Журнал iaop сентябрь-октябрь 2014

P 20-31

TRAININGISSUE

PULSE FAST COMPANY

HOT SPOTS

FRESH FACES

Guatemala Hosts Outsource2LAC p34

Softtek CEO Blanca Treviño p38-45

ISSUE 13 | SEPT/OCT 2014 THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONALPUBLISHED BY WWW.IAOP.ORG

Robotic Process Automation p16-19

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2 PULSE Sept /Oct 2014

PULSE Sept /Oct 2014 3

PULSE ISSUE 13 | SEPTEMBER/OCTOBER 2014

T R A I N I N G 2 0 1 4 E D I T I O N

HOT SPOTSThe Growing Market

of Guatemala

p34

A Guide to Certification & Career Success

p20-31

TRAINING ISSUEA Pioneering Latin American Woman

p 38-45

C-SUITE

F U RT H E R R E A D I N G

In the Knowledge Center: Driving Higher Value into Multi-Tower Deals .......................... p12-15

Vertical Focus: The Transformational Promise of Robotics ................................................ p16-19

Fortune Special to Pulse: Could 2014 be Mexico’s Year? ..................................................... p32-33

THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONAL

VIEW FROM THE C-SUITE


T R A I N I N G 2 0 1 4 E D I T I O N

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THE WESTIN CAMINO REAL, GUATEMALA

GOES TO GUATEMALA

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 - 2014 Member Survey Results

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

“O” Book Club ............................................... p9

The Sandbox .................................................... p10

Joining IAOP: New Members & Benefits ... p46-47

Pulse Professional ....................................... p48-49

Chapter Roundup ........................................ p50-52

- Spotlight on the Governance Chapter

Pulse Flash: A Special Tribute to Jane Siegel ... p52


The changing of the seasons makes me think of renewal. What better time to focus on revitalizingyour professional career through outsourcing training and certification than this fall and winter.

Increasingly, we are seeing leading organizations not only signing up individuals for training but embracing its importance company-wide by enrolling entire teams, licensing the Certified Outsourcing Professional (COP) program and requiring it for certain roles. More and more IAOP members are sharing with us how critical training and certification has become.

Going back to school at any age can be challenging but also rewarding. After spending a week this summer learning the COP program with his core team, a senior leader at a Fortune 500 corporation told us how happy he was to pass the COP exam and that he’ll be spreading the materials through his sourcing and procurement organizations.

“After going through all that training, testing and applying, I’ve got even more respect for those who have earned their COP accreditation than ever. It’s one heck of a program,” said Lawrence Kane, COP-GOV, Senior Leader, IT Infrastructure Strategy, Sourcing, and Asset Management Execution.

IAOP agrees with the sentiment and praises the more than 1,600 professionals that have been certified in the COP and

COS families since its start, as well as the hundreds of professionals that have taken training over the years. In this issue, you’ll read about the program milestones, see where in the world our COPs are located and hear from our Training & Certifica-tion committee members on why training is so important today.

The new season also brings us out on the road for regional events of importance to the entire industry. We look forward to seeing you at the Asia-Pacific Outsourcing Summit Sept. 23-24 in Singapore, following an exciting series of chapter meetings for IAOP’s China Week.

We are pleased to be partnering with Inter-American Development Bank (IDB) to present OUTSOURCE2LAC, Nov. 11-13, in Guatemala City, bringing IAOP’s expertise and global community to

DEBI HAMILLCEO IAOP

support this program and deliver value for our members. We look forward to continued collaboration with IDB. For more on this influential business forum for Latin America, see our preview story and also our Hot Spot feature on Guatemala as a growing nearshore destination.

This issue also features an interview with Blanca Treviño, COP, President and CEO of Softtek, who we had the pleasure of inducting into IAOP’s Outsourcing Hall of Fame at our Latin America Outsourcing Summit in Colombia in 2011.

Congratulations to Blanca on recently being named #4 on Forbes’ list of “Most Powerful Women in Mexico.” Read more on how she’s forged new grounds in our View from the C-Suite story. And to learn about market opportunities in Mexico, see the story reprinted from Fortune magazine as a special to Pulse.

To everything there is a season and I am saddened by the loss of our good friend and outsourcing great, Jane Siegel, Ph.D., COP. She will be deeply missed.

Please see our tribute to her in Pulse Flash and feel free to share your remembrances with us.

Hope all the seasons ahead are good ones for you.

SEE OUR OUTSOURCE2LAC PREVIEW STORY AND ALSO OUR

HOT SPOT FEATURE ON GUATEMALAAS A GROWING

NEARSHOREDESTINATION.

IAOP praises the more than 1,600 professionals that have been certified in the COP and COS families since its start, as well as the hundreds of professionals that have taken training over the years.

CEO’S DESK TRAININGISSUE

WELCOME TO OUR

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S E P T / O C T 2 0 1 4 I S S U E : 1 3

PUBLISHER

IAOPDebi Hamill, CEO EDITOR-IN-CHIEF

Sandy [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 BOARDMichael F. Corbett, Chairman, IAOPMatthew P. Shocklee, COP, Managing Director & Global Ambassador, IAOP John Hindle, Outsourcing Marketing, AccentureNeil Hirshman, COP, Partner, Kirkland & EllisEugene Kublanov, COP, Managing Director, KPMG

ADVERTISING Scott [email protected]+1.845.452.0600 ext. 103

CONTRIBUTIONSPULSE welcomes contributors! Please email: [email protected]

IAOP2600 South Rd. Suite 44-240Poughkeepsie, NY 12601+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 per-mission of the publisher. IAOP accepts no liability for the accuracy of the contents or any opinions expressed herein.

