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GLOBAL SERVICES
An integrated media platform which connects thevarious constituents of the global technology andbusiness processing services industry ecosystem.
NEWSLETTER
A regular digest of key industry happenings.
DIGITAL MAGAZINE
The fortnightly digital magazine features researchreports, articles and experts’ views. Available on
www.globalservicesmedia.com
WEBINARS
Global Services’ web-based seminars aim toimpart useful information related to outsourcingindustry in the form of presentations and dis-cussions by industry specialists.
RESEARCH
We deliver indepth analysis and research reportson sourcing subjects.
MICROSITES
Online resource center designed to providefocused content on special subjects to the out-sourcing community.
EVENTS
From multi-day, high-level, resort conferences tointimate breakfast discussions we offer a numberof opportunities that connects the outsourcing
community.
CUSTOM PROGRAM
Customized services rendered through differentmedia platforms.
OSOURCE BOOK
A directory of global outsourcing serviceproviders.
www.osourcebook.com
DIRECTORY OF SERVICES
Pradeep Gupta
Chairman & Managing DirectorCyber Media (India) Ltd.
E. Abraham Mathew President
Ed NairEditor
Satish Gupta
Associate Vice [email protected]
Pratibha Verma
Sruthi [email protected]
Niketa Chauhan
Virendra Kumar
OFFICES
Global Services Media LLC.
806 Green Hollow Drive, Iselin, NJ 08830T: 678-665-6005
Global Services
Cyber Media (India) Ltd.CyberHouse, B- 35, Sector 32
Gurgaon-122001, IndiaTel: +911 24 4822222Fax: +911 24 2380694
Contact: [email protected]
Disclaimer
All rights reserved. No part of this publication may be reproducedby any means without prior written permission from the publisher.
3 GlobalServices www.globalservicesmedia.com November 2010
A CYBERMEDIA PUBLICATION
LETTERS TO THE EDITOR
Send letters to [email protected], or toany of our writers. We reserve the right toedit all letters. Postings submitted to ourblogs and letters to the editor may be pub-lished in our digital magazine or Website.
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N o v e m b e r 2 0 1 0 V o l u m e 2 , I s s u e 2
FEATURES
ARE YOUBEING SERVED?
by Ed Nair The new watchwords forservices organizations:consolidate, standardize,
balance and manage
10
23
STRONG CONTRACTRESTRUCTURING LEADS WEAK Q3
by Sruthi Ramakrishnan
Restructuring of contracts heavily influenced the last three quar-ters, and will continue to influence Q4
25 ARE ON DEMAND CALL CENTERS INDEMAND?
by Vijay Venugopalan
More and more organizations are buying/exploring On-demand solu-tions, the economic situation has fuelled the desire to go on-demand
19
PROCUREMENTOUTSOURCING –CHINA'S MISSED
OPPORTUNITY by Pratibha VermaPO, which is still not mature in China, is growing at a slow pace.Due to this its capabilities are untapped by many companies
21THE IT OPPORTUNITY IN HEALTHCARELEGISLATION
by Sruthi RamakrishnanIT reforms are an important and integral part of the reformsplanned under the Patient Protection and Affordable Care Act
Extended Global
Enterprise
17THE SKY'S NOTFALLING ON THEINDIAN IT INDUSTY
by Sruthi RamakrishnanThere is more to the increase in MAT and expiry of STPI benefitsthan meets the eye and a deeper study shows that the situation isnot as dire as is being made out to be
8GLOBAL BANKS TO INVEST INCREATING FLEXIBLE PLATFORMS
by Ed Nair Even as the short-term business prospects are bleak, global banks
will focus their technology services investments towards managingrisk and compliance, creating platforms for growth, and improvingcustomer analytics.
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Releasing November 16thTo advertise or to participate
contact: Satish Gupta at [email protected]
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ED NAIR
Editor
EDITOR’S NOTE
Microtrends willbecome waves ofchange; systemic
shocks like therecession can reset the
economy and themarket.
hange is slow to be noticed. It is understood better, when things addup over time or when a large shift happens.
This issue of the digital magazine is all about change; how micro-trends will become waves of change or how systemic shocks like the reces-sion can reset the economy and the market.
For instance, the story on how the OPD market is recovering from therecession focuses on the impact of cloud computing on software product mod-els and the attractive mid-market opportunity. Mid-market software com-panies are treating their OPD vendors as extended R&D organizations, while
enterprise software vendors will use OPD vendors to handle entire familiesof products. Globalization of R&D is a far-reaching trend.
Similarly, the cover story on M&As spells out the need for companies tobuy their way into market share and the increasing willingness of small com-panies with service niches to sell out. These trends will endure for a few yearsto come. Reason: buying market share is the fastest way to accelerate growthand to get into new geographic market for services (India, China, Brazil, oth-ers).
Another interesting example of change is brought out by the story on RPOin Europe. Very strict data laws mandate that RPO work not be offshoredoutside the European Union. The laws are not aimed at curbing offshoring;they are aimed at strengthening data privacy. This is in stark contrast to theUS trying to enact laws that penalize offshoring with increased taxes, dis-criminating against Indian companies by hiking visa fees, or any other pro-tectionist measures.
Finally, the story about Cognizant drives home the point on how a com-pany can synthesize various signals that combine to form large forces of changeand make it a way of life both inside and outside the organization. The Cog-nizant way is a fantastic example of thought leadership. GS
C
Understanding the
Nature of Change
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Releasing November 30thCase Studies are invited from service providers. For more details
contact: Satish Gupta at [email protected] or visit: www.globalservicesmedia.com/live
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Industry Outlook
By Ed Nair
Even as the short-term business prospects are bleak, global banks will focus
their technology services investments towards managing risk and compliance,
creating platforms for growth, and improving customer analytics.
Global Banks to Invest in
Creating Flexible Platforms
IBM announced a deal with ABN AMRO (see Box) in
October. The deal has been hailed as a mega-deal in
terms of its value at nearly $1.8 B. At a time when
such megadeals are on the decline, this deal embodies
many of the trends in the large financial services industry
segment globally.
In terms of market environment, the short to medium
term outlook for the industry is difficult for banks in the US
and Western Europe. There is also quite a bit of social back-
lash because of the financial crisis; customers believe that the
banking industry created the financial crisis that led to therecession.
