IMAGINE TALENT WITHOUT BORDERS Neo Group Inc. Proprietary

Transcription

1 IMAGINE TALENT WITHOUT BORDERS 2013 Neo Group Inc. Proprietary

2 ATUL VASHISTHA & NEO GROUP 2! Since 1999, we have been helping clients achieve business objectives and address business challenges by leveraging global services and sourcing.! We have a singular focus on the global services supply chain.! We achieve outcomes through deep IP, real-time analytics, globally recognized experts, proven methodologies and co-creation with our clients.! We deliver results through three distinct and linked solutions and services: ADVISORY SERVICES GOVERNANCE SOLUTIONS SUPPLY MONITORING & ANALYTICS Our Featured Clients include:

3 3 DIGITAL GROWTH CONTINUES TO BE STRONG Digital Ad Spending Worldwide, Billions, % change and % of total media ad spending $ % $87.27 $ $ % 19.8% 21.7% $ $ % 24.8% $ % 15.2% 17.7% 17.8% 15.1% 13.7% 10.8% 9.3% Digital ad spending % change % share Note: includes adver9sing that appears on desktop and laptop computers as well as mobile phones and tablets, and excludes all the various formats of adver9sing on those pla>orms; excludes SMS, MMS and P2P messaging- based adver9sing Source: emarketer, Dec

4 4 THE SMAC GROWTH IS GLOBAL Ignoring the move to mobile could cost U.S. SMBs $1 trillion this year.

5 5 CASE IN POINT: FACEBOOK USERS

6 6 COMPETITION FOR TECHNICAL RESOURCES These resources are being chased across all industries, including: Financial Services Growth in mobile banking, increased regulations/compliance requirements Consumer Goods Increase in e-commerce & mobile sales, changing dynamic of consumer relationships (social media/digital advertising) Healthcare Increasing dependence on digital platforms for health information, decision-making, and collaboration

7 7 GROWTH IS STRONGER IN EMERGING MARKETS

8 8 TALENT GAP RISING AS DEMAND SURGES The spike in demand for Chief Digital Officers has been felt globally. In Europe, the number of search requests for this role has risen by almost a third in the last 24 months. The United States has seen the same growth in half that time. - Russell Reynolds Associates, Feb 2011 Demand for digital talent is far greater than supply.

9 9 ACCESSING GLOBAL RESOURCES: ANSWER TO THE TALENT GAP 100% Enterprise ($3bn+) 80% Mid-Market ($750m-$3bn) 60% 40% 20% 0% Reduce Operating Costs Gain access to new skills Gain access to new technology Transform / reengineer processes More effective operations at a global level Followingf example of other firms Proven offerings from service providers Economic downturn Source: AMR Research / Global Services Media, 2009 Sample: 127 Enterprises

10 10 CASE IN POINT: INDIA AND TECHNOLOGY NUMBER OF INDIAN EMPLOYEES (EST) FOR INDIA S BIG 5, IBM, ACCENTURE %-35% of the global workforce of IBM, Accenture 70%-80% of the global workforce of big 4 IBM Accenture TCS #1 Cognizant #2 Infy #3 Wipro #4 HCL #5 Source: Macquarie estimates

11 HOW DOES ONE LEVERAGE GLOBAL DIGITAL TALENT?

12 12 SOURCING KNOWLEDGE IS KEY

13 13 Canada Excellent education system Productive IT workforce Capable for complex project Shortage of Tech labor supply United States World class IT workforce Capable to manage most complex project Excellent education system Shortage of IT labor supply KNOW YOUR SUPPLY: CURRENT HOT SPOTS Mexico Good education system Large IT graduate pool World class IT skills set Excellent bi-lingual skills Capable for large operation Promising ITO & BPO labor Market Guatemala, Panama, Honduras, Costa Rica, Peru, Chile Highly qualified graduate pool Good for higher end services Excellent bi-lingual Small workforce Limited labor supply Argentina Large labor pool Bi-lingual capacity (English & Spanish) Good for large contact center operation Stable workforce in the long-run Poland Highest Universities in EE Large IT Workforce Largest Labor Pool in EE Excellent Education System Multi-lingual Skills Set Promising ITO & BPO labor market Czech Republic World class IT skills Very small IT graduate Very limited labor force Shortage of IT labor pool Colombia Large graduate pool Huge labor force Bi-lingual skills Promising Labor supply Israel Highly qualified IT graduate Excellent IT Skills Suitable for small operation Uruguay Limited IT workforce Small Population Higher end IT Skills Suitable for small operation Small IT graduate turnout Shortage of IT labor supply Belarus Excellent Software Skills Small Labor Force Suitable for Niche Operation Smart & hard worker Ukraine World class programmers Smart & hard worker Creative workforce Brazil High turnout of IT graduates Huge Labor pool Good people skills and availability Quality human capital Capable for large operation Promising IT labor market Romania Multi-Language Skills Highly Skill Worker Promising IT O & BPO labor market Egypt Large labor force Good education system Limited IT labor supply Multi-lingual skills Potential labor market Russia Excellent programming Skills Large universities graduate pool Large Tech workforce Capable for large operation Promising IT labor market Malaysia China Large IT workforce Improving Project Manager Level Skills Good number of colleges & Universities Capable for large operation Promising labor market Philippines Large workforce Huge graduate pool Fluent in English Promising labor market Vietnam Large workforce Large # of universities graduate turnout Good IT Skills Promising IT labor market Excellent IT skills Good education system Limited labor supply India Large IT workforce World class IT skills Excellent IT education system Capable for large operation KPO, BPO, Call Center skills labor pool Amazing IT labor market Promising labor Pool Shortage of labor pool