PULSECONTRIBUTORS

SUDHIR MURTHY Handles solution design for large outsourcing projects in

North America and has nearly 20 years of global experience. Prior to Capgemini, he

worked at HP and Tata. Likes photography, music, family time and road trips.

MATT SMITH Has more than 25 years’ experience working in outsourcing for

leading providers, analysts and media in sales and marketing. Personal interests

include golfing with his family, landscaping and American history.

SAMEER BHAGWAT Has more than 20 years of experience across North

America, Europe and Asia. An experienced thought leader with several publications

in outsourcing. Enjoys spending time with his family and traveling.

DR. RON BABIN University professor, researcher and author focused on social

responsibility in outsourcing. Chairs IAOP’s CSR committee and the Canadian

standards committee on ISO 37500. Enjoys the great outdoors in Northern Ontario.


F 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

TAKING THE

PULSEIAOP’s 2014 member survey conducted in collaboration with Accenture, found the following key trends. For the full results, see www.firmbuilder.com.

CUSTOMERS’ MAIN REASONS FOR OUTSOURCING

INCREASING BUSINESS FLEXIBILITY

LONG-TERM COST SAVINGS

IMMEDIATE COST SAVINGS

ACCESSING SKILLS AND TALENT NOT OTHERWISE AVAILABLE

SUPPORTING COMPANY’S PLANS FOR GROWTH

57%

51%

47%

40%00

38%88

Increasing business flexibility is the number one reason customers cite for outsourcing.

CUSTOMERS

PROVIDERS

CUSTOMERS AND PROVIDERS: OUTSOURCING DELIVERY APPROACHES

BUNDLED SERVICES WITH

FEWER PROVIDERS

MULTISOURCINGWITH MORESUPPLIERS

OFFSHOREPROVIDERS

ONSHOREPROVIDERS

NEARSHOREPROVIDERS

32 %

41 %

17%23 % 26 % 24 %

17 %

10 %14 %14%

The trend toward bundled outsourcing – with a single provider in charge of multiple functions – is still the preferred sourcing approach but it continues to slow.

CUSTOMERS AND PROVIDERS:APPROACHES TO OUTSOURCINGCustomers are more focused on higher-skilled activities than lower-skilled activities.

• MORE FOCUSED ON OPERATIONAL; LOWER-SKILLED ACTIVITIES

• MORE FOCUSED ON KNOWLEDGE-BASED; HIGHER-SKILLED ACTIVITIES

Customers Providers

355%5558%88

188%%88

CUSTOMERS’ PLANS TO IMPLEMENT CLOUD-BASED OUTSOURCING SOLUTIONS OR SOLUTIONS THAT THEY ALREADY IMPLEMENTEDIT and HR top the list for plans for cloud-based outsourcing solutions.

IT CUSTOMER CARE

F&A ADMINHR NO PLANS

45 %

19 % 18 %22 %

13%

23%

State of the IndustrySurvey Says ...

COMING NEXT ISSUE IN PULSE: Look Ahead with our Trends & Forecast Issue for November/December. Plus, Managing with Quality and Financial Services. Our Hot Spot Explores Countries Undergoing Change. To contribute to these stories, suggest other stories or comment, contact: [email protected]

404 %00


IAOP Chief Advisor of Thought Leadership Jag Dalal, COP-GOV, identifies two topics making the news that IAOP has been leading the conversations on – the rise of legal process outsourcing and relationship management. At The 2014 Outsourcing World Summit, Mary Lacity, Ph.D., COP, and Leslie Willcocks, COP, presented their research on LPO. The recently released Outsourcing Professional Body of Knowledge (OPBOK) – Second Edition, looks at questions to ask when exiting an outsourcing relationship.

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THE NEWS HEADLINES THE IAOP DISH

PARTING DOESN’T HAVE TO BE FULL OF SORROW A strong contract and relationship management can ensure the exit is well managed and does not result in disruption and discontent. In the new revision of the OPBOK, the issue of exiting is addressed in several modules - from contracts and transition to the governance points of view.

The OPBOK lays out several critical questions that need to be addressed before entering the exit phase looking at integration, health of the relationship, objectives and strategic goals, the marketplace, people, processes, technology, the environment, costs and risks.

EXITING AN OUTSOURCING RELATIONSHIP JULY 10, 2014 SUPPLY MANAGEMENT, GETTING CLOSURE

The end of services-based outsourc-ing can be a difficult time. Too often, parties fail to focus on what’s really important: continuity and effective transition.

Based on a Practice Guide on Exit Services in Outsourcing, this article provides six core principles to establish better arrangements in relation to outsourcing exits.

The Beat / NEWS & COMMENTARY AS COVERED BY JAG DALAL

OPPORTUNITIES OPEN FOR PROVIDERS In their book, The Rise of Legal Services Outsourcing Risk & Opportunity, authors Lacity, Willcocks and Burgess identified Legal Process Outsourcing (LPO) as one of the faster growing segments of BPO, currently valued at $2.4 billion.