In terms of market regulation, the combination of in-
country regulations like Frank Dodds bill in US, similar oth-
ers in UK and Germany, as well as international regulations
like Basel III, and also the expectation that the IMF is going
to put together a fund to prevent systemic failures, are putting
new pressures on financial services companies. Both of these
present a real challenge to profitability.
Though the regulations have been watered down (Basel III
is much less draconian than what is was expected to be) and
the industry has been given a long time to create the capital
required for Basel III, the return on equity which used to be14 percent to 18 percent will fall below 10 percent in the next
couple of years. When you compare this to the cost of capital,
it looks very unattractive.
Profit squeeze is being exacerbated in banks where invest-
ment banking was really driving the profitability in the past.
Banks are being forced to shed hedge funds, proprietary trad-
ing activity and such other engines of growth. Profitability is
going to be considerably low in the coming few quarters. So
the short-term picture is challenging.
So, is it all gloom and doom? Hardly. In emerging markets
like China, India, Brazil, Middle East, the scale of opportuni-
ty is enormous. Even conservatively looking at the next five to
ten years, the global economy would grow at 5.8 percent to 6
percent annual compounded. Says Likhit Wagle, Global
Industry Leader: Banking & Financial Markets, IBM Global
Business Services, “That is significant amount of wealth being
created and this has to be disintermediated by the banking
industry.”
The emerging market opportunity is based on economic
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Industry Outlook
ABN AMRO signed a contract to extend its services agreement with IBM. IBM will build and provide a new
computing environment while integrating the existing infrastructure of ABN AMRO and the former Fortis
Bank is an extension to the original contract. Next to that the infrastructure services for the former Fortis
Bank Nederland will come in. Both banks legally merged on July 1, 2010. Systems development will con-
tinue to be undertaken by a number of suppliers including Accenture, Infosys, and TCS.
On 1 September 2005 IBM announced that it signed a global contract with Dutch global bank ABN
AMRO to implement an on-demand IT infrastructure that will enable the bank to more rapidly roll out
additional services while significantly reducing IT costs. The contract, worth about EURO 1.5 billion over
5 years, supports ABN AMRO operations worldwide and represents the most extensive rollout of IBM's
data center automation technology, called Universal Management Infrastructure.
Further information from Nelson-Hall reveals:
I Data center management, with IBM managing the IT infrastructure on ABN AMRO premises in
Amsterdam. The existing data center infrastructure will be moved to a private cloud environment
I Desktop services. These services will retain a conventional desktop approach rather than moving to a
virtualized environment, with a major emphasis on improving collaboration through use of common
email infrastructure and community based collaboration utilizing web chat technology
I Service integration, with IBM taking overall responsibility for the roll-out of new systems on-time and
on-budget. A single set of KPIs are being shared by IBM and the applications development suppliers.
Andy Efstathiou and John Wilmott, analysts from Nelson Hall opine, “ABN AMRO is seeking to simplify
its operating model to achieve a reduced cost:income ratio while also improving its ability to comply with
the regulatory environment and improve its time-to-market. The service integration role being undertaken
by IBM is key to achieving these goals. The contract is also an early example of a major bank moving to aprivate cloud-based server infrastructure.”
IBM’s clients include Russia's largest bank, VTB, as well as Danske Bank in Denmark and Nordea in
Sweden – meanwhile a number of financial services companies in Europe are currently in negotiations with
IBM for Services contracts. Worldwide, IBM’s clients inlcude Citi, VietinBank, one of the largest banking
institutions in Vietnam, the Agricultural Bank of China, Discover Financial Services, and the National Bank
of Canada.
ABN AMRO extends Infrastructure Services Agreement with IBM
growth in these geos as well as the proportion of population
that is underserved— conservative estimates put it at 750 mil-
lion upwards and a third of which includes people with risingincomes. This translates to growth rates of 25 percent or more
per year. So, the medium term view is very bullish.
The IT services spend in the global financial services sec-
tor is largely marked towards three areas: a)getting the orga-
nization ready in the area of risk and compliance b)creating
platforms that are standardized and flexible and c) getting
customer analytics in place. Many of these new services are
being provided using new technologies like cloud. Says
Wagle, “The approach is to avoid either doing a wholesale
rip-and-replace or a band-aid kind of quick fix. The objective
is to simplify the operating model and the ABN-AMRO deal
is a good example.”
Organizations are sitting with expensive legacy systems
and want to take costs out, not incremental costs, but wholeareas of costs. This involves rationalizing systems, reengineer-
ing applications, and making the system more flexible. It
requires creating a platform that is standard and flexible. For
instance, in the ABN-AMRO deal, both ABN and Fortis will
migrate onto this platform that would in turn help them to
become more customer-centric.
From a strategic point of view, the traditional approach at
banks has been to free up more budget to run the bank as
opposed to changing the bank. However, the balance is now
changing when banks are investing in application develop-
ment, infrastructure refreshes, and process outsourcing. GS
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Extended Global Enterprise Special Report
Extended GlobalEnterprise
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Extended Global Enterprise Special Report
I
Are You Being Served? 12I Q&A with Cliff Justice, KPMG 12
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By Ed Nair
The new rules for the services organization: consolidate and standard-ize delivery; balance internal, external, and virtual capabilities; andmanage services like a portfolio.
Extended Global Enterprise Special Report
12 GlobalServices www.globalservicesmedia.com November 2010
Are You Being
Served?
If you are in global sourcing of ser-vices, talking with Cliff Justice is
great investment in time, espe-cially if the consultant’s clock is notticking. Cliff Justice is the NationalLeader, Shared Services andOutsourcing Advisory, KPMG. Hehas been advising companies on glob-alization, services delivery models,outsourcing, global sourcing andsuch for over 20 years. Cliff’s work with NeoIT, TPI, Equaterra- allreputed sourcing advisory compa-nies— where he either worked ormanaged partnerships, puts him as aleader in the sourcing advisory space.His insights are thorough and amaz-ing; his ideas are path-breaking andimpactful. Excerpts from a conversa-tion with Cliff Justice on the newrules and models of services delivery:
GS: We are just out of the recession. What are your clients asking you todo today? How’s it different from
yesterday?
CJ: In the last two years, clients havebeen demanding more from their
sourcing advisors in the area of valuecreation through optimization of sev-eral functions or their own internalservices organization and seekingmore value out of managing SG&A areas.
Whereas, ten years ago we werebrought in as advisors to help themcentralize shared services models oradvise them on the structuring of outsourcing contracts and helpingmake deals.
