for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013:
April 2013
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Phil Fersht Founder and CEO HfS Research
Jamie Snowdon Vice President, Market Forecasting and Data Products HfS Research
CopyrlghL 2013 PfS 8esearch LLd. 2 C u L s o u r c l n g
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State of the |ndustry 2013 - scope ConducLed uecember 2012 / lebruary 2013 1he largesL-ever quanuLauve lndusLry sLudy coverlng boLh l1 and buslness process ouLsourclng 8espondenLs lncluded 1333 sLakeholders across enLerprlse buyers, servlce provlders and consulLanL/lnuencer organlzauons 1he alm of Lhe survey was Lo undersLand Lhelr vlews, observauons and lnLenuons for 2013 and beyond, when lL comes Lo ouLsourclng l1 and buslness processes Survey was conducLed wlLh Lhe supporL of kMC 1hls presenLauon conLalns a seL of slldes wlLh Lhe Lop level resulLs of Lhe survey
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Summary of key I|nd|ngs l1 and llnance & Accounung admlnlsLrauve processes domlnaLe ouLsourclng plans. LnLerprlses are sull very focused on achlevlng operauonal eecuveness when Lhey ouLsource: CosL- reducuon (87), greaLer scalablllLy of operauons (82) and process sLandardlzauon (74), are Lhe key mouvauons behlnd l1 and buslness operauons ouLsourclng. Core areas of sLraLeglc focus when ouLsourclng, lnclude accesslng beuer LalenL (70), galnlng access Lo beuer Lechnology (62) and lmprovlng analyucal capablllues (62). Mld-markeL enLerprlses ($1bn-$3bn revenues) are much more mouvaLed by sLraLeglc needs Lhan Plgh-end enLerprlses (more Lhan $3bn revenues), CuLsourclng cusLomers are gemng whaL Lhey pay for, wlLh ouLsourclng performances meeung Lhe Lable- sLakes" of cosL-reducuon and sLandard dellvery (88 are saused), buL falllng shorL ln sLraLeglc areas, such as lmprovlng analyucal capablllues, access Lo LalenL and achlevlng lnnovauon, 8C engagemenLs are noLably ouLperforms l1 CuLsourclng engagemenLs for cosL reducuon eecuveness and process sLandardlzauon, process Lransformauon and lmprovlng analyucal capablllues. CuLsourclng adopuon sull very nascenL for buslness processes, for example only 23 are uslng ouLsourclng as Lhe predomlnanL model for accounLs payable processes, 19 purchaslng and accounLs recelvables, 11 for recrulung and sLamng. CuLsourclng cusLomers do noL expecL lnnovauon from suppllers, Lhey wanL sLablllLy, lndusLry undersLandlng and dellvery excellence Close Lo a Lhlrd of hlgh-end enLerprlses vlew Clobal 8uslness Servlces as a mlsslon-crlucal framework for Lhelr fuLure operaung model. CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 3 C u L s o u r c l n g
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Q. Based on your recent experiences, will your clients seek to increase / reduce their reliance on the following operating models for their general and administrative functions, over the next 2 years? 4% 9% 21% 30% 14% 47% 64% 50% 36% 32% 11% 17% 37% 12% 4% 2% 9% In-house delivery, no Shared Services In-house Shared Services (Limited Outsourcing) Outsourcing with service providers (Limited Shared Services) Hybrid Outsourcing & Shared Services (Global Business Services) Increase significantly Increase moderately No change expected Reduce moderately Reduce significantly Source: HfS Research 2013 2013 State of Outsourcing Study, n = 495 Service Provider Executives Conducted with the support of KPMG Shared Services & Outsourcing Advisory G|oba| 8us|ness Serv|ces becom|ng the dom|nant de||very mode| for h|gh-end enterpr|ses CopyrlghL 2013 PfS 8esearch LLd. 6 C u L s o u r c l n g
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Q. How important are the following business DRIVERS behind your company's IT outsourcing and BPO decision making in today's business environment? 17% 20% 21% 22% 24% 29% 33% 34% 35% 37% 43% 43% 45% 41% 40% 46% 39% 36% 34% 39% 45% 44% 29% 27% 27% 32% 28% 27% 16% 21% 22% 12% 10% 11% 9% 11% 6% 3% 5% 15% 11% 5% 6% 3% Force change into our business operations Proven / mature offerings from service providers Improve analytical capabilities Gain access to new technology Gain access to talent Transform / re-engineer processes More effective operations at a global level Meet compliance / regulatory requirements Standardize processes Greater flexibility to scale operations Reduce Operating Costs Mission critical Important, but not critical Somewhat Important Not Important at all Transform / re-engineer processes More effective operations at a global level Meet compliance / regulatory requirements Standardize processes Greater flexibility to scale operations Reduce Operating Costs Force change into our business operations Proven / mature offerings from service providers Improve analytical capabilities Gain access to new technology Gain access to talent O p e r a t i o n a l
S t r a t e g i c
CopyrlghL 2013 PfS 8esearch LLd. Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory Lnterpr|ses sn|| very focused on ach|ev|ng operanona| resu|ts when they outsourc|ng CopyrlghL 2013 PfS 8esearch LLd. 7 C u L s o u r c l n g
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Q. How important are the following business DRIVERS behind your company's IT outsourcing and BPO decision making in today's business environment? (Mission-critical only) 27% 16% 19% 26% 27% 29% 33% 28% 33% 41% 32% 18% 20% 22% 22% 23% 28% 34% 38% 38% 42% 54% 0% 20% 40% 60% Proven / mature offerings from service providers Force change into our business operations Improve analytical capabilities Gain access to new technology Gain access to talent Transform / re-engineer processes Meet compliance / regulatory requirements Standardize processes More effective operations at a global level Greater flexibility to scale operations Reduce Operating Costs High-end Enterprises ($5bn+) Mid-Market Enterprises ($1bn-$5bn) 32% 54% 27% 18% Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory n|gh-end enterpr|ses focused on cost, m|d-market focused on prov|der so|unons CopyrlghL 2013 PfS 8esearch LLd. 8 C u L s o u r c l n g
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S out of 10 Lnterpr|ses p|ann|ng to start ] expand ADM scope, 4 out of 10 I&A 8C |n 2013 Q. Are you likely to increase or decrease your outsourcing activity across the following business operations areas in the next 12 months? 5% 3% 4% 6% 8% 4% 9% 10% 10% 10% 8% 9% 11% 13% 15% 15% 16% 17% 17% 19% 21% 29% 32% 39% 31% 31% 36% 26% 26% 30% 30% 47% 34% 40% 25% 37% 4% 3% 2% 1% 2% 4% 5% 3% 5% 6% 5% 6% 50% 50% 43% 52% 48% 45% 39% 21% 30% 15% 29% 9% Marketing Operations Outsourcing Customer Relationship Management Legal Process Outsourcing Knowledge Process Outsourcing Analytics Industry Specific Processes Procurement & Sourcing Outsourcing Document & Print Operations Outsourcing Human Resources Outsourcing IT Infrastructure Outsourcing Finance & Accounting Outsourcing Application Development & Maintenance Will start outsourcing for the 1st time Increase scope Stay the same Decrease scope No plans 8% 9% 32% 39% 25% 37% 5% 6% 29% 9% Finance & Accounting Outsourcing Application Development & Maintenance Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory CopyrlghL 2013 PfS 8esearch LLd. 9 C u L s o u r c l n g
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Q. How effective have your current BPO / IT outsourcing initiatives been for achieving the following business benefits to date? 9% 13% 18% 15% 17% 20% 23% 29% 29% 35% 53% 56% 55% 63% 61% 61% 63% 56% 53% 52% 38% 31% 27% 21% 22% 19% 15% 16% 18% 12% Providing innovation Gaining access to analytical capabilities Gaining access to new technology Transforming processes Forcing change into our business operations Gaining access to capable talent Meeting regulatory requirements Standardizing processes Supporting more effective ops at a global level Reducing operating Costs Very Effective Somewhat Effective Not Effective 9% 13% 18% 53% 56% 55% 38% 31% 27% Providing innovation Gaining access to analytical capabilities Gaining access to new technology G o o d
