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    Architects of Global Business

    The Four Principles of Progressive Operations

    Phil FershtFounder and CEO, HfS

    [email protected]

    Charles SutherlandEVP Research, [email protected]

    Ned MaySVP Research, [email protected]

    mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]
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    Contents

    Topic Page

    Principle 1: Understanding Value Beyond Cost fromBusiness Operations

    4

    Principle 2: Integrating Services Across the ExtendedEnterprise

    11

    Principle 3: Reorienting and Redefining OperationsTalent 21

    Principle 4: Evolving to Digital Processes and Services 25

    Appendices 41

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    1. Understanding Value Beyond Costfrom Business Operations

    Focusing less on the How and more onthe What to achieve business outcomes

    3. Reorienting andRedefining Operations Talent

    Instilling a progressive approach todeveloping, acquiring and motivating

    talent

    2. Integrating Services Across theExtended Enterprise

    Achieving greater control and visibilityover operations across the extended

    enterprise

    4. Leveraging Technology toEnable Better Outcomes

    Finding new value from collaborative,automated, analytical, mobile-enabled

    business processes

    HfS FourPrinciples ofProgressiveOperations

    HfS Bases its Research on its Four Principles of ProgressiveOperations

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    1. Understanding Value Beyond Costfrom Business Operations

    Focusing less on the How and more on theWhat to achieve business outcomes

    HfS FourPrinciples ofProgressiveOperations

    Principle One of Progressive Operations

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    The World of Operations is Developing a Self-Awareness ofWhere Were Heading

    The conversation is moving rapidly away from process improvement and cost reduction:

    - Anything rules-based must be automated / moved into the cloud / outsourced

    - Labor costs are the new dirty word

    - Businesses are increasingly externalizing their services supply chain

    - Transactional talent needs to become digital talent

    Small innovations are less attractive its all about the big transformation

    Decisions are rapidly democratizing very different from 3 years ago

    Information is suddenly everywhere the pace of new thinking (and noise) is staggering

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    Operations Leaders Expect Rapid Change to Cross the Chasmfrom Legacy to Value!

    49%

    23%

    28%26% 26%

    49%

    Mainly a "lift and shift" of people and existingprocesses, with limited transformation ofprocesses or their enabling technologies

    A genuine transformation of businessprocesses, but limited use of technology

    A wide-scale transformation of businessprocesses enabled by new technology tools /

    platforms

    Now 2 Years' time

    Source: HfS Research, 2014. Sample = 189 Major Enterprises

    Example: State of BPO Engagements today and expectations for 2 years time

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    L

    i g h t s - O

    n O u t s o

    u r c i n g

    P r o g r e s s i v e O p e r a t i o n s

    Command of the Hybrid Model

    New Models for Governance

    Next Generation Solution Architects

    Process Automation Tools

    Configurable Process Methodologies

    Analytics Talent and Tools

    Presentation Layers for Insights

    Flexible Delivery Center Layouts

    How do we Cross this Chasm?

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    Todays Imperatives for Outsourcing: Drive Down Costs,Increase Scale, Improve Processes

    10%

    14%

    9%

    21%

    11%

    12%

    37%

    22%

    28%

    18%

    27%

    22%

    29%

    33%

    47%

    36%

    48%

    48%

    25%

    45%

    39%

    51%

    44%

    50%

    40%

    33%

    30%

    34%

    28%

    32%

    25%

    24%

    23%

    24%

    24%

    21%

    20%

    20%

    13%

    10%

    13%

    9%

    13%

    10%

    10%

    7%

    5%

    6%

    Better cloud-based delivery of services

    Improved analytics to drive growth opportunities

    Access to new technologies

    Access to tactical talent

    Access to strategic talent

    Improved analytics to improve operations

    Meet compliance / regulatory requirements

    Better transformed / reconfigured processes

    Greater flexibility to scale operations

    Better automated processes

    Significantly lower operating costs (25%+)

    Better standardized processes

    Likely to fire provider if not achieved Important, but not critical Somewhat Important Not Important

    How important are the following business benefits that you EXPECT to be achieved fromyour company's current IT outsourcing and BPO experiences over the next two years?