Today it is much more aroundenterprise services, enterprise trans-formation, and aligning that transfor-mation to drive competitive advan-tage to clients. More clients are ask-ing— how do I get competitiveadvantage through handling SG&A,through partners, through the way Imove services up the value chain,how do I access data and knowledgein a better way, how do I leverage the
maturity of the services organization
Cliff Justice,
National Leader, Shared
Services and Outsourcing
Advisory, KPMG
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Extended Global Enterprise Special Report
that has been in place to really drivebetter business value. In the last twoyears, these were the dominant con-versations.
The other important conversationcentered on managing risk. Back inthe day of pure outsourcing con-tracts, the risk question was a sidequestion. Now it is incorporated aspart of the value preservation discus-sion.
GS: Sourcing advisory as a businesshas been in turmoil. What is threat-ening a change there? How has itevolved?CJ: In the very early days, say from 1997 to 2003, it wasreally about identifying theright outsourcing vendors,scoping out the outsourcingcontract, structuring the deal,putting in the governancemechanisms, and managingthe deal. From 2003 to 2007,it was all about optimizingthose relationships. From
2008 onwards, we started hit-ting the rocky shores, it wasabout how do we really opti-mize and create value andcompetitive advantage out of the investments that we madeinto shared services and out-sourcing partnerships.
Some industries areapproaching this for the firsttime and wondering how toleapfrog. For example, thepharma industry was late into thegame, but they are now incorporatingthings like pharmacovigilance into acentralized shared services model,some enabled by external parties,some not. The line between them isgetting blurrier. We are structuringthem in a very similar way whether itis provisioned internally or externally, we are seeing lot more hybrids than what we ever had, and more mature
companies are moving up the value
chain helping quantify value cre-ation.
This requires going back to thebusiness and is a lot more challeng-
ing; it requires lot more insight intothe business— more than just doinga base case analysis and measuringsavings of a transactional service.They are table stakes that have to bedone.
GS: This is like more business con-sulting work.CJ: We have always been doing that.There’s always a component of busi-
ness strategy that has to be aligned tosourcing strategy. It was being doneeven ten years ago, but it is more vis-ible now. There were larger dollarsattached to sourcing deals and a lot of perceived external and internal valuein traditional sourcing advisory.
We have a developed a platformthat is comprehensive and holistic. Ithelps a client look at a long-termroadmap, not just a tower or two, on
how you provision the function.
Sourcing advisory has to include peo-ple and change; process transforma-tion in all functional areas likefinance, HR, IT, supply chain; and
enterprise risk management.Transactions services are fine; youhave to have those best-in-class. Butif clients really want the leverage, they have to think about service delivery more organizationally, integrate withbusiness partners, and drive valueback to businesses.
GS: You mentioned about SG&A. Isit time to rewrite Porter’s value
chain? Are support functionsgetting to the core?CJ: What we are seeing is thattraditional support-orientedfunctions contain lot of dataand knowledge. There’s lot of cost and expense to thosefunctions and there’s lot of value that comes out of thosefunctions. Organizations thatcan think in terms of virtual-ization, in terms of harnessing
the capabilities that reside within the company and har-ness those well, as well as har-nessing outsourcers and virtu-al platforms, SaaS, and cloudplatforms, can create a muchmore dynamic model that canaddress new questions to thebusiness, changes to the busi-ness faster than before. It is allsupport, but it is the newvalue that support can con-
tribute.The core is still the core, it is real-
ly about how your SG&A functionsare treated and addressed that they can become a competitive advan-tage.
These are not necessarily revenuegenerators; some industries may hivethem out and create a profit center. Itis probably still not their core busi-ness, but it enables their core business
to become more competitive.
“The economy has causedslowdown in major transfor-
mation investment, but that’schanging. Companies are look-
ing at creating sustainableservices organization asopposed to chasing labor
arbitrage,”
Cliff JusticeNational Leader, Shared
Services and OutsourcingAdvisory, KPMG
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Tools & Technologies
GS: So what rules are you rewriting?CJ: The rewriting of the rule is— whether you can take these and man-
age them to the lowest cost and oper-ate them purely on efficiency; or doyou put enterprise-wise strategic ini-tiatives in place to drive innovationsinto those services. That’s what we aretalking about.
Drive the innovation, add a rea-sonable cost, create a flexible model.The cloud discussion is bigger thantech; it is really a way of thinkingabout flexibility in business.
Create an extended global enter-prise with internal, external and vir-tual capabilities, many of which canbe provisioned quickly, as and whennew businesses are introduced intothe environment.
One of the key things that wetalked about in the framework is howcompanies can take high value addservices that may be best in class within a business unit and create aservices organization that serves more
business units. These are centers of
excellence for that service. For exam-ple, research centers combine massiveknowledge and data or take shipping
companies that carry lot of data ontrends.
GS: Going back, you mentionedproper balance between internal andexternal capabilities. How does that
work?CJ: The desire for control over theservices, the ability to control risk,the specificity of the function, under-standing whether the service is some-thing that third party providers havethe maturity in providing— these arethe questions to be asked. It is notabout the price you are going to pay;lot of things can be moved out for alower price, but productivity couldget impacted. Hence, we are sayingthat companies should look at opti-mizing internal balance and externalbalance by managing services as aportfolio. Looking at internal provi-sioning and comparing and bench-
marking against the external market
is important. That’s what leadingcompanies do. More importantly, what we see is that services portfolio
organization across the enterpriseshould have a broad view across theorganization, cross the enterprise,helps the company realize the servicesstrategy. Drive and quantify the syn-ergies that are sometimes not obvious when you go to an end-to-endprocess. That’s for a lot of companiesseeing true value. It is true for an end-to-end process like say procure-to-pay.
This is hard to do because you arebreaking the traditional functionalstructure; it requires a lot of changein management. But there are somegood examples of companies outthere doing this.
GS: For many, shared services havebecome unwieldy. Why make when
you can buy? Are shared services onthe decline?CJ: No. Not at all. It’s just the oppo-
site. More companies are looking at
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Extended Global Enterprise Special Report
shared services, but the blend in pro-visioning is changing.
In the past, shared services and out-sourcing were two distinct servicedelivery models. That distinction isgoing away; they are becoming highly blended. A company provisions its ser-
vices in a very centralized way andenables more or less through thirdparty. Some companies don’t even callit outsourcing. That is, provisioning of services through partners within sharedservices unit is certainly on the rise.