P e r f o r m a n c e
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P o o r
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Lnterpr|se Cutsourc|ng erformance Meenng 1ab|e-stakes, but Ia|||ng Short |n Strateg|c Areas Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with KPMG Conducted with the support of KPMG Shared Services & Outsourcing Advisory CopyrlghL 2013 PfS 8esearch LLd. 10 C u L s o u r c l n g
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Q. How effective have your current BPO/ IT outsourcing initiatives been for achieving the following business benefits to date? (very effective responses only) 7% 11% 16% 18% 17% 21% 19% 27% 31% 41% 7% 12% 14% 17% 17% 20% 21% 29% 32% 44% Providing new and creative methods of achieving business value (innovation) Gaining access to analytical capabilities Gaining access to new technology Gaining access to capable talent Transforming / re-engineering processes Meeting compliance / regulatory requirements Forcing change into our business operations Standardizing processes Supporting more effective operations at a global level Reducing operating Costs High-end Enterprises ($5bn+) Mid-Market Enterprises ($1bn-$5bn) Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory n|gh-end and M|d-market enterpr|ses ach|ev|ng s|m||ar resu|ts from outsourc|ng CopyrlghL 2013 PfS 8esearch LLd. 11 C u L s o u r c l n g
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Q. How effective have your current IT outsourcing initiatives been for achieving the following business benefits to date? 7% 9% 13% 14% 19% 20% 20% 22% 29% 31% 55% 57% 62% 63% 61% 55% 67% 58% 52% 55% 39% 34% 26% 23% 19% 25% 13% 19% 19% 15% Providing new and creative methods of achieving business value (innovation) Gaining access to analytical capabilities Transforming / re-engineering processes Forcing change into our business operations Gaining access to capable talent Gaining access to new technology Meeting compliance / regulatory requirements Standardizing processes Supporting more effective operations at a global level Reducing operating Costs Very Effective Somewhat Effective Not Effective 7% 9% 13% Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory I1C |n|nanves: Iuncnona||y eecnve, but ||ght on |nnovanon CopyrlghL 2013 PfS 8esearch LLd. 12 C u L s o u r c l n g
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Q. How effective have your current IT outsourcing initiatives been for achieving the following business benefits to date? (very effective responses only) 4% 7% 17% 23% 11% 17% 17% 17% 33% 31% 3% 6% 7% 15% 15% 15% 16% 22% 29% 40% Supporting more effective operations at a global level Meeting compliance / regulatory requirements Providing new and creative methods of achieving business value (innovation) Transforming / re-engineering processes Standardizing processes Gaining access to new technology Gaining access to capable talent Gaining access to analytical capabilities Reducing operating Costs Forcing change into our business operations High-end Enterprises ($5bn+) Mid-Market Enterprises ($1bn-$5bn) 17% 23% 7% 7% 15% 15% Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory I1C: M|d-market hav|ng more success transform|ng processes and ach|ev|ng |nnovanon CopyrlghL 2013 PfS 8esearch LLd. 13 C u L s o u r c l n g
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Q. How effective have your current BPO initiatives been for achieving the following business benefits to date? 12% 16% 17% 18% 20% 21% 25% 29% 35% 40% 51% 55% 55% 65% 58% 61% 59% 53% 54% 50% 38% 29% 28% 17% 21% 18% 16% 18% 12% 10% Providing new and creative methods of achieving business value (innovation) Gaining access to new technology Gaining access to analytical capabilities Transforming / re-engineering processes Forcing change into our business operations Gaining access to capable talent Meeting compliance / regulatory requirements Supporting more effective operations at a global level Standardizing processes Reducing operating Costs Very Effective Somewhat Effective Not Effective 29% 35% 40% Supporting more effective operations at a global level Standardizing processes Reducing operating Costs Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory 90 of 8C |n|nanves h|gh|y eecnve at meenng operanon targets CopyrlghL 2013 PfS 8esearch LLd. 14 C u L s o u r c l n g
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8C outperforms I1C for cost reducnon, process standard|zanon and var|ous strateg|c measures 0% 10% 20% 30% 40% E n t e r p r i s e
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P e r f o r m a n c e I1 Cutsourc|ng 8us|ness rocess Cutsourc|ng Tactical Measures Strategic Measures Q. How effective have your current outsourcing initiatives been for achieving the following business benefits to date? (Very Effective responses only) Source: HfS Research 2013, n =399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with KPMG CopyrlghL 2013 PfS 8esearch LLd. 13 C u L s o u r c l n g
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Q. How effective have your current BPO initiatives been for achieving the following business benefits to date? (very effective responses only) 11% 21% 14% 22% 24% 21% 15% 24% 33% 43% 11% 12% 17% 19% 24% 26% 27% 35% 36% 48% Supporting more effective operations at a global level Gaining access to capable talent Meeting compliance / regulatory requirements Gaining access to new technology Transforming / re-engineering processes Standardizing processes Providing new and creative methods of achieving business value (innovation) Reducing operating Costs Gaining access to analytical capabilities Forcing change into our business operations High-end Enterprises ($5bn+) Mid-Market Enterprises ($1bn-$5bn) 15% 15% 24% 24% 27% 35% Providing new and creative methods of achieving business value (innovation) Reducing operating Costs Source: HfS Research 2013, n = 399 Buy-side Enterprises
2013 State of Outsourcing Study Conducted with the support of KPMG Shared Services & Outsourcing Advisory Large enterpr|ses gemng beuer performance from 8C than m|d-s|zed enterpr|ses CopyrlghL 2013 PfS 8esearch LLd. 16 C u L s o u r c l n g
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US hrms |ook|ng for h|gher-va|ue capab|||ty from Cutsourc|ng Q. How important are the following business DRIVERS behind your company's IT outsourcing and BPO decision making in today's business environment? (Mission-critical only) 47% 32% 30% 31% 26% 15% 21% 13% 7% 11% 11% 41% 37% 32% 35% 36% 32% 23% 24% 26% 24% 17% 29% 46% 54% 18% 38% 38% 15% 8% 15% 8% 25% Reduce Operating Costs Greater flexibility to scale operations Standardize processes Meet compliance / regulatory requirements More effective operations at a global level Transform / re-engineer processes Gain access to talent Gain access to new technology Improve analytical capabilities Proven / mature offerings from service providers Force change into our business operations Europe North America Asia Pacific 24% 26% 24% 15% 1 30% 32%% 54% 15%% 32%% 38% Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory CopyrlghL 2013 PfS 8esearch LLd. 17 C u L s o u r c l n g