European companies are now looking at LPO as a cost-cutting measure. Financial institutions in Europe are taking the lead as they begin to compete globally in a cost effective manner. LPO companies from India and other countries view this as a great opportunity to expand their role in Europe.

Recent global regulatory changes are creating a common field of expertise for legal service providers. Global corpora-tions in other fields likely will also look upon LPO as a way to create a common frame of approach throughout the world. LPO providers should take notice and get ready to attack other parts of the world.

LPO ON THE RISE IN EUROPE JUNE 27, 2014 ECONOMIC TIMES, LEGAL PROCESS OUTSOURCING FIRMS SEE NEW OPPORTUNITIES IN EUROPE

Legal process outsourcing firms are see-ing opportunities in Europe, following the U.S. market, as financial services

firms and companies on the continent look to cut costs. The market is expected to grow to $8.56 billion in 2020, from $1.39 billion at the end of 2013, according to estimates from Grand View Research. The market is growing at over 25 percent on a consolidated annual growth rate basis.

“Europe is opening up to legal process outsourcing and we see a lot of interest from India-based LPOs,” said Andrew Burgess, director at UK-based outsourcing advisory, Source.

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“

“

THE PULSEO“

“

LATEST RESEARCH,REPORTS AND READSFOR OUTSOURCING

PROFESSIONALSBOOK CLUB

Overview: It is no secret that over 70 percent of outsourcing relationships fail to achieve their objectives, according to the book which provides instructions and guidance to help organizations source and manage high-performing relationships. The Relational Contracting Model described places the relationship among stakeholders

at the heart of delivery management and contract performance. Akrouche proposes a relationship model that he calls an “adaptive relationship” and proposes that both parties have to recognize that the relationship is the “pivot point” for success in outsourcing.

Review: “Outsourcing is a long-term relationship between two parties, having established common objectives and goals. This means that if the relationship fails, objectives and goals are not met, causing failure in the strategy. Andy’s book provides an easy workable framework for building and sustaining the relationship in an outsourcing engagement. It is a ‘must read’ for all that are just starting on the outsourcing journey or those that are stuck in a relationship that requires a change.”

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

“Relationships First advocates the establishment of relationship-based business arrangements where the contract becomes a platform to manage change, not to pursue certainty based on the initial deal, and where risk avoidance and transfer of risk to industry is replaced by risk management in a new paradigm based on insight (not just oversight) gained through joint governance.”

– Ian Mack, Director General, Program Delivery Land and Sea, Department of National Defense, Canada

Chapters: The book is divided into three sections: (1) The Timeline for Transformation; (2) A Practical Understanding of the New Paradigm; and (3) So, What is the “Deal” Anyway? Each chapter is full of real-life examples where readers can learn from what made the relationship work.

Available formats: Print and digital versions.

Why we like it: In IAOP’s governance model, Relationship Management is identified as a key foundation and seen as being as important as managing results. A contract built and operated without the relationship foundation is a “ticking time bomb.” At a prior Outsourcing World Summit, a presentation by Dr. Danny Ertel identified this adversarial behavior as the “doom loop.” IAOP standards identify relationships as an important part of the entire governance cycle from strategy through implementation and management.

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

Title: Relationships First - The New Relationship Paradigm in Contracting

Author: Andy Akrouche, MBA, President, Centre for Relationship Outsourcing and Strategic Management, Toronto, Canada


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Partner, Kirkland & Ellis LLP

V L A D I M I R K H O D O S H , C O P

Training in outsourcing, like other industries, is a lifelong pursuit and can provide professionals with a competitive career advantage. We asked a customer, provider and advisor: Why is training important in outsourcing and what is its value?

Sandboxthe

Principal Technical Vendor Manager, AT&T IT-Sourcing

B O B M A S U C C I

“Outsourcing is essentially a spin-off of a portion of your operations, requiring a whole new perspective on its management. There are the pre-deal competencies like negotiations, risk management, etc. that must be gained as well as the post-deal ‘block-and-tackle’ skills like contract governance, asset manage-ment, performance management and others that must be learned if your team is to operate effectively in this brave new world. For people new to outsourcing, learning these new skills ‘on-the-job’ without a more formal training path may prove to be insufficient for adequately developing, transitioning and governing an outsourcing agreement through its life cycle. This is why training is so important.”

C U S T O M E R“As part of transformational outsourcing projects, effectively training employees on the new systems and new interfaces introduced by the outsource provider can mean the difference between success and failure. Be specific in your contracts on what types and how much training must be provided. Feel free to lists specifics like the number of classes, number of partici-pants per class and class duration. Train the trainer structures are one successful management tool to roll out training to large organizations efficiently and has the added benefit of the employees knowing the trainer is one of their own as the outsourcing initiative starts.”

A DV I S O R

BPO Advisor, Insurance SolutionsCanon Business Process Services, Inc.