    Source: 2014 State of Industry Study, May 2014. HfS Research in Conjunction with KPMG (Sample 270 Enterprises)

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    What Clients are Actually Paying for

    11%

    16%

    14%

    21%

    21%

    26%

    25%

    28%

    30%

    44%

    46%

    10%

    9%

    15%

    12%

    15%

    13%

    15%

    12%

    15%

    15%

    13%

    35%

    41%

    36%

    47%

    41%

    40%

    34%

    37%

    36%

    25%

    26%

    44%

    34%

    35%

    21%

    23%

    21%

    26%

    24%

    18%

    15%

    15%

    Provide robotic automation to reduce cost of labor

    Provide cloud-based delivery of services

    Provide analytics to drive growth

    Develop a mechanism for outcome-based pricing

    Provide analytics to improve operations

    Provide automation to reduce manual interventions

    Provide strategic talent

    Provide new technologies

    Provide transformed / reconfigured processes

    Provide standardized processes

    Significantly lower operating costs (25%+)

    Currently have in contract(s) Will insist in future contract(s) Will conside in future contract(s) Don't know

    Do you actually CONTRACT for these outcomes from your provider(s) in your majoroutsourcing contracts? If not, will you do so when you renew/renegotiate?

    Source: HfS Research in Conjunction with KPMG. Note n=312

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    Higher Expectations Driving Poorer Client Satisfaction

    2%

    2%

    5%

    3%

    4%

    2%

    5%

    2%8%

    8%

    9%

    5%

    21%

    23%

    24%

    30%

    29%

    32%

    32%

    41%42%

    44%

    44%

    48%

    66%

    58%

    50%

    48%

    45%

    47%

    41%

    40%34%

    31%

    34%

    39%

    8%

    14%

    17%

    14%

    18%

    16%

    17%

    14%14%

    13%

    10%

    7%

    5%

    4%

    5%

    5%

    4%

    3%

    5%

    3%2%

    4%

    3%

    1%

    Better cloud-based delivery of services

    Improved analytics to drive growth

    Better automated processes

    Access to new technologies

    Better transformed / reconfigured processes

    Improved analytics to improve operations

    Access to strategic talent beyond standard operations

    Better standardized processes

    Greater flexibility to scale operations

    Significantly lower operating costs (25%+)

    Access to tactical talent

    Meet compliance / regulatory requirements

    Very Satisfied Satisfied Neither Satisfied or Unsatisfied Unsatisfied Very Unsatisfied

    How satisfied are you with your primary service providers' performance to meet eachoutcome?

    Source: HfS Research in Conjunction with KPMG. Note n=312

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    1. Understanding Value Beyond Costfrom Business Operations

    Focusing less on the How and more onthe What to achieve business outcomes

    2. Integrating Services acrossthe Extended Enterprise

    Achieving greater control andvisibility over operations across the

    extended enterprise

    HfS FourPrinciples ofProgressiveOperations

    Principle Two of Progressive Operations

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    Onshore-Centric Majors vs. Offshore-Centric Majors MarketShare Comparison: Whos Geared to Succeed?