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79% 78% 76% 73% 69% 73% 71% 60% 55% 52% 56% 44% 46% 42% 45% 42% 40% 38% 14% 13% 14% 15% 19% 13% 16% 19% 23% 22% 19% 25% 21% 17% 18% 20% 23% 18% 2% 3% 5% 3% 3% 4% 2% 6% 5% 7% 6% 8% 4% 10% 6% 6% 4% 6% 5% 5% 5% 9% 10% 10% 11% 15% 17% 19% 19% 23% 30% 31% 32% 33% 33% 38% Strategic Sourcing: Direct Procurement Financial Planning & Analysis Logistics/Supply Chain Management Workforce data management / analytics Management Reporting Strategic Sourcing: Indirect Procurement Recruitment / Staffing Employee contact center General Accounting / GL Accounts Receivable Purchase-to-pay/Transactional Purchasing Accounts Payable Benefits Administration Application Development IT Infrastructure Management Ongoing ERP Maintenance Payroll IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory Cutsourc|ng sn|| has a |ong, |ong way go - espec|a||y for bus|ness processes CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 19 C u L s o u r c l n g
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G|oba| bus|ness serv|ces mode|s support g|oba| expans|on. lndusLrles wlLh global fooLprlnLs are more aggresslve ln Lhelr approaches because Lhey need Lo supporL a growlng lnLernauonal cusLomer-base. Lxamples are pharmaceuucal & llfe sclences, CC, LransporLauon, and manufacLurlng. keta|| and hosp|ta||ty |ndustr|es focus on shared serv|ces. 1lghL lnLegrauon wlLh local markeL languages, supply chaln, and reglonal brands lnuence declslons Lo go wlLh a shared servlce model. 8|ended onshore and oshore requ|rements ba|ance dec|s|ons. Servlclng local cusLomers conunues Lo balance Lhe lnsurance lndusLry's approach Lo shared servlces (onshore) and ouLsourclng (oshore). Shared serv|ces requ|res sca|e. Large companles are mosL llkely Lo conslder shared servlces operaung models because Lhey have more scale and are more llkely Lo operaLe globally. Capnve mode|s rema|n rare. 8anklng, lnsurance, and soware/hl-Lech rms are mosL llkely Lo leverage capuve models, whlch Lyplcally house l1-relaLed processes. key Industry 1rends CopyrlghL 2013 PfS 8esearch LLd. 20 C u L s o u r c l n g
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78% 78% 74% 73% 66% 65% 62% 59% 54% 56% 53% 45% 39% 45% 40% 37% 37% 36% 17% 15% 16% 15% 17% 21% 21% 21% 23% 22% 22% 25% 19% 14% 22% 17% 20% 16% 1% 4% 6% 3% 4% 6% 8% 5% 6% 8% 8% 7% 3% 11% 5% 9% 4% 4% 6% 7% 12% 12% 13% 14% 14% 17% 18% 21% 33% 34% 35% 35% 39% 39% Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Strategic Sourcing: Indirect Procurement Financial Planning & Analysis Workforce data management / analytics Management Reporting Recruitment / Staffing Purchase-to-pay/Transactional Purchasing Employee contact center General Accounting / GL Accounts Receivable Accounts Payable Ongoing ERP Maintenance IT Infrastructure Management Benefits Administration Application Development Payroll IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: 8ank|ng Sector CopyrlghL 2013 PfS 8esearch LLd. 21 C u L s o u r c l n g
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80% 73% 76% 77% 73% 65% 70% 74% 61% 60% 61% 58% 50% 50% 47% 46% 46% 39% 11% 16% 12% 15% 11% 18% 14% 13% 19% 16% 14% 17% 22% 17% 23% 23% 21% 24% 6% 6% 7% 3% 9% 9% 6% 4% 7% 11% 9% 9% 5% 9% 5% 6% 7% 9% 3% 5% 5% 7% 8% 9% 10% 13% 14% 16% 16% 23% 24% 25% 26% 26% 28% Financial Planning & Analysis Management Reporting Logistics/Supply Chain Management Strategic Sourcing: Direct Procurement Strategic Sourcing: Indirect Procurement Employee contact center Workforce data management / analytics Recruitment / Staffing General Accounting / GL Accounts Receivable Purchase-to-pay/Transactional Purchasing Accounts Payable IT Infrastructure Management Benefits Administration Ongoing ERP Maintenance IT Help Desk Payroll Application Development Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: Insurance Sector CopyrlghL 2013 PfS 8esearch LLd. 22 C u L s o u r c l n g
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81% 84% 75% 66% 66% 73% 42% 68% 40% 50% 40% 26% 35% 39% 44% 27% 28% 35% 12% 10% 15% 22% 15% 10% 33% 9% 28% 21% 29% 36% 16% 19% 12% 32% 22% 15% 4% 4% 1% 5% 11% 3% 13% 5% 6% 6% 5% 8% 10% 15% 15% 18% 18% 21% 27% 28% 29% 36% 38% 39% 39% 44% 44% Financial Planning & Analysis Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Management Reporting Recruitment / Staffing Workforce data management / analytics General Accounting / GL Strategic Sourcing: Indirect Procurement Accounts Receivable Employee contact center Purchase-to-pay/Transactional Purchasing Accounts Payable IT Infrastructure Management Benefits Administration Application Development Payroll IT Help Desk Ongoing ERP Maintenance Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: CG Sector CopyrlghL 2013 PfS 8esearch LLd. 23 C u L s o u r c l n g
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86% 79% 78% 80% 66% 73% 62% 72% 49% 55% 47% 50% 30% 47% 33% 40% 40% 32% 11% 12% 10% 10% 21% 13% 18% 14% 28% 21% 29% 24% 33% 11% 29% 23% 19% 19% 4% 6% 4% 4% 6% 1% 7% 6% 5% 10% 11% 6% 6% 7% 5% 6% 8% 9% 10% 14% 14% 16% 18% 18% 22% 26% 30% 32% 34% 35% 42% Strategic Sourcing: Direct Procurement Financial Planning & Analysis Logistics/Supply Chain Management Strategic Sourcing: Indirect Procurement Management Reporting Workforce data management / analytics Employee contact center Recruitment / Staffing General Accounting / GL Purchase-to-pay/Transactional Purchasing Accounts Receivable Benefits Administration Accounts Payable Application Development Payroll IT Infrastructure Management Ongoing ERP Maintenance IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: Manufactur|ng Sector CopyrlghL 2013 PfS 8esearch LLd. 24 C u L s o u r c l n g
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81% 77% 75% 72% 78% 73% 73% 59% 59% 53% 52% 41% 52% 44% 41% 39% 38% 27% 11% 15% 11% 18% 11% 16% 16% 21% 18% 23% 24% 28% 19% 20% 24% 21% 18% 22% 1% 1% 7% 7% 7% 9% 9% 9% 9% 13% 20% 21% 21% 27% 27% 31% 33% 37% 41% 48% Strategic Sourcing: Direct Procurement Financial Planning & Analysis Logistics/Supply Chain Management Management Reporting Strategic Sourcing: Indirect Procurement Workforce data management / analytics Recruitment / Staffing Purchase-to-pay/Transactional Purchasing Employee contact center Accounts Receivable General Accounting / GL Accounts Payable Benefits Administration Application Development Payroll IT Infrastructure Management Ongoing ERP Maintenance IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: Lnergy & Un||nes CopyrlghL 2013 PfS 8esearch LLd. 23 C u L s o u r c l n g
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87% 81% 77% 76% 78% 68% 68% 64% 62% 55% 50% 54% 49% 59% 45% 48% 43% 40% 7% 15% 12% 12% 20% 18% 19% 14% 14% 23% 13% 19% 9% 20% 13% 15% 2% 8% 3% 9% 7% 7% 7% 7% 7% 7% 8% 9% 13% 14% 21% 23% 24% 24% 25% 25% 31% 31% 35% 42% Workforce data management / analytics Recruitment / Staffing Financial Planning & Analysis Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Strategic Sourcing: Indirect Procurement Management Reporting Purchase-to-pay/Transactional Purchasing Ongoing ERP Maintenance Employee contact center General Accounting / GL Application Development Accounts Receivable IT Infrastructure Management Accounts Payable IT Help Desk Benefits Administration Payroll Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: Med|a & Lnterta|nment Sectors CopyrlghL 2013 PfS 8esearch LLd. 26 C u L s o u r c l n g
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86% 78% 76% 72% 73% 64% 68% 52% 61% 47% 52% 40% 51% 39% 35% 33% 33% 30% 10% 16% 13% 18% 14% 21% 17% 23% 13% 23% 21% 24% 17% 14% 24% 23% 19% 20% 2% 6% 2% 11% 5% 6% 8% 12% 14% 14% 22% 23% 24% 24% 29% 31% 36% 38% 41% 44% 47% Financial Planning & Analysis Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Strategic Sourcing: Indirect Procurement Recruitment / Staffing Management Reporting Workforce data management / analytics General Accounting / GL Employee contact center Accounts Receivable Purchase-to-pay/Transactional Purchasing Accounts Payable Benefits Administration Application Development Payroll IT Infrastructure Management Ongoing ERP Maintenance IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: harma, L|fe Sc|ences & nea|th CopyrlghL 2013 PfS 8esearch LLd. 27 C u L s o u r c l n g