M I C H E L L E S T E P H E N S, C O P

“The IAOP training and certification process has been invaluable to my career, the projects I have managed and the leadership teams I have supported. IAOP does an outstanding job providing the necessary resource materials to apply ethical, practical and results-oriented knowledge of outsourcing business standards within any third party business relationship. The governance class, OPBOK and certification process provided me with the fundamentals of BPO. Organizations that encourage their employees to obtain a COP certification can expect better, more consistent results, specifically because their employees will have demonstrated – against an independently developed set of industry-wide standards – their experience and knowledge.”

P R O V I D E R

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networking community

EDUCATION Global Services Mall Collaboration

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ublisher’s Cup Golf

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COP workshops

Global Outsourcing100

75+ SPEAKERS

INNOVATION

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Feb. 16 - 1

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OutsourcingRe-ImaginedFor the Win

Register Now atwww.IAOP.org/Summit for Early Bird Savings!

Attendees have called it "a calendar must" and “the conference that raises the bar for the entire industry.”


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

DRIVING HIGHER VALUE INTO

MULTI-TOWER DEALS

FIVE WAYS TO GET THE MOST OUT OF WORKING WITH MANY PROVIDERSTechnology advancement, primarily the invention of the Internet, provided companies the ability to address the shortage of expert talent by outsourcing the need to a supplier base. Outsourcing IT and business process activities for lowering costs and risks and for improving efficiency, flexibility and quality has since become a standard business practice. In the last decade, companies have also adopted strategies to rationalize and consolidate their supplier base. In some cases the supplier rationalization programs have created a single sourcing strategy for many services. This strategy has enabled companies to gain a competitive advantage by leveraging the capabilities of their supply chain. Sourcing services from multiple providers has the advantage of choice among the best of breed vendors, lower costs resulting from vendor competition, and improved agility and adaptability to changing environments. While multi-sourcing has been growing rapidly, there are pitfalls to this strategy stemming from issues such as lack of interdependence between the parties, as well as the alignment of metrics and incentive mechanisms with the client’s overall objective. But how these programs are structured can help overcome the challenges.

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TREND GROWING IN SOME KEY GLOBAL MARKETS A February 2014 report from sourcing advisory firm ISG reports that multi-sourcing is a growing practice and that in the U.K., nearly 44 percent of all outsourced functions are divided among at least five service providers. The trend also is apparent in France, Spain, Portugal and Italy where nearly 56 percent of contracts are sourced from two to four different service providers.

However, the same ISG report also indicates that, “Mature markets, like the U.S., which have previously embraced multi-sourcing but realized it can be difficult to manage the numerous supplier relationships, have swung back to a model with fewer service providers.”

According to the report, 44 percent of the outsourced contracts in the U.S. have been from a single provider, who provides 80 to 100 percent of the work.

A Capgemini analysis of more than 190 large deals (> €50M) from the IDC database shows that 37 percent of the North American sourcing contracts signed in 2013 were multi-tower. The percentage was slightly lower in Europe, where it was 31 percent. Typically multi-tower deals span across multiple domains – BPO, Infra, Testing, Application Development and Application Maintenance.

Clearly, there is a co-existence of single-sourcing, multi-sourcing and multi-tower deals, and we believe it will continue.

IMPACT OF NEW TECHNOLOGIES Capgemini recently published its 2014 Application Landscape Report based on interviews with more than 1,100 CIOs and IT decision makers. Two key insights in the report to note were:

• A healthy understanding between business and IT organizations is critical for both optimal performance and improvement of the application landscape.

• Disruptive technologies are crucial to creating new business value. More than half of the respondents felt that competitive advantage through new technologies is expected to have the most impact on IT.

These new technologies will change how IT can provide value to the business. A broader role can be expected where IT will leverage the new technologies and drive technology-based business innovation. But a two-way shift is imminent from these technological changes. CIOs will

want to manage some of the business functions and some business executives, such as supply chain managers and CFOs, will want to take direct control of their IT programs.

The shift in responsibilities between IT and business is imminent and it has implications on how IT organizationsengage with business and vice versa. This potential convergence also could change how services are perceived and priced.

In this context, a service provider should look holistically and have a robust IT service delivery strategy that enables them to deliver higher value into such engagements.

DRIVING HIGHER VALUE FROM MULTI-TOWER ENGAGEMENTSTrue value from multi-tower engagements can be realized by using an appropriate delivery model and commercial construct that leverages the synergies obtained by stitchingtogether a solution across multiple service lines.

It is imperative to utilize a vertical stack model to deliver business value from multi-tower engagements. The ideal vertical stack would be one that is aligned by process areas wherein BPO services, BPO processes, applications and infrastructure can be combined to deliver the requisite business outcome.

And this integration across the layers of stack is the game-changer in a market that is already moving at high speed with buyers increasingly looking at partners to deliver world-class outcomes. However, if there are limitations around combining the BPO and infrastructure services with applications, the vertical stack model can be aligned by key ERP processes or functions.

Either of the two options should be integrated with the following tenets to drive optimum value within multi-tower engagements.

GARTNER PREDICTS THAT

SPENDING ON IT FROM OUTSIDE THE IT ORGANIZATION WILL GROW FROM 20 PERCENT OF TOTAL IT SPENDING IN 2000 TO 90 PERCENT IN 2020.


DRIVING HIGHER VALUE INTO

MULTI-TOWER DEALS

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

The traditional approach taken by IT service providers has been to drive IT initiatives based on their offerings and capabilities. While this has been successful in delivering value to clients, especially from the service providers with the larger offerings, it is still a restrictive approach.

