced tunately, there are six steps offers both onshore and off- because there was no processes,” says E. Philip you can take to transform shore IT and BPO services. mandate from the execu- Smith, vice president outsourcing from a tempt- “They were trying to turn tive suite to invest the of global solutions ing idea to a thriving reality. everything over to one sup- time and personnel plier, when it could be more needed to make it work. than even a big supplier Outsourcing programs Outsourcing doesn’t succeed could chew in one gulp.” that could have prospered Outsourcing requires a wound up floundering. overnight; it has to be tweaked lot more groundwork—and The good news is that Icons by Erik Mausser legwork—than most compa- today more CEOs are giving and nurtured over time. For this nies think, but the effort is their time—and blessing— essential if an ongoing pay- to outsourcing projects. reason it needs the buy-in and off is to be achieved. Com- Many are also bringing in panies have to understand consulting firms to help support of top management. how they work, identify them evaluate their internal S6 -).)-):%2)3+3

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operations and develop best of both worlds: a model may be an easy they won’t have 15 bigger benchmarks to measure small group of decision, but deciding customers taking priority ROI. That helps them who work right out of their how much should be out- over you; niche providers determine what part of offices, and with whom sourced locally and how can bring skills that are the business should be they can easily interact much offshore is a much finely tuned for a particular, outsourced. and communicate the harder call. The optimal perhaps uncommon, task. goals of a project; and a mix changes from com- larger offsite team that can pany to company and pro- do the bulk of the work at ject to project, and needs reduced labor costs. The to be carefully evaluated. BILL savings are particularly That’s a step that compa- dramatic when the offsite nies often omit. “There is team is offshore. It’s a no cookie-cutter ap- model that has become proach,” Staples stresses. increasingly popular. “It has to be customized EXPERTS Consulting, every time. What works for an IT services company American Express may not with headquarters both in work for Bank of America.” 2Develop Somerset, N.J., and Banga- A successful business 3Assemble lore, India, that develops model also requires com- the Right web applications and deals panies to hire the right an In-House Business with data-warehousing, outsourcing providers. Team of business intelligence and Using multiple vendors Model enterprise resource plan- can make a lot of sense. Experts ning, among other They will be motivated to Today, outsourcing partners processes, has seen its offer competitive prices No matter what strategy are more flexible than ever, revenues go from zero and highly skilled teams or business model a com- able to work with you in to $100 million in less for the job, because they pany embraces, there all sorts of arrangements. than six years, and its staff know they’re going to be should always be an They can operate com- grow from ten employees compared to rivals—and outsourcing expert in the pletely on your premises, to 3,500. Three of its ten they want to build a strong, company to manage the offsite, or with a mix of founders came out of large on-going relationship. But customer-vendor relation- on- and offsite teams. With U.S.-based consulting firms. here, too, companies need ship. “An internal pro- so many options available It now has a big R&D ser- to think strategically. “We gram office is absolutely the key is to choose the vices business that devel- are astonished when com- critical to success,” says approach that works best ops software in many areas panies pick three or four Chris Sinclair, chairman with your company’s cul- including automotive, wire- partners that are identical of Cambridge Solutions, ture—and the type of work less, and storage applica- in services and pricing a financial services BPO you’re outsourcing. There tions. In addition, MindTree and quality,” says Staples. company with operations are no set rules, but there provides services in testing, The better approach, says in the U.S. and India. are some rules of thumb. applications, and infrastruc- Staples, is to draft a diver- “You need someone For high-volume, “factory- ture management. As Scott sified roster: “A smart who understands cross- like” tasks like data entry, Staples, MindTree’s execu- portfolio will have one or cultural differences and a completely offsite model tive vice president for North two of the big providers, how to manage the out- may prove most cost- America explains: “This one midsized provider, sourcing process.” Typi- effective. But for work that gives us the ability to do a and one niche provider for cally, the program man- needs more integration lot more consulting than specialty services,” says agement office is staffed and communication, a traditional Indian firms, but Staples. Big providers bring by one dedicated manager mix of onsite and offsite to do so at the right price; a wealth of experience from the client and one outsourcing may be best. 90% of our customers hire and resources; midsized from the vendor. “The With the mixed ap- us for that model.” providers can be particu- office functions as a cen- proach, customers get the Choosing the mixed larly responsive because tral repository for best

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“Congratulations to Trammell Crow Company for being selected to the Global Outsourcing 100 Award by the International Association of Outsourcing Professionals.”

