TRAINING - Amazon S3 · include advocacy for animals and seniors. Serves as IAOP Chicago Chapter...

PULSE FAST COMPANY

HOT SPOTS

FRESH FACES

Tech Topic – As-a-Service Guide p18-20

The Upside – Career Highs from COPs p24-25

ISSUE 23 | MAY/JUNE 2016 THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONAL

OWS16 Coverage Continues – Automation Survey, Live Game Shows and Photos p10, 48, 52

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PULSE May/June 2016 3

PULSEEuropean Hot Spots

Netherlands & Scandinavia

p42-43

A Look at the Growth of the COP Program and More

p26-35

Leading a New Digital Age

p36-41

View from the C-Suite

B O N U S OW S 1 6 C OV E R AG E

THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONAL

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TRAINING ISSUE

ISSUE 23 | MAY / JUNE 2016

Automation Survey Results ......... ................................................. p10-17

Live Game Shows ........................ ................................................. p48-51

Flash of Summit Networking ....................................................p52-53

T R A I N I N G I S S U E

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T R A I N I N G I S S U E

R E G U L A R F E AT U R E S

Message from the CEO ..........................................................................p5

PULSE Contributors ..............................................................................p6

Taking the PULSE ..................................................................................p7

The Beat: News & Commentary ............................................................p8

"O" Book Club ........................................................................................p9

Tech Topic: As-a-Service ................................................................ p18-20

Knowledge Center: Technology Business Management .............. p22-23

PULSE Professional ....................................................................... p24-25

Joining IAOP: New Members & Benefits ....................................... p44-45

Chapter Round Up: Spotlight on Chicago ...........................................p46


LEARN ABOUT IAOP TRAINING

OPTIONSp31

R E G U L A R F E AT U R E S

Welcome to our Training & Certification Issue

Message from the CEO

Inside the Summit Podcasts from OWS16

Training and career development is vital for professionals in all industries to advance – but even more so in ours where the change is so constant. How do you stay relevant and position yourself and your organization for growth? How do you differentiate yourself and your company when competing for business or positions?

IAOP has been addressing this need for more than a decade with our training and certification programs that are recognized as the gold standard. And we’ve continued to keep our training up to date and fresh by adding the latest content – such as the impact of RPA and digital technologies on outsourcing – into our COP Master Class and other programs.

I’m excited about what the coming years will bring in our training and certification programs. We’re continuing to plan new components to add to the core of our training to give you the skills and knowledge you need to be the best outsourcing professional you can be.

Over the years as our training and certification programs have grown, I’m particularly proud of our broad reach and accessibility. IAOP training is ideally suited for professionals working not only in the traditionally defined outsourcing but also in all the new business transformation models we’re seeing emerge. It’s equally valuable for customers, advisors and providers that are new to the industry as it is for experienced long-time professionals or those changing roles within outsourcing.

We’ve also made training and certification easier than ever before for professionals to achieve, understanding the real time demands we all face. You can train in person or online. We have programs available on your site, at member sites, in executive training facilities in resort locations, and even while you’re already at our Outsourcing World Summit or other events.

Our trainers are global leaders who are certified themselves. The quality of our trainers has received praise from our members,prompting Fernando Yepez, Director at PricewaterhouseCoo-pers, to ask: “Are all the instructors this good?” Other leaders have said they chose IAOP training for its global recognition and application across a broad range of outsourcing practices.

This issue of PULSE will share the latest news on training and certification, a timeline and stats showing how far we’ve come, a talk with our trainers and more. In our new column, the Upside, we feature the latest accomplishments by COPs. To find out what they’ve been up to, check it out. And we welcome you to send us your latest career updates to feature. You did the work – now get some deserved praise and attention for it from your colleagues and IAOP friends! Submit your COP achievements to [email protected].

Continuing on learning, I invite you to tune into our “Inside the Summit” podcasts of the top five-rated sessions from OWS16. These important topics are worth refocusing on and sharing with your organization. We’ll feature a new podcast every two weeks on the Web site.

We’ve been busy planning for our next big event, The EuropeanOutsourcing Summit, themed “Embracing Technology and New Business Models for Outsourcing Success.” The call for papers is out and we’re looking for experts like you to share your knowledge on this topic, Nov. 6-8, in the Netherlands. Be sure to read about the European countries of Netherlands, Sweden, Denmark and Norway in our Hot Spot.

We also have coverage in this issue from the Game Show programming at OWS16 and Research Day, results from the automation survey conducted on site in Orlando, as well as event photos in our Flash session, and an interview with Avasant chief Kevin Parikh in the View from the C-Suite.

Once again, thanks for staying up on our PULSE.

Sourcing Change

Management

1

Solving the Sourcing Innovation

Conundrum

2

How Sourcing Professionals can Lead from

the Front & Proactively

Create Value

3

How Government Regulation is

Impacting Vendor Mgmt. & Related

Outsourcing Services Globally

4

I Want a Divorce: What Do You Do When Your

Outsourcing Marriage Has Turned Into

a Love-Hate Relationship

5

Check out these top five sessions on the

IAOP Web site:

PULSE PULSE May/June 2016 5

M AY / J U N E 2 0 1 6 I S S U E : 2 3

PUBLISHER

IAOPDebi Hamill, CEO EDITOR-IN-CHIEFSandy [email protected]

MANAGING EDITORJag Dalal, [email protected]

PULSE BLOG EDITORKate [email protected]

SENIOR MANAGING DIRECTOR, STRATEGY & PROGRAM INTEGRATIONKim [email protected]

CREATIVE DIRECTORPamela Zarrella brandingwithpam.com

EDITORIAL BOARDJan Erik Aase, COP, Principal Consultant - ISG

Robert C. D. Barclay, Vice President, Global Marketing, Genpact

Michael F. Corbett, Chairman, IAOP

John Hindle, Founding Partner, Knowledge Capital Partners

Neil Hirshman, COP, Partner, Kirkland & Ellis

Bryan Jacobs, Managing Director, Jones Lang LaSalle

Eugene Kublanov, COP, Managing Director, KPMG

Sarah A. Pfaff, Principal, Advisory, Ernst & Young LLP

Renée Preston, Managing Director, Association Development, IAOP

ADVERTISING Scott [email protected], +1.845.452.0600 ext. 103

CONTRIBUTIONSPULSE welcomes contributors! Please email: [email protected]

IAOP13506 Summerport Village Parkway, Suite 119Windermere, FL 34786+1.845.452.0600

This publication (and any part thereof) may not be reproduced, transmitted or stored in any print or electronic format (including but not limited to any online service, any database or any part of the internet) or in any other format in any media whatsoever, without the prior written permission of the publisher. IAOP accepts no liability for the accuracy of the contents or any opinions expressed herein.

PULSECONTRIBUTORS

GINGER DUSEK Leads Accenture’s North America BPO Sales & Accounts practice

and has worked with Accenture for 15 years focused on outsourcing programs. Interests include advocacy for animals and seniors. Serves as IAOP Chicago Chapter co-chair.

ALEX-PAUL MANDERS (“AP”) As ISG’s Technology Business Management (TBM)

Practice Lead for the Americas, he helps clients use the process to drive planning, forecasting

and budgeting activities in finance and IT. An avid hiker and camper.

ATUL VASHISTHA COP - An entrepreneur who continues to be focused on helping

create new business models in the global sourcing industry. Equally passionate about

travel, paddle boarding, wine and hiking.

LETTERS TO THE EDITOR / Send PULSE letters to [email protected] CONTRIBUTE TO THESE STORIES, suggest other stories or comment, contact: [email protected]

JIM SHEA COP-GOV - Helped design IAOP’s online training classes and certification exams nearly 10 years ago and has been

teaching since then as a certified trainer for IAOP. Likes boating, camping and fishing.

REGULAR CONTRIBUTORS: Dr. Mary Lacity, COP, Curators’ Professor, College of Business, University of Missouri-St. Louis and Dr. Leslie Willcocks, COP, The Outsourcing Unit, Department of Management, The London

School of Economics and Political Science.



TAKING THE

PULSEF E E D BAC K A N D C O M M E N TA RY F RO M T H E P U L S E C O M M U N I T Y

[ NEXT ISSUE

COMING NEXT ISSUE IN PULSEOur Global Outsourcing 100 Issue. Big Data in the Tech Topic. Australia is our Hot Spot. And More.

LETTERS TO THE EDITOR / Send PULSE letters to [email protected]

}

Do I have to keep moving as

clouds move?

Instead of working on your own, you use cloud for computing

What is cloud computing?

Does that mean no computing on

a sunny day?

I wonder whathappens when there is

rain and lightening?

The PULSE Blog has moved!Visit the new PULSE Blog on ConnectIAOP - http://connect.iaop.org/browse/blogs.

Our blog is a place for discovery and insight into the industry, covering issues, trends, geographies – maybe even a little controversy. With occasional musings from our bloggers, we’re sure to keep you engaged!

We’ll be gathering information, observations, reflections and more – offering you, the outsourcing com-munity, access to stories designed to engage, inspire and challenge. Visit us often to read notes from the industry, see the latest in outsourcing and keep up on what’s new at IAOP – events, programs, awards, research, trainings, certifications and more! You can also keep in touch with us on LinkedIn, Facebook, Twitter and Instagram.

Blog postings are made by IAOP writersand you, our members, who share a passion for the outsourcing industry. If you are interested in blogging for us, please check out the Blogger Guidelines online before publishing your blog.

TO CONTRIBUTE TO THESE STORIES, suggest other stories or comment, contact: [email protected]

TRENDING ON CONNECTIAOP

• ConnectIAOP Mobile App Now Available!

• Are Foreign Companies in China Starting to Feel Homesick?

• Women Empowerment Initiative

• Top Five IT Outsourcing Trends for 2016!

• What Drives the BPO World in 2016

• Sourcing Evolution - Beyond Labor Arbitrage

• Rising Need for Real-Time Location Monitoring

• Does Your Digital Strategy Consider These Two

Key Factors?

TRENDING LINKEDIN TOPICS

A Cloudtoon

WOMEN EMPOWERMENT AND OPPORTUNITY SURVEYIAOP, in collaboration with Avasant,has launched the Women Empowerment and Opportunity Survey. Member input is being sought on where and how outsourcing has internationally empowered the lives of women both inside and outside the workplace. Findings from this survey will be presented in a powerful main session at OWS17.

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Technology and people are two important investments companies make. IAOP Chief Advisor of Thought Leadership Jag Dalal, COP-GOV, looks at how changing IT investment strategies can provide opportunities for providers who are ahead of the game; and how the outsourcing profession can be leaders in creating gender equality in the industry.