When looking at the context of an engagement that overlaps business and IT, the IT initiatives should be driven starting from the expected business value to be delivered and then traversing back to their business drivers and IT initiatives as illustrated below:

BUSINESS-LED ITVALUE DRIVER

#1

As business and IT converge, the accuracy of demand management and budgeting should improve and the concept of unit pricing can be leveraged. This helps procuring services in a variable cost model, which can be increased or decreased depending on changing business conditions. A client can enhance capacity during periods of growth without incurring fixed costs and can avoid difficult labor-rate negotiations during periods of slow down.

This pay-per-use approach requires a mature service management process and a collaborative governance process between the client and the service provider. It has been a feature in infrastructure, BPO and, more recently, in independent testing engagements. But it is not a common practice in most application development and maintenance engagements.

The future, however, beholds a shift in the pricing model to work volume rather than input. A volume based pricing model is variable, based on the business output.

UNIT PRICING MODELSUNIT PRICING MODELSVALUE

DRIVER #2

QUANTIFIED BUSINESS

VALUE

ITENABLERS

Q

E

MOBILITY AND SOCIAL COMMERCE

LEGACY MODERNIZATION

DOMAIN-LED BUSINESS ANALYTICS

PROCESS RATIONALIZATION

CLOUD MIGRATION

TOOLS & ARCHITECTURESTANDARDIZATION

IT INITIATIVES

ENHANCED CUSTOMER EXPERIENCE

OPTIMIZED ASSET OPERATIONS

ENABLING NEW CHANNELS FOR BUSINESS GROWTH

IMPROVED ORDER CONVERSION RATE

REDUCED TIME TO SERVICE ORDERS

BUSINESSDRIVERS

INCREASEDREVENUES

REDUCED TCO

INCREASED WORKING CAPITAL

VALUEDELIVERED


One of the biggest advantages in ITO and BPO convergence scenario is the ability to offer KPIs linked to business outcomes. The basic philosophy is to align the interests of the service provider and the customer so that both groups work toward the same goal. This alignment could directly impact measurable business outcome like revenue or cost.

Extending the concept of business-linked KPIs to projects will enable a client to convert a fixed cost into a truly variable cost model that scales with the business. This shift can free client executives from worrying about issues like technology, process and people, and allows them to focus on business outcomes – things that really matter to the business.

BUSINESS OUTCOME SLASVALUE DRIVER

#3

Traditionally the viewpoint of most client organizationshas been that an outsourcing service provider should free up in-house resources, so the client firm’s staff can focus on higher-value activities. Hence, most outsourcingcontracts did not include clauses to compensate the service provider for innovation programs. However, that expectation is beginning to change.

Innovation is becoming a stronger requirement, and there has been a trend of clients including KPIs around innovation and an associated risk-reward mechanism in the contracted scope of work. Incremental innovation in services delivery is largely taken for granted, so the focus is on more radical innovation.

INNOVATION FRAMEWORKVALUE DRIVER

#4

VALUE DRIVER

#5 COLLABORATION & UNIFIED GOVERNANCEGovernance is an important aspect that should be designed to close the gap between what the client expects from the outsourcing relationship and what is being achieved. Most outsourcing contracts have a standard governance structure overseeing a set of SLAs and interactions between the parties. This practice was adequate when outsourcing was about transferring service delivery responsibility to a service provider while the client still holds the accountability.

Governance should move beyond contractual and static models. A key focus on governance in the new world includes injecting innovation - incremental innovation to existing services delivery and radical innovation beyond it. And as clients move to outcome-based models, the focus of governance shifts toward business outcome, rather than process. Clients should learn to “let go” and cede more end-to-end responsibility to their service providers, placing a higher premium on mature governance disciplines.

IN CONCLUSION, we believe that single sourced multi-tower engagements can deliver higher value to clients if structured appropriately. The overall focus on business outcomes versus IT services is an inherent tenet in pursuing this approach.For the full report, visit: Firmbuilder at: www.iaop.org/Firmbuilder/Articles/34/179/4005 and Capgemini at: www.capgemini.com/resources/driving-higher-value-in-multi-tower-deals

By: Sudhir Murthy, Director, Strategic & Transformational Solutions, Capgemini Sameer Bhagwat, Vice President, Head of Transformational Solutions, Capgemini


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Most recently, Gartner in 2014 stated, “We are now at a stage where machine intelligence will lead the optimal form of creative destruction in business and IT services,” and named a leading RPA provider as one of the catalyst technologies.

So what is it about RPA that has these firms and so many others in the outsourcing industry making such bold predictions? Looking closely at the range of RPA benefits reveals why it’s seen by so many as a leap forward from the current labor arbitrage paradigm and an enabler of true innovation (as compared to the non-innovative ‘lift and shift,’ for example). In fact, both outsourcing service providers and buyer organizations already deploying RPA find results such as the following are almost immediately achievable:

Since hitting the scene three years ago, Robotic Process Automation (RPA) has been branded as a change agent for back offices processes, shared services centers and indeed the entire outsourcing industry. “The economics were too compelling to ignore,” said Forrester in 2011. A year later another firm proclaimed RPA, “Has the potential to be a highly disruptive and transformative technology for both buyers and the outsourcing industry as a whole.”