14 14 CURRENT HOT SPOTS: SPECIALIZED FUNCTIONS Canada IT Services R&D, ADM Medical Transcription KPO, BPO Voice and Non- Voice United States R&D Product Development Embedded Software Engineering Services ADM, IT Services etc Mexico Back Office Operations, Call Center (English, Spanish), Embedded Services, Engineering Services, IT Services, R&D, Software Testing Guatemala, Panama, Honduras, Costa Rica, Peru, Chile Call center (English & Spanish) Back Office Operation F&A BPO Financial Analytics Argentina Bi-lingual call center services F&A BPO Digital Services Poland Multi-Language Call Center Shared Services BPO F&A BPO IT Application Services Czech Republic Infrastructure Management Multi-Language Call Center IT Services, R&D Colombia Back Office Operation IT Application Bi-Language Contact Center Uruguay Call Center (Spanish) Infrastructure Management IT Services Product Development Israel Hi-Tech Services R&D IT Services Clinical Trials Belarus Embedded Software Engineering Services IT Services Product Development R&D, Systems Integration Brazil IT Services R&D, ADM Software Development Engineering Services Call Center Back Office Operation Ukraine Engineering Services, IT Services Product Development Systems Integration Romania Business Analytics, F&A BPO, HRO, Financial Analytics, IT Services, R&D Multilingual Contact Center, Procurement BPO, Egypt Embedded Software IT Services Medical Transcription Multilingual Call Center Product development Software Testing Russia Embedded Software Engineering Services Product Development R&D, Systems Integration Web Development China Engineering Services F&A BPO IT Services, Product Development, R&D, Software Testing Clinical Trial Philippines Call Center (English and some Spanish), Contact Center, F&A BPO, IT Services, LPO, Medical Transcription Vietnam Embedded Software IT Services, R&D Software Testing Malaysia Call Center (English, Mandarin), F&A BPO, IT Services, Technical Helpdesk India Software Development Product Development IT Services Engineering Services Embedded Software & Services Clinical Trial Medical Transcriptions

15 15 KNOW YOUR SUPPLY: TECH GRADUATES 90,000 80,000 80,000 IT Graduate Pool Per Year 70,000 60,000 50,000 40,000 37,180 30,000 27,000 26,300 25,638 20,000 20,000 18,000 17,000 16,000 15,360 10,000 7,000 6,000 6,000 5,000 3,985 3,500 2,569 0 Colleges and universities in Coimbatore (India) produce one of the largest IT graduate pools per year. Has stable IT labor supply in the long-run. While colleges & universities in Medellin produce the smallest IT graduate pool per year among the emerging cities indicating limited IT labor supply at present and in the future.

16 51,200 50,000 45,000 44,237 40,000 35,000 31,149 30,000 30,000 28,000 19,923 14, KNOW YOUR SUPPLY: NON-IT GRADUATES 200, , , , , , , ,200 Non-IT Graduate Pool Per Year 80,000 70,000 60,000 40,000 20, ,000 1,500 Most of the colleges and universities in emerging cities have produced large graduate pool per year; indicating stable non-it labor supply in the long-run. However, colleges & universities in Medellin, Brno and Guadalajara produce the smallest graduate pool per year indicating limited non-it labor supply at present and in the future.