The Beat / NEWS & COMMENTARY AS COVERED BY JAG DALAL

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THE NEWS HEADLINES THE IAOP DISH

OUTSOURCING CAN CHANGE BIASES We have seen many news items and commentary about workplace biases against women – not just for pay but also for achieving leadership roles. This is not just an American problem but a global one.

A recent study in India showed that in the outsourcing profession, females do not enjoy the same level of participation as their male counterparts. The outsourcing profession has a unique opportunity to address this bias since we are still a relatively new profession and can think “differently.” For more on this topic, see story on IAOP’s Women Empowerment survey.

DESIGNING GENDER EQUALITY AT WORK

MARCH 11, 2016 WSJ, REAL FIXES FOR WORKPLACE BIAS

Dr. Bohnet, author of What Works: Gender Equality by Design, points out that diversity management programs and approaches to date haven’t

worked and in themselves, are biased.

She suggests fixing the design of institutions themselves to achieve diversity and equality. Gender neutral job advertisements and data analytic tools that help identify gender gaps were among the real solutions proposed.

PROVIDERS NEED TO CASH IN ON IT New technologies like cloud (see this issue’s Tech Topic) and social Media, as well as the dramatic change in the business environment are changing the IT world.

We are sure that most large users of Information Technology are revisiting their strategy, and developing short- and long-term programs of change. The question is: How are providers gearing up to address their customers’ strategies?

Whether it is reducing the legacy environment to lower operating expenses or providing leadership in fintech partnership, providers need to stay ahead of the IT investment strategy changes coming.

BANK TO PUT MONEY ON DIGITAL

FEB. 22, 2016 WSJ, JP MORGAN LAYS OUT ITS TECHNOLOGY PLANS

JP Morgan announced that it plans to increase its technology spending to around $9.4 billion from roughly $9.2 billion, while working to allocate

about 40 percent of that budget to new investments and technologies, up from 30 percent currently.

Among the areas the largest U.S. bank is putting its money are digital, analytics and fintech partnerships. JP Morgan plans to increase investment in the Chase mobile app and ATMs that currently perform 60 percent of the functions a teller can do, to 90 percent by the end of 2017, the story reports.


Overview: Today’s business world is different. In the past, singular control of supply chain and vertical integration created very rigid, one-sided procurement practices. That helped companies succeed by tightly managing providers and getting the most of the deal from the customer’s point of view.

Now businesses succeed by creating a model where there is “vested” interest in achieving common goals and having both providers and customers work together to achieve them. Strategic sourcing is the new dimension of business practice that balances the goals and outcomes for both providers and customers. It is a new way of operating. This book delves deep into how to create such an environment by forging symbiotic relationships. Many examples and case studies are used to elaborate on the theory.

Title: Strategic Sourcing in the New EconomyAuthors: Bonnie Keith, Kate Vitasek, Karl Manrodt, Jeanne Kling

“

“

THE PULSEOLATEST RESEARCH, REPORTS AND READS FOR OUTSOURCING

PROFESSIONALSBOOK CLUB

Reviews:

“In outsourcing, we often talk about customer-provider partnership and creating a lasting relationship. However, when the rubber meets the road, we don’t know how to structure that relationship and create an environment where there is mutual investment in the relationship. We talk about ‘outcome-based pricing,’ ‘vested relationship,’ and ‘governance for success,’ yet we cannot seem to find a model that can accomplish that. This book is one of the few that I have come across that deals with the practicality of achieving that. I would highly recommend this book for all those involved in procuring and governing outsourcing engagements.”

– Jag Dalal, COP-GOV, Chief Advisor, Thought Leadership, IAOP

“The procurement industry is full of buzz around collaborating with suppliers as a way to achieve business outcomes. By collaborating and building supplier relationships, extraordinary business results can be achieved. This book offers a new insight for even the most experienced seasoned procurement professional.”

– Tony Abate, Chief Procurement Office, Cigna

Book Topics:

This book is divided into four sections:• Part I – explains how a changed definition of power commands the need to change

• Part II – introduces the theory of Sourcing Business Models and dives deeply into each of the prescribed seven models

• Part III – dedicated to providing strategic direction on how to incorporate the new model

• Part IV – lays the foundation for getting started in the new journey

Available formats: Print and digital versions

Tell us what you think:PULSE wants to hear what you think of this book. Share your review with us at [email protected]


BY MARY LACITY, COP, AND LESLIE WILLCOCKS, COP

Speed of Automation Adoption Faster for

Providers than Customers

PULSE K N OW L E D G E C E N T E R

A new 2016 survey focused on service automation defined as:

“using software to perform tasks, processes, or entire services that were

previously performed by humans.”

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A new 2016 survey focused on service automation defined as:

“using software to perform tasks, processes, or entire services that were

previously performed by humans.”

See publisher’s page for http://stevebrookes.com/service_automation.html

Last year’s survey indicated low adoption levels but immense opportunities for automating services (see the 2015 April/May issue of PULSE Magazine for details). Last year’s OWS attendees expressed immense curiosity and interest in service automation, and indeed the attendees inspired our yearlong research project that culminated in the publication of our book, Service Automation: Robots and the Future of Work.

IAOP also responded by launching the Robotic Process Automation (RPA) chapter in Dallas on July 9, 2015 and by featuring service automation speakers at their 2015/2016 events. So has all this member interest resulted in higher levels of service automation adoption in 2016? We decided to repeat the service automation survey at OWS16 to find out.

This year’s results are mixed. Providers indicated that they have embraced automation during the past year by building

service automation capabilities and by offering proprietary solutions. In contrast, client adoption levels of service automation have remained low overall, but interest and opportunities for automation remain high. However, we know from our own research that early client adopters have achieved great business outcomes from service automation. After presenting the detailed survey findings, we summarize below the business benefits achieved from service automation deployments.

Service Automation in Client Organizations Clients who attended the OWS client-only networking represented organizations that deliver a variety of services to other parts of their businesses or to external customers, most commonly procurement, IT infrastructure, software development, financial and accounting services, and call center services (see Figure 1).

LOGISTICS

Figure 1:Services that clients

provide to their internal business or to external

customers (n=63 client respondents)

IT INFRASTRUCTURE

16%

7%

14%

4%

14%13%

16%

7%

9%

OTHER

HUMAN RESOURCES

SOFTWARE DEVELOPMENT

FINANCE / ACCOUNTING

R&D

PROCUREMENT

CALL CENTER


0-25% ALREADYAUTOMATED

DO NOT KNOW

62%22%

6%2%

> 75% ALREADY AUTOMATED

51-75%

26-50%

8%

Among these many types of services, we asked clients to indicate the percentage that had already been at least partially automated. The results in Figure 2 suggest a low level of service automation adoption.

Percentage of services already automated

Although current services were not highly automated overall, we asked clients what percentage of their services was suitable for at least some automation. Their responses, like last year, indicated that the opportunities for service

automation are vast (see Figure 3).

Percentage of services that could be automated

Figure 2:Percentage of

current client services automated

(n = 64 client responses)

PULSE K N OW L E D G E C E N T E RO

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26-50%

DO NOT KNOW

Figure 3:Percentage of

services suitable for at least some automation

(n = 64 client responses)17%

30%

22%

8%

0-25% COULDBE AUTOMATED

23%

51-75%

> 75% COULD BE

AUTOMATED

One wonders, then, why this is taking so long!


Percentage of services already automated Next we asked clients about who is leading the automation agenda. Specifically, respondents were asked the degree to which they agreed with a statement using a seven point scale, with a “1” indicating strongly disagree and a “7” indicating “strongly agree.” The mean responses are found in Table 1. The only decisive result from clients was that clients agreed that their organizations increasingly expected services to be automated. We also asked providers and advisors to chime in on these questions as well. Specifically, we asked them

to share what they thought their clients were doing about automation. When asked who is taking the automation lead – the client or provider – results were indecisive from all three communities. Their mean responses all hovered around the “neither agree or disagree” levels on statements about who was leading service automation. It would seem that many clients need help in assessing how automation could affect their business and IT services. Indeed, providers and advisors strongly agreed that this was the case.

Using the data from the 39 providers who answered the survey during the provider/advisor-only networking session, we asked providers only which statement(s) described their current service automation strategy. Providers could tick multiple responses (see Table 2). Overall, the providers indicated that service automation

was key to their strategy – only 18 percent thought service automation was NOT a key component. Over half the providers indicated that service automation was part of their value proposition to clients. Additionally, 46 percent of service providers use service automation internally to keep their headcounts lean.

Service Automation in Provider Organizations

Table 2: Provider’s Current Service Automation Strategy (n = 39 providers)

INDICATE WHICH STATEMENT(S) DESCRIBE YOUR CURRENT SERVICE AUTOMATION STRATEGY

Service automation is not a key component of our current strategy—our people trump any tools

Service automation is a key component of our value proposition to clients

Service automation keeps our headcount lean

Service automation is changing our location strategy (e.g., labor arbitrage less vital)

PERCENTAGE OF PROVIDERS

18%

51%

46%

13%

Table 1: Perceptions of Service Automation Leadership (1 = strongly disagree; 7 = strongly agree)

SURVEY QUESTION:CLIENT VERSION

AVERAGECLIENT RESPONSE

(N = 64)

SURVEY QUESTION: PROVIDER/ADVISOR VERSION

AVERAGE PROVIDER/ADVISOR RESPONSE

(N = 56)

My organization increasingly expects services to be more automated.

My organization is taking the lead on automation business services – we are not waiting for providers to help us.

My organization primarily relies on service providers to automate business services.

My organization places heavy weight upon providers’ automation capabilities when choosing among different providers.

(No version asked to clients.)

My clients increasingly expect services to be more automated.

My clients are taking the lead on automation business services—they are not waiting for providers to help them.

My clients primarily rely on service providers to automate business services.

(No version asked to providers/advisors.)

My clients need help in assessing how automation could affect their business and IT services.

5.56

4.02

4.25

4.32

N/A

4.68

4.26

4.18

N/A

5.53



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SAs far as affecting location strategies, some people assert that service automation will dramatically shift the attractiveness of some locations because labor arbitrage becomes a diminished source of value in a highly automated world. In contrast to this view, only 13 percent of providers indicated that service automation was affecting their location strategies.

We offer a case study from our book as insight into the survey finding. Xchanging is a global BPO provider with 8,000 employees. When Xchanging adopted Robotic Process Automation (RPA), it automated processes in its current delivery centers rather than move processes. Xchanging used RPA to redesign work so that people in each delivery center could be released from repetitive and highly structured tasks to focus on more

value-added work requiring judgment and social interactions. Thus, processes in the UK delivery center stayed in UK and processes in the Indian delivery center stayed in India after automation.

We also asked providers only which statement(s) described their current service automation capabilities. Providers could tick multiple responses (see Table 3). Overall, providers are pursuing proprietary solutions – over half the providers have already deployed proprietary service automation tools on client engagements and 28 percent are currently developing propriety solutions. Over a third of providers are also using third-party service automation tools, but these are primarily used internally rather than as part of a client engagement.