A truly scalable workforce capable of being sized up or down within hours

Near zero error ratesPer ‘headcount’ pricing at

up to 90 percent that of a traditional workforce

Enablement for business intelligence and management information

Detailed analytics for regulatory and audit compliance

Is Robotic Process Automation Fulfilling Its Transformational Promise?

© CanStock Photo Inc. / marish

RPA represents a category of business process software sharing the five following characteristics:

1. RPA software works at the presentation layer – in other words it interacts with existing applications by replicating end-user, screen-based activities. It does not require custom coding and backend integration.

2. RPA can operate any and all of the applications that human workers use today, including Windows, web, mainframe or custom applications. It can also work across Citrix, run in the cloud, be hosted from a data center or even sit on a desktop.

3. RPA enables the virtual workforce, meaning once a given process is automated it can be deployed across as many RPA ‘software robots’ as necessary to complete the workload. This allows the near immediate deployment of hundreds, or even thousands, of virtual workers if desirable.

4. RPA is rapidly deployable. Most automation builds are measured in weeks or months compared to quarters (or even years) required to deploy complex workflow engines or ERP.

5. RPA is a low-cost technology from a licensing, deployment and support perspective. RPA is nearly always significantly less expensive compared to either the TCO of automation technology alternatives (like many of the BPMS suites, ERP or custom applications) or compared to using traditional headcount to manually operate processes.

So How Far Along Is RPA … Really?Is all that disruption and innovation really happening? Are large back offices becoming silent factories of virtual headcount knocking out mountains of tasks at microprocessor speed? What about the outsourcing provider landscape - is a new order emerging as early adopters embrace RPA and the slow to respond fade into irrelevance? Before answering these questions let’s first reset around a definition of RPA.

So that’s the promise of RPA: it is low cost, quickly scalable and impacts functions where operating expense, data accuracy, compliance and operational agility are important.

Is the outsourcing industry buying in?

Another significant reason RPA is considered so ‘game changing’ has to do with where it can provide the most impact. Because RPA automates highly repetitive, rules- and screen-based tasks it is perfect for so many of those corporate functions that business process out-sourcing organizations traditionally support, including ‘back office’ operations such as:

Finance and Accounting

Human Resources

Procurement and Sourcing

Supply Chain and Logistics

Customer ServiceLegal Services

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The Calm Before the RPA StormIt is probably fair to say that many industry observers expected to see RPA immediately redefine the customer/provider delivery model as digital labor replaced offshore as the workforce of choice. The reality is a few things had to happen first, and as they do expect to see that much anticipated change.

Here they are and why they matter.

1. Outsourcing providers are reconstructing their contracting and financial models into transactional and outcome-based solutions. The reason is RPA destroys seat-based or FTE priced contracts and the providers cannot afford to take the top line hit where they currently get paid on headcount.

2. Contract renewal cycles will drive the rotation away from traditional FTE priced outsourcing agreements to the next generation of outcome-based managed services programs. Firms that track contract expiration dates forecast the upcoming year to be a heavy one.

3. Service provider solution teams are ‘getting their heads around’ RPA and just now unlocking the power of the technology. What they are learning is it’s not a point solution like the screen scraping tools they have relied on in the past. RPA is actually the foundation layer of a development platform, and when used to direct many of the other fast emerging technologies, (such as artificial intelligence, speech to text, smart imaging, virtual assistants and others) it can be fully unleashed as the transformational engine it’s capable of being.

4. Analysts and advisors are still catching on to RPA. As more of them do that knowledge will impact how they structure deals and counsel their clients on future outsourcing engagements. The result will be an acceleration of awards favoring automation-enabled managed services solutions.

5. Word of RPA successes will have a multiplier effect. Press releases, case studies and white papers, conference presentations and award notices will become gas to the fire and suddenly RPA’s digital labor truly is the next-generation outsourcing model.

What Organizations Should Do Now To Prepare for RPA How you position your company for RPA and business services automation overall has a lot to do with what type of firm you are.

Now let’s revisit that key question we asked at the start: Is all that disruption and innovation really happening? You bet it is; more quietly perhaps than had been predicted, but in no less a big way than predicted. Robotic Process Automation is transformational and will redefine the outsourcing world. Making RPA part of your plans really isn’t just an option any longer.

For outsourcing providers, it’s clear, embrace this next generation technology and as quickly as possible retool yourself for automation and outcome-based managed services.

For buyers, let your service provider know you expect process automation to be a primary component of their delivery model and that you fully intend to share in the benefits it will bring them.

Analysts, advisors and media, learn as much as possible about the world of RPA so you can fairly represent it to your clients, continuants and the market overall.

By Matt Smith, co-founder and managing director of Virtual Operations, a provider of Robotic Process Automation implementation, licensing and training services for outsourcers and end-user companies. Matt can be reached at [email protected], on LinkedIn at www.linkedin.com/in/mattsmith3forward/ and on Twitter at @VirtualOps_Matt.

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TRAININGISSUE

The numbers have risen from the first class of 13 to more than 1,600 professionals certified in the COP and COS families this year.