Keith T. Cheatham President & CEO Siemens Real Estate, Inc., United States

With 807 locations totaling more than 36 million Trammell Crow Company is one of the largest square feet of facilities in the US, Siemens Real diversified commercial real estate services Estate hired Trammell Crow Company to assist companies in the world, managing corporate with building solutions around its domestic real real estate outsourcing relationships in more estate portfolio. The Trammell Crow Company than 60 countries. team brings a compelling offering of cost savings, proven processes and a solid platform Learn more at www.trammellcrow.com that is helping Siemens lower costs and create operational efficiencies across its portfolio.

Over 150 years of innovation have made Siemens a world class technology and engineering company that develops infrastructure solutions Brokerage | in the areas of Healthcare, Automation and Building Management | Development and Investment Control, Power, Transportation, Building Trammell Crow Company is recognized by Technologies, Information and Communications, 2006 the International Association of Outsourcing The Global Outsourcing Water Technologies, Lighting and 100100 Professionals (IAOP) as one of The Global Home Appliances. The World’s Top Outsourcing Service Providers Outsourcing 100. THE GLOBAL Special Advertising Feature OUTSOURCING

practices and knowledge; integrated work-process corporate restructuring. it is where you coordinate flows, and develop a gover- This is a particularly impor- your resources,” says nance model, so that every- tant rule to follow. Sinclair. “The managers one can communicate with “You want to test the wa- ensure that milestones and understand each other.” ters,” says Lisa Ross, CEO and financial targets are When you treat your of FAO Research. “Start being met. They help provider as a partner, you’re with the easiest pieces, the improve processes and able to better communicate high-volume, easily re- resolve issues pertaining your goals and develop peated functions where to outsourcing. This en- trust. But fostering such a there’s not too much that ables the client to build a relationship takes time. can go wrong.” Accounts strong relationship with “An outsourcer needs to payable and payroll func- the vendor’s team.” 4Treat Your sit down with its provider tions, for example, should The most successful Vendors as periodically and talk about be outsourced before re- outsourcing programs operations and how goals porting and auditing func- go even one step further, Partners are being met,” says Pier- tions. Success here not only assigning an in-house son. “In addition, at least helps you make a business “sponsor” for each process While an in-house sponsor once every quarter you case for more complicated that will be done offsite. is essential for success, the should meet to discuss your outsourcing, but also helps “The idea is to create local person who wears that hat strategic direction. You want establish a good relation- champions for the projects needs to remember that a dynamic environment ship with your provider— you outsource,” says outsourcing is a collabora- where the parties actually one that can be improved Sinclair. “These are mid- tive activity. “It’s a mistake talk, not one where every- and expanded over time. level managers that are you see all the time,” says one stands still trying to You’ll certainly need given, in effect, ‘owner- Mark Pierson, senior vice figure out what to do.” that long-term relationship, ship’ of the project. They’ll president for global out- because it’s this strategic, work with the provider and sourcing at Science Appli- evolving model of out- oversee every facet of the cations International Cor- sourcing that promises outsourcing process, from poration (SAIC), which April the biggest payoff. “It’s $$ training the people who provides IT, scientific, and $ $$ absolutely critical that out- will be doing the task, to engineering outsourcing $$ sourcing is done with the reviewing progress on a services for commercial $$$ clear intent to go beyond daily basis, to helping to and governmental organi- the easy stuff,” says modify the process so it zations. “Customers have a Pramod Bhasin, CEO of works better.” But smart tendency to manage the Genpact, the India-based companies don’t just operation much as before global provider of business anoint sponsors, they rather than rely on the out- and technology services give them incentives to source provider. They need Build Value spun off from GE. “The succeed. “They’ll get to participate, but more at 5 maximum value comes with cash bonuses and job com- a strategic level for out- Over Time the higher-end processes pensation that is directly sourcing to work.” such as forecasting and affected by how the project The partnership model is The big-bang approach analytics, and product goes,” says Sinclair. Not particularly important given to outsourcing is dead. development.” Genpact, for only does this help drive the number of providers a Instead of outsourcing busi- example, has helped Nissan a better ROI, but it also single company may have. ness functions all at once, Motor Co. analyze market creates valuable persons “The service provider and ramp up gradually. Learn segments and determine within the company. “Now the outsourcer need to de- to manage this activity on which automobile models that they’ve been through velop solid integration a small scale when there is will sell best in which mar- the outsourcing process among all the suppliers and little at risk so you can gain kets—something that can and made it work, they can the processes it has support- experience and work out have a far bigger long-term do it for other projects,” ing the enterprise,” says the kinks. Afterward you payoff than more cost- says Sinclair. Pierson. “It needs to create can branch out into broader effective payroll processing.