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89% 79% 88% 77% 85% 86% 85% 80% 67% 66% 78% 62% 51% 60% 48% 52% 51% 39% 7% 17% 7% 17% 9% 7% 8% 9% 22% 21% 10% 23% 28% 22% 27% 19% 20% 9% 1% 2% 2% 1% 1% 2% 1% 3% 3% 4% 3% 4% 5% 2% 2% 3% 3% 13% 2% 3% 3% 5% 5% 5% 5% 8% 8% 9% 9% 12% 16% 17% 23% 26% 26% 39% Strategic Sourcing: Direct Procurement Financial Planning & Analysis Logistics/Supply Chain Management Workforce data management / analytics Management Reporting Strategic Sourcing: Indirect Procurement Recruitment / Staffing Employee contact center General Accounting / GL Accounts Receivable Purchase-to-pay/Transactional Purchasing Accounts Payable Application Development Payroll Benefits Administration IT Infrastructure Management Ongoing ERP Maintenance IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: : ub||c Sector CopyrlghL 2013 PfS 8esearch LLd. 28 C u L s o u r c l n g
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71% 63% 74% 74% 55% 68% 70% 70% 52% 48% 47% 39% 33% 46% 40% 42% 44% 41% 26% 32% 19% 17% 34% 21% 19% 18% 32% 33% 35% 35% 40% 18% 32% 24% 19% 20% 10% 8% 9% 10% 10% 13% 15% 16% 23% 25% 26% 27% 31% 34% 36% Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Strategic Sourcing: Indirect Procurement Financial Planning & Analysis Employee contact center Workforce data management / analytics Management Reporting Recruitment / Staffing General Accounting / GL Accounts Receivable Purchase-to-pay/Transactional Purchasing Accounts Payable Benefits Administration Application Development Payroll IT Infrastructure Management IT Help Desk Ongoing ERP Maintenance Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: keta|| & nosp|ta||ty CopyrlghL 2013 PfS 8esearch LLd. 29 C u L s o u r c l n g
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78% 65% 80% 73% 73% 70% 56% 52% 60% 49% 50% 48% 44% 40% 44% 53% 39% 39% 16% 20% 13% 18% 17% 16% 20% 25% 15% 17% 21% 18% 14% 26% 17% 17% 23% 20% 4% 10% 4% 8% 5% 7% 12% 6% 8% 15% 12% 2% 7% 6% 5% 5% 8% 8% 11% 16% 17% 18% 21% 24% 26% 27% 27% 28% 28% 31% 35% Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Financial Planning & Analysis Management Reporting Workforce data management / analytics Recruitment / Staffing Employee contact center General Accounting / GL Strategic Sourcing: Indirect Procurement Purchase-to-pay/Transactional Purchasing Accounts Receivable IT Infrastructure Management Application Development Accounts Payable Ongoing ERP Maintenance Benefits Administration Payroll IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: Sohware, n|-1ech & 1e|ecoms CopyrlghL 2013 PfS 8esearch LLd. 30 C u L s o u r c l n g
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82% 89% 81% 87% 77% 79% 56% 73% 55% 59% 40% 51% 36% 48% 31% 47% 28% 28% 7% 16% 14% 22% 16% 25% 18% 20% 17% 15% 17% 15% 8% 2% 10% 1% 1% 9% 18% 8% 18% 8% 22% 9% 10% 12% 14% 16% 16% 23% 26% 27% 31% 35% 45% 51% Strategic Sourcing: Direct Procurement Financial Planning & Analysis Logistics/Supply Chain Management Workforce data management / analytics Management Reporting Strategic Sourcing: Indirect Procurement General Accounting / GL Recruitment / Staffing Employee contact center Purchase-to-pay/Transactional Purchasing Accounts Receivable Payroll Accounts Payable Benefits Administration IT Help Desk IT Infrastructure Management Ongoing ERP Maintenance Application Development Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: 1ransport & Log|sncs CopyrlghL 2013 PfS 8esearch LLd. 31 C u L s o u r c l n g
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79% 72% 74% 65% 67% 73% 65% 63% 42% 45% 43% 49% 47% 35% 40% 38% 30% 27% 13% 19% 17% 16% 21% 13% 21% 19% 30% 27% 31% 16% 18% 31% 19% 17% 22% 21% 4% 2% 2% 8% 2% 4% 2% 6% 6% 4% 2% 8% 6% 4% 6% 8% 6% 6% 4% 6% 6% 10% 10% 10% 13% 13% 22% 24% 24% 27% 29% 29% 34% 38% 42% 46% Financial Planning & Analysis Strategic Sourcing: Direct Procurement Logistics/Supply Chain Management Employee contact center Management Reporting Recruitment / Staffing Strategic Sourcing: Indirect Procurement Workforce data management / analytics Purchase-to-pay/Transactional Purchasing Accounts Receivable General Accounting / GL Application Development Benefits Administration Accounts Payable IT Infrastructure Management Ongoing ERP Maintenance Payroll IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory redom|nant de||very mode|s: M|d-Market organ|zanons (>51bn - 5Sbn revenues) CopyrlghL 2013 PfS 8esearch LLd. 32 C u L s o u r c l n g
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67% 78% 73% 71% 68% 60% 64% 42% 42% 43% 35% 24% 31% 38% 38% 35% 34% 31% 18% 16% 15% 16% 12% 23% 17% 27% 27% 23% 26% 30% 29% 22% 19% 20% 18% 21% 10% 1% 5% 2% 7% 3% 2% 10% 8% 10% 12% 13% 5% 5% 6% 7% 9% 6% 5% 5% 8% 11% 12% 13% 16% 21% 23% 24% 27% 33% 34% 35% 36% 38% 39% 43% Logistics/Supply Chain Management Strategic Sourcing: Direct Procurement Financial Planning & Analysis Workforce data management / analytics Strategic Sourcing: Indirect Procurement Management Reporting Recruitment / Staffing General Accounting / GL Employee contact center Purchase-to-pay/Transactional Purchasing Accounts Receivable Accounts Payable Payroll Benefits Administration IT Infrastructure Management Ongoing ERP Maintenance Application Development IT Help Desk Inhouse Shared Services Offshore captive Outsourced Q. Which delivery model do you predominantly use for managing the following processes?
Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory Cutsourc|ng sn|| has a |ong, |ong way go - espec|a||y for bus|ness process (5Sbn+ Lnterpr|ses) CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 34 C u L s o u r c l n g
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Q. How important are the following service provider attributes your organization today? 6% 14% 17% 17% 19% 23% 28% 29% 30% 35% 35% 36% 40% 35% 39% 40% 48% 43% 47% 42% 48% 42% 44% 29% 34% 43% 40% 34% 37% 27% 30% 25% 26% 20% 23% 18% 21% 25% 16% 19% 13% 7% 7% 8% 6% 5% 3% 5% 3% 15% 6% 2% Brand Ability to guarantee gainsharing incentives for productivity / growth improvements Ability to provide analytical insight Ability to support business-outcome initiatives, as opposed to solely effort-based pricing Ability to provide innovation - new sources of productivity / growth Ability to transform / reengineer existing processes Culture of the provider's delivery organization Capability of delivery talent to add value beyond standard operations Ability to support change management and governance needs Track record to deliver standard operational services Global delivery scale and flexibility Knowledge of specific industry processes Financial stability Mission critical Important, but not critical Somewhat Important Not Important Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory Stab|||ty, know|edge and de||very competence trump |nnovanon CopyrlghL 2013 PfS 8esearch LLd. 33 C u L s o u r c l n g