Members of the committee interviewed say

training is increasingly important

and needed in outsourcing

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These professionals are

located around the world

Recognizing that, IAOP created the Outsourcing Professional Body of Knowledge in 2005 and a year later launched its Certified Outsourcing Professional designation.

Today, IAOP’s training, certification and designation programs are the de facto standard for organizations looking to improve their outsourcing outcomes.

The numbers have risen from the first class of 13 to more than 1,600 professionals certified in the COP and COS families this year.

And these professionals are located around the world, working as customers, providers and advisors, in positions at every level in all industry segments, big and small.

IAOP’s Training & Certification Committee takes the lead in identifying the educational needs of members and overseeing the development and delivery of its training programs. Additionally, this committee works with IAOP’s Certified Outsourcing Professional community to ensure that IAOP members are properly prepared for initial and ongoing professional certification.

Members of the committee interviewed say training is increasingly important and needed in outsourcing, more frequently being encouraged and supported by entire organizations, and delivering great value to individuals.

TRAINING ISSUE GUIDE:- Training and Certification Interviews - Where COPs are Located and How Many Are There- IAOP Training and Certification Timeline- COP Program Licensing Available- Nordic Consultants Get Certified - Comparing Outsourcing’s Body of Knowledge to ISO

A PROFESSION IS ONLY AS GOOD AS ITS PEOPLE.

Sharing their views on the state of outsourcing training with Pulse were T&C committee members who also are certified:

EUS PONTENAGEL, COP, Director Consulting, Quint Wellington Redwood JAMES SHEA, COP-GOV, CDI Online Learning Mgt.

BOBBY VARANASI, COP-GOV, Matryzel Consulting

MICKI WARNER, COP, Managing Director, Accenture Operations

LAWRENCE KANE, COP-GOV, Senior Leader, IT Infrastructure Strategy, Sourcing and Asset Management Execution, a customer from a Fortune 50 company who recently became certified and is implementing the COP program in his organization, also commented on its value.


MICKI WARNER: “Training is extremely important. Outsourcing is a people business and having highly skilled talent is vital. Training is particularly important for those involved on both sides. Outsourcing relationship governance is critical to ensure strong relationship building and management skills are utilized both on the buyer and provider side. As outsourcing services evolve, the need for talent with deep analytics and expertise will increase.”

JIM SHEA: “Training has become increasingly important due to the increased complexity of deals, the regulatory environment and risk factors due to economic and

How important has training become in outsourcing?

political instability, as well as difficulty in meeting expectations on both the client and provider side. Many orga-nizations and even governments are sponsoring training to increase the skills and knowledge and establish a baseline set of skills for those entering and practicing the profession.”

LAWRENCE KANE: “Robust tools and processes are important, yet they are not enough when there are significant changes in personnel due to restruc-turing, company growth, retirements, etc. Standardized training delivered in a consistent way not only helps avoid knowledge loss but also ensures continous adoption of proven practices. It is vital to the long-term viability of sourcing organizations.”

TRAINING AND CERTIFICATION INTERVIEWS

“Training has become increasingly important due to the increased complexity of deals, the regulatory environment and risk factors due to economic and political instability, as well as difficulty in meeting expectations on both the client and provider side.“ – Jim Shea

How has training changed over the years?

BOBBY VARANASI: “Knowledge transfer has become more complex. Real-time learning and complex learn-to-implement models populate today’s business environments. The traditional teach-to-learn and linearly deployed approaches have been upturned. Knowledge acquisition has moved from the traditional one-way ‘training’ to multi-modal dissemination/ absorption. Today’s shelf-life with skills and knowledge is at best 24 months. This, in turn, puts the squeeze on organizations (and their resources across the board) to continuously learn, unlearn and relearn.”

“Today’s shelf-life with skills and knowledge is at best 24 months. This, in turn, puts the squeeze on organizations (and their resources across the board) to continuously learn, unlearn and relearn.“ – Bobby Varanasi

BRbatTpt

e


EUS PONTENAGEL: “Globalization will require that people keep up to speed and therefore continously maintain and improve their knowledge. We also see more of a need for in-depth technical knowledge required in the field of sourcing rather then generic process and contracting skills.”

MICKI WARNER: “Higher client expectations continue to push the demand for improved outsourcing relationship governance to drive a deeper, more intimate and collaborative buyer, adviser and

What do you see as the need/demand for training in the next five years ahead?

provider relationship. Recent research sponsored by Accenture demonstrates that higher-level skills are increasingly important to the success of 4th and 5th generation outsourcing relationships – skills in areas such as analytics, innovation, industry expertise, and the ability to define and target strategic business outcomes.”

“Recent research sponsored by Accenture demonstrates that higher-level skills are increasingly important to the success of 4th and 5th generation outsourcing relationships ...“ – Micki Warner

TRAINING ISSUE

Is training more often a personal pursuit by an individual or an organizational goal by a company?

EUS PONTENAGEL: “In sourcing it is becoming more and more a company driven policy where companies mature in the area of sourcing as a way of managing the company. Companies are more aware that they need professionals in this area to address the alignment between demand and supply and that sourcing requires other skills and capabilities than just contract management or procurement. At the same time, individuals under-stand they need to gear up to ensure they will still be attractive and adding value to the company, no longer just performing procurement or managing contracts.”