    23.3% 22.8%

    3.8%7.0%

    2009 2013

    M a r k e t S h a r e i f G

    l o b a l I T S e r v i c e s a n

    d B P O M a r

    k e t Offshore-centric Majors (Wipro,

    Infosys, TCS, Cognizant, HCL)

    Onshore-centric Majors(Accenture, IBM GS, HP ES, CSC,Cap Gemini)

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    2007 2008 2009 2010 2011 2012 2013 CAGR

    Employee Cost (Rs. Billion) 90.0 114.1 144.8 150.7 188.1 246.8 319.2

    EOY Headcount (000) 89.4 111.4 143.8 160.4 198.6 238.6 276.2

    Average Headcount (000) 77.9 100.4 127.6 152.1 179.5 218.6 257.4

    Net Headcount Additions (000) 22.9 22.0 32.4 16.7 38.2 40.0 37.6

    Initial Learning Program (ILP)Participants (000) 11.7 14.5 19.6 17.5 28.2 32.3 30.5

    Other Operating Cost(Rs. Billion)

    45.4 55.0 61.6 62.7 73.4 97.8 130.3

    Employee Cost per Headcount (Rs.Million)

    1.155 1.136 1.135 0.991 1.048 1.129 1.240 1.2%

    Trainee/ Fresher % in NetHeadcount Additions

    51% 66% 76%* 76%* 74% 81% 81%

    Other Operating Cost perHeadcount (Rs. Million)

    0.583 0.547 0.483 0.412 0.409 0.447 0.506 -2.3%

    TCS Cost & Headcount Analysis 2007-2013

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    2007-2013

    Employee Cost per Headcount 1.2% CAGR

    Estimated Weighted Average Wage Hike 7.5% CAGR

    Annual Reduction in Employee Cost Base 6.30%

    Estimated Annual Reduction in TCS Employee Cost Base 2007-2013

    The offshore millennials impactcannot be understated

    Source: TCS Annual Reports HfS Analysis 2014

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    Change in Offshoring Outsourced and Shared Services

    -13%-5% -5% -4% -3% -3% -5%

    -1% -1%

    31% 29% 28% 26% 21% 18% 17% 16% 16%

    -20%

    -10%

    0%

    10%

    20%

    30%

    40%

    ApplicationDevelopment &

    Maintenance

    Finance andAccounting

    IT Infrastructure Industry-specificOperations

    Procurement HumanResources

    CustomerService

    Supply Chainand Logistics

    MarketingSupport

    Decreasing Increasing

    -9% -7% -6% -2% -3% -3% -4%-1%

    -3%

    18%26%

    19% 17% 20% 20% 16% 16% 14%

    -15%-10%

    -5%0%5%10%

    15%20%25%30%

    ApplicationDevelopment &

    Maintenance

    Finance andAccounting

    IT Infrastructure Industry-specificOperations

    Procurement HumanResources

    Customer Service Supply Chain andLogistics

    MarketingSupport

    How will this change in the next year? (Outsourcing)

    How will this change in the next year? (Shared Services)

    Source: 2014 State of Industry Study, May 2014. HfS Research in Conjunction with KPMG (Sample 312 Enterprises)

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    Operating Models: Outsourcing Forms a Critical Lever for anIntegrated Services Model

    4%

    10%

    13%

    24%

    13%

    46%

    59%

    37%

    43%

    28%

    17%

    28%

    20%

    3%

    6%

    3%

    7%

    1%

    2%

    12%

    12%

    4%

    7%

    Internal Business Units (Distributed)

    Hybrid of Outsourcing and Shared Services (CentralizedGovernance)

    Outsourcing

    Shared Services

    Increase significantly Increase moderately Will remain at the same levelReduce moderately Reduce significantly N/A

    Over the next 2 years will your company increase / reduce its reliance on the following

    operating models for your general and administrative functions?