Table 3: Provider’s Current Service Automation Capabilities (n = 39 providers)

INDICATE WHICH STATEMENT(S) DESCRIBE YOUR CURRENT SERVICE AUTOMATION CAPABILITIES

We have proprietary service automation tool(s)/platform under development

We already implemented proprietary service automation tools/platform for internal use

We already implemented proprietary service automation tools/platform for external use on client engagements

We use third-party automation tools/platforms internally

We buy/resell third-party automation tools/platforms for external use on client engagements

PERCENTAGE OF PROVIDERS

28%

31%

51%

36%

21%

Thus far, we have only examined service automation generically. Service automation, however, includes a variety of tools and platforms with various capabilities and we wanted to ask clients, providers, and advisors to comment on specific auto-mation tools within the broad service automation landscape.

To help make sense of this landscape, we consider two broad classes of service automation tools, RPA and Cognitive Intelligence (CI). Each class of tools is designed to deal with specific types of data and processes (see Figure 4). We conceive of the realm of RPA as occupying the part of the service automation landscape that handles structured data and rule-based processes. Most RPA tools connect to existing software (like enterprise resource planning systems) by assigning the software “robot” a logon ID and password, including RPA platforms. People who configure RPA tools do not need

programming experience, but rather use RPA’s friendly graphicaluser interfaces to configure robots to execute processes. Within the realm of RPA, there is a lot of variety, including RPA tools that focus on desktop deployment, enterprise server deployment, or cloud deployment. Popular companies in the RPA realm include Blue Prism, Automation Anywhere and UiPath.

We conceive of the realm of cognitive intelligence as occupyingthe part of the service automation landscape that handles unstructured data and is capable of inference-based processing. The new set of tools, including IPSoft’s Amelia and IBM’s Watson, use natural language interfaces to read, build patterns and relationships among data, and apply knowledge to solve problems, or to pose additional pertinent questions. Some of these tools also claim emotional intelligence, the ability to assess another human being’s sentiment or state of arousal.

Mapping the Service Automation Landscape

REALM OF RPA REALM OF CI

Structured Data Rules-based Processes Unstructured Data Inference-based Processes

Figure 4: Service Automation Landscape


Drilling down to more specific types of service automation, we asked specific questions about Robotic Process Automation (RPA) adoption twice during OWS16, once during the RPA keynote session and once during the networking sessions.

We polled the OWS audience during the keynote session on Robotic Process Automation about their organization’s current level of RPA adoption. The session was attended by 48 percent clients, 30 percent providers and 21 percent advisors. Of the several hundred people in the audience, 188 responded to the question, “Which of the following best describes your organization’s current RPA Adoption level?” (see Figure 5).

While most respondents indicated that their organizations would likely consider RPA adoption soon, 19 percent said they were considering RPA now, 28 percent indicated they had launched RPA proof- of-concepts, and 14 percent said their organizations were well on their way to building mature RPA capabilities. These results are very interesting because they show a high level of RPA deployment, but the keynote survey question confounded client/provider/advisor responses, so we returned to the client survey for insight into client RPA adoption.

Using the survey data collected during the client-only networking session, we asked clients whether they agreed with the statements, “my organization has adopted RPA” and “my organization is considering RPA.” The client responses indicated low RPA adoption levels, with only 14 percent of clients indicating that their organization had already adopted RPA (see Figure 6).

Robotic Process Automation

We posed questions to clients, providers, and advisors about the current level of RPA and CI adoption within their firms.

Figure 5:RPA Adoption

(n = 188 responses, all communities responding)

Figure 6:RPA in client organizations

(n = 64 client responses)

Decided against/will not likely consider RPA adoption

7%

14%

Buildng mature RPA

28%Launchng RPA

Proof-of-concepts

19%

Considering RPA now

55%

Will likely consider CI soon

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My organization is considering RPA

My organization has already adopted RPA

50

0

42%

72%

44%

13%14%

11%

Disagree Agree Not sure

Which of the following best describes

your organization’s current RPA

adoption level?



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In our research, we found that RPA tools were easier to deploy than cognitive intelligence tools because RPA tools deal with structured data, rules-based processes, and RPA tools have easy- to-configure interfaces. In contrast, our research found that the current state of CI tools require an immense amount of investment in skills and in training the humans to train the CI tools. We would therefore expect even lower levels of CI adoption than RPA adoption and indeed we did.

We polled the OWS audience during the keynote session on Robotic Process Automation about their organization’s current

level of CI adoption. 198 attendees responded to the question, “Which of the following best describes your organization’s current CI Adoption level?” (see Figure 7). While most respondents (55 percent) indicated that their organizations would likely consider CI adoption soon, only 17 percent said they were considering CI now, only 11 percent indicated they had launched CI proof-of-concepts, and only 5 percent said their organizations were well on their way to building mature CI capabilities. But again, this survey question was answered by all the communities. What did clients report?

Cognitive Intelligence Adoption

Figure 7:Cognitive

Intelligence Adoption

(n = 188 responses, all communities

responding) Building mature CI capabilities

5%

11%

Launching CI Proof-of-concepts

17%Considering

CI now

13%Decided against/will not likely consider CI adoption

31%Will likely

consider RPA soon

We asked clients whether their organizations were seriously considering cognitive intelligence tools or if their organization had already adopted CI. As evidentfrom the results in Figure 8, most clients were not yet embracing CI. The current adoption levels were quite low, with only 13 percent of clients indicating that their organization had already adopted CI. Twenty-one clients (33 percent of respondents) indicated that their organizations were considering CI.

NU

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45

0

44%

66%

33%

19%

13%16%

Disagree Agree Not sure

Figure 8:Cognitive Intelligence Automation in Client Organizations(n = 64 client responses)

My organization is considering CI

My organization has already adopted CI


Overall, provider attendees at OWS16 reported embracing service automation faster than clients. But we know that mean responses from survey data mask the variety of client experiences. In the past year, we aimed to help educate potential client adopters by objectively researching mature client adopters of service automation. We learned that earlyadopters were focusing on RPA (not CI) and that RPA adoptions resulted in a multitude of business benefits, including:

About the Authors: Mary Lacity is Curators’ Professor at the University of Missouri-St. Louis. Leslie Willcocks is Professor of Technology Work and Globalization at the London School of Economics. Mary can be reached at [email protected], Leslie can be reached at [email protected].

Outcomes from Early RPA Adopters

• FTE savings reduced the overall costs of services;

• 24 hour service coverage without having to do shiftwork because service automation tools do not sleep or eat;

• Flexible virtual workforce because software “robots” were be multi-skilled (check on what they mean?);

• Consistent quality because software “robots” did not make mistakes;

• Higher compliance because software “robots” were configured to follow regulations and processes are all recorded and thus easily audited;

• Faster service delivery because software is faster than humans on repetitive tasks;

• Faster deployment of new functionality because service automation tools are easier to deploy than other IT solutions;

• Highly scalable solutions to meet surges in service demand;

• Higher job satisfaction for employees because dreary tasks were done by the software, freeing them to focus on tasks requiring judgment, empathy and social interactions.

To achieve such results, research participants identified 25 practices that led to favorable outcomes. The practices address defining a service automation strategy, launching successful service automation initiatives, preparing the organization for the changes service automation induces, and building enterprise-wide service automation capabilities (see our book for details). This coming year, we hope to study early adopters of cognitive intelligence tools and welcome suggestions from the IAOP community on companies to study.

Service automation tools do not sleep or eat

“Robots” do not make mistakes

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TECH TOPIC: AS-A-SERVICE

Alignment, Innovation and InsightA Practical Guide

to Begin the As-a-Service Journey

By Ginger Dusek, Senior Managing Director, North America Business Processing Outsourcing Lead, Accenture

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Excitement around the as-a-Service business model is substantial, yet details are limited for how to get started. The as-a-Service model provides the ability for organizations to plug into application, infrastructure,cloud, security and business process services on-demand and to pay only for services used. With the as-a-Service approach, you focus on business outcomes, targeting investments and services on the highest priorities for both consumers and the business. While the benefits are clear, many businesses are assessing whether as-a-Service is a good fit for their organization—and if so, just where to start. At the same time, they are weighing the risks of not taking the journey.

The many reasons to move to as-a-Service are highly attractive, but when it comes time for implementation, many leaders are unsure what the move will mean for their business, people and culture.

Some companies become bogged down by analyzing the perceived barriers to launching as-a-Service, believing that they must address every obstacle before they can commit. To fully take advantage of the benefits as-a-Service offers, however, you have to avoid using perceived hurdles as a rationale for not starting on the path.

GETTING STARTEDWhen evaluating whether to change to an as-a-Service model, the first question to ask is, “what are my business goals?” Because as-a-Service is outcome-focused, the best way to start is with an end point in mind. Whatever your objectives – saving costs, driving up revenues, increasing market share – decide which results you want to achieve. What outcomes will act as the key measurements of your business, and which

do you want most to influence or improve? Before you can lay the floors and put up the walls, you have to determine what you want the house to look like.

Determining key outcomes is only half the journey. The real magic of as-a-Service comes with unlocking value by using the data and insights your operations yield to identify further benefits to your business, customers or product. Uncovering this value means focusing on business processes, asking why you are performing them and how they affect outcomes.

ALIGNING OBJECTIVES AND CULTURE

Aligning business objectives and culture is no easy feat, and it’s a critical next step in adopting an as-a-Service model. Stakeholder buy-in is crucial, and each piece of the business must agree on target objectives and outcomes, for the broader organization rather than each business unit involved. If the idea to adopt as-a-Service comes from the business side, it’s critical to have IT on board –and vice versa.

Organizational alignment entails figuring out which pieces of the enterprise need to participate in the process to deliver the desired

outcomes. You should cast a wide net across the entire business to identify who has a stake. As-a-Service involves a range of business functions and features – business process, technology, infrastructure, security, cloud – all of which determine how a business should pursue its journey. Regardless of which piece is most critical for success, it’s important to build a culture of collaboration. Equally important, no matter what your business goals may be, any outcome-generated benefits must be shared proportionally across the business.

Determining key

outcomes is only half

the journey. The real

magic of as-a-Service

comes with unlocking

value by using the

data and insights

your operations yield

to identify further

benefits to your

business, customers

or product.

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Alignment, Innovation and InsightA Practical Guide to Begin the As-a-Service Journey

TECH TOPIC: RPA

With thoughtful preparation and a mindset shift toward outcomes and

business results, the as-a-Service journey will

be rewarding and something any business can do.

FOCUSING ON INNOVATIONAnother key step in initiating the as-a-Service journey is determining how it will drive innovation. With a focus on process improvement through technologies like digital and cloud, as-a-Service holds the promise of innovation at today’s accelerating business speed.