S10 RESOURCE GUIDE

The International Association of Outsourcing Professionals The IAOP is the global, standard-setting organization and advocate for the outsourcing profession. It has 250 organizations from around the world as members that represent almost every industry segment and functional activity. More than 38,000 individuals working in the field of outsourcing are members or subscribers. www.outsourcingprofessional.org

The International Association for Human Resource Information Management IHRIM, the leading source of knowledge for the application of HR information and technology to people management, is a community of experts providing publications, education, research, and networking events. www.ihrim.org

OutSourcing World Magazine The comprehensive information and resource destination for decision makers involved in the purchase and management of outsourced IT and business processing services. www.oswmag.com

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Technology Evaluation Centers Inc. This company provides impartial information for the IT professional at any stage of the sourcing life cycle. Through case studies, white papers, and articles, clients gain significant knowledge on maximizing value from their outsourcing service provider. http://outsourcing.technologyevaluation.com/go

OutsourceWorld-2006 London—July 12–13, Business Design Centre New York - Oct. 17–18, Metropolitan Pavilion Celebrating its fifth anniversary, OutsourceWorld is the most recognized global outsourcing exhibition and conference. For more details including sponsorship/exhibit opportunities and online registration. www.outsource-world.com. THE GLOBAL Special Advertising Feature OUTSOURCING

ing that many processes, break, but if that’s the only executed thousands of such as reconciling the thing you’re thinking about, miles away. The payoff in books of accounts for a you may end up choosing savings, efficiency, and company, or performing processes that are actually access to new talent, can analytics to determine its less than ideal for you in the be enormous, but like most profitable customer future,” says Bhasin. For everything else about out- segments, can be 40% less example, if your company sourcing, it won’t just hap- expensive in India than in is growing so rapidly that pen. “The biggest mistake the U.S. But even providers you can’t support its expan- companies make is under- with a large offshore pres- sion, you’ll want offshore estimating the amount of ence caution that cost is processes that give you the effort that needs to go into only one factor to consider. most breathing room—even outsourcing,” says Bhasin. “At the end of the day, it if they don’t save you the “If all you do is say, ‘Take 6Go Offshore can’t just be about price,” most money. “We tell cus- it, it’s yours,’ you’re only for the Right says Genpact’s Bhasin. tomers to ask themselves going to get 60% or 70% “That’s a shortsighted what is the most important of the benefits you could. Reasons strategy. You have to think thing for their business,” Outsourcing isn’t as easy as about how outsourcing fits says Bhasin. “It’s that goal throwing processes over the When companies outsource in with the strategic goals that offshoring should help wall and saying, ‘Catch.’” offshore, they tend to do it of your company.” accomplish.” for one overriding reason: Indeed, a fixation on sav- The best practices for To advertise in our outsourcing savings. No doubt that can ings can actually be coun- outsourcing become even sections, please contact be a compelling induce- terproductive. “When you more important when your Laurie Evans, FORTUNE Custom ment, especially consider- go offshore you’ll get a cost business activities are being Projects, at 212-522-1253. Special Advertising Feature

THE GLOBAL OUTSOURCING An inside look at our list of industry all-stars.