17 17 WHAT DO THESE LOCATIONS ENABLE... Good Supply of Skilled Labor Favorable PopulaOon Trends World Class Infrastructure CompeOOve Labor Costs Tax & Other IncenOves Capable Local Professional Advisers PoliOcal & Economic Stability Low Telecom Costs Priority AXenOon from Government Friendly Work Permit & ImmigraOon Laws ConsultaOve LegislaOve & Regulatory Environment Time Zone CompaObility/ Advantage Source: Neo Group

18 18 KNOW WHAT TO SOURCE Capabili5es Cube Business Domain Knowledge Transforma5on Industry Business Processes Architecture CORE CORE Commodity Hot Skills Mainstream

19 19 DRIVE THE RIGHT INCENTIVES WITH YOUR PARTNERS! Mul5ple sourcing models! Most use the following or a combina5on of these for their opera5ons Pricing Based Model! As name suggests, the model is Price based! Guidelines based on pricing of the work order Time & Material Fixed Price Managed Capacity Transac5on Based Governance Based Model! Based on governance strategies deployed for projects Engagement Models are typically a Hybrid of these Client Managed Supplier Managed Co - Managed Managed Services

20 20 THE 7 SECRETS OF GLOBAL SOURCING Book released in 2010 based on an 8-Year study of corporate best practices in sourcing services and talent globally Identified 7 practices (secrets) that Successful Global market leaders have in common

21 21 SECRET #1: EMBRACE GLOBALIZATION Global Mind-set Global Leadership Art of the Possible

22 22 SECRET #2: TRANSFORMATION LEVER Escape from the Tyranny of Time & Distance Cisco Global Working Boards/Committees Engaging Leaders In Key Decisions Art of the Possible

23 23 SECRET #2: TRANSFORMATION LEVEL Beyond Cost Savings Source: The HackeO Group

24 24 SECRET # 3: ADOPT A LIFECYCLE APPROACH Share a belief that planning and lifecycle management is important to long term success Believe that a rigorous process, data and analytics should drive decisionmaking Develop a long term roadmap and governance ensures adherence to plan

25 25 SECRET #4: ALIGNMENT WITH BUSINESS

26 26 SECRET # 4: ALIGN BUSINESS & GLOBALIZATION OBJECTIVES Quality Need for consistent quality and service levels Corporate Strategy Business plan, goals and results expectedacquisition, cost structure, growth, flexibility, risk aversion, profitability, cash etc. Control Ownership preference as influenced by risk & culture factors Globalization Strategy & Readiness Framework Social Responsibility Issues related to job loss, globalization, employee upheaval, etc. Industry Activity Offshore actions of competitors and industry players Risk Manage stability, security, privacy, volatility, etc. Company Culture Affinity for outsourcing & globalization including past experiences Cost Savings Need for reducing cost or fundamentally altering business model Ensure that business strategy drives services globalization Why are you looking at outsourcing and globalization? What part of your business strategy does it help you execute? Is the organization ready for this?

27 27 SECRET #5: ASSIGN THE BEST PEOPLE Globalization and sourcing can be challenging Recognize that talent makes the leap Enables change

28 28 CORPORATE BEST PRACTICES Building Global Ready Professionals 1 Individual skill development 2 Socialization of corporate leadership values and vision 3 Strategic interventions that promote dialogue and feedback 4 Action learning

29 29 SECRET #6: GOVERNANCE

30 30 CORPORATE BEST PRACTICES Governance Align business strategy & global services initiatives Guide execution of enterprise wide global sourcing initiatives Ensure adequate risk mitigation and controls Program sponsorship Organizational Governance Functional Governance Coordination, communication & control between process owners Provide for knowledge management Opportunity Identification & enable demand aggregation Cross-functional, cross-geography, cross-vendor alignment Operational Governance Manage global sourcing activities and contracts Manage vendor relationships, performance and resources Manage scope and integration Reporting 30

31 31 SECRET #7: CONTINUOUS IMPROVEMENT Investment in human capital IAOP COP Program Six Sigma Black Belt Measure/Monitor SLA Management Tools Sirion, Enlighta, Hiperos etc.

32 32 CONTACT US ATUL VASHISTHA Chairman & CEO ALAN HANSON Senior Vice President NEO GROUP GLOBAL HEADQUARTERS 6200 Stoneridge Mall Road, 3rd Floor Pleasanton, CA 94588, USA ASIA-PACIFIC HEADQUARTERS No. 36, 3rd Floor Prestige Garnet, Ulsoor Road Bangalore , India AMSTERDAM, NETHERLANDS AUSTIN, TEXAS BOGOTA, COLOMBIA LONDON, UK NEW YORK, USA ATLANTA, USA SAO PAOLO, BRAZIL SILICON VALLEY, USA SYDNEY, AUSTRALIA