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Q. How important are the following service provider attributes your organization today? Q. Based on your experience, how important are the following service provider attributes to your clients today for IT/BPO services? (Mission Critical responses only) Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises n = 495 Service Provider Executives 6% 14% 17% 17% 19% 23% 28% 29% 30% 35% 35% 36% 40% 11% 19% 24% 22% 30% 34% 21% 45% 32% 50% 35% 45% 33% 0% 20% 40% 60% Brand Ability to guarantee gainsharing incentives for productivity / growth improvements Ability to provide analytical insight Ability to support business-outcome initiatives, as opposed to solely effort-based pricing Ability to provide innovation - new sources of productivity / growth Ability to transform / reengineer existing processes Culture of the provider's delivery organization Capability of delivery talent to add value beyond standard operations Ability to support change management and governance needs Track record to deliver standard operational services Global delivery scale and flexibility Knowledge of specific industry processes Financial stability What Providers think Buyers view as Mission Critical Buyers view of Mission Critical rov|ders overesnmate |mportance buyers p|ace on the|r ta|ent, |nnovanon capab|||ty and track record for standard de||very CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 37 C u L s o u r c l n g
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Q. Are you likely to increase or decrease your outsourcing activity across the following business operations areas in the next 12 months? (Will look to start outsourcing for the first time only) Top 3 responses by industry Insurance Manufacturing Banking CPG Document & Print Operations Outsourcing 17% Analytics 15% Document & Print Operations Outsourcing 10% Application Development & Maintenance Outsourcing 13% Analytics 8% Human Resources Outsourcing 14% IT Infrastructure Outsourcing 10% IT Infrastructure Outsourcing 13% Application Development & Maintenance Outsourcing 8% Knowledge Process Outsourcing 8% Finance & Accounting Outsourcing 7% Finance & Accounting Outsourcing 11% Energy & Utilities Entertainment Pharma, Life Sciences & Healthcare Public Sector Document & Print Operations Outsourcing 25% IT Infrastructure Outsourcing 30% Procurement & Sourcing Outsourcing 20% Document & Print Operations Outsourcing 40% IT Infrastructure Outsourcing 18% Application Development & Maintenance Outsourcing 18% Finance & Accounting Outsourcing 19% Customer Relationship Management Outsourcing 20% Marketing Operations Outsourcing 18% Analytics 10% Analytics 13% Industry Specific Processes 20% Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Retail Software, Hi-Tech and Telecoms Transportation & Logistics Other industries IT Infrastructure Outsourcing 25% Human Resources Outsourcing 15% Human Resources Outsourcing 44% Analytics 24% Application Development & Maintenance Outsourcing 13% IT Infrastructure Outsourcing 14% Procurement & Sourcing Outsourcing 38% Finance & Accounting Outsourcing 18% Document & Print Operations Outsourcing 11% Application Development & Maintenance Outsourcing 13% Finance & Accounting Outsourcing 25% Knowledge Process Outsourcing 18% Conducted with the support of KPMG Shared Services & Outsourcing Advisory |ans to start outsourc|ng |n 2013: by |ndustry CopyrlghL 2013 PfS 8esearch LLd. 38 C u L s o u r c l n g
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Q. Are you likely to increase or decrease your outsourcing activity across the following business operations areas in the next 12 months? (Will look to start outsourcing for the first time only) 3% 3% 4% 6% 7% 8% 9% 9% 10% 10% 10% 13% 2% 6% 2% 15% 13% 4% 2% 6% 7% 9% 9% 6% 2% 4% 4% 6% 4% 4% 2% 11% 15% 8% 6% 13% 0% 20% Customer Relationship Management Outsourcing Legal Process Outsourcing Industry Specific Processes Document & Print Operations Outsourcing Finance & Accounting Outsourcing Knowledge Process Outsourcing Marketing Operations Outsourcing Analytics Human Resources Outsourcing Application Development & Maintenance Outsourcing Procurement & Sourcing Outsourcing IT Infrastructure Outsourcing Small Enterprises (< $1bn) Mid-market Enterprises: ($1bn - $5bn) High-end Enterprises: ($5bn+) Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory |ans to start outsourc|ng |n 2013: by organ|zanona| s|ze CopyrlghL 2013 PfS 8esearch LLd. 39 C u L s o u r c l n g
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Q. Are you likely to increase or decrease your outsourcing activity across the following business operations areas in the next 12 months? (Increase scope only) 6% 19% 7% 20% 20% 9% 19% 13% 9% 24% 43% 21% 12% 14% 16% 16% 17% 17% 18% 22% 30% 34% 37% 43% 0% 20% 40% 60% Marketing Operations Outsourcing Knowledge Process Outsourcing Customer Relationship Management Outsourcing Industry Specific Processes Procurement & Sourcing Outsourcing Legal Process Outsourcing Analytics Document & Print Operations Outsourcing Human Resources Outsourcing IT Infrastructure Outsourcing Application Development & Maintenance Outsourcing Finance & Accounting Outsourcing High-end Enterprises: ($5bn+) Mid-market Enterprises: ($1bn - $5bn) Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory |ans to |ncrease outsourc|ng scope |n 2013: ADM and I&A dom|nate. Large hrms |ncreas|ng I1 |nfrastructure and nk CopyrlghL 2013 PfS 8esearch LLd. 40 C u L s o u r c l n g
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Q. Are you likely to increase or decrease your outsourcing activity across the following business operations areas in the next 12 months? (Increase scope only) Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises 6% 6% 6% 11% 11% 12% 13% 14% 15% 16% 16% 17% Retail Transportation & Logistics Public Sector Banking Entertainment Other industries CPG Manufacturing Insurance Energy & Utilities Pharma, Life Sciences & Software, Hi- Tech and CRM BPO 16% 22% 25% 25% 29% 31% 33% 35% 35% 40% 43% 45% Public Sector Retail Energy & Utilities Other industries Banking Entertainment Insurance Pharma, Life Sciences & Transportation & Logistics Manufacturing CPG Software, Hi-Tech and Telecoms F&A BPO 10% 15% 16% 19% 19% 20% 20% 20% 22% 25% 32% 33% Entertainment Energy & Utilities Transportation & Logistics Insurance Other industries Banking Pharma, Life Sciences & Public Sector Software, Hi- Tech and CPG Manufacturing Retail HR BPO 8% 8% 8% 8% 13% 13% 15% 16% 20% 22% 23% 28% CPG Energy & Utilities Retail Software, Hi-Tech and Telecoms Manufacturing Entertainment Pharma, Life Sciences & Transportation & Logistics Other industries Insurance Banking Public Sector Industry Specific Processes Conducted with the support of KPMG Shared Services & Outsourcing Advisory |ans to |ncrease outsourc|ng |n 2013 by |ndustry CopyrlghL 2013 PfS 8esearch LLd. 41 C u L s o u r c l n g
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Q. Are you likely to increase or decrease your outsourcing activity across the following business operations areas in the next 12 months? (Increase scope only) Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises 8% 8% 13% 14% 14% 15% 15% 17% 20% 20% 25% 28% Manufacturing Entertainment Energy & Utilities Insurance Transportation & Logistics Banking Software, Hi-Tech and Telecoms Other industries CPG Retail Pharma, Life Sciences & Public Sector Analytics 20% 32% 33% 36% 37% 37% 38% 38% 40% 45% 45% 60% Transportation & Logistics Retail Energy & Utilities Other industries Pharma, Life Sciences & Manufacturing Entertainment CPG Software, Hi- Tech and Insurance Banking Public Sector ADM 14% 14% 23% 24% 25% 28% 29% 29% 30% 35% 36% 54% Retail Transportation & Logistics Other industries Entertainment Software, Hi- Tech and Energy & Utilities Manufacturing Banking Pharma, Life Sciences & Insurance CPG Public Sector IT Infrastructure Outsourcing Conducted with the support of KPMG Shared Services & Outsourcing Advisory |ans to |ncrease outsourc|ng |n 2013 by |ndustry CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 43 C u L s o u r c l n g