    Source: 2014 State of Industry Study, May 2014. HfS Research in Conjunction with KPMG (Sample 312 Enterprises)

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    Six Maturity Leaps with Shared Services and Outsourcing

    Relocate FunctionsHeadquarter functions and related BU staffrelocated to low-cost geographies

    IntegratedStandard solutions across BUs, geographies,and functions

    Wide-RangingOrganized by process across BUs andgeographies

    Run it Like BusinessService level measurement andaccountability with transparent pricing

    Rapid DeploymentWillingness to impact people, changeculture and invest in long-term strategy

    Transactional and COECenters of scale and skill deliveringtransactional and analytical services

    Proximate to BusinessMaintain staff in current location

    IndependentSpecific to BUs, geographies, and functions

    Functionally FocusedProcesses aligned and optimized within

    functional towers at BU levels

    Staff FunctionCost center focus with modestmeasurement against metrics

    MeasuredLow impact on people, culture, minimalinvestment

    TransactionalTransactional services delivering

    economies of scale

    Location

    Standardization

    Process Orientation

    Commercial Orientation

    Pace of Change

    Service Portfolio

    Low Maturity

    Legacy

    High Maturity

    Progressive Operations

    2.9

    2.9

    2.7

    2.9

    2.8

    2.8

    Source: HfS Research in Conjunction with KPMG . Sample: n=343 Enterprises

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    17%

    27%

    21%

    28%

    38%

    40%

    20%

    29%

    27%

    15%

    35%

    33%

    19%

    18%

    22%

    20%

    25%

    42%

    44%

    44%

    48%

    49%

    61%

    63%

    Innovations to Operations andProcesses

    Greater Collaborative Culture withManagers and Staff in the Service

    Provider teams

    Greater Control over Functions /End-to-End Processes

    Developing / Acquiring Talent toalign the Corporate Goals with the

    Operations Strategy

    Improved Quality of OperationalData to drive management

    decisions

    Reduced Cost Structure ofOperations

    Top Maturity Percentile: >75%

    Upper-Middle MaturityPercentile: 51-75%

    Lower-Middle MaturityPercentile: 26-50%

    Bottom Maturity Percentile:

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    0%

    2%

    4%

    2%

    2%

    4%

    4%

    2%

    6%

    3%

    6%

    8%

    6%

    14%

    4%

    13%

    12%

    10%

    20%

    9%

    9%

    13%

    8%

    15%

    18%

    21%

    24%

    34%

    37%

    20%

    29%

    31%

    33%

    39%

    42%

    46%

    50%

    53%

    60%

    Support for Accelerating M&A activity

    Developing Talent to align to the Corporate Goals

    Innovations to Operations and Processes

    Improved Quality of Operational Data

    Greater Collaborative Culture with ServiceProvider teams

    Greater Accountability of Operations Staff

    Greater Standardization of Processes

    Greater Control over End-to-End Processes

    Greater Scalability of Operations

    Reduced Cost Structure of Operations

    Top Maturity Percentile:>75%

    Upper-Middle MaturityPercentile: 51-75%

    Lower-Middle MaturityPercentile: 26-50%

    Bottom MaturityPercentile:

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    Principle Three of Progressive Operations

    1. Understanding Value Beyond Costfrom Business Operations

    Focusing less on the How and more onthe What to achieve business outcomes

    3. Reorienting andRedefining Operations Talent

    Instilling a progressive approach todeveloping, acquiring and motivating

    talent

    2. Integrating Services Across theExtended Enterprise

    Achieving greater control and visibilityover operations across the extended

    enterprise

    HfS FourPrinciples ofProgressiveOperations

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    Importance of Business Objectives at the Commencemen t ofOutsourcing and Shared Services Initiatives

    External Benchmarking

    Raising the Bar for Existing SLAs

    Improving Industry AcumenDefining and Adding New In-Scope Processes

    Improving Analytics

    Adding Addition Volumes to Existing Services

    Improving Service Provider Relationships

    Driving Innovation

    Defining Business Outcomes Beyond Cost Reduction and Managing Financial Business Cases

    Contract Negotiation

    Influencing Executives

    Service Provider Selection

    SLA Performance Management

    Managing Transitions

    NotImportant

    SomewhatImportant

    Important MissionCritical

    Strategic Objectives

    Tactical Objectives

    How important are the following objectives to your team.... When you first started youroutsourcing and/or shared services initiatives?