And it’s important to understand that innovation is less about inventing and more about reinventing. True innovation helps your business transform – not just adapt. Innovation can be as simple as lowering costs by moving from paper forms to email, or transforming the end-to-end process to embrace new technologies and interact with your customers differently. Both can be innovating, depending on the starting point, and both can improve outcomes.

Getting to innovation faster – in minutes and hours, not days and weeks – may entail finding the right as-a-Serviceprovider. An experienced provider can help you plug in quickly and determine what processes and tools work best for your company and your industry, helping you to leverage the benefits of innovation. Innovation – new ideas, technology, processes and positive disruptions to help run your business more efficiently – is essentially a byproduct of as-a-Service delivered properly.

FINDING THE RIGHT PARTNERCritical to the as-a-Service journey is having a partner who is truly insight-driven and can take your business along a proven path toward success.

Getting on the right path to as-a-Service requires an understanding that a true partnership with a service provider is a two-way street. You and your as-a-Service provider should agree on what success looks like, which may extend beyond metrics such as cost reduction. If you’re seeking additional business value with as-a-Service,your partner should be part of the process – and perhaps even share that value. This represents a departure from

traditional outsourcing models, which typically focus solely around resource counts and penalty structures for missed metrics. It entails a high degree of mutual trust and acceptance of key business principles.

GAINING INSIGHTS In addition to spurring innovation, as-a-Service should point you toward the business insight that can help you achieve your desired outcomes. Again, partnering with a provider who has the right experience and capabilities can help you gain that insight by showing you how to use your data and information to your greatest advantage.

With thoughtful preparation and a mindset shift toward outcomes and business results, the as-a-Service journey will be rewarding and something any business can do. Partnered with the right provider, as-a-Service offers rich rewards and greater business alignment. Understanding what outcomes you want to achieve, aligning stakeholders and overcoming your barriers – rather than using them as an excuse to not move forward – are healthy first steps.


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PULSE K N OW L E D G E C E N T E R

By: Alex-Paul Manders, TBM Practice Lead, Americas, ISG

Is Your Sourcing Strategy Costing You Money?

TBM Can Help.

One of the biggest shifts in business over the last 50 years is the move toward lean and agile operations, and the decided growth in strategic sourcing. Executives in the 1960s and 1970s bragged about their companies’ strength and size, pointing to the fact that they ran their own in-house print shop or their own fleet of trucks.

Today, CEOs may boast about how they can generate more than a billion dollars in revenue with an in-house staff of only 10 people.

And the CEO with a staff of 10 may be justified in his boasting — but only if one of those 10 employees is dedicated to managing, monitoring and benchmarking what is undoubtedly hundreds of sourcing contracts.

A sourcing strategy that begins with the assumption that outsourcing will inherently save money is a flawed approach. Even those companies that do their due diligence at the outset may find their sourcing strategies falling short. Nothing ever stays the same, and a sourcing contract that delivered the desired results a year ago may not be delivering the desired results today.

© CanStockPhoto Inc. / maxximmm


About the Author: Alex-Paul Manders is a pioneer in the technology business management (TBM) space. As ISG’s TBM Practice Lead for the Americas, he advises ISG’s clients on how to use TBM to drive value in their organizations. ISG’s TBM approach begins with fact-based, analyses, supported by transformational IT initiatives that optimize the IT enterprise by running IT like a business. Manders has helped many clients use the TBM process, with a focus on transparency, to drive planning, forecasting, and budgeting activities in the realms of finance and IT. Contact him at [email protected].

We want something, but we can’t tell you what it is until you bidIt all starts with the request for proposal (RFP). Today, we are seeing a tendency toward shorter, nondescript and even anonymous RFPs that offer very little in terms of expected results. Though enterprises may want to keep theirsourcing requirements close to their vests, those that follow this approach will probably not get the most innovative bids without sharing the necessary information.

Technology Business Management (TBM) is a discipline that provides a data-driven framework for measuring, managing and communicating the budget, cost, consumption and value of IT. Beginning with the RFP, it creates a transparent environment throughout the entire sourcing process and sets the stage for an enterprise to better evaluate and negotiate sourcing arrangements by increasing visibility into both internal and external costs. When the service provider has incomplete information, bids tend to be unrealistic, and, as a result, the enterprise may get what looks like an attractive bid but is likely to cause cost overruns down the road. Of course, it makes sense to describe the required services. But a complete bid must also include detailed information about what you need in the future, what you have now and what it costs.

No two companies ever pay the same amountIn the initial due diligence period of an RFP process, TBM methodology helps to compare the cost of a sourced service against what it costs to provide it in-house, but that’s not the only benchmark to consider.

Even if you are saving money by sourcing, you need to know how much you are saving compared to your peers in the industry. Bids that are for bespoke services are offered on a customized basis, with bidders offering quotes based on two things: the information you provide and how much they think you are worth. Your competitor is likely paying either substantially more or substantially less for the same service. An essential element of a healthy TBM program is the regular practice of benchmarking against your peers

as a way to gain more financial visibility throughout the sourcing journey.

When a picture isn’t worth a thousand wordsThe typical “snapshot” analysis of a contract will show you the costs and the benefits at a given point in time. But, in an environment where things change on a daily basis, and macroeconomic events in China, Russia, or South America may have an unexpected impact on your costs or revenues, snapshots don’t do much good. Continuous and automated monitoring is a critical part of a TBM-driven sourcing strategy. By collecting and analyzing data aligned to a standard taxonomy, the resulting analytics will show the continuing benefit of a contract and what happens to that benefit when an adjustment has to be made.

To read more about how TBM guides the sourcing process, download our white paper Strategic Sourcing and Technology Business Management.

Even if you are saving money by sourcing, you need to know how much you are saving compared to your peers in the industry.

© CanStockPhoto Inc. / maxximmm


Alex van den Bergh, COP, Partner Sourcing Advisory, Quint Group serves as a mentor to others to get certified, encouraging clients and even vendors to obtain the designation.

“COP certification provides tangible proof of a person’s knowledge and experience in outsourcing. It will give colleagues, clients the ‘comfort feel’ that a person is truly knowledgeable

and capable in this subject,” van den Bergh said. “Certification helps professionals align their way of working which increases efficiency of teams, and even ‘blended teams’ of client, provider and sourcing advisor. Having the same vocabulary, terminology, methods and expectations can speed up delivery and increase quality.”

Mike Fabrizi, COP, Mitre Group has made valuable connections with the association’s global COP network, writing articles and even co-authoring a book with an IAOP colleague who lives 12 time zones away.

He offers this advice to others interested in pursuing certification: If at all possible, take the certification preparation course in

person, rather than online, so you get to network with fellow professionals. Fabrizi also recommends learning from the supplemental readings IAOP provides and using social media to network with thought leaders in the areas of outsourcing that most interest you.

“Pursuing the certification requires commitment; commit yourself,” he says. “Identify something that you will give up, in terms of time, in order to attain the certification.” ______________________________________________________________________

Fabrizi says the results will be well worth the time invested for your careers and personal growth. ______________________________________________________________________

“The greatest value is global connectedness,” he says. “In pursuing the COP, and in being active, I have found and worked with some very, very smart people all over the world. Being part of this global brain trust has changed my outlook on the world. National borders are accidents of history; that which we have in common is ultimately more powerful than that which separates us. Outsourcing and globalization are a global civilization in the making.

PROFESSIONALPULSE THE

UPSIDE Career Highs from our COPsRead about what’s up with COPs below.

In this new column we’ll feature job promotions, achievements and other notables from the industry’s Certified Outsourcing Professionals.

To contribute, email us at [email protected]


Richard F. Mitchell Jr., COP, President & CEO of SolCon Partners uses Governance training and the OPBOK model frequently in his advisory role working primarily with technology groups to help them build practices for how they deal with their providers.

“I’ve had the privilege of mentoring many folks in the technology field and have referenced IAOP and the certification process as part of my recommendations on the growth of their career,” Mitchell said. “The cost of the COP certification is nominal to the value of having the certification. It has brought a

level of distinction that sets the individual who attains the COP certification apart from many in the industry. The COP certification remains a unique certification based on the domains it covers and I haven’t found any other certification that would quite cover the OPBOK space.”

Dr. Bob M.T. Goosen, COP, Senior Consultant views COP certification as essential to his career and has found that networking with COPs and chapters has been particularly valuable as a sourcing consultant.

“Being part of IAOP’s global network of COPs offers you extensive possibilities to connect with peers, gain knowledge by the numerous publications and activities within the network and the possibility to participate in the various chapter activities being organized around the globe,” he says. “IAOP’s

network is truly global and makes an introduction just a formality, a connection established quickly and a reference base present from the start.” ______________________________________________________________________________________________________

While challenging to obtain, Goosen recommends pursuing certification. ______________________________________________________________________________________________________

“By the composition of the COP certification track you are challenged in numerous ways: learning from experts in the field of outsourcing during the excellent COP Master Class while also meeting and discussing content with your peers, gaining theoretical knowledge on the basis of studying and examination on the basis of the OPBOK and the validation of your experience when the assessment of actual projects is done,” he says. “Therefore, the certification is no easy road but a very interesting one with significant value. Certification offers you much in multiple ways. And in the end, receiving the certification validates that you have the knowledge, skills and experience to lead and execute outsourcing initiatives.”

Debbie Enna, COP, PMP, IT Vendor Management Office, Duke Energy Corporation has found the COP Master Class to provide a great overview of the full lifecycle of sourcing.

“Sometimes we tend to specialize in a few of the components of sourcing, whether it be vendor selection, statement of work creation, negotiations or ongoing governance,” she said. “The Master-Class helped put all the pieces together and provided ways to think about the strategic, transactional, governance and other components of sourcing.”

Congratulations to our newest COPs:

R Pavel Rastopshin, COP, MAYKOR

R Lula A. Black-Fendley, COP, Bayer CropScience

R Mary Jane Norris, COP, USAA

R Ted Botzum, COP, Sourcing Matter LLC

R Michael Nacarato, COP, MUFG Union Bank


TALK WITH

TRAINERS

IAOP Special Training Section

TRAININGAND CERTIFICATIONNEWS

TRAINING

CALENDAR

T&C

TIMELINE

TRAIN IN A DAY OR TRAIN

IN A TEAM

ONLINE

TRAININGOFFERS MANYBENEFITS

IAOP Training and Certif cation Comes a Long Way

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IAOP Special Training Section A decade has passed since IAOP launched its Certified Outsourcing Professional

(COP) program. It has grown from about a dozen in the very first class to, at

latest count, more than 2,787 certified professionals around the globe.