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Q. To help us with our research, how important are the following topics/issues to your organization's outsourcing strategy going into 2013? 6% 7% 13% 16% 17% 19% 20% 21% 22% 23% 27% 28% 31% 25% 38% 34% 43% 52% 38% 26% 48% 47% 41% 36% 34% 40% 32% 34% 32% 23% 31% 27% 24% 23% 24% 27% 29% 28% 16% 16% 8% 6% 12% 26% 6% 7% 7% 9% Making better use of social media to improve collaboration Defining roles and career paths for sourcing executives Governance talent management Improving the perception of outsourcing within our organization Accessing price benchmarks Understanding capabilities of providers, beyond low-cost Improving our analytical capabilities Creating a global business services framework Accessing performance benchmarks Accomplishing innovation with operational processes Altering the mindset of leadership from cost to value-creation Change management Mission critical Important, but not critical Somewhat Important Not Important at all Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory "Change" Dom|nates key 1op|cs of Interest for 2013 (8uyers) CopyrlghL 2013 PfS 8esearch LLd. 44 C u L s o u r c l n g
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Q. To help us with our research, how important are the following topics/issues to your organization's outsourcing strategy going into 2013? (Mission Critical only) 9% 9% 16% 14% 19% 19% 21% 26% 18% 30% 28% 26% 4% 7% 15% 16% 19% 20% 22% 24% 29% 29% 29% 31% 0% 20% 40% 60% Defining roles and career paths for sourcing Making better use of social media to improve Improving the perception of outsourcing within our Governance talent management Accessing price benchmarks Understanding capabilities of providers, beyond Improving our analytical capabilities Accessing performance benchmarks Creating a global business services framework Change management Accomplishing innovation with operational Altering the mindset of leadership from one of cost >$5b >$1b <$5b Source: HfS Research 2013 2013 State of Outsourcing Study, n = 495 Service Provider Executives Conducted with the support of KPMG Shared Services & Outsourcing Advisory n|gh-end Lnterpr|ses focused on G8S CopyrlghL 2013 PfS 8esearch LLd. 43 C u L s o u r c l n g
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Q. To help us with our research, how important are the following topics/issues to your organization's outsourcing strategy going into 2013? (Mission Critical only) 18% 18% 20% 20% 25% 39% 17% 17% 33% 28% 8% 13% 17% 29% 29% 17% 12% 17% 33% 17% 15% 31% 31% 31% 58% 10% 9% 11% -20% 0% 20% 40% 60% Creating a global business services framework Improving our analytical capabilities Accomplishing innovation with operational processes Change management Altering the mindset of leadership from one of cost to value-creation Banking CPG Insurance Manufacturing Energy & Utilities Entertainment Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises Conducted with the support of KPMG Shared Services & Outsourcing Advisory 1op|cs for 2013 - customer v|ew by |ndustry CopyrlghL 2013 PfS 8esearch LLd. 46 C u L s o u r c l n g
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Q. To help us with our research, how important are the following topics/issues to your organization's outsourcing strategy going into 2013? (Mission Critical only) 30% 26% 35% 15% 15% 40% 40% 20% 20% 10% 45% 10% 44% 33% 53% 50% 44% 22% 22% 33% 22% 44% 17% 35% 24% 24% 35% -20% 0% 20% 40% 60% Creating a global business services framework Improving our analytical capabilities Accomplishing innovation with operational processes Change management Altering the mindset of leadership from one of cost to value-creation Pharma, Life Sciences & Healthcare Public Sector Retail Software, Hi-Tech & Telecoms Transport & Logistics Other Industries Source: HfS Research 2013 2013 State of Outsourcing Study, n = 495 Service Provider Executives Conducted with the support of KPMG Shared Services & Outsourcing Advisory 1op|cs for 2013 - customer v|ew by |ndustry CopyrlghL 2013 PfS 8esearch LLd. 47 C u L s o u r c l n g
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Q. To help us with our research, how important are the following topics/issues to your organization's strategy going into 2013? 8% 9% 19% 19% 20% 22% 23% 28% 28% 28% 32% 33% 39% 41% 46% 38% 33% 41% 47% 38% 44% 48% 42% 42% 41% 39% 50% 38% 42% 36% 37% 38% 34% 27% 27% 27% 25% 25% 25% 25% 27% 15% 18% 14% 17% 17% 20% 7% 7% 15% 7% 4% 5% 5% 6% 2% 2% 5% 3% 1% Making better use of social media to improve client collaboration Making better use of social media to improve internal collaboration Accessing price benchmarks Understanding the opportunities in the middle-market Helping clients create a global business services framework Improving our clients' analytical capabilities Improving our account management talent Helping clients with change management Accessing performance benchmarks Improving our marketing capabilities Improving the perception of outsourcing within our clients' organization Helping clients accomplish innovation with operational processes Getting more visibility in the market Moving our services up the operational value chain Altering the mindset of clients' leadership from cost to value-creation Mission critical Important, but not critical Somewhat Important Not Important at all Source: HfS Research 2013 2013 State of Outsourcing Study, n = 495 Service Provider Executives Conducted with the support of KPMG Shared Services & Outsourcing Advisory 1op|cs for 2013 (Serv|ce rov|ders) CopyrlghL 2013 PfS 8esearch LLd. 48 C u L s o u r c l n g
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key Cbservanons for 2013 2013 wlll see a maLurlng of organlzauonal approaches Lo ouLsourclng and shared servlces. Cone are Lhe excuses, now ls Lhe ume for execuuon aer Lhe uncerLaln years". 1wo-Lhlrds of organlzauons care abouL lmprovlng Lhelr sourclng capablllues beyond merely meeung green-llghLs meLrlcs". cbooqe Moooqemeot and 5blfloq tbe cotp MloJset ftom cost to voloe domlnaLe enLerprlse sourclng agenda CuLsourclng buyers are gemng whaL Lhey pald for: cosL-reducuon and emclenL dellvery CuLsourclng buyers are noL gemng whaL Lhey now wanL: lnnovauon, analyucal capablllLy, skllled LalenL Lo dene buslness ouLcomes 2013 wlll be a crlucal year for Lhe fuLure of lndlan-based 8C dellvery. CosL dlerenuals are closlng, especlally ln Lurope, for mld-level skllls. Cshore model sull ln quesuon for operauonal value beyond baslc admlnlsLrauve servlces ueslre Lo sLandardlze operauons ls fuelllng markeL for plauorm-based soluuons LhaL can lndusLrlallze processes. rovlders wlLh sLrong Lech-enablemenL capablllues sLand Lo galn 1alenL lssues wlll come Lo Lhe forefronL: enLerprlses are geared up for achlevlng Lacucal measures and lack Lhe skllls Lo be analyucal and lnnovauve, 30 of provlders fall Lo have formal Lralnlng for Lhelr own sLa ln sLraLeglc skllls CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 30 C u L s o u r c l n g
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Q. Are you primarily a buyer (customer), advisor or provider of outsourcing services? Buyer of outsourcing services / currently evaluating 30% Outsourcing advisor / consultant / analyst 30% Provider of outsourcing services 40% Source: HfS Research 2013 2013 State of Outsourcing Study, n = 1355 Enterprises Survey Scope CopyrlghL 2013 PfS 8esearch LLd. 31 C u L s o u r c l n g
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Q. Please specify your company's industry? Source: HfS Research 2013 2013 State of Outsourcing Study, n = 1355 Enterprises Banking 21% Insurance 12% Pharma, Life Sciences & Healthcare 9% CPG 9% Manufacturing 9% Software, Hi- Tech and Telecoms 8% Energy and Utilities 6% Retail 6% Entertainment 5% Transportation & Logistics 4% Public Sector 2% Other 9% Survey Scope - Industry CopyrlghL 2013 PfS 8esearch LLd. 32 C u L s o u r c l n g
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Q. Where are you located? Asia Pacific 7% Europe 23% North America 65% Other 5% Source: HfS Research 2013 2013 State of Outsourcing Study, n = 1355 Enterprises Survey Scope - Locanon CopyrlghL 2013 PfS 8esearch LLd. 33 C u L s o u r c l n g