    Source: HfS Research 2013 , n = 282 Enterprise Buy-side Executives

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    Strategic Objectives Become much more Important after Commencing Outsourcing and Shared Services Initiatives

    0% 10% 20% 30% 40%

    Managing Transitions

    Service Provider Selection

    SLA Performance ManagementManaging Financial Business Cases

    Contract Negotiation

    Influencing Executives

    Adding Addition Volumes to Existing Services

    Improving Industry Acumen

    Improving Service Provider Relationships

    External Benchmarking

    Defining and Adding New In-Scope Processes

    Driving Innovation

    Raising the Bar for Existing SLAs

    Defining Business Outcomes Beyond Cost Reduction and

    Improving Analytics

    % Increase in Importance

    Strategic Objectives

    Tactical Objectives

    Progression ,

    not Successionis the key

    How important are the following objectives to your team.... When you first started youroutsourcing and/or shared services initiatives? And today?

    Source: HfS Research 2013 , n = 282 Enterprise Buy-side Executives

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    US Example The Great Talent Shift Impacts Ops

    900,000office support2020 excess

    400,000 data scientistsgap per year

    Source: HfS Research / McKinsey Global Institute

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    Talent, Lack of Vision, Silos, Inability to Change and Fear ofDisruption Prevent the Path to Value

    75%

    27%

    27%

    34%

    40%

    31%

    37%

    31%

    24%

    26%

    23%

    48%

    48%

    40%

    34%

    43%

    34%

    30%

    37%

    26%

    2%

    24%

    25%

    26%

    26%

    26%

    29%

    39%

    40%

    48%

    0% 25% 50% 75% 100%

    Too much has been outsourced and we've lost controlover many processes

    Lack of talent and capability to lead and implementhigher value services

    Operations management too afraid to rock the boat

    Operations functions lack visionaries to drive newinitiatives

    Lack of understanding from senior management ofvalue of Global Business Services

    Inability to run change management programseffectively

    Senior management unconvinced of business benefitsof Global Business Services

    Disruption to the internal power structure

    Organization is business-unit led and resistant toconsolidation / centralization

    Major change management requirements

    Not an impediment at all Somewhat of an impediment A major impediment

    To what extent are the following issues impeding your development towards a morecentralized and empowered operations framework, such as Global Business Services?

    Source: HfS Research in Conjunction with KPMG. Note: n=106 CEO, VP, SVPs

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    1. Understanding Value Beyond Costfrom Business Operations

    Focusing less on the How and more onthe What to achieve business outcomes

    3. Reorienting andRedefining Operations Talent

    Instilling a progressive approach todeveloping, acquiring and motivating

    talent

    2. Integrating Services Across theExtended Enterprise

    Achieving greater control and visibilityover operations across the extended

    enterprise

    4. Leveraging Technology toEnable Better Outcomes

    Finding new value from collaborative,automated, analytical, mobile-

    enabled business processes

    HfS FourPrinciples ofProgressiveOperations

    Principle Four of Progressive Operations

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    Options are Democratizing: Is Cloud/BPaaS now a SeriousAlternative to BPO?

    2%

    4%

    6%

    9%

    11%

    14%

    15%

    20%

    22%

    16%

    13%

    6%

    9%

    19%

    12%

    17%

    8%

    8%

    37%

    23%

    29%

    24%

    28%

    37%

    37%

    35%

    39%

    45%

    60%

    58%

    59%

    42%

    37%

    31%

    37%

    31%

    0% 25% 50% 75% 100%

    Marketing

    Legal

    Supply Chain and Logistics

    Sales

    Procurement

    Customer Service/Support

    Finance and Accounting

    Business-specific Operations

    Human Resources

    We have at least one cloud based service for this functionStarting to evaluate / test solutionsWe are interested but yet to find anything suitableNothing in place & see no value

    In what areas are you considering cloud / as-a-service options to augment / replacetraditional outsourcing?