You can see this growth at the ser-vice provider’s end. Even in a downmarket, they are growing, theirpipelines are full.
The economy has caused slow-down in major transformation invest-ment, but that’s changing.Companies are looking at creatingsustainable services organization asopposed to chasing labor arbitrage.
GS:What’s this Extended GlobalEnterprise model all about? Soundslike yet another consulting method-ology.CJ: Extended Global Enterprise isKPMG’s philosophy, framework,
methodology, point of view or what-
ever you call it; it’s a holistic view onservice delivery of enterprise ser-vices. It addresses companies that areboth very new to services as well asthose that are extremely mature inservices. It is a comprehensive set of principles that we as a firm use to
enable our partners, advisors,employees, to work with clients thatleverage the practices that we believe will drive value into their servicesorganization. It is a roadmap to cre-ating a long-term services strategy and the framework helps clientsdesign and implement a comprehen-sive services model that continues toevolve over time. It is agnostic toboth outsourcing and shared servicesin that it doesn’t recommend oneover the other.
GS: How do you compare this withthe other frameworks?CJ: I am not aware of any that is sim-ilar. There are frameworks on how tobuild a shared services organization,how to build an outsourcing deal,how to manage shared services, howto manage outsourcing contracts, andmany others. EGE helps companies
approach their services in the way
they want. It gives them the enter-prise capability that goes across func-tions and creates a common way toaccess services. There are differentdegrees to this like different levels ina maturity model. At the top is acompletely integrated end-to-end ser-
vices organization with complete ser-vice portfolio management (SPM).The SPM is a very simple interface torequest and manage services. Thegoal is to create an organizationalcapability that can interface betweena complex multi-tower service deliv-ery organization and the business andits customers. SPM helps the adop-tion of services without worryingabout different contracts, differentpricing, different SLAs— the SPMhandles all that and it constantly evolves and aligns all of the services tothe services strategy. GS
I It’s blind to the organizational structure and therefore immune to any limitation that such a struc-
ture might impose. Driven by customer need and not organizational structure:
I One-size-fits-all service offerings have been replaced with a balanced portfolio of retained, out-sourced and centralized service offerings with tiered, tailored and bundled services across func-tions.
I The “set and forget” approach or simple vendor management has been replaced by a more sophis-ticated Services Portfolio Management organization.
I Business transformation is all about business simplification. It’s really a reduction in complexity –consolidating and standardizing services delivery and then simplifying those service delivery stan-dards. Instead of a siloed and redundant approach with fragmented planning – one services deliv-ery strategy for IT, another for HR, and so on – you’ll have a single, common strategy within a com-
mon services delivery framework to achieve a common goal.
4 Principles of Extended Global Enterprise Model
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IT Market Dynamics
T wo things which have been making newsrecently and are projected to have graveimplications for the Indian IT industry arethe proposed extension of MAT to the hith-erto tax- free Special Economic Zones
(SEZs), and the expiry of the Software Technology Parks of India (STPI) scheme in March 2011.
The concern about both is that they will increase the taxburden on the IT companies across the board, irrespective of size, location or turnover. The truth is that there is more tothese measures than meets the eye and a deeper study showsthat the situation is not as dire as is being made out to be.
Lets take the MAT increase under the DTC (Direct Tax
Code) regime first. It is not the increase in the tax itself, which actually comes to less than a percentage point, which is worrying. Most IT companies, including thoseoperating in Software Technology Parks, already pay thistax. The real cause of worry is that firstly, it it is plannedto be extended to the SEZs, and secondly, tax benefits willchange from being profit-linked to investment-linked.
"For SEZ, the tax benefit is for a period of 15 years,"says Raju Bhatnagar, VP, Government Relations and BPO,NASSCOM. "this is structured as a 100% tax benefitavailable only for the first five years, 50% tax benefit forthe next five years, and the last five years has a tax benefit
of 50%, provided the profits are invested in certain pre-
By Sruthi Ramakrishnan
There is more to the increase in MAT and expiry of STPI benefitsthan meets the eye and a deeper study shows that the situation isnot as dire as is being made out to be
The Sky’s Not Falling on
the Indian IT Industry
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IT Market Dynamics
determined avenues. So after the tax holiday is there fromlets say 2006-10, you get 50% tax holiday, on the remain-ing 50% you have to pay full tax.
For an organisation that is halfway in the SEZ benefits,
they are paying normal tax. So the normal tax paid versusthe computed MAT, whichever is higher is what would beapplied." Thus the MAT increase may not impact toomuch after the first 5 years of tax benefit is availed.
So the real challenge seems to be the change from prof-it-linked to investment-linked approach to tax benefits, asthe latter approach would benefit sectors with large capitalinvestments. "If there is a tax benefit that is being allowed,let us say for the SEZ, and MAT is levied, upto two-thirdsof the tax benefit gets nullified," says Bhatnagar.
But this may not impact the big players like Infosys and
TCS significantly, who have multiple units in various stagesof operation in SEZs, besides subsidiaries operating outsideIndia. "There are several non-financial charges that they areable to take credit of which areallowed as per the Income Taxlaw," he says. "Besides, they have subsidiaries operating inforeign countries. So they pay tax in those countries for which they are eligible toclaim credit in India. So whenyou talk of the effective rate of
tax for a company which is aconglomerate, it is not simple, there are multiple aspectsthat come into play."
Where does that leave smaller companies? "So far asthose companies which are not in SEZs are concerned,they will have to in any case pay under normal income tax,and not get incentive deduction. So they will not be affect-ed by MAT," says Sunil Shah, a partner at Deloitte Haskins& Sells.
Thus the proposed extension of MAT to SEZs doesn'timply an uniform increase in taxes at one go, but a phasedincrease according to the age of each unit of a company.
Regarding the other major concern about the expiry of the STPI exemptions in March 2011, firstly, it is the ben-efit provided by Section 10A of the income-tax law (100per cent deduction for 10 years of export profits derived by units set up in any STPI, which is in accordance with thescheme notified by the Central Government) alone that iscoming to an end. "Under the STPI scheme there are mul-tiple benefits that are available, like the income tax benefit,bonded delivery center, duty free imports from withinIndia, etc. Of these benefits, one which is the income taxbenefit will expire. The rest remain open-ended, they don't
have a sunset date," says Bhatnagar.Besides, its end does not come as a surprise for the
industry. It was known from the inception of this schemethat this particular benefit has a ten-year horizon, which was later extended to 12.