his year the International Association of Outsourcing in New York, and four service delivery centers in India. The company Professionals (IAOP) is proud to unveil a ranking of the focuses on the banking, financial services, and insurance industries world’s top outsourcing service providers: The Global with a wide range of integrated back-office services. It scored highly Outsourcing 100. The global list sets a precedent by for the depth of its competencies, management capabilities, and cus- providing the first industry-wide benchmark for overall tomer roster. No. 2 is LUXOFT, a specialist in software-development Toutsourcing excellence. services. Based in Moscow, its client roster reads like a Who’s Who of Companies are ranked according to 18 criteria, including revenue the world’s leading corporations, including Boeing, Deutsche Bank, growth, number of employees, the skills and training of their work- Dell, and IBM. It is followed by HiSoft, a Chinese provider of informa- force, the number of technical and business certifications they have tion-technology services, Sento, a Salt Lake City–based provider of secured (such as ISO 9001), the track record of the management team, customer services and support solutions, and Progeon, a financial- and the quality of customer service. transaction-processing firm, based in Bangalore, India that handles The companies that participated in the inaugural survey generate everything from accounting to tax reporting, . almost $100 billion per year in outsourcing revenue. Not every company In addition to providing great insights into the specific companies chose to apply, so the astute observer will note that some well-known on the list, the Global Outsourcing 100 reveals startling trends. On names are missing, including ADP, EDS, Pitney Bowes, and TCS. average, annual revenues for Leaders grew by a robust 15% in 2005. Since the industry is composed of two types of players—larger, As might be expected, it was dramatically higher for Rising Stars. It more established organizations (Leaders), and smaller, fast-growing was up a whopping 66%, since most of these upstarts are at the companies (Rising Stars)—the IAOP created two separate lists. Rising beginning of their growth curve. At the same time, the employment Stars are up-and-comers that have average annual revenues of up to rate for companies of all sizes rose 15% from 2004. The typical out- $75 million that have been growing at 30% per year since 2003, double sourcing company, offshore or not, has 2,000 employees on average, the industry average. production operations in eight countries, and has local personnel in 13. It’s no surprise that IBM, the $96 billion technology giant, holds Looking for a strategic partner to boost efficiency at your the top spot on the Leaders list because of its size, revenue growth, organization? Read on.... and the quality of its customer service. Hot on its heels is Sodexho Alliance. This major provider of food and management services based in Saint-Quentin-Yvelines, France, gets high marks across the board. It has more than 324,000 employees working at 26,700 sites in 76 A LOOK AT THE JUDGES countries. Three additional technology and business process outsourc- Here is our panel. It was composed of leading ing companies rounded out the top five in the Leaders category— experts in the outsourcing industry: , Hewlett-Packard, and Paris-based Capgemini. Jag Dalal, a principal of Chris Disher, vice Among the Leaders group, 32, or nearly half, provide information and JDalal Associates president and head of out- communications technologies services, 21 do transaction processing for sourcing advisory services their clients, 20 provide customer-support services, 16 provide financial- David Barrett, a leading for Booz Allen Hamilton processing services, ten manage their clients’ real estate and provide advisor on outsourcing and a related facilities services, and ten do human resources work, such as partner at Simmons & Simmons Deborah Kops, managing payroll and benefits administration. director of global sourcing The list’s data reveal some important facts about the industry. Finan- ∑Michael F. Corbett, transformation, Deutsche cial-services firms are the heaviest users of outsourcing services, followed executive director, IAOP Bank by technology, telecommunications, and manufacturing corporations. And despite negative publicity about offshoring, 51% of the companies on the Dr. Tina Dacin, Queen’s Lisa Ross, CEO of FAO Leaders list have their largest operations in North America. School of Business (Canada), E. Research, a firm specializing In contrast, the 35 Rising Stars reflect the growing globalization Marie Shantz Professor of Strat- in outsourcing for the of the outsourcing industry. Nine of the top ten have their primary egy & Organizational Behavior financial industry operations outside the U.S. and Western Europe—six are in India, two are in China, and one is in the Russian Federation. In D.J. Dalal, country manager Atul Vashistha, CEO of this group, 18 provide information and communications technology (India) for engineering and tech- neoIT, a leading advisor to services, 12 provide transaction processing services, and ten support nology sourcing for United Tech- multinationals on services their client’s financial operations. nology’s Hamilton Sundstrand globalization The top company on the Rising Star list is ExlService, a leading provider of business process outsourcing solutions, with headquarters S13 THE GLOBAL Special Advertising Feature OUTSOURCING

Global Outsourcing Leaders Scoring was based on reviewed applications with some additional fact-checking. Leaders and Rising Stars were judged separately. Final ranking was based on a weighted average of all four distinguishing characteristics: size and growth rate; customer references; documented competencies; and management capabilities.

