Keeping your

finger on the pulse

GBS Roadmap: Driving Value and

Performance

Joakim Abeleen, KPMG in Denmark

Tone Leivestad Hall, KPMG in Norway

Stan Lepeak, KPMG in the sU.S.

28 April 2015

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has

any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.1

KPMG Pulse Surveys

The Sourcing Advisory Pulse Surveys

The surveys are a regular reviews of global business services (GBS) market trends and individual observations from the ‘front lines’.

Global Pulse

500+ KPMG sourcing advisors

200+ KPMG advisors from Audit, Tax and Advisory Services for trends polling

20 leading global business, IT, and cloud service providers

KPMG market research and outsourcing deal tracker

HfS Research

Nordic Pulse

Senior sourcing advisors in all Nordic countries

Nordic executives from 10 leading outsourcing service providers

Input sources: Topics evaluated: Primary functional focus:

Drivers for GBS usage

Demand and buying patterns

Deal attributes

Thematic topics by quarter

– Top trends and predictions for 2015-16

Call center/customer care

Finance and Accounting

Human Resources

Information Technology

Procurement

Real Estate and Facilities Management

Vertical Industry BPO

Emerging BPO/KPO functions

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has

any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.2

1Q15 Global Sourcing Advisory Pulse: Market Outlook

60% 76% 65% 72% 65% 67% 60%69%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1Q153Q14

Service Providers: Pipeline Growth Last Quarter

7%

10%

10%

14%

16%

20%

32%

34%

59%

61%

Vertical industry specific bus. functions

REFM

All business functions

Customer care

All areas, including IT

Supply chain

HR

Procurement/source to pay

F&A

IT

Source: KPMG Global Pulse Survey 1Q15

Service Providers: Demand Next 1–2 Quarters

Advisors: Demand increase by Service Delivery Model

Next 1–2 Quarters

Advisors: Top Functional Focus Areas for Service Delivery

Improvement Efforts

BPO

36% 35%

ITO

53%

Shared

Services

56%

Internal

Process

Improvement

0%

Flat UpDown

48% 52%

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has

any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.3

1Q15 Nordic Sourcing Advisory Pulse: Market Outlook

Service Providers: Pipeline growth last quarter

Source: KPMG Global Pulse Survey 1Q15

Service Providers: Demand Next 1–2 Quarters

Advisors: Demand increase by Service Delivery Model

Next 1–2 Quarters

Advisors: Top Functional Focus Areas for Service Delivery

Improvement Efforts

BPO

42% 35%

ITO

52%

Shared

Services

54%

Internal

Process

Improvement

0%

Flat UpDown

27% 73%

0%

0%

0%

3%

7%

10%

10%

17%

17%

28%

45%

59%

79%

All business functions

Vertical industry specific business…

Real estate & facilities management

Sales & marketing

All functional areas, including…

Manufacturing

Transportation/logistics

Customer care

Supply chain

Human resources

Procurement

Information technology

Finance & accounting

2Q14 4Q14

2Q14 4Q14

36% 64%

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has

any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.4

1Q15 Nordic Sourcing Advisory Pulse: Moving towards GBS

Advisors: Top drivers for undertaking change efforts Advisors: Top initiatives in 2015

7%

10%

14%

17%

21%

21%

24%

28%

31%

31%

38%

45%

66%

Invest and expand in domestic/Western markets

Invest and expand in emerging markets

Engage in M&A or divestitures

Diversify product and service lines

Find, attract and retain talent globally

Improve global governance capabilities

Deliver new/innovative products and services

Optimize global supply chains

Optimize global service delivery channels

Shift back-office operations offshore

Invest in new/improve information technology

Redesign/re-engineer core business processes

Continue to drive down operating costs

7%

14%

25%

29%

29%

32%

32%

68%

75%

No specific reasons/many competing reasons

Improve financial flexibility

Support business growth/expansion agendas

Gain access to external skills/talent/resources

Redirect resources to more strategic activities

Gain economies of scale

Improve global delivery & operating models

Improve process performance

Reduce operating costs

2Q14 4Q14

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has

any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.5

1Q15 Nordic Sourcing Advisory Pulse: Key trends

Seen as highest positive impact in 2015

Drive towards standardization of ERP, with as few instances as possible

Cloud enables integration of diverse IT solutions

Maturiation of/greater access toinnovative technologies

IT & Enterprise systems

52%

Advisors

60%

Service providers

Significant increase in focus over last year

GBS used as enabler for cost efficiencies, as well as customer experience and revenue increase

Critical to understand impact on customer journeys

Customer care

8,3%

17,2%

0,0%

18,2%

0%

10%

20%

2Q 2014 4Q 2014

Advisors Service providers

Top priority for ongoing change and improvement efforts

Ownership being moved towards GBS

More and more organizations focusing end-to-end

Process ownership

Biggest investment increase in 2015 is within Data & Analytics

Strong focus on analytical tools, but also on foundation infrastructure capabilities

True value is achieved when analyzing end-to-end

Data & Analytics

0 20% 40% 60% 80% 100%

Analytical tools-BI, BPM, EPM

Foundation infrastructure capabilities-

ERP system, data warehouses, etc.

Third party advisory services

Hiring more staff with D&A skills –e.g.,

data scientists, statisticians

Third party analytical services

Training and education of staff

to better perform D&A activities

Acquisition of firms providing data

and analytics tools/services

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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