Certifcation as well as the COP Master Classes and Governance Workshops has attracted professionals of all ages and from all roles – from newcomers to the industry to long-time pros. And while the foundation of the learning

experience remains constant - covering the state-of-the-art, end-to-end process

for outsourcing success – the content continues to be refreshed to address new

technological and other issues of relevance to outsourcing professionals.

The training also has morphed as new business transformation models have emerged. Today’s training is relevant for indviduals and organizations working not only in traditional outsourcing but also multi-sourcing, global business services, and other variations.

Understanding the real time demands professionals all face, IAOP offers many

options for completing training. Online training has been offered for nearly

a decade, while the in-person training continues to hold strong appeal for its

networking value. From one-day workshops to courses that dive deeper into the

content leading to certification, IAOP training continues to be the industry’s

paragon of excellence.

IAOP Training and Certif cation Comes a Long Way

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How has COP certification changed since its start? Is it more accepted by companies, more sought, more valued?

Ostrander: The COP certification continues to gain visibility among customers and third party advisers. We are seeing a higher and higher percentage of attendees to the COP Master Class who have an expectation of obtaining their certification.

Varanasi: The COP program has moved substantially in the past decade. From being a certification to a harbinger of business predictability with outcomes, it has come a long way in enabling an ever-dynamic industry. It’s accepted worldwide by most end-user organizations, though there is still a lot of work to be done in having providers adopt global best practices as laid-down by the standards. The inherent flexibility accorded to the instructors has and continues to be a boon as it relates to ensuring relevance for participants around the world. It’s no longer seen as an American standard, which is quite welcome. An important element that has contributed to its relevance has been the constant pursuit at keeping the standards in tune with the marketplace. The various versions and updates worked upon through a collaborative endeavor amongst professionals have truly assisted in maintaining alignment with the industry, as well as applicability.

From what you hear and see in your classes, what are the main reasons people are seeking certification?

Ostrander: There are a number of reasons cited by participants that are seeking certification, including the desire to differentiate themselves from their peers,

mandate by their leadership and personal desire to improve their skills and become recognized for having done so.

Varanasi: It truly varies by the region. In Africa, the standards have helped professionals learn the basics of the sourcing industry's practices and it helps establish levels of consistency and business accountability unseen before. In the Middle East, the standards and program have been-constantly seen as a harbinger for shifting from traditional command-and-control environments where procurement and sourcing didn't see eye-to-eye, to a more collaborative environment with mutual accountability for outcomes. In Asia-Pacific, it has been a program to enhance the competencies of middle and senior management to move away from siloed technology-centric thinking to business and tactical outcomes desired by customer organizations. Nevertheless, the COP program by its very nature has the ability to address a variety of expectations."

Explain the atmosphere of a master class - do people come out of the classes with new connections from the bonding?

Ostrander: The Master Class is intense. Participants often feel like they are drinking from a fire hose after the first day. By day three, however, they find exciting professional friendships among their fellow participants and actionable lessons that they can take back to their company and better ensure successful outsourcing outcomes.

Varanasi: It is very intense, particularly as it relates to addressing the case study. I have always believed in entrenching the learning into an applicable manner, thereby putting participants into a situation where collaboration and respect for each other’s experiences

Talk with the TrainersPULSE talked with IAOP Authorized Trainers Rick Ostrander, COP-GOV and Bobby Varanasi, COP-GOV about what they’re really seeing in the Master Classes and Governance Workshops they teach around the world. Read more about unexpected training moments, the intensity and bonding experience, and the elephant in the room when it comes to training.



enables greater learning than just adhering to the standards. On a personal front, individuals in a public class have almost always ended up sustaining their new-found relationships into the future, while also potentially establishing collaborative business endeavors.

Please feel free to share any other thoughts about IAOP training and certification.

Ostrander: As we move forward with IAOP training and certification, I am hopeful that we will be able to complement what we teach with up-to-date statistics that are important to attendees as well as greater information on tools available.

Varanasi: There's still more to be done. We need more case studies that traverse the entire length and breadth of the global sourcing industry, including but not limited to technological advances as well. In addition, we need to focus on procurement - the elephant in the room. I teach in regions where traditional management styles are aplenty (resulting in lesser attention to sourcing and its inherent complexities). We need to tell the world that procurement and sourcing aren't battling each other; rather they complement each other to enable organizations.

Varanasi: My Middle-East classes are usually quite serious owing to cultural proclivities while the atmosphere in Asia Pacific and Africa can be quite informal. The most unexpected things that have happened have revolved around individuals from competing organizations freely collaborating with ideas (something that would be considered anathema in a general context).

Bobby Varanasi, COP-GOV

Describe something fun or unexpected that

happens in your class.

Ostrander: To break the ice, I ask each participant to include something unique about themselves during their introduction. We have had folks who are auctioneers, support leaders of volunteer organizations and antique collectors. I had the privilege of teaching a class in Russia where a very petite woman proudly announced to her colleagues, almost all male, that she had been a champion weightlifter for Russia. The looks on her male colleagues faces were priceless!

Rick Ostrander, COP-GOV

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STREAMLINED COP FAMILY APPLICATION PROCESS COMING SOON! The application process for becoming a COP is about to get easier and quicker. Professionals pursuing certification will be able to complete a single application online. Based on the benchmarks the applicant completes, they will automatically become certified first as aCOP and then as a COP as they reach the qualifications. Using the new system also will make it easier to validate individual project experience and download personalized certificates from the Web site.

NEW RECERTIFICATION GUIDELINES In November 2015, IAOP extended the recertification process from two to five years. It also added documentation of ongoing outsourcing project work to its list of activities that count toward continuing education hours. (For more, see Nov./Dec. 2015 PULSE)

HOSTED TRAINING PROGRAM In partnership with IAOP corporate members, COP Master Classes and Outsourcing Governance Workshops are now also being offered at member sites with world-class facilities in accessible locations. (See the calendar for dates and locations).

Training and Certifcation News


Atlanta Master Class and Governance WorkshopParticipants from class March 21-24 in Atlanta, Georgia.

WHAT’S A MASTER CLASS ALL ABOUT?The Master Class is an integral part of the COP Program. It provides outsourcing professionals – whether they work as customers, providers or advisors – with an intensive, case-study driven learning experience on the state-of the- art, end-to-end process for outsourcing success. Individualswho complete the course will not only earn 75 points (Half the required points for certification) toward their COP designation or fulfill their aCOP training requirement but will immediately be able to improve outsourcing outcomes at the organizations with which they work.

Training Calendar

SEPT. 27-29The Netherlands

JUNE 20-23Chicago, Illinois (offices of Kirkland & Ellis)

MAY 31-JUNE 3The Netherlands

SEPT. 12-15Denver, Colorado

OCT. 24-27Toronto, Canada (offices of Fasken Martineau)

DEC. 5-7Copenhagen, Denmark (offices of ISS)

COP MASTER CLASS & OUTSOURCING GOVERNANCE WORKSHOPS: MASTER CLASS ONLY:

NEW

“Having a mix of customers, providers and advisors in master class training leads to more fruitful discussions because you get views from all sides of the relationship.” – Anders Hansen, Group Marketing Manager, ISS

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OUTSOURCING GOVERNANCE WORKSHOPLearn about the top challenge facing outsourcing professionals today – governance. The workshop also expands on the OPBOK and the Outsourcing Professional Standards. Participants earn 15 points toward the COP designation.

Course Delivery: scheduled public classes, on-site private and self-paced online

SERVICE PROVIDER BUSINESS DEVELOPMENT WORKSHOPThis workshop provides service providers, large and small, with the knowledge and skills to deal with complex and rapidly changing market realities and challenges they must address to win and survive. Course Delivery: on-site private and self-paced online

COP STANDARDS WORKSHOPThe core of IAOP’s corporate and professional development programs is the Outsourcing Professional Standards (OPS).The workshop will highlight the key knowledge areas and capabilities that are more deeply covered in the three-day COP Master Class. This workshop is helpful to those considering becoming COP certified.Course Delivery: Scheduled public classes

COP CUSTOMIZED CORPORATE TRAININGFor companies that prefer a more customized option, focusing on areas more closely related to your current organization structure, IAOP offers the Create a Workshop option. Choose multiple learning modules of the most interest and IAOP will have an Authorized Trainer deliver them at your location. Participants will receive 7.5 points

per module of completion towards COP certification. A minimum of 15 participants is required.Course Delivery: scheduled on-site For more information about training for individuals or for your company at the organization-wide level, please contact your account executive or [email protected].

Train a TeamIAOP has several options to help companies bring larger groups of people through the program. These include:

COP Master ClassBulk SeatingIn-House COP Master ClassPublic COP Master ClassOnline COP Master ClassCOP Program LicensingCOP Customized Corporate TrainingCOP Program Elements Licensing

Why are so many organizations choosing to take the COP program company-wide?

• Dramatic cost savings – Organizations can take advantage of multi-person discounts and reduced employee travel as well as purchase of bulk COP Applications/Exams.

• Customized learning – Receive comprehensive learning on the end-to-end process of outsourcing and let us tailor content to the immediate needs of your firm.

• Greater flexibility – Schedule trainings when they are convenient to your employees and partners engaged in outsourcing.

Train in a Day

Train in a Day

Only have one day to devote to training? That’s all it takes to advance yourself and your

organization with these hands-on, accelerated workshops on topics of interest to outsourcing professionals.

Training is available online, at public classes or private training can be set up in your organization’s meeting space. Some classes also count

toward Certified Outsourcing Professional (COP) certification.

Check out these choices:

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THE GLOBAL PRESENCE OF COPS

[

[

[

[

[

OPBOK created

2005

COP certification launched

2006

COP Master Classes – live and online – launched

Early 2007

COPlicensing program launched

Early 2008

Print version of OPBOK and templates published by Van Haren

Mid 2009

COS-HR & COS-F&A certifications launched

2010

IAOP Training & Certifications approved by Career OneStop

November 2010

Collaboration between IAOP and ITSqc certifications begin

2010

aCOP launched

Mid 2009

Malaysian government officially adopts COP program

2009

Governance Workshop launched

Late 2008

Bridge program and OPCC launched

Mid 2008

PROFESSIONALS CERTIFIED BY THE NUMBERS

aCOP/COP672

COS-HR939

COS-F&A328

COS-FP780

COS-M&S78

2,787Certifications

Worldwide

IAOP Training & Certification Highlights

CERTIFIED PROFESSIONALS IN COUNTRY=[

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THE GLOBAL PRESENCE OF COPS

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COP-GOV & COP-BD certificationslaunched

Late 2011

COS-FP certification launched

End 2011

Enhanced Governance programs launched

August 2013

COPs get VIP treatment at Outsourcing World Summit

February 2014

COP mentor program launched

March 2014

COP Standards Workshop and Create-a-Workshop launched

Early 2014

Second edition of OPBOK released

June 2014

COP Family Recertification extended from 2 to 5 years

November2015

Several Corporate & Professional Development Alliance partners added

2012

More than 670 COPs and 2,100 COS family certification reached globally. 2,200+ people completed IAOP training courses

April 2016

COP Family Application process streamline launched

June2016

IAOP Training & Certification Highlights 2,200+ people completed IAOP training courses as of April 2016


IAOP Online Training Provides Many BeneftsBY: JIM SHEA, COP-GOV

IAOP has been delivering the online version of the COP Master Class and Governance Workshop for nearly a decade and more recently the Business Development Workshop for Service Providers (COP-BD).