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Q. What are your company's annual revenues? Less than $500M 15% Between $500M and $1B 11% Between $1B and $3B 16% Between $3B and $5B 11% Between $5B and $10B 12% Greater than $10B 32% Non-profit 3% Source: HfS Research 2013 2013 State of Outsourcing Study, n = 1355 Enterprises Survey Scope - Company S|ze CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013: Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 33 C u L s o u r c l n g
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I1 Serv|ces and 8C Market 2013 - 2017 n|gh||ghts I1 Serv|ces to growth 3.S |n 2013, 4.7 CAGk to 2017 - LMLA markeL conunues sLuuerlng adopuon - Slow down ln professlonal servlces spendlng expecLed Lo level ouL P2 2013 led by recoverlng growLh ln norLh Amerlca - l1 lnfrasLrucLure managemenL growLh holdlng up as a resulL expanslon ouLslde of Lradluonal markeLs - AuM growLh expecLed Lo acceleraLe Lo 3.6 CAC8 as markeL conunues Lo grow ln LMLA 8C to grow at S.1 |n 2013, 6.0 CAGk to 2017 - l&A and P8 Lwo fasLesL growlng areas as exlsung cllenLs expand scope and servlces expand lnLo lower parL of Lhe lorLune 300 - C8M markeL conunues Lo be slow ln 2013 as pure volce volumes fall, expecLed Lo grow more rapldly ln 2014 as cllenLs buy more value add servlces around soclal medla / analyucs CopyrlghL 2013 PfS 8esearch LLd. 36 C u L s o u r c l n g
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G|oba| 8C and I1 Serv|ces Market 2013 (5b) F&A BPO , $25, 3% CRM BPO , $52, 5% HR BPO , $42, 4% Industry Specific , $185, 20% IT Infrastructure Mgmt, $143, 15% ADM, $70, 7% IT Prof Services, $309, 33% Other IT Services, $126, 13% 2013 Total Market Size: $952 Billion IT Services: $648 bn BPO: $304 bn Source: HfS Research, 2013 CopyrlghL 2013 PfS 8esearch LLd. 37 C u L s o u r c l n g
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G|oba| 8C and I1 Serv|ces Market Growth |n 2013 7.8% 4.1% 5.6% 5.0% 3.8% 4.8% 3.1% 3.3% F&A BPO CRM BPO HR BPO Industry Specific BPO IT Infrastructure Mgmt ADM IT Prof Services Other IT Services % Growth 2012-13 % Source: HfS Research, 2013 ITO Markets BPO Markets CopyrlghL 2013 PfS 8esearch LLd. 38 C u L s o u r c l n g
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G|oba| 8C and I1 Serv|ces Market 2012 - 2017 (5b) - 250 500 750 1,000 1,250 2012 2013 2014 2015 2016 2017 A n n u a l
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Other IT Services IT Prof Services ADM IT Infrastructure Mgmt Industry Specific HR BPO CRM BPO F&A BPO CAC8 C8M 8C 3.3 l&A 8C 7.6 P8 8C 6.2 lndusLry Speclc 8C 3.8 AuM 3.6 l1 lnfrasLrucLure 4.6 rofesslonal Servlces 4.9 CLher l1 Servlces 3.3 Source: HfS Research, 2013 CopyrlghL 2013 PfS 8esearch LLd. 39 C u L s o u r c l n g
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G|oba| 8C and I1 Serv|ces Market 2013 (5b) by keg|on Source: HfS Research, 2013 North America, $398, 42% Latin America, $44, 5% EMEA, $319, 34% APexJ , $88, 9% J apan, $101, 10% 2013 Total Market Size: $952 Billion CopyrlghL 2013 PfS 8esearch LLd. 60 C u L s o u r c l n g
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G|oba| 8C Serv|ces Market 2012 - 2017 (5b) by keg|on 0 100 200 300 400 2012 2013 2014 2015 2016 2017 A n n u a l
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G|oba| I1 Serv|ces Market 2012 - 2017 (5b) by keg|on 0 100 200 300 400 500 600 700 800 900 2012 2013 2014 2015 2016 2017 A n n u a l
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J apan APexJ EMEA Latin America North America CAC8 norLh Amerlca 3.3 Laun Amerlca 8.7 LMLA 3.3 Aex! 7.0 !apan 2.9 Source: HfS Research, 2013 CopyrlghL 2013 PfS 8esearch LLd. 62 C u L s o u r c l n g
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Luropean I1 Serv|ces and 8C Market 2013 - 2017
I1 Serv|ces to growth 1.1 |n 2013, 3.4 CAGk to 2017 - CrowLh ln lnfrasLrucLure managemenL conunues Lo be slow ln Lurope as prlce pressure conunues wlLh renewals aL reduced raLes - 8ooklngs for lnfrasLrucLure managemenL were down across WesLern Lurope ln 2012 - Pybrld cloud soluuons becomlng an lncreaslng feaLure of enLerprlse ouLsourclng deals - Large AuM poLenual ln conunenLal Lurope as accepLance ln lrance / Cermany lncreases - Lxpandlng mld-markeL opporLunlLy for hosLed opporLunlues - Mlxed performance ln professlonal servlces, SouLhern Lurope / 8enelux conunue Lo sLruggle whllsL Lhe resL of Lurope ls expecLed Lo see lncreaslng acuvlLy ln 2013 - AnuclpaLe an lncrease ln ouLsourclng lnLeresL as economles move ouL of recesslon 8C to grow at S.2 |n 2013, 6.1 CAGk to 2017 - MarkeLs ouLslde of uk sull lmmaLure parucularly ln mulu-process 8C - ockeLs of opporLunlLy ln lndusLry speclc 8C as lnLeresL lncreases across Lurope for example, lnsurance 8C processlng conLracLs ln lrance and Cermany - lncreased lnLeresL from mld-markeL ln plauorm based oers - C8M 8C alLhough slowed ln recenL years ls expecLed Lo beneL from lncreaslng focus on cusLomer sausfacuon from large mulu-nauonals companles and governmenLs across Lurope. WlLh cusLomers seeklng hlgher quallLy servlces - l&A 8C and P8 8C conunue Lo be Lhe fasLesL growlng markeLs as adopuon drlvers move away from cosL reducuon Loward buslness value CopyrlghL 2013 PfS 8esearch LLd. 63 C u L s o u r c l n g
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Luropean 8C and I1 Serv|ces Market 2013 (5b) 2013 Total Market Size: $301 Billion IT Services: $204bn BPO: $97bn Source: HfS Research, 2013 CRM BPO, $18, 6% F&A BPO, $10, 3% HR BPO, $11, 3% Industry Specific, $58, 19% ADM, $25, 8% IT Infrastructure Mgmt, $49, 16% Other IT Services, $39, 13% IT Prof Services, $98, 32% CopyrlghL 2013 PfS 8esearch LLd. 64 C u L s o u r c l n g
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Luropean 8C and I1 Serv|ces Market Growth |n 2013 8.1% 3.1% 6.0% 5.3% 3.1% 5.3% -1.2% 2.0% F&A BPO CRM BPO HR BPO Industry Specific BPO IT Infrastructure Mgmt ADM IT Prof Services Other IT Services % Growth 2012-13 8.1% Source: HfS Research, 2013 ITO Markets BPO Markets CopyrlghL 2013 PfS 8esearch LLd. 63 C u L s o u r c l n g
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Luropean 8C and I1 Serv|ces Market 2013 (5b) by Country Source: HfS Research, 2013 Benelux, $23, 8% Central Europe, $65, 21% Eastern Europe, $13, 4% France, $47, 15% Nordic, $31, 10% ROE, $6, 2% Southern Europe, $39, 13% UK, $85, 27% CopyrlghL 2013 PfS 8esearch LLd. 66 C u L s o u r c l n g
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As|a ac|hc I1 Serv|ces and 8C Market 2013 - 2017 I1 Serv|ces to growth S.3 |n 2013, 4.8 CAGk to 2017 - CrowLh lead by sLrong professlonal servlces spendlng as slow economles bounce back ln 2013 - penL up demand ln !apan durlng P2 2013 - rofesslonal servlces preferred way Lo consume l1 servlces ln emerglng economles - AuM servlce spend ls also expecLed Lo recover ln !apan durlng 2013 and we expecL conunued hlgh growLh ln Chlna/lndla - Cverall lnfrasLrucLure managemenL growLh slowed by sLauc !apanese markeL, reglonal growLh drlven by fasLer domesuc adopuon ln Chlna/lndla 8C to grow at 6.3 |n 2013, 7.2 CAGk to 2017 - MarkeLs ouLslde of AusLralla, new Zealand and !apan sull very lmmaLure - l&A and P8 grow from low base as A rms focus on process lmprovemenL Lo help enhance scalablllLy and cusLomer servlce - Cshore markeL creaLes hlgh level of ouLsourclng accepLance ln Lhe reglon and access Lo skllls - uomesuc C8M 8C markeL conunues Lo expand ln Chlna and lndla as numbers of consumers expand - 1ransacuonal lndusLry speclc 8C opporLunlues also expand ln Lhe publlc secLor, banks and lnsurance secLors CopyrlghL 2013 PfS 8esearch LLd. 67 C u L s o u r c l n g