Calling for extension of benefits is not wrong. But
believing that the Indian IT industry's USP is solely thetax sops and incentives offered by the government is.“Ourtax liability will go up to 25% next fiscal from around 21%in the present fiscal on account of this,” V Balakrishnan,CFO, Infosys told Financial Express regarding the end of the STPI tax benefit. But a company of Infosys' size andspread- across services, industry verticals and geographies-can surely absorb the increase in tax outflow. After all, it was none other than Infosys' Founder-Chairman NarayanMurthy who said that “Asking for tax exemption for 10sof years in my opinion is not the smartest thing” and
believes that IT and software sector should and are capableof paying taxes just like other industry sectors. Alternatively, they can shift operations to their delivery
centers outside India. That isone advantage the services sec-tor enjoys. "In services youcan, pretty much at the dropof a hat, pick up your servicedelivery center and shift it,"says Bhatnagar.
Admittedly, this can work both ways, and drive away for-
eign companies with Indiansubsidiaries to countries offering more tax benefits. But what needs to be kept in mind is that the Indian IT indus-try took the world by storm on the basis of its strong skillsets, talent pool and innovativeness and not solely lowcosts. The former, combined with India's rising status as anIT market, continue to propel India's IT story.
With the partial loss of their protective cocoon, com-panies will have to increase efficiency and become morecompetitive to retain customers. Smaller companies today already understand that going niche is the way forward.Companies which are good at what they are doing, espe-cially if its specialized services, will always be in demandeven if they chose to marginally increase their prices.
In short, the industry need not hassle itself over mea-sures which will, at best, cause a marginal increase intheir tax outflow. While they will, in the short term, hitthe "Infosys' and TCSs of the future which are still in theprocess of growing", as Bhatnagar puts it, expectingextension of exemptions endlessly is unrealistic. In anindustry where low cost is fast ceasing to be the dealclincher, all providers will eventually have to depend onthe efficiency and quality of their work to survive. The
sooner the Indian industry admits and adapts to this, thebetter. GS
Believing that the Indian IT
industry's USP is solely the taxsops and incentives offered by
the government is wrong
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BPO Market Dynamics
By Vijay Venugopalan, CRM Capability Lead, APAC, BT Global Services
On 4th Sep 1882, the world’s first power sta-tion started its operation in New York City. 85 customers in lower Manhattanreceived enough power to light up 5000lamps and they paid US 5$ per Kilowatt-
hour in today’s dollar terms. Until then, people relied onexpensive battery powered ‘lighting bulb’. Power on-demand took over battery based power rapidly in its devel-opment cycle.
That’s the history of electricity. Let’s look at computing;Growth of computers was slow until IBM released
Mainframe systems in the mid-80s. Due to the size, com-plexity & cost of Mainframes, the ‘Digital Computing’ eraactually started as a hosted model - one centralized main-frame with ‘dumb’ terminals deployed across the enter-prise. Had we continued in this path, perhaps all of us would be paying monthly PC usage bills like our powerbills – well, I wouldn’t have had the opportunity to writethis article!
The point is many of what we use today such as tele-phone, power (even cars and real estate!) have changedfrom ‘buy’ to ‘share’.
The ‘Microprocessor’ generation which madePCs/servers possible, fundamentally changed the trajecto-ry of ‘Digital Computing’. Long story short - mainstreamIT solutions moved to outright purchase as it made perfectbusiness sense from a Cost/Benefit perspective.Organizations invested on technology infrastructure toempower their businesses. IT assets were depreciated over3 – 5 years. Happy days!
In my opinion this history sets the context for thefuture of IT services.
In the last 10 years, many global organizations haverealized that their IT assets are cumbersome and expensive
to manage. Some CFOs even claim that technology is one
of the single largest expenses and it makes their businessesless agile to change. What causes the shift in mindset?Unpredictable and escalating costs of IT operations, tech-nology obsolescence and changing customer demands!
In the ‘credit crunched’ economy, a corporate executive wants to improve efficiency, productivity and to maketheir business agile to ‘change’. Hence executives tend toinvest the scarce resource ‘dollars’ on core business func-tions such as R & D, product enhancements, emergingmarkets.
On the other hand, consumers want to have personal-
More and more organizations are buying/exploring On-demand solutions,
the economic situation has fuelled the desire to go on-demand
Are ‘On-Demand’ Contact
Centers in Demand?
Vijay Venugopalan,
CRM Capability Lead, APAC,
BT Global Services
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BPO Market Dynamics
ized, timely service anytime anywhere via multi-channel.This trend has led to interesting survey results:
“80 per cent of businesses think they deliver a superiorexperience, yet only eight percent of customers agree”
[Source: Frost and Sullivan]This ‘paradigm shift’ in expectations has paved the way
for ‘On-demand’ services. An on-demand contact centre meets these criteria,
combining hosted IP telephony and automated, voice-acti-vated software-as-a-service to deliver a package that isdeeply scalable and can be purchased in new and flexible ways, such as per concurrent agent and by the hour. Thisnew level of cost granularity will allow chief operating offi-cers and heads of customer service to measure the efficien-cy and cost of operation, unlock service improvements and
additional cost savings in thefuture and its needless to say these fully managed services will remove worries about risk of technology obsolescence.
Some of the early net- worked IT services providers[SPs] like BT Global Serviceshave invested quality time andeffort (and dollars!) on marketresearch, designed mar-ket/industry relevant packaged
on-demand applications and created business models &return-on-investment tools around it and have acquiredcustomers.
The first agent logged into BT’s contact center On-demand platform back in 1999.
Many global MNCs have changed their operating mod-els to adapt to on-demand contact centers and have seenbenefits. More and more organizations are buy-ing/exploring On-demand solutions, the economic situa-tion has fuelled the desire to go on-demand.
Comments I hear in Asia are ‘Are these on-demand con-tact centers fit for purpose?’ or ‘On-demand contact cen-ters are only fit for short term deployments’. To get someclarity around this, let’s analyze the future of On-demandin 2 parts –Short & Long term.
Short term
In Asia, we are in the transition stage from outright pur-chase to On-demand services. While many organizationssee the benefits of On-demand contact centers, they haveconcerns around security, data privacy and some say – ‘Inthe long run hosted or cloud based contact center servicesare expensive’
Global networked IT service providers like BT have
been providing network based on-demand services for overa decade and have addressed these concerns already.Optimized on-demand contact center services are availableat a global scale – these services have the unique ability to
collect the contact (not just calls!) from anywhere in the world and deliver it to an agent with the right skills work-ing anywhere in the world – with secure platforms anddata privacy [It is mandatory for SPs who are registereddata controllers under the data protection act]
Wondering how? The contact center services are hostedon a very large voice and data network that spans across170+ countries.