Online training has been around for years and many organizations subscribe to this method through online training provider organizations, create their own in-house online training programs using packaged courses or even develop customized course content to suit their business needs.


In general, online training offers many

benefits including:

• Anytime, anywhere class delivery from any computer with an Internet connection

• Start and stop anytime allowing for convenience and scheduling to suit the students schedule (evenings, weekends, lunch breaks, workdays, etc.) Class can be completed in as little as several days or spread over several months

• Reduced cost for tuition and zero travel expenses

• Reduced time away from work

• Access to additional readings and presentations not included in stand up classes

• Customizable content for large groups

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Best Case ExampleWe are currently doing a customized online class for a large group of students from the same company with great success. The approach involves customizing course content and focusing on the content that the organization wants to develop a core set of skills around. The class content will be a combination of the COP Master Class and Governance Workshop delivered as one class. Case Studies have been designed to focus on areas the company values most.

Structured interactions between students in the class and with the instructor have been scheduled each week of the four-week class duration. Weekly homework assignments and case study exercises have been built into the class.

Finally, a customized exam is being developed that will incorporate many of the COP certification exam questions and the COP-GOV exam questions.

Making the most of online trainingThe interactions with a live instructor and other students in class are obviously minimized with asynchronous online classes. Online students who desire more interaction can do so in a number of ways to increase the value of online training and get clarification and questions answered as they would in class.

• Ask the instructor questions via e-mail

• Schedule live phone or web-based conferences with the instructor at various intervals throughout the class

• Ask for additional readings and resources that might be available through the instructor or IAOP’s Knowledge Center

• For a large group of students from the same organization, request a dedicated schedule of live interaction with the instructor and customized content specific to an organization’s needs

Students will complete the class with a solid foundational knowledge of all aspects of outsourcing with a focus on Outsourcing Governance in an IT environment.

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LEADING THE NEW DIGITAL AGE VIEW FROM THE C-SUITE

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AVASANT’S KEVIN PARIKHWhen Kevin Parikh was in law school, outsourcing as we know it today was still in its infancy. He never

envisioned the path his interests would lead him down when he started his career as a federal enforcement lawyer working in the Clinton administration.

Today, as Global CEO of Los Angeles-based Avasant, a leading sourcing advisory firm, Parikh operates at the convergence of consulting and law. He specializes in bridging the gaps between legal counsel and business

team objectives in complex and global transactions focused primarily on technology and sourcing.

PULSE talked with Parikh about the Digital Age and what it means for outsourcing, innovative services resulting from the convergence of technologies, impact sourcing in Africa and the decade anniversary of Avasant.

"We’ve experienced tremendous growth and operate globally today. We have consulting assignments in over 40 countries, and have a very broad, diverse practice.

IT’S BEEN A GREAT ROAD FOR US."INTERVIEW BY SANDY FRINTON


Every age is followed by some level of unemployment. It requires less people to do the work in this new model than it did before because we aren’t doing the same jobs.

When we introduced machinery into farms in the 1920s, tractors made it easier to plow the lands, which meant that there were fewer people required to do that work. Henry Ford said, “If I asked people what they wanted, they would have said faster horses.” People couldn’t really envision or imagine what they would need in the future; they just knew they wanted to get there better, faster, bigger, and smarter. We’ve been going through this stage for about five years now and you’re seeing it with ATMs displacing tellers and automated checkout at grocery stores.

P: What impact has this Digital Age had on outsourcing?

K: There’s a tremendous amount of automation in call centers where we’re seeing almost 65 percent of jobs being displaced. Almost 45 percent of state and local governments expect their traditional jobs to be displaced by some type of automation. We recognize that the change is fundamental.

We moved from outsourcing and offshoring to India to reduce costs to now bringing work back to the United States

but automating it and reducing the cost of delivery. We don’t know what this digital economy will bring us. I’m an optimist and I believe great opportunity will come from this change but we haven’t grasped it yet.

P: How do providers survive in this changing environment?

K: The future is all about vertical-driven solutions. The technology-driven solutions that are coming are not in the form of people but in the form of business-specific solutions. So in banking and financial services, it’s Fintech solutions. In utilities and resources, the solutions are coming as smart grid and smart homes. If we’re talking about travel and transportation, the solutions are next gen solutions around transportation. Traditional firms that have focused purely on labor driven solutions, won’t be able to succeed in this new model - unless they change.

P: How did you get started in strategic sourcing advisory?

K: My background started with a desire and great love for this country. I started my career in Washington, D.C. in the early 1990s as an attorney. It was an exciting time. I had a presidential appointment for the One America Campaign working with Carol Martha Browner, Administrator of the Environmental Protection Agency, as a federal enforcement lawyer.

I thought I would follow a career in law. But as the Clinton administration approached the end of its term, I made the decision to come back to California, which is my home. I was born in San Francisco. I had an opportunity in the Southern California area with KPMG in the late 1990s in a legal-oriented position that quickly grew into supporting start ups and technology companies on their road map toward success. That led to me getting deeply involved in the consulting aspect. This was before a lot of outsourcing was done. It was pre dot.com and Y2K.

After the spinoff of KPMG and BearingPoint, Gartner Consulting brought me into their fledging strategic sourcing practice as the Global Sourcing Leader. I grew that practice incredibly quickly and it became roughly 33 percent of Gartner’s consulting revenue. In 2006, I made the decision to leave Gartner and Avasant was born. We’re now 10 years old as a business. We’ve experienced tremendous growth and operate globally today. We have consulting assignments in over 40 countries, and have a very broad, diverse practice. It’s been a great road for us.

P: What trends did you see happening in the industry?

K: Five years ago, I viewed a big change in our industry. We are going through a new age of development called the Digital Age. Like prior ages (the Stone Age, Renaissance, Middle Ages and Information Age) this Digital Age is going to fundamentally automate, and change how we work and the way we interact with each other.

The theory of this “jobless recovery,” which our politicians have been talking about for the past decade, is really nothing more than a natural evolution in this new age.

“Almost 45 percent of state and local governments expect their traditional jobs

to be displaced by some type of automation.

We recognize that the change is fundamental.”


I N T E RV I E W: K E V I N PA R I K H

ROLES: Global CEO and Senior Partner of Avasant, Chairman of the Avasant Foundation

EXPERTISE: Specializes in IT and business process (BP) outsourcing contract and service-level negotiations, strategic management, business risk evaluation and software licensing. His practice engages in both nearshore and offshore sourcing solutions

DEAL MAKER: Parikh has been involved in more than 350 IT sourcing and business transactions. These deals have ranged from $20 million to $2.5 billion, involving major Tier 1 and Tier 2 service providers

PREVIOUS ROLES: U.S. Presidential appointee in the Clinton Administration for the One America Campaign and Global Sourcing Leader for Gartner Consulting

EDUCATION: Bachelor’s degree from the University of California, Davis, in economics and political science and Juris Doctor from American University

IAOP INVOLVEMENT: Chapter chair of Digital Enterprise, Transboundary Sourcing; Outsourcing World Summit speaker

PERSONAL: Married with two daughters (age 10 and 12)

READ MORE: http://avasant.com/insights/digital/digital-enterprise-market-leaders-of-tomorrow

Kevin Parikh At a Glance

Avasant At a GlanceOVERVIEW: Recognized globally as a leading advisory firm providing digital, global strategy, managed governance, strategic sourcing and transformation services. Named to IAOP’s World’s Best Outsourcing Advisors list for eight consecutive years

CLIENTS: Leading corporations across various industries, including banking, financial services and insurance; healthcare and life sciences; hi-tech and telecommunications; state and local government; media and entertainment

LOCATIONS: Offices in 10 countries, including Washington, D.C. and Dallas; London; Bangalore, New Delhi and Mumbai, India; Trinidad; Dubai

NAME ORIGIN: Avasant represents the merging of the Latin word “ava” meaning “advisor” and the Sanskrit word, “sant” meaning “sagely.” Once merged the name means “sagely advisor”

Hiking the Grand Canyon

Parikh presents at an Avasant summit


by linear induction motors and air compressors) has been around since the 1900s.

So the ideas and technologies have been there but they haven’t been brought together in an innovative way. This is all freeing the human mind to be more creative. That makes our jobs as consultants all the more difficult because if we can’t innovate they have no reason to hire us.

P: For your 10th anniversary, Avasant rebranded with the “Empowering Beyond” tagline. What does that mean?

K: Empowering Beyond is all about stretching the imagi-nation. When we started this journey, it was really seeing around the corner to position our firm in a place of growth. We’ve grown 40 percent per year, not only because we’re

doing the right things but because we’re positioning ourselves in those areas that are growing ahead of others like digital and transfor-mation. We were one of the first to launch a digital practice.

Our globalization practice started about 10 years ago. That’s when we saw a lot of global change from offshoring of services to India and China and other locations, and we recognized that U.S. companieswould also want to reinvest in someof these regions. We saw that therewould be a drive for foreign direct

investment in these countries. Our perspective is we don’t look backward to decide where we’re going. We don’t worry about the competition because we are always looking forward.

P: Why did you start the Avasant Foundation?

K: There are significant social challenges around us. Our job as an advisory firm is to help our clients but also to do the right thing. That’s why we launched the Avasant Foundation in 2012 on a seed investment from the Rockefeller Foundation, our sponsor. The Digital Jobs Africa initiative looked at how we could transition youth in this new digital economy, and what job skills and experience they would need in order to succeed. By promoting impact sourcing to service providers and buyers, we have created over 3,000 jobs amongst youth in Asia, Africa and Latin America. We’re very proud of that.

For more, see http://avasant.com/foundation.

P: How is this changing the role of sourcing advisors?

K: Historically our job as sourcing advisory consultants is to optimize the environment with great SLAs, better business processes and reduced costs, which we call IT and business transformation and sourcing. The new side, called digital transformation, is increasing customer engagement, driving revenues and improving profits. Both solutions are using some type of technology platform and service that is outsourced. It’s two sides of the same coin. It’s very exciting because it expands our ability of what we can achieve for our clients.

P: Does this change how companies work together?

