Global Sourcing 2.0+Leveraging Support Opportunities

Sourcing Climate Perspective

Supplier Side:

– IIOM– Service Specialties (e.g.

Marketing)– Ancillary Providers

• Conferences• Opportunity Portals• Webcasts

• Buy Side:

– Advisors– Legal– Research/Education– Professional Organizations

(IAOP, OI)

Buyer/Industry Trends

Sector Interest

Global Services Taxonomy

Regional Motivation & Interests

Motivation Reasons

EC Positioned for Exploiting Near & Offshore

Equaterra Q2-2009 Pulse Report

Buy Side… Interesting Points

• Buyers are In Constant State of Improving the Sourced Relationship

• Sourcing IS NOW a Survival Tactic for Businesses

• RISK Reduction is KEY (Contractual is Punitive NOT Risk Reduction)

• What Benefits the Buyer ALSO Benefits the Supplier

Emerging Markets

Global Sourcing Ecosystem

Decision Based on Buyer Origin

Emerging Markets … Interest Points

• Most Popular Not Necessarily Best Value or Service Destination

• Maturity Development Opportunity Exists in Service Providers

• Buyers May Invest to Reduce Risk in These Regions (and Still Enjoy SIGNIFICANT ROI)

Supplier Trends

Growth Areas

36% of Emerging Supply is Within Reach of Europe

What Does It Mean?

• Bringing Supply Within Reach of Demand

• Lowered Risk (near shore) Interests NEW Buyers

• Suppliers STILL Need to be Developed and Given Market Perspective

Supplier Resource Capacity

Resource Capacity Realization

• Buyers Seldom Require Exhaustive• Resource Capacity• Large Supplier Organizations

• Tier 1 Suppliers• Higher Overall Long Term Cost• Pricing Inflexibility• Excessive Operational Formalities• AND Delivery Reliability is Nominal/Viability is

Leading Relationship Driver

(GSC Neutralizes Viability Differentiator)

Range of Sourcing Services

Supply Side… Interesting Points

• Supplier Must Be Attentive and Understand Markets

• Delivery without Viability Does Not Make Reflect Risk Control

• Buyers what Risk Controlled Relationships

• Right Capacity – Right Need Must be in Balance

Summary

• Buyers are moving forward with sourcing options

• Risk Control of Key Buyer Interest

• Suppliers Mix is Rapidly Changing

• Tier 2 is the Growth Suppliers

• Tier 3 Volatile Group

• Tier 1 Scalability Issues (Resourcing & Cost)

• Post-Downturn Leaves Suppliers (and Buyers) Frail

• Wider Service Use BUT Multi-Supplier• Stranded Operations Continue to Decline

• Significant Value Can Be Provided for Buyers and Suppliers When Their Perspectives are Considered

• Assessment/Development/Support are Essential in Supporting the Outsource Relationships

• Sourcing is a Business Option and Decision

• Short Cuts will Propagate Additional Engagement Risk

• Sound Research and Proper Deployment of Services Drive Controlled Results

• Sourcing Support IS NOT a Commodity