Just deciding a best on-demand platform alone is notadequate. Organizations adapting to on-demand modelsshould be prepared for an internal transformation – to
make changes to their operat-ing model, process, gover-nance and people. Suchchanges will determine thesuccess factor of the on-demand deployment. If anorganization gets its internaltransformation right, on-demand platform will fit inlike a charm.
In 2010, finding the righttechnology partner to move
contact centres into the cloud, and the right commercialmodel to buy those services, will be vital.
Long term
If we take the long term view of the On-demand contactcenters, say 5- 10 years from now, many organizations would have procured contact center applications as ashared service. We are talking about hundreds of thou-sands of agents using on-demand service which will invari-ably bring down the cost per agent.
Business models will evolve to provide the service forfree as auxiliary revenue streams like network will make upfor it. After all, free is better than cheap if it results in a win-win deal for customers and partners.
What's more, on-demand call centers will also be ameans to gain points on ‘Corporate Social Responsibility’as arguably, On-demand services will reduce carbon emis-sion compared to on-premise rivals. Hence, organizations will evaluate which SP to choose rather than which tech-nology to choose and buy.
On a long term perspective, it’s obvious that on-demand contact center solutions are the way to go and it will be very difficult to justify an outright purchase busi-
ness case! GS
Organizations adapting to on-demand models should be pre-pared for an internal transfor-mation – to make changes to
their operating model, process,governance and people
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21 GlobalServices www.globalservicesmedia.com November 2010
IT Market Dynamics
T
he US healthcare reform bill, even before
being passed into law (the Patient Protectionand Affordable Care Act) in March 2010, was touted to bring a huge boom for 3rdparty service providers. But while the BPO
opportunity is quite visible- in the form of increased cus-tomer service, claims processing, etc- the IT aspect of it isless obvious. Nevertheless, it is an even more important andintegral part of the planned reforms.
"There is going to be a need to invest more in IT sys-tems to not only support alarger user base for goods andservices, but also to support
the administrative side of delivering these services adher-ing to the additional regula-tions coming on board. It isgoing to require more systems,greater automation and inte-gration of the existing systemsin order to be able to supportthese services on a practicalbasis, and also to achieve greater efficiency and effective-ness," Stan Lepeak, Managing Director of Research,EquaTerra had said in a March 2010 podcast (What Effect Will Healthcare Legislation Have on IT Services andOutsourcing?) organised by EquaTerra.
Service providers in the IT space are well aware of theopportunities that the legislation has brought. "From anapplication development perspective, we believe that theopportunity that lies for us is the requirement for newclaims administration application," says Pradeep Nair, VicePresident & Head – Global Life. Sciences Practice, HCL."From infrastructure, there is an increased storage require-ment."
He sees insurance as another segment with huge
potential for IT expansion. "There is the framework of
solutions on insurance exchange because we believe there
is a huge opportunity in trying to create an insuranceexchange. It constitutes essentially six buckets- productconfiguration; quoting engine; payment gateway; applica-tion processing; reporting certain tools which will inter-face with individuals and their families, employers, agents,payers, which will extend towards data migration; andautomated enrollment processes. That can be extended to,from an infrastructure perspective, to solutions in cloudcomputing."
The federal plan to launcha healthcare informationsuperhighway, the
Nationwide HealthInformation Network (NHIN) also requires expand-ing and uphauling the existingIT infrastructure. Mark Boxer,Senior Vice President andGroup President of ACSGovernment HealthcareSolutions, now part of ACS
Xerox, says," For the EMR (Electrnic Medical Record) tobe meaningful, it has to be aggregated and it has to beshared. We have got the data assets, the aggregation engineto aggregate EMRs into EHRs (Electronic Health records).EHR cuts across hospital systems, And then EHRs can beshared on a Health Information Exchange, which would befilled by states.
In addition to all the stuff that build the infrastructure, we also have critical rules engines that sit on top of thehealth exchanges that prospectively identify patients thatare at risk of getting diabetes, heart disease, etc. So this canhelp physicians take action before it becomes a critical issue.That is the promise of the healthcare reform."
So there is a lot of potential for growth for the service
providers. For healthcare providers and payers, there is a
By Sruthi Ramakrishnan
IT reforms are an important and integral part of the reforms plannedunder the Patient Protection and Affordable Care Act
The IT Opportunity in
Healthcare Legislation
The federal plan to launch theNationwide Health Information
Network (NHIN) requires expand-
ing and overhauling the existingIT infrastructure
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IT Market Dynamics
major incentive to increase outsourcing to them- cost ben-efit. "For firms, particularly the smaller to mid-size organi-zations, the equation has changed as to what is the fully loaded cost of an employee, and that's going to change theequation of whether it makes sense to add that next personor to invest in technology to automate that activity or rely on third parties," says Stan Lepeak.
Besides IT systems, another resource which will beequally in demand are the IT personnel skilled to manand maintain the systems, for whom there is already aglaring shortage. According to a College of HealthcareInformation Management Executives survey of 182healthcare CIOs, there is already a 71 percent shortage of clinical support implementation and support personnel.
There are 44 percent vacancies for infrastructure vacan-
cies, and 43 percent vacancies for business softwareimplementation and support personnel. These figures areonly set to grow as the country begins implementing theHealth IT Workforce Development Program, leadingmore agencies to look at outsourcing as a way out."While in some cases firms may make the investmentsthemselves and deploy management systems, in many cases they are going to look outside to the IT experts, sothat they can concentrate on their piece of healthcare andlet third parties manage the back office IT systems," saysLepeak.