    Source: HfS Research in Conjunction with KPMG

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    Technology-Enabled Outsourcing Buyers Outperform bothTactically and Strategically

    28%

    38%

    29%

    30%

    34%

    50%

    40%

    57%

    65%

    27%

    38%

    35%

    25%

    30%

    43%

    26%

    54%

    67%

    42%

    45%

    50%

    52%

    52%

    60%

    63%

    63%

    80%

    Executing on gainsharing incentives

    Providing analytical insight

    Creating new ideas/initiatives that add value

    Actively fosters business-outcomes vs FTE pricing

    Moving processes into the Cloud

    Providing knowledge/experience of specific industryprocesses

    Incorporating automation into our operations and processes

    Reducing the costs we agreed contractually

    Delivering standard operational services

    Technology enabledtransformation

    Process Transformation,limited technology

    "Lift & Shift"

    How effective is your current primary service provider at delivering the following businessbenefits with your current outsourcing initiative? (quite effective and highly effectiveresponses)

    Source: HfS Research, 2014. Sample = 189 Major Enterprises

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    Impact of Technology in Business Processes

    12%

    25%

    30%

    47%

    49%

    24%

    29%

    31%

    29%

    33%

    24%

    31%

    28%

    17%

    13%

    24%

    9%

    7%

    4%

    3%

    16%

    6%

    4%

    3%

    2%

    Social

    Mobile

    Cloud

    Automation

    Analytics

    5. It is a critical component 4 3 2 1. None - no value in it for BPO

    What role can each of the following emerging technologies play in improving the outcomesof your current and future outsourcing engagement(s)?

    Source: HfS Research 2014. Note: n=189 Enterprise BPO Clients

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    15%

    25%

    29%

    32%

    38%

    40%

    44%

    47%

    15%

    26%

    40%

    36%

    33%

    44%

    37%

    36%

    21%

    31%

    23%

    22%

    21%

    12%

    15%

    14%

    50%

    18%

    7%

    10%

    8%

    4%

    5%

    3%

    0% 25% 50% 75% 100%

    SMAC

    Robotic Automation

    Digital

    Big data

    Transformation

    Business outcomes

    Cloud

    Analytics

    Yes, it is very clear what they mean Yes, it is mostly clear

    No, I only partially understand No, it is totally unclear

    Source: HfS Research in Conjunction with KPMG. Note n=312

    Too much Ambiguity Surrounds many Buzz TermsWhen service providers / consultants use the phrases below, is it clear to you what theymean and what value they represent?

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    Cloud: Accessible

    Analytics:Enlightened

    Social :Communal

    Mobile:Ubiquitous

    The Four Horseman of Digital Disruption

    are all combining to create Business Transformation

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    Yet Cloud will Largely Drive Change in 2014 and Beyond

    4.3%

    4.6%

    5.0%

    6.1%

    6.8%

    10.8%

    14.2%

    19.3%

    Application modernization

    Data Center optimization (incl. green IT)

    Standardized, yet flexible APIs

    Flexible re-negotiating of outsourcing contracts

    IT Opearations and Service Management

    Mobile Apps and Dev (incl. BYOD)

    BI, Big Data and Analytics

    Cloud (Infrastructure, Apps, or Hybrid)

    What is your number one investment are in IT for 2014?

    Source: HfS Research, N=740 IT Managers in Enterprises

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    Cloud Growth

    28%24%

    17% 15% 13% 13%

    8%

    5%

    5%

    9%

    7%5%

    8%

    11%

    16% 22%

    56%43%

    39%

    65%

    145%

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    140%

    160%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    Messagingsoftware

    VOIP software IT ServerInfrastructure

    Infrastructuremanagement

    software

    Email software Enterpriseapplications

    Overall

    Today Tomorrow Growth

    How will the proportion of cloud delivery change in the next 2 years?