1 COMPANY WEBSITE SERVICES

1 IBM www.ibm.com Customer Relationship Mgmt.; HR Mgmt.; Information and Communication Technology Mgmt.

2 Sodexho Alliance www.sodexho.com Real Estate and Capital Asset Mgmt.; Facility Svcs.

3 Accenture www.accenture.com HR Mgmt.; Information and Communication Technology Mgmt.; Financial Mgmt.

4 Hewlett-Packard www.hp.com/go/outsourcing Information and Communication Technology Mgmt.; Financial Mgmt.; Imaging and Printing

5 Capgemini www.capgemini.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.; Financial Mgmt.

6 ARAMARK www.aramark.com Facility Svcs.; Uniform and Career Apparel

7 Technologies www.wipro.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.; Transaction Processing

8 CGI Group www.cgi.com HR Mgmt.; Information and Communication Technology Mgmt.; Transaction Processing

9 Unisys www.unisys.com Information and Communication Technology Mgmt.; Corporate Svcs.; Transaction Processing

10 Technology Solutions www.cognizant.com Information and Communication Technology Mgmt.

11 HCL Technologies www.hclbpo.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

12 Mastek www.mastek.com Information and Communication Technology Mgmt.

13 EMCOR www.emcorgroup.com Information and Communication Technology Mgmt.; Real Estate and Capital Asset Mgmt.; Facility Svcs.

14 Genpact www.genpact.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

15 Johnson Controls www.johnsoncontrols.com Customer Relationship Mgmt.; Real Estate and Capital Asset Mgmt.; Facility Svcs.

16 Xchanging www.xchanging.com HR Mgmt.; Corporate Svcs.; Transaction Processing

17 ClientLogic www.clientlogic.com Sales; Customer Relationship Mgmt.; Transaction Processing

18 TeleTech www.teletech.com Sales; Customer Relationship Mgmt.; Information and Communication Technology Mgmt.

19 LASON www.lason.com Document Mgmt.; Financial Mgmt.; Transaction Processing

20 Patni Computer Systems www.patni.com Information and Communication Technology Mgmt.

21 Williams Lea www.williamslea.com Document Mgmt.; Facility Svcs.

22 Vertex www.vertex.co.uk Sales; Customer Relationship Mgmt.; HR Mgmt.

23 Cushman & Wakefield www.cushwake.com Real Estate and Capital Asset Mgmt.; Facility Svcs.

24 SAIC www.saic.com Information and Communication Technology Mgmt.

25 ExcellerateHRO www.excelleratehro.com HR Mgmt.; Administrative Svcs.; Transaction Processing

26 Harte-Hanks www.harte-hanks.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.

27 Trammell Crow www.trammellcrow.com Real Estate and Capital Asset Mgmt.; Facility Svcs.

28 Cambridge www.cambridgesolutionsltd.com Information and Communication Technology Mgmt.; Financial Mgmt.; Transaction Processing

28 Perot Systems www.perotsystems.com Information and Communication Technology Mgmt.; Financial Mgmt.; Transaction Processing

30 Advanced Technology Services www.advancedtech.com Product Research, Development, and Manufacturing; Information and Communication Technology Mgmt.; Production Equipment Maintenance

S14 A Visible Impact On Your Organization

One of the top 10 outsourcing service providers in the world gives you a

advantage

We know outsourcing works best when you can see the impact of your decisions before you make them. That’s why the IAOP and Fortune Magazine selected Unisys as one of the top 10 outsourcing service providers in the world. We provide the visibility that makes the promise of outsourcing a reality. Go to Unisys.com. Outsourcing solutions for secure business operations.