Thus for the country's healthcare system to meet thehuge targets set by the Federal govt in the next few years, IT will have a big role to play, and in that third party providers
will have a dominant say.GS
Top Enterprise Healthcare IT Vendors
Cerner Corporation HealthlandCPSI Keane Healthcare Services
Eclipsys Corporation McKesson Provider Technologies
Epic Systems Corporation Medical Information Technology
GE Healthcare QuadraMed Corporation
Healthcare Management
Systems
Siemens Healthcare
Niche Vendors
Vendor Specialty Environment
ADP payroll services
Kronos time and attendance systemsLawson Software enterprise resource planning
Mediware pharmacy, blood bank
Oracle Corp./PeopleSoft enterprise resource planning
Philips Healthcare intensive care systems, cardiology information
systems, PACS systems for both radiology and
cardiology, and obstetrical systems
Picis/MSM operating room management, emergency
department, and intensive care unit (ICU)
applications
SCC Soft Computer laboratory, radiology, pharmacy
Sunquest Information Systems laboratory and radiology
Surgical Information Systems operating room management3M Health Information
Systems
encoding, dictation, transcription, and HIM
management applications
Unibased Systems Architecture enterprise scheduling
Key Vendors in US IT Hospital Market
Source: Executive summary of HIMSS Anaytics Report ‘Essentials of the U.S. Hospital IT Market’ 5th edition.
Top Consulting Firms for Hospitals
AccentureACS (acquired by Xerox)
Beacon Partners
BearingPoint
Cerner Corporation
Courtyard Group
CSC
Deloitte
Encore Health Resources
Hayes Management
IBM
McKesson Provider TechnologiesPerot Systems Corporation (acquired by Dell)
Siemens Healthcare
Top Firms Providing OutsourcingServices to Hospitals
ACS
CareTech Solutions, Inc.
Cerner Corporation
CSC
Eclipsys Corporation
IBM
McKesson Provider Technologies
Perot Systems Corporation (acquired by Dell)
Siemens Medical Solutions
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Procurement Outsourcing
D
espite being strongest in the manufacturing sector,
China, which is also known for its outsourcing capa-
bilities, has failed to attract a considerable amount of
foreign direct investment in procurement outsourcing sector.The European Union has recently turned up the interna-
tional pressure on China to give foreign companies access to
its national procurement deals.
EU Trade Commissioner Karel De Gucht said, “China
needs to improve investment opportunities for foreign com-
panies, as European businesses are raising "serious questions"
about China's procurement policies.
Many companies have expressed concern
that recently drafted policies will discrimi-
nate against foreign companies in favour
of domestic suppliers with "indigenous
innovation," according to The Wall Street Journal.
De Gucht also expressed concern on
behalf of EU companies that are becoming
increasingly agitated about the lack of pro-
tection for intellectual property in China.
"There's so much discussion about
China's indigenous innovation policy,
because it forces European companies to
register as a Chinese company to get access
to private procurement markets”, he says.
Because of the huge manufacturing
base, China can be strong in direct spend but most of it is
done in-house.
Michael Rehkopf, Analyst TPI, says, “In procurement out-
sourcing, direct activities like buying raw material, are hugeand often it's done by and large in-house. When we look
around, we see a few number of firms doing one or two key
grand deals but nobody would do 20 or 50 in numbers.
Procurement outsourcing revenue in China is sort of going
slowly because spend control is slowly being shifted to
China.”
As organizations become more com-
fortable to see where they want to locate
their control for their spend, they move to
the region where they have got the manu-
facturing facilities.
Rehkopf says, “We have witnessed twotrends. The first one is the movement of
that activity from Europe and North
America to the region where things are
being procured and the second one is to
decide whether they should be done in-
house or need to be outsourced. We are
seeing both the things happening simulta-
neously.”
One of the biggest differentiators in
China is language. China is being per-
ceived as a very good destination only for
By Pratibha Verma
PO, which is still not mature in China, is growing at a slow pace. Due tothis its capabilities are untapped by many companies
Procurement
Outsourcing-China's MissedOpportunity
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24 GlobalServices www.globalservicesmedia.com November 2010
Procurement Outsourcing
people who deal in Chinese, Japanese or Korean.
In the past, MNCs in China were focusing on their
topline growth and their spend was relatively small. There has
been a rapid change in that area. For suppliers, PO base is
slowly becoming strong. Organizations are starting to shifttheir focus not only to increasing their spend but also to do
PO work more efficiently and effectively.
Rehkopf says, “Local companies in China believe that they
can do everything themselves and at a cheaper rate. But what
we see in the coming years is that they would no longer have
sufficient data and robust quality processes. Then they might
start depending on outsourcing not only for cost benefits but
also for overall benefits.”
Some suppliers have set up their centers in China and are
dealing with a number of clients but none of them have huge
clients. They are all getting themselves positioned for an
upcoming wave of procurement
outsourcing.
“A lot of MNCs have been
controling their spends from
other parts of the world. I antic-
ipate that there is significant
uptaking in this kind of out-
soursing in the next four-five
years. People have now started
thinking that outsourcing
makes sense.”
China is a complex place forforeign businesses. Regulations
are sometimes unclear, and
often not helpful. Contract
enforcement can be tricky. Its
business culture differs from that of India. And most impor-
tantly, language forms a critical barrier.
Nearly 10 to 15% of all PO deals signed in the last 3 years
have China as a delivery location. The key locations in China
from a PO perspective are Dalian, Guangzhou, Shenzen, and
Shanghai.
Everest classifies 20+ PO suppliers into emerging suppli-
ers, leaders and major contenders based on a comprehensiveassessment of capabilities and market success. Nearly a third
of all these PO suppliers have presence in China. However, it
is interesting to note that while all PO leaders have a China-
based presence, only 25% major contenders have delivery
capabilities in China and none of the emerging players is pre-
sent in China. So it is pretty evident that China is an impor-
tant cog in the overall delivery strategy for established PO
suppliers and is emerging as a differentiator.
Surabh Gupta, Analyst, Everest, says, “The biggest issue
with China is that there is a lack of service culture. Chinese
Government philosophy is based on producing cheapest and
world class goods unlike India whose philosophy is to provide
best services at low cost. The mindset is different. You get a lot
of benefit if you open a shop in India but you don't get them
in China. Lack of governement support and language also
deter companies from investing in PO.” When it comes Procure-to-Pay process, which is transac-
tional in nature, China is not an attractive destination to do
that. The value proposition comes in only when you deal with
the country for low cost country sourcing. Apart from that, it
is difficult to set up a center in China. People want to set up a
shop in China and buy from local Chinese manufacturers but
only some top service providers have delivery centers in China.
Over a period of time these western MNCs like
Accenture, IBM, Infosys, TCS, Wirpo, have gained confi-
dence in running their businesses in China. Companies like
Accenture have their centers in China.
Accenture started its pro-
curement delivery hub to serve
multi-national clients in 2002
in Dalian and established itself
as a strong procurement service
provider over a period of 8
years.