K: Yes, companies that were historically competitors are now becoming partners. There’s not necessarily a RFP process. For example, a service provider needs a company like Amazon and they bring in a consultant like Avasant to build a roadmap. We’ve come to think sourcing advisory means running a RFP process. Today being a sourcing advisory means helping the client – and the provider - transform. We are in second and third generation outsourcing relationships. These providers have been there for a long time and the clients don’t necessarily want to change those providers. They just want help to change how they work with them.

P: Is all this digital technology leading to innovation?

K: Uber, Hyperloop, self-driving cars – it’s all innovation. Why it is happening now? The digital world is bringing us the opportunity to collaborate, communicate and build ideas more quickly and rapidly, and integrate technologies that previously would be incompatible with each other. Today a car like Tesla exists because we can bring all types of technologies together to form a better car that might not have been possible in year’s past even though the technology existed.

The technology for Hyperloop (a conceptual high-speed transportation system originally put forward by entrepre-neur Elon Musk, incorporating reduced-pressure tubes in which pressurized capsules ride on an air cushion driven

“There are significant social challenges

around us. Our job as an advisory firm is to help

our clients but also to do the right thing.”


I N T E RV I E W: K E V I N PA R I K H

P: What drives you personally in business?

K: How we work with people and treat each other with the right value system in an honest way drives how I look at business. It’s the core of my being. I believe fundamentally that we just have to do the right things and it will work out. That’s part of the reason we started our Foundation. There’s no better time to start giving than now. None of it is worth it if we don’t treat our people well.

P: What advice do you share with others?

K: If a young person comes to me and asks ‘what’s my path to leadership?,’ I tell them that leadership is not from you having the power to tell other people what to do. Leaders become that because individuals are willing to follow. Leaders are empowered by those people that

believe in the vision. If the vision is bad, there’s no leader. I would challenge every leader in our business to answer – what are you doing to inspire those around you?

P: What books do you like reading?

K: I like reading Sun Tzu’s The Art of War, and Force and Statecraft: Diplomatic Challenges of Our Time and other philosophical books around strategy. I also have deep interests in federalist and political studies.

P: What food do you like at home and on the road?

K: At home, I prefer a simple meal. I love Japanese, Italian, steak and meat and potatoes, Southern and Middle Eastern food. There’s probably not much that I don’t enjoy, which is good because I travel quite a bit.

“None of it is worth it if we

don't treat our people well. ”


With EOS16 taking place in The Netherlands this November, PULSE spoke with three industry experts in the region, including Arno IJmker, COP, Managing Partner at Quint Wellington Redwood Nederland; Alexander Reay,President, ITOSDA and Chairman Nordic IT Association; and Bart van der Linden, Partner at Whitebridge Consulting, Community Manager of the SourcingExchange and PhD student at Nyenrode Business University (focusing on sourcing for IT-related innovation).

OUTSOURCING: The outsourcing market started to boom in The Netherlands and Scandinavian countries during the late 1990s, according to IJmker, who said it all began with IT outsourcing. In those days it was an exception and today the market is very mature, as he stated that many of his clients are on their second and third generation of outsourcing.

“The Netherlands and Scandinavia are a relatively small area of the world, very open to global outsourcing,” said IJmker. “Our market has developed strongly and the future of outsourcing here is quite promising. Technology and the cloud have helped bridge the gap between international and local. The world is a global village.”

According to Reay, “The Nordics have a relatively mature market and a large public sector with a major IT budget. A closer look indicates the Nordic IT services market has experienced greater

growth than the rest of continental Europe, especially in Sweden. In terms of the outsourcing market as a whole, IT supply remains the most outsourced service. The IT services market in the

Nordics was worth $24.4 billion in 2014, of which 52 percent was generated by outsourcing. We have seen considerable growth in recent years, mainly due to a huge desire for IT innovation from customers experiencing a lack of affordable domestic skills.”

The Dutch IT outsourcing market, according to van der Linden, is mature as many multinationals are on their third, fourth, or older outsourcing contracts. However, many companies are keeping their IT in-house. With the development of cloud computing technologies, SME’s

are taking the step to outsource some of their IT.

“At the moment I also see a lot of struggle taking the next step in traditional outsourcing,” said van der Linden. “More and more CIO’s are looking for innovation within IT outsourcing relationships. That is, the relationship has evolved and is mature and CIOs are expecting service providers that can help them in the challenge to digitally transform the organization. However, having a proactive service provider who communicates clearly how innovations in the business or the retained IT organization can help to realize this, is challenging.”

HOTSPOTNETHERLANDS AND SCANDINAVIA – MATURE AND STRONG MARKET

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AVAILABLE TALENT: According to IJmker, in recent years, managing sourcing clients has become more mature and requires a lot of talent.

“People simply accept outsourcing now,” said IJmker. “Sourcing is a given and an accepted part of life. Because there are no more boundaries and phone calls with every area of the world are now routine and seamless, decision makers must be multi-talented people who are also globally wise. At Quint we do so much training because a great deal of education is needed for success in outsourcing.”

THE MOVE FROM COST REDUCTION TO INNOVATION AND PERFORMANCE: A shift into value creation or performance sourcing is very evident in the Nordic region, according to Reay. A study conducted by ITOSDA in 2015 among CIOs in Nordic countries provides important insights. The study captured the notion of a relational contract, which is based on a relationship of trust between the parties. The research clarified what innovation is in the context of outsourcing. Many of the examples of innovation in outsourcing projects were in the area of automation, process improvement and the move to the cloud, showing that client firms are looking for “anything that improves performance.”

Client firms in Nordic countries have experienced that innovation reduced costs and transformed processes (both by 58 percent). Two main components motivate suppliers to deliver

value to their clients: the economic model (pricing model) and the relational aspect. The survey also suggested that measures of innovation are important (78 percent), followed by mandatory targets to improve the client’s productivity (70 percent) and flexibility regarding the delivery scope (70 percent).

THE NEXT BIG CHALLENGE: Van der Linden feels that in the IT outsourcingmarket, the next big challenge is how to govern the different cloud solutions (IaaS, PaaS, SaaS) into one holistic IT solution. The future of outsourcing will be a combination of traditional outsourcing (e.g. application management, helpdesk

outsourcing, etc.) and cloud technologies. The IT departments at outsourcing organizations will focus more on governance and security.

Story by: Kate Tulloch-Hammond, IAOP

NETHERLANDS AND SCANDINAVIA – MATURE AND STRONG MARKET

Location: The Netherlands are in Western Europe

and the Scandinavian countries are in Northern

Europe. Scandinavia consists of Denmark, Norway

and Sweden (sometimes they include Finland,

Iceland and the Faroe Islands).

Population and Language: 43-plus million people;

The Netherlands official language is Dutch, while the

Scandinavian countries speak Danish, Finnish, Icelandic,

Norwegian and Swedish.

IT AND CLOUD PRESENT OPPORTUNITIES

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IAOP extends its appreciation to new, and renewing corporate and professional members from:

WELCOME NEW MEMBERS

Abbott Labs; Accenture; Acquire; Allstate; Andesa Services Inc.; API Outsourcing;

Bearing Point; Blue Shield of California; BMS; Boeing; Bristol-Myers Squibb;

CB Richard Ellis; CIGNA; Colliers International; Dell Services; Deloitte; Dotsquares,

Ltd; Eagle Creek Software Services; EASi; Federal Home Loan Bank of Chicago;

Florida Institute of Technology; GE; HTC Global Services; Humana; IBM; Infosys;

Integrated Corporate Services; Interior Concepts; Intertec International; ISF; ISG; ISS;

Kelly Services; KellyOCG; LivIT; McKesson; Merck & Co.; Mindtree; Morgan Stanley;

MUFG Union Bank; National Bank of Canada; Nordea; North Dakota Department of

Commerce; Northern Trust Company; Ordina Application Outsourcing; PepsiCo;

Sambou Ltd; Sammons Financial Group; Samuel J. O. & Associates; Saudi Mechanical

Industries; ServicEngine BPO; Telecom Ecole de Management Evry France; TROOPS

Consulting Inc.; UMSL; University of Liverpool; Vee Technologies; Voya Financial;

W Group; Waverly Software; Wells Fargo; Western Union; and Zurich.

For information on IAOP membership, click here or email [email protected]


MEMBER BENEFITS & SERVICES JOIN WITH THE INDUSTRY LEADERS Membership in IAOP provides access to an extensive array of services, and just as importantly distinguishes organizations and professionals as leaders in the field of outsourcing.

•Customer Corporate Membership – Organizations that are currently outsourcing or are considering one or more outsourcing initiatives should become Customer Corporate Members of IAOP. This membership provides organization-wide access to the association’s research, training, certification, and networking programs - all designed to help companies achieve better business results through outsourcing.

•Provider/Advisor Corporate Membership – Outsourcing service providers and advisory firms should join IAOP as Provider/Advisor Corporate Members. This member-ship provides the same organization-wide access to IAOP’s research, training, certification, and networking programs as Customer Corporate Membership, but also includes member-only sponsorship opportunities that serve the marketing and business development needs of these companies.

•Professional Membership – Professional Membership is available to individuals either as part of their company’s corporate membership or on an individual basis. This member-ship serves the needs of practitioners working in the field of outsourcing whether as customers, providers, or advisors. In addition, it provides these professionals with direct, personal access to association services.

MEMBER SERVICES Many of these services are included as part of IAOP’s Professional or Corporate Membership, with discounts available for use beyond the level provided. Some services are also available individually at non-member rates. These include:

•PULSE Magazine – Available bi-monthly online, our e-zine features in-depth coverage of the industry, issues, trends, geographies and vertical sectors and functions; thought leadership and case studies, probing Q&As, C-level interviews and profiles; as well

as exclusive and insider coverage of IAOP events, programs, awards, research, training and certifications and surveys. Members get a free subscription, advertising discounts as well as the opportunity to submit content.

•IAOP’s Knowledge Center, Firmbuilder.com – IAOP’s online repository houses more than 1,000 articles, including chapter meeting presentations, conference proceedings, industry whitepapers, research articles and more. Members have full access.

•Global Chapter Network – Through its active and expansive chapter network, IAOP members can share their expertise and find knowledge on best practices for specific industry segments, topics and geographic areas

within outsourcing. Access to any and all chapter meetings is included in IAOP membership.

•Conferences & Events – IAOP hosts the world’s best-known and most highly-respected executive confer-ences on the topic of outsourcing, including The Outsourcing World Summit.® Become a member and attend at a discount.

•Outsourcing Professional Certification Frameworks (OPCF) – IAOP’s trainings and certifications are the industry’s de facto. Whether you are interested in getting educated through the COP Master Class or becoming a Certified Outsourcing Professional (COP), there is a path that suits your needs. Members receive substantial discounts.