    Source: HfS Research in Conjunction with KPMG

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    Why? Because Cloud Creates a Virtuous Cycle of Supply

    Better

    Faster

    Cheaper

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    And Cloud Concerns Largely Sophomoric

    22%

    30%

    40%

    41%

    41%

    52%

    46%

    46%

    34%

    33%

    33%

    28%

    15%

    7%

    15%

    15%

    12%

    8%

    16%

    16%

    12%

    12%

    14%

    13%

    Lack of customization to suit our needs

    The difficulty of integrating data across multiple cloud apps

    Uncertainty as to where our data is actually residing

    Won't know with whom the issue resides when a failure occurs

    Security in the cloud isn't robust enough

    Worried about data portability if we want to switch

    Very concerned Somewhat concerned Not concerned Don't know

    Reasons for avoiding BPaaS

    Source: HfS Research 2 014. n =740 IT Managers in Enterprises

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    Rigid and Vast Flexible and Agile

    On Premise IT Environment

    Design, Build, Run

    Purchase / TCO

    Complex implementation

    Hard coded

    Weighted toward maintenance

    Long-term planning

    IT as gate keeper

    Cloud Driven IT Environment

    Consume

    Rent / ROI

    Complex integration

    Configurable

    Focused on new applications

    Upfront analysis

    Collaborative

    The Pending Shift Across Enterprise IT

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    Provider Landscape Will SeeSignificant Shifts

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    From the Traditional IT Services Continuum

    Design Build Run

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    To a Discrete Set of Opportunities

    Build

    for Providers

    IaaS / PaaS SaaS

    for Enterprises

    Private cloud Hybrid cloud

    ManageConsumption

    IaaS / PaaS

    of SaaS

    BPaaS

    Provide

    IaaS / PaaS

    SaaS

    BPaaS

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    Implications

    Were About to Enter a Buyer Market

    Yet the Pace of Change Accelerates

    Services Integration replaces Traditional SI

    Complexity of Governance Grows

    And a Broad Re-Alignment Occurs

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    Wrap-Up: What Will it Take to Reach the Next Inflection Point ofValue?

    Fail. The executives leading the initial sourcing initiatives arefrequently not the ones left managing the engagement

    Fail. Corporate leaders are still primarily cost-focused (72%of the SEC)

    Fail. Sourcing is still a foreign competency to 90% ofcorporate employees

    Buyers are reaching adequate a lot quicker than they mayhave thought (24- 36 months).

    ButMany providers are simply incapable of delivering morethan adequate. Fail.

    Governance teams want to align themselves to the businessand not find themselves becoming disconnectedprocurement-esque divisions

    But there is some significant DISRUPTION ON THEHORIZON.

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    Architects of Global Business

    Appendices

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    Phil Fersht

    Overview:

    Over 18 years business experience in the global outsourcing and sharedservices industry across US, Europe and Asia An acknowledged industry advisor, strategist, author, speaker, practitioner

    and blogger Advised on 100s of global IT & BPO engagements

    Previous Experience: Practice Head for IT Services & BPO Practice, AMR Research (Gartner Inc) BPO Marketplace Leader at Deloitte Consulting Vice President for Everest Group, leading research and consulting teams

    based in the US and India. Prior career:

    Regional Director, IDC Asia/Pacific

    Program Manager, European IT Markets Services, IDC Europe

    Education: BS with Honors in European Business & Technology from Coventry

    University, United Kingdom Diplme Universitaire de Technologie in Business & Technology from the

    University of Grenoble, France

    [email protected]

    Founder and CEO, HfS Research

    mailto:[email protected]:[email protected]
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    Charles Sutherland

    Overview:

    Over 18 years business experience in strategy development and deliveryin the global outsourcing industry across US, Europe and Asia An industry advisor, strategist, author, speaker, practitioner and blogger