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As|a ac|hc 8C and I1 Serv|ces Market 2013 (5b) 2013 Total Market Size: $188 Billion IT Services: $154bn BPO: $34bn Source: HfS Research, 2013 CRM BPO, $7, 4% F&A BPO, $2, 1% HR BPO, $3, 1% Industry Specific, $23, 12% ADM, $15, 8% IT Infrastructure Mgmt, $37, 19% Other IT Services, $32, 17% IT Prof Services, $71, 38% CopyrlghL 2013 PfS 8esearch LLd. 68 C u L s o u r c l n g
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As|a ac|hc 8C and I1 Serv|ces Market Growth |n 2013 8.7% 5.8% 8.2% 6.0% 4.0% 4.4% 7.3% 3.0% F&A BPO CRM BPO HR BPO Industry Specific BPO IT Infrastructure Mgmt ADM IT Prof Services Other IT Services % Growth 2012-13 Source: HfS Research, 2013 ITO Markets BPO Markets CopyrlghL 2013 PfS 8esearch LLd. 69 C u L s o u r c l n g
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As|a ac|hc 8C and I1 Serv|ces Market 2013 (5b) by Country Source: HfS Research, 2013 J apan, $90, 51% Australia & NZ, $31, 17% China, $16, 9% India, $15, 8% Rest of Asia/ Pacific, $27, 15% CopyrlghL 2013 PfS 8esearch LLd. lnslghL. Advlce. 8enchmarklng. nfS kesearch Collaborauve Sourclng lnLelllgence
for Global Business & IT Services CuLsourclng SmarL Covernance ulsrupuve 1echnologles The Knowledge Community State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. CopyrlghL 2013 PfS 8esearch LLd. 71 C u L s o u r c l n g
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h|| Iersht lounder and CLC, PfS 8esearch Cverv|ew - Cver 17 years' buslness experlence ln Lhe global ouLsourclng and shared servlces lndusLry across uS, Lurope and Asla - An acknowledged lndusLry advlsor, sLraLeglsL, auLhor, speaker, pracuuoner and blogger - Advlsed on 100s of global l1 & 8C engagemenLs rev|ous Lxper|ence - racuce Pead for l1 Servlces & 8C racuce, AM8 8esearch (CarLner lnc.) - 8C MarkeLplace Leader aL uelolue Consulung - vlce resldenL for LveresL Croup, leadlng research and consulung Leams based ln Lhe uS and lndla. r|or Career - 8eglonal ulrecLor, luC Asla/aclc - rogram Manager, Luropean l1 MarkeLs Servlces, luC Lurope Lducanon - 8S wlLh Ponors ln Luropean 8uslness & 1echnology from CovenLry unlverslLy, unlLed klngdom - ulplme unlverslLalre de 1echnologle ln 8uslness & 1echnology from Lhe unlverslLy of Crenoble, lrance
phil.fersht@hfsresearch.com CopyrlghL 2013 PfS 8esearch LLd. 72 C u L s o u r c l n g
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Iam|e Snowdon ulrecLor, MarkeL lorecasung and uaLa roducLs
Cverv|ew - Cver sevenLeen years experlence ln Lhe l1 and 8uslness Servlces lndusLry. - Cversees Lhe developmenL of PfS' CuarLerly MarkeL lndex, ln addluon Lo managlng and developlng Lhe rm's daLa-cenLrlc producLs and servlces. - Works across Lhe PfS analysL Leams Lo dene evolvlng servlces markeLs and creaLe markeL slze esumaLes and forecasLs. - Manages PfS' quanuLauve survey and benchmark daLa. rev|ous Lxper|ence - 8esearch ulrecLor aL uk-based analysL rm, nelson-Pall , conducung vendor and markeL analysls wlLhln Lhe l1 and 8uslness Servlces communlLy. - Luropean Consulung ulrecLor for luC's servlces group, managlng all of Lhelr bespoke research. Speclallsed ln dellverlng cusLom markeL forecasL models and forecasung Lools Lallored Lo hls cllenL's lndlvldual needs. 8an luC's Luropean ouLsourclng research, coverlng boLh l1 and buslness process ouLsourclng. !amle has wlde lndusLry knowledge coverlng l1 consulung, enLerprlse appllcauons, l1 & buslness process ouLsourclng, deskLop & neLwork servlces, equlpmenL malnLenance, and buslness conunulLy - l1 Servlces 8esearch SpeclallsL aL lnu1 dolng a mlxLure of markeung and analysls roles. J amie.snowdon@hfsresearch.com CopyrlghL 2013 PfS 8esearch LLd. 73 C u L s o u r c l n g
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About nfS kesearch 20 dedicated analysts across US, Europe and Asia/Pac Industry leading focus on demand-side trends, market landscapes, competitive evaluations, pricing dynamics, market sizing and forecasting Educates and facilitates discussion among the worlds largest knowledge community of services and operations executives, currently comprising 120,000 subscribers. 19,000 LinkedIn Group members; leading blog and research portal in the services industry The largest web and social media presence in the sourcing industry A major following from the buy-side: 40% of readership comes from sourcing buyers We leverage our vast community of sourcing professionals to deliver rapid insights on global sourcing industry trends & developments - Surveyed over 15,000 organizations in 2011-12 on their sourcing intentions and dynamics CopyrlghL 2013 PfS 8esearch LLd. 74 C u L s o u r c l n g
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About nfS kesearch PfS 8esearch (www.nfSkesearch.com) ls a leadlng lndependenL global analysL auLhorlLy and knowledge communlLy for Lhe buslness and l1 servlces lndusLry. PfS ls unlque ln Lhe facL LhaL lL serves Lhe research and sLraLegy needs of buslness operauons leaders across nance, supply chaln, human resources, markeung, cusLomer managemenL, l1 and core lndusLry funcuons. ln addluon Lo researchlng buslness operauons sLraLegles, PfS educaLes and faclllLaLes dlscusslon among Lhe world's largesL knowledge communlLy of enLerprlse servlces professlonals, currenLly comprlslng 120,000 subscrlbers. PfS 8esearch also faclllLaLes Lhe nfS Sourc|ng Lxecunve Counc||, Lhe acclalmed ellLe group of sourclng pracuuoners from leadlng organlzauons, whlch meeLs on a bl-annual basls Lo share Lhe fuLure dlrecuon of Lhe global servlces lndusLry and dlscuss Lhe fuLure enLerprlse operauons framework. Led by recognlzed lndusLry experL hll lershL, PfS 8esearch dlerenuaLes lLself wlLh lLs global Leam of experL servlces analysLs wlLh real lndusLry experlence, provocauve and oplnlonaLed research, unrlvalled markeL analyucs, and a vlew of Lechnology as an enabler for buslness process lmprovemenL. lLs on-demand experuse relauonshlp model helps cllenLs leverage PfS knowledge and sLraLeglc lnslghL ln a rapld, responslve and engaglng manner. ln 2010 & 2011, PfS was awarded AnalysL of Lhe ?ear by Lhe lnLernauonal lnsuLuLe of AnalysL 8elauons (llA8), Lhe premler body of analysL-faclng professlonals, and achleved Lhe dlsuncuve award of belng voLed Lhe research analysL lndusLry's mosL lnnovauve AnalysL llrm ln 2012. now ln lLs slxLh year of publlcauon, PfS 8esearch's acclalmed blog "norses for Sources" ls wldely recognlzed as Lhe leadlng desunauon for unfeuered collecuve lnslghL, research and open debaLe of sourclng lndusLry lssues and developmenLs. 1o |earn more about nfS kesearch, p|ease ema|| researchQnfSkesearch.com. CopyrlghL 2013 PfS 8esearch LLd. 73 C u L s o u r c l n g
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About kMG's Shared Serv|ce and Cutsourc|ng Adv|sory KPMG is a leading provider of global sourcing advisory services, has the ability to help member firms clients transform enterprise services to help improve value, increase agility, and create sustainable business performance.
Who we are: Shared Services and Outsourcing Advisory brings a specialized global team of more than 400 professionals within KPMGs global network of independent member firms operating in 152 countries.
What we do: We help clients align their business strategy, organization, and execution to enable them to manage the entire IT and business process life-cycle, improving business performance, and laying the groundwork for genuine business transformation.. How we do it: We apply focused research, automating tools, proprietary data, clear business acumen, and a forward-thinking mind-set to provide timely, objective, actionable advice and practical approaches for clients. CopyrlghL 2013 PfS 8esearch LLd. 76 C u L s o u r c l n g
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