•Global Supply Risk Monitor (now Supply Wisdom) – A unique Web-based product that enables clients to monitor, predict and manage the various risks in their services supply chain across countries, cities and suppliers, in real-time. Corporate Members receive one free monitoring service.

•Outsourcing Professional Body of Knowledge (OPBOK) – A cohesive and comprehensive outline of the commonly accepted practices and skills required to ensure outsourcing success. IAOP members receive a 25 percent discount on the Outsourcing Professionals’ Guide to Corporate Responsibility eBOOK.

•ConnectIAOP – An online members-only community that lets like-minded professionals collaborate. Exclusive access helps members build and grow their networks; learn and share best practices; and identify current and upcoming trends.

Readers of PULSE can receive 10 percent off of standard membership rate of $345. Go to: www.IAOP.org/PMregistration and enter offer code IAOP-PM-0412.

Special Professional Membership Offer[


Who’s InvolvedLEAD ORGANIZATIONS: Co-chaired by Kirkland & Ellis LLP, Accenture, Deloitte Consulting, DePaul University, Northern Trust, AbbVie and The Shelby Group

CO-CHAIRS: Neil S. Hirshman, COP, Partner, Kirkland & Ellis LLP; Bert B. Saxon, Division Vice President, Northern Trust Company; Dwayne Prosko, Director, Deloitte; Olayele (Yele) Adelakun, Associate Professor, DePaul University; Ginger Dusek, Senior Managing Director, Accenture; Jay Desai, COP, Senior Director, Enterprise Outsourcing, AbbVie; and John Dreyer, CEO, The Shelby Group

CHAPTER CALENDAR > JUNE 8 Minnesota Chapter Meeting > JUNE 9 UK & Ireland Chapter Meeting

SPOTLIGHT ON THE: CHICAGO CHAPTER ROUND UP

CHAPTER

What’s Happening

UPCOMING NOT TO MISS: The establishment of global in-house centers (GIC) is seeing resurgence across many industries,as organizations are seeking new ways to drive low cost agile operations. These in house centers are more than low cost delivery locations and are being used as innovation centers and hubs to introduce more strategic levels of automation and innovation to business operations. The Chicago IAOP chapter meeting on June 16 at DePaul University, Room LL102, 14 East Jackson Blvd. will focus on clients and advisors related to the establishment of global in-house centers. Join panelist and speakers from CME Group, Flexera, Zinnov Consulting and CNO Financial Group to hear about their firsthand experience on the benefits and the timelines of this trend.

JUNE 2016 AND SEPTEMBER 2016 MEETINGS. Visit the Chapter Web site for details to come.

PAST EVENTS: "Outsourcing in a World of Mergers,Acquisitions & Divestitures" was the topic for the January meeting at the Deloitte Consulting Offices. Other past meetings discussed data security and privacy; cloud services; Knowledge Process Outsourcing; and outsourcing talent.

JUNE 20-23 COP Master Class and Governance Workshop, Offices of Kirkland & Ellis, Chicago: Designed for customers, providers and advisors at all levels, this four-day intensive integrates project management, shared services and outsourcing best practices with the Outsourcing Professional Body of Knowledge (OPBOK). Participants will understand how to implement a common framework within their own organizationsand build collaboration to ensure outsourcing success.

TRAINING CLASS!

WHY JOIN? "Excellent content driven meetings with leaders in the industry, a group of outstanding colleagues to share my thoughts, and access to a network of active professionals in the industries are the reasons why I am an active member of IAOP’s Chicago Chapter." – Vinny Caraballo, COP, Global Targeting

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PULSE May/June 2016 47REGISTER BY JUNE 30 AT WWW.IAOP.ORG/SUMMIT TO LOCK IN THE LOWEST RATE OFFERED!

EOS16REGISTER BY MAY 31

TO SAVE €500!

Embracing Technology and New Business Models for Outsourcing Success

Harnessing the Power of Disruption


Lights, Camera, Action!

It might as well have been an exciting game show on your favorite TV channel with a host asking rapid fire questions, contestants vying for the best response, a panel of experts judging contestants, and then the audience deciding who will get a shot at the judges’ seats! If you are confused, you must have missed it! This was the Wednesday session at IAOP’s Outsourcing World Summit in Orlando in February 2016.

How do you run a conference and keep the sessions exciting and get the participants highly engaged? How do you get beyond the speakers and panelists and tap into the wisdom of the audience? How do you encourage the conference participants to ask their most pressing questions? How do you foster participationfrom the audience to engage in solving these pressing questions? Too often, as the conference rolls on, keynote after keynote, panel

after panel, some people in the audience start to lose interest.

To avoid these challenges, the IAOP leadership, with help from the customer and provider/advisor network chairs and committee, decided to inject some excitement in this year’s final day of Summit programming. These leaders included Rich Etzkorn, Cushman & Wakefield; John Beardwood, Fasken & Martineau; Mike Curtis, Georgia Technology Authority; Sonja McKeddie, Rio Tinto; Michael Nacarato, MUFG Union Bank and Donald Mones, MUFG Union Bank. The idea was to take elements of popular sports shows like ESPN’s “Pardon the Interruption” and popular music reality shows like NBC’s “The Voice” and raise the bar, IAOP style!

Every game show needs a host, and this was no exception. When I was asked to be the Master of Ceremonies (MC), I felt like a rock star! I was going to be Ryan Seacrest, Carson Daly,

OWS16

By: Atul Vashistha, COP, Chairman, Neo Group

GAMETIME


Michael Wilbon and Tony Kornheiser all rolled into one. How do I prepare for a session when the expectations are, well, not known?! It was time to just do it! I mean, start the planning. We were just one week away from the event!

A top priority was to engage the conference attendees. We wanted to capture their key priorities and challenges at the core of the game show, so we reached out via email and social media ahead of the event to collect inputs, and encouraged active participation on the day of by just shouting their pressing questions from the audience. Logistically, we also needed to secure 20-plus judges, equally representing buy-side, supply-side and advisors, the critical elements of our sourcing ecosystem.

Let’s not forget all the planning focused on stage, lights and music. This is where IAOP’s Amanda Safdar, Shawn Safdar and Kim Maneeley excel and we knew that we were in good

hands. IAOP Director of Chapter Operations Julie Huson and the network chairs came through with a list of great judges that represented the IAOP community as well. With lots of frantic planning and preparations, was it going to be “Welcome to the Jungle” or “Another one bites the dust?”

During dress rehearsal, it seemed like we were heading towarddisaster. As the participants and I practice our lines on stage, Murphy shows up. That is, Murphy’s Law: Anything that can go wrong, will go wrong. Judges not showing up, lights misfiring, music not on cue and to top it off, the furniture was wrong. That’s when the IAOP event planning team came to the rescue! With a few phone calls and adjustments, it was going to be all right.

The day is here! It’s Feb. 17, 2016. As we look into the audience, we are excited to see significant attendance. Over 300 delegateshave stayed to participate in the IAOP Game Show. Our judges are excited and so is the crew.

The Audience

is the Winner!


Jumping into the Fish Bowl

It’s Game Time. I am on stage and McKeddie and Curtis are first on deck as judges. I kick off the “Fish Bowl” session with a question on creating a “Win-Win” Value Proposition when designing, building and implementing a contemporary Outsourcing Relationship. McKeddie answers first, then we turn to the audience for an opportunity to respond. Mahesh Patel from Pratt and Whitney, and Mary Lewis from Sprint jump in with great answers.

Do I hear music? “Na Na Na Na, Na Na Na Na, Hey Hey Hey, Good Bye!” That’s McKeddie’s cue to vacate her judges seat. And then the music switches to “I like to move it, move it,” signaling the new judges to take their places in the judge’s seats. The excitement and engagement is just electrifying. And the session continues with the audience answering the following questions:

• How do you use advanced outsourcing tools and technologies to create, manage and optimize outsourcing business value?

• How do you transition your traditional service provider relationship from “vendor” to “strategic partner?”

• Where is the next generation of outsourcing leadership coming from, and how do we support them and promote the opportunities?

As the on-stage role cycles through audience participants, we hear from a variety of experts, including Steve Wingfield from Met Life, Mark Latham from GTA and Mones. We can see that the audience loves this format as they engage and benefit from the wisdom of these amazing and knowledgeable attendees.

This is the Voice

There are still many unanswered questions as we take a break and reset the stage for our next program, The Voice!

The stage is dark and one can just barely make out three chairs facing away from the audience. I get on stage and know my blocking (That’s a stage term by the way. They use it on Broadway, too). The lights come right on me and blind me for


a second but I channel my inner Ryan and Carson and explain the game to the audience. This is “The Voice,” IAOP style. The audience cannot see them yet, but our first judges on deck are Marko Kovacevic from Trizma, Alex Van Den Bergh from Quint and Patel. The first question I ask is, “Have you ever participated in a failed negotiation? If so, what lessons did you learn?”

There’s a twist. The answer is sought from the audience and before you know it, the chairs of two judges turn around. They agree with the answer and explain why. What about the other chair that did not turn? This is the dissenting judge. Van Den Bergh turns and explains why he did not agree. People too often don’t capture their lessons, he says.

In the same style as the previous session, the music calls for the judges to vacate their seats and the next set of judges from the audience to get on stage. We hear from FD Giambattista, Bank of the West; Mike Wilton, Deloitte; Balu Angaian, Virtu-sa; John Maher, CBRE; Stephen Mason, Ancestry.com; Sherry Jost, Zurich; Ashish Malhotra, Time Warner; Kyle Andrews, Pretium Partners; Lewis from Sprint; and IAOP’s Jag Dalal

among other participants on the following topics:

• Transition is often a key pain point for both customers and vendors. How do you handle transitioning to or from another vendor?

• How can we ensure that multi-sourcing can be win-win for both the customer and the providers? What lessons can we draw from our positive and negative experiences with multi-sourcing?

• Governance is a key process in any outsourcing engagement. What are some examples of successful governance? Failures in the governance process? What can we learn from these examples?

As the session ends, we feel a satisfying sense of achievement. This creative, non-traditional format was a hit! Through these high energy, fast-paced sessions, we were successful in engaging our IAOP community and tapping their knowledge and wisdom.

Stay tuned for more “Game Show” programming at OWS ’17 in San Antonio, Texas!

Stay tuned for

“Game Show”

OWS ’17!Stay tuned for

“Game Show”

OWS ’17!


After a full day of educational programming, evenings at OWS16 were a chance to unwind with colleagues, friends and prospects under the big tent. IAOP members came together to make connections, learn about new products and services from exhibitors, and enjoy the receptions, sponsored by Accenture and W Group. The festivities kicked off with champagne toasts before the doors leading to the pavilion hall opened. Networking continued at the spectacular Illuminations fireworks display at Epcot, with desserts and drinks sponsored by ISS, and the Food for Thought luncheon by the marina.

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