7+ 100+ 1.2 25+ 25 7.5 million countries million owned and countries spanned million bank accounts service events in which desktops/seats operated by the world’s largest protected by managed Unisys under global managed RFID network managed Unisys Managed per year operates management service centers by Unisys Security

> Consulting > Systems Integration > Outsourcing > Infrastructure > Server Technology

©2006 Unisys Corporation. Unisys is a registered trademark of Unisys Corporation. THE GLOBAL Special Advertising Feature OUTSOURCING

1 COMPANY WEBSITE SERVICES

31 NCS www.ncs.com.sg Information and Communication Technology Mgmt.; Financial Mgmt.; Corporate Svcs.

32 www.techmahindra.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.; Security

33 Hewitt Associates www.hewitt.com HR Mgmt.

34 WNS Global Services www.wnsgs.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

35 IKON Office Solutions www.ikon.com Document Mgmt.; Facility Svcs.; Administrative Svcs.

36 MphasiS www.mphasis.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.; Transaction Processing

37 SPI Technologies www.spitech.com Document Mgmt.; Administrative Svcs.; Litigation Support

38 Donlen www.donlen.com Customer Relationship Mgmt.; Financial Mgmt.; Corporate Svcs.

39 Ocwen Financial www.ocwen.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

40 Intelligroup www.intelligroup.com Information and Communication Technology Mgmt.

41 The Astron Group www.astron.co.uk Document Mgmt.; Corporate Svcs.; Transaction Processing

42 24/7 CUSTOMER www.247customer.com Sales; Customer Relationship Mgmt.; Transaction Processing

43 Zensar Technologies www.zensar.com Information and Communication Technology Mgmt.; Transaction Processing

44 Colliers International www.colliers.com Real Estate and Capital Asset Mgmt.

45 Headstrong www.headstrong.com Information and Communication Technology Mgmt.

46 Equinox www.equinoxco.com Customer Relationship Mgmt.; Transaction Processing; Mortgage Processing

47 Ceridian www.myceridian.com HR Mgmt.; Employee Assistance Programs

48 Eclipsys www.eclipsys.com Information and Communication Technology Mgmt.; Financial Mgmt.

49 OfficeTiger www.officetiger.com Document Mgmt.; Corporate Svcs.; Transaction Processing

50 Infinite Computer Solutions www.infics.com Information and Communication Technology Mgmt.; Document Mgmt.; E-learning

51 eFunds www.efunds.com Customer Relationship Mgmt.; Document Mgmt.; Financial Svcs. Payments

52 Minacs www.minacs.com Marketing Customer Relationship Mgmt.; Back-office Administration

53 BT Global Services www.btplc.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.

54 Direct Alliance www.directalliance.com Marketing; Sales

55 Amdocs www.amdocs.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.

56 Satyam Computer Services www.satyam.com Information and Communication Technology Mgmt.

57 SITEL www.sitel.com Sales; Customer Relationship Mgmt.; Transaction Processing

58 Sapient www.sapient.com Marketing; Information and Communication Technology Mgmt.; Financial Mgmt.

59 IBA Group www.iba-it-group.com Information and Communication Technology Mgmt.; Document Mgmt.; Financial Mgmt.

60 Ness Technologies www.ness.com Information and Communication Technology Mgmt.

61 SEI Investments www.seic.com Financial Mgmt.; Transaction Processing; Asset/Investment Mgmt.

62 ICG Commerce www.icgcommerce.com Procurement Svcs.

63 Integrated Process Technologies www.ip-tech.com Financial Mgmt.; Facility Svcs.; Transaction Processing

64 TheMIGroup www.themigroup.com HR Mgmt.

65 Kanbay www.kanbay.com Information and Communication Technology Mgmt.; Transaction Processing

S16 Special Advertising Feature

Global Outsourcing Rising Stars 1 COMPANY WEBSITE SERVICES

66 ExlService Holdings www.exlservice.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

67 LUXOFT www.luxoft.com Information and Communication Technology Mgmt.

68 HiSoft www.hisoft.com Information and Communication Technology Mgmt.; Transaction Processing

69 Sento www.sento.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.; Transaction Processing

70 Progeon www.progeon.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

71 Ajuba International www.ajubanet.net Financial Mgmt.; Administrative Svcs.; Transaction Processing

72 MindTree Consulting www.mindtree.com Information and Communication Technology Mgmt.

73 KPIT Cummins Infosystems www.kpitcummins.com Information and Communication Technology Mgmt.

74 Bleum www.bleum.com Information and Communication Technology Mgmt.

75 ICICI OneSource www.icicionesource.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

76 vCustomer www.vcustomer.com Customer Relationship Mgmt.; Information and Communication Technology Mgmt.; Transaction Processing