David Conte, Senior
Executive, Accenture
Procurement BPO Solutions,
says, “China not only provides
access to a large, highly skilledtalent base of procurement pro-
fessionals but, just as important-
ly, it provides access to local sup-
pliers and low cost services.”
He opines that China's cost competitiveness will remain a
key differentiator for multi-national clients.
Conte also says that with other markets, there will be new
opportunities for growth in China as the supply base contin-
ues to mature and expand into new segments. Additionally,
China will continue to be an important location for helping
clients manage and balance supplier risk. More generally, we
also expect to see continued demand from clients to helpthem add value and analytical insight from their BPO engage-
ments back into their business.
PO, which is still not mature in China, is growing at a
slow pace. Due to this its capabilities are untapped by many
companies.
Gupta says, “PO is growing in China but I haven't seen
too many suppliers from Chinese origin coming into play.
They are all global suppliers. There is this value proposition
that a country operates on low cost country model. That is
distinctive and unique about China and no other geography
can support this.”GS
“Local companies in Chinabelieve that they can do every-
thing themselves and at a cheap-er rate. But what we see in the
coming years is that they wouldno longer have sufficient data
and robust quality processes.”Michael Rehkopf, Analyst TPI
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Market analysis
The TPI Q3 analysis shows that a pause in the market
recovery has dampened year-to-date momentum (see
Fig.1), but data and service provider feedback suggest
that a more active 4Q10 is underway.
Restructuring of contracts has heavily influenced how the
last quarter, and in fact the annual TCV (Total Contract
Value), have shaped up. “In the 1st quarter of this year there
was an unprecedented 42% of global TCV which were
restructuring related. At that
time we anticipated more
renewals were on the way. In
Q3 they make 48% of global
TCV,” said John Keppel,Partner & Managing
Director, TPI Research,
Analytics and Intelligence at
The TPI Index webinar.
“Restructuring TCV repre-
sents about 34% of the global
market, compared to the 20%
we’ve typically seen over the
past 3 years.”
The past quarter saw some
large restructurings- General
Motors, Bank of Ireland, ABN Amro, etc. In fact, six of
this year’s nine mega-deals
were restructurings.
One of the reasons for this extent of restructuring activity
is the change in the timing of renewals. “Some of the 7- 10
year contracts rewarded in the early part of the decade are up
for renewal. At the same time, some of the recent 3-5 year
contracts. As a result, there were more contracts being restruc-
tured simultaneously,” said Keppel.
Another reason is that larger economic difficulties still
cover outsourcing adoption. “In North America especially,CIOs and CFOs are returning to a restraining posture that
they initially took at the start of the recession. Projects involv-
ing new scope and budget approval are once again being
delayed. Restructuring which bring quicker and potentially
easier returns to bottom lines tend to move forward unim-
peded,” said Keppel.
In numbers, restructuring constituted 20% of the market
for both ITO and BPO and about 1/3rd of TCV. The relative
strengthening of BPO contract restructuring shows the
maturing of the BPO market
as some of the larger oppor-
tunities awarded in the mid-
dle of the decade come up for
renewal.On the other hand, new
scope activities were down,
not just in terms of global
market share but also by
absolute TCV numbers. New
scope TCV was down signifi-
cantly, by about 50% QoQ
and YoY. Clearly, new trans-
actions are not entering the
market as quickly as they
used to in previous years.
This is being attributed atleast partly to the recession
and delay in new projects.
Industry- wise
For ITO, which has seen consistent performance since 2006,
a huge Q1 followed by two weaker quarters has resulted in a
flat year. Most of the ITO mega-deals awarded have bundled
Infrastructure and ADM together. Much of the activity in this
space was restructuring related.
While BPO TCV is typically comprised mostly of new
scope, an increasing amount is restructurings. The traditionalBPO strengths- contact centers, FSO, HRO, F&A generally
By Sruthi Ramakrishnan
Restructuring of contracts heavily influenced the last three quarters,and will continue to influence Q4
Strong Contract Restructuring
Leads Weak Q3
“Some of the 7- 10 year
contracts rewarded in the earlypart of the decade are up for
renewal. At the same time, some
of the recent 3-5 year contracts.As a result, there were more
contracts being restructuredsimultaneously,”
John Keppel, Partner & ManagingDirector, TPI Research
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Market analysis
trended downwards and have been lower that their 2006 lev-
els, while there was some pickup in HRO and FSO. More
than half the activity in multi-process BPO was restructuring
related. The emerging R&D KPO activity is picking up in
volume and contracts.
Region-wise
The Americas experienced a decline in both the number and
TCV of contracts in the past quarter. This is important espe-
cially since the Americas, and the US IT market in particular
have been leading the market recovery which began in 3Q last
year. Despite this, TCV for this year is high because of extremely strong first half performance and this makes the
Americas the largest buyer of outsourcing services so far this
year. “The US, which is traditionally the dominant force in
the Americas region, has improved its share of the global mar-
ket from 36% to 44& YoY to date. The Americas is expected
to end this year on the upside,” said Duncan Aitchison,
Partner & President, TPI EMEA.
More contracts were granted in EMEA than Americas
this quarter, but this region is still lagging behind Americas
in both metrics. Within EMEA, there seems to be a lot of
activity in less mature markets. The Nordic region, the sec-
ond largest outsourcing market in the world in 2010, and
the Dutch market provided strength in Europe. The results
in both geographies have been heavily influenced by large
restructurings signed during the first nine months of this
year.
Geographically, APAC has shown the most fluctuation, at
49%, due to a few large deals.
Industry Segment- wise
The Financial Services sector has grown the most this year,
supported by large mega-deal restructurings. Driven mainly
by EMEA region, the growth in this sector has been support-ed by megadeal restructurings in the region, like that of ABN
Amro. Manufacturing has not improved on the same lines,
though the Americas saw activity in this space.
Retail, travel and transport, and hospitality sectors have
adopted outsourcing at an increasing pace over the last year.
Retailers, still experiencing top line pressure, are looking at
outsourcing to help reduce costs. Hospitality, travel and trans-
port have nearly doubled their contract values.
Looking at the number of deals coming up for renewal,
2011 again looks like it will be very active on the restructur-
ing front, though not as much as 2010.GS
3Q10 and YTD Headlines
Restructurings include renegotiations, renewals, extensions
Source: The TPI Index: An Informed View of the State of the Global Commercial Outsourcing MarketThird Quarter 2010
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