    Previous Experience: Chief Strategy Officer, SourceHOV

    Managing Director, Growth & Strategy, Accenture BPO Managing Director, Strategy, Accenture Infrastructure Outsourcing Strategy Partner, Accenture Media & Entertainment Practice Marketing Director, Olivetti

    Education: MBA, INSEAD, Fontainebleau France Honors BA, Political Science and Economics, University of Toronto

    [email protected]

    EVP of Research, HfS Research

    mailto:[email protected]:[email protected]:[email protected]:[email protected]
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    Ned May, HfS Research

    Overview Neds remit at HfS is to develop cutting edge research focused on the business impact

    of emerging technologies across the full spectrum of IT services. As a senior adviser to IT and business executives, Ned combines a love of long term

    thinking with a strong appreciation for excellence in execution. Over his 20 year career, he has helped hundreds of clients navigate and capitalize on

    changing landscapes and led diverse research teams while launching and running newproducts often aimed at directly cannibalizing existing offerings.

    He is an acknowledged industry advisor, strategist, author, and speaker

    Previous Experience Vice President and Practice Leader, Outsell Inc. Authored groundbreaking studies on

    the impact of emerging technologies, the evolution of business information, and thenew opportunities presented by mobile interfaces. Oversaw the development of aninteractive online benchmarking tool serving executives.

    Program Manager, IDC Ran the Worldwide IT Services research program and coveredthe largest global players during the emergence of offshore outsourcing and utilitycomputing. Was also responsible for the creation of the Worldwide Quarterly ServicesTracker - a successful product which continues to this day.

    Education MBA, summa cum laude, from Babson College

    BA from Bowdoin College with a double major in Economics and Government

    [email protected]

    Senior Vice President, Digital Transformation Services & Solutions, HfS Research

    mailto:[email protected]:[email protected]:[email protected]
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    HfS Research: Key Facts

    A leading analyst authority and knowledge community for business and IT services strategies.

    Unique focus on business services and global operations frameworks with technology as an

    enabler .Dedicated analyst team across US, Europe and Asia/Pac, headquartered in Cambridge.

    Facilitates the HfS Sourcing Executive Council (SEC), the highest quality network of enterprisebuy-side executives leading sourcing initiatives.

    The HfS Governance Academy delivers to SEC members the industry-leading certification forsophisticated governance capability for shared services and outsourcing

    Acclaimed data-driven research focus on demand-side trends, market landscapes, supplierevaluations (Blueprints), pricing dynamics, market sizing and forecasting.

    Leverages the vast HfS community of sourcing professionals to deliver rapid insights on globalsourcing industry trends & developments, surveying the opinions and dynamics of 25,000organizations in 2011-14.

    The largest web and social media presence in the sourcing industry with 145,000 researchsubscribers and the leading blog in the industry (horsesforsources.com), which today gets 1million web visits a year.

    A well-regarded new generation media outlet qualified as a Google news source and regularlyquoted on services trends in Wall St Journal, The Economist, CIO Magazine andBusinessWeek.

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    HfS has Won the Premier Award for Analyst of the Year in2010 and 2011 and Beat the likes of Gartner, Forrester,Ovum and IDC to Win the Most Innovative Research Firmin 2012

    Today, HfS Research is widelyrecognized as a Top Tier analyst brand

    for IT and Business Services

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    The firms most reported to have risen in influence byrespondents to the 2013 analyst value survey

    2.1%

    2.2%

    2.3%

    2.4%

    2.8%

    3.1%

    3.8%

    5.2%

    5.6%

    6.3%

    6.6%

    7.0%

    12.9%

    17.1%

    0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

    Redmonk

    GigaOM

    Frost & Sullivan

    Pierra Audoin Consultants

    Constellation Research

    Ovum

    Everest

    Other

    IDC

    451 Group

    Forrester

    NelsonHall

    Gartner

    HfS Research

    Degree to which is rising in Influence

    Source: 2013 Analyst Value Survey , Sample: 352 buyers, providers, investors and journalist consumers of research