77 MarketBridge www.market-bridge.com Marketing; Sales

78 SummitHR Worldwide www.summithrww.com HR Mgmt.

79 EPAM Systems www.epam.com Information and Communication Technology Mgmt.

80 Knoah Solutions www.knoah.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

81 NIIT SmartServe www.niitsmartserve.com Sales; Administrative Svcs.; Transaction Processing

82 Concur Technologies www.concur.com Financial Mgmt.

83 Emerio www.emeriocorp.com HR Mgmt.; Information and Communication Technology Mgmt.; Transaction Processing

84 Motif www.motifinc.com Customer Relationship Mgmt.; Financial Mgmt.; Transaction Processing

85 Objectiva Software Solutions www.objectivasoftware.com Information and Communication Technology Mgmt.; Document Mgmt.

86 Bristlecone http://www.bcone.com Information and Communication Technology Mgmt.

87 DataArt www.dataart.com Information and Communication Technology Mgmt.

88 I.T. UNITED www.ituc.com Information and Communication Technology Mgmt.

89 Beijing Software Testing & QA Center www.bstqc.com Information and Communication Technology Mgmt.; Software Testing

90 IST Mgmt. Services www.istmgmt..com Document Mgmt.; Facility Svcs.; Administrative Svcs.

91 QA Labs www.qalabs.com Information and Communication Technology Mgmt.; Software Testing

92 Datamatics Technologies www.datamaticstech.com Document Mgmt.; Transaction Processing

93 Aplana Software www.aplana.com Information and Communication Technology Mgmt.

94 Datrose www.datrose.com HR Mgmt.; Document Mgmt.; Financial Mgmt.

95 International Smart Sourcing www.smart-sourcing.com Product Research, Development and Manufacturing

96 Fischer & Company www.fischercre.com Information and Communication Technology Mgmt.; Real Estate and Capital Asset Mgmt.

97 Mera Networks www.meranetworks.com Product Research, Development and Manufacturing

98 Maxil Technology www.maxiltechnology.com Information and Communication Technology Mgmt.; Financial Mgmt.; Transaction Processing

99 Outsource Partners International www.opiglobal.com/ HR Mgmt.; Document Mgmt.; Financial Mgmt.

100 Cross-Tab Marketing Services www.cross-tab.com Marketing; Analytics

S17 3!)# #ONNECTWITH 3UCCESS

3!)#SGLOBALOUTSOURCINGSOLUTIONS

)NFRASTRUCTURE/UTSOURCING -ANAGED3ERVICES  )4/PTIMIZATION "USINESS#ONSULTING  !PPLICATION(OSTINGAND/UTSOURCING 3YSTEMS)NTEGRATION

æTBJDDPN Perot Systems IT Services Company by Mostranked Admired 2nd

FORTUNE

® .

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The smartest companies know when to get help. And some of the best outsourcing help available anywhere is at Perot Systems, recently ranked 2nd Most Admired IT Services To maximize value from ® Company by FORTUNE . Combining an unmatched commitment outsourcing engagements, to client service with a best-of-breed blend of people, processes download the popular and technology, we achieve real results for you in IT applications whitepaper “Avoiding and infrastructure, business processes, and technology and the Seven Deadly Sins of strategy consulting. Outsourcing Relationships” at: www.perotsystems.com/ When you are ready to put the formula for success to work in thoughtleadership your organization, contact us at 1-888 31 PEROT (317 3768). Or visit: www.perotsystems.com

© 2005-2006 Perot Systems. FORTUNE is a registered trademark of the FORTUNE magazine division of Time Inc.