MICKI WARNER: “Early in the out-sourcing business, personal pursuit by an individual was the driver of training. Those early adopters knew

that outsourcing was a business in which to establish your career and industry specific training was vital. More and more organizations are now making it a priority and a requirement of certain roles, which is essential in upholding the outsourcing standards of business conduct and code of ethics.”

LAWRENCE KANE: “Clearly it’s both, but it’s more sustainable when pursued as an organizational goal for the company. This means that employees include classes in their development plans, managers give them time away from work to learn new things, proven practices are maintained, and new methods are considered and adopted when appropriate. Without a company-approved strategy, it becomes hit or miss.”

“... Individuals understand they need to gear up to ensure they will still be attractive and adding value to the company, no longer just performing procurement or managing contracts.“ – Eus Pontenagel


EUS PONTENAGEL: “Find a gradual training plan that allows you to combine training, learning and personal development. A lot within the field of sourcing is based on experience. Expertise is built up from knowledge, training and learning. Allow sufficient ‘mileage’ for actual doing.”

MICKI WARNER: “Get your COP certification! The Master Class is an invaluable experience in seeking to understand an outsourcing arrangement from all parties view point. Or at minimum take the IAOP Governance Workshop so we all learn better outsourcing relationship capabilities given the outsourcing industry complexities.”

JIM SHEA: “Take the master class, get certified, maintain your certification and network with other COPs. The value is essential to your career and your organization!”

What advice can you provide to professionals interested in getting training in outsourcing?

BOBBY VARANASI: “Learn to implement, not just to get a job done. It’s easy and unsustainable. Also, understand the consequences of your actions when you deploy recently acquired skills. Training in outsourcing is a crucial first-step to understand the nature of corporate behavior where shared pooling of resources (through deployment of multiple business models) is the reality today. Within this reality outsourcing figures as prominently as other models (like M&A, JVs, or subsidiaries) do. Therefore, out-sourcing should no longer be viewed as peripheral to organizations.”

LAWRENCE KANE: “Don’t take everything as gospel. Every company is different. While many proven practices will fit with your culture and policies, others may not. Adopt those things that make the most sense.”

TRAINING AND CERTIFICATION INTERVIEWS

“Don’t take everything as gospel. Every company is different. While many proven practices will fit with your culture and policies, others may not. Adopt those things that make the most sense.“ – Lawence Kane

Don’t take everything as gospel.

ery company is

How does outsourcing training compare to other industries?

JIM SHEA: “Just as the accounting profession and project management professions matured and estabished the CPA and PMP certifcations which are now industry standards for those professions, the COP certification has become the defacto standard for outsourcing professionals and will continue to grow in value and recognizability.”

“The COP certification has become the defacto standard for outsourcing professionals.“ – Jim Shea


EUS PONTENAGEL: “It is an international standard, recognized by leading companies (both demand and supply side) in the world. It is further-more a membership of a community of global professionals. And last but certainly not least, it is a confirmation of a level of knowledge, experience and expertise that you as a individual bring to the party with the ‘obligation’ to maintain and enhance.”

MICKI WARNER: “I was COP certified in 2008. I had been in the outsourcing industry for a decade before deciding to seek the IAOP COP certification. It started as a personal pursuit initially

What is the value of the COP certification?

to add to my professional toolkit and to add credibility with my outsourcingclients. More clients are asking that their program be run by a COP as they know that individual comes with a solid understanding of the business and criticality of strong relationship building skills. Holding the certification credentials has allowed me to educate clients and colleagues about the value of outsourcing industry training and the certifications available.”

BOBBY VARANASI: “First, the COP recognition provides substantial marketplace visibility and respect, owing to the fact that the disciplined

“More clients are asking that their program be run by a COP ...“ – Micki Warner

TRAINING ISSUE

standards-driven program reflects upon an individual’s ability to pursue tangible business outcomes. Second, the content by its very dynamic nature provides great insights into how corporations work, and grow in today’s world of globalization, there-by lending significant impetus to an individual’s decision-making skills.”

What other training programs should outsourcing professionals consider?

• Project Management Institute (PMI)’s Project Management certification (PMP)

WHAT’S NEW FROM THE T&C COMMITTEE?

• Worked this year to streamline the COP Mentoring Framework and Program to have COP mentors review applications from candidates prior to submission, reducing the review time. COP candidates benefit by gaining the support of mentors to complete the experience mapping, knowledge documentation and taking the exam in a timely manner; and ensuring the candidate is able to leverage the knowledge gained and to be introduced to fellow COPs upon completion to build the COP network globally.

The committee continuously reviews all association training to keep material fresh and current.

“It is an international standard, recognized by leading companies (both demand and supply side) in the world.“ – Eus Pontenagel

ng that


1619Certifications

Worldwide

COP/aCOP509

COS-HR520

COS-F&A107

COS-FP483

IAOP TRAINING AND CERTIFICATION HIGHLIGHTS

THE GLOBAL PRESENCE OF COPS

PROFESSIONALS CERTIFIED BY THE NUMBERS

OPBOK created

2005

COP certification launched

2006

COP Master Classes – live and online – launched

Early 2007

COP licensing program launched

Early 2008

Print version of OPBOK and templates published by Van Haren

Mid 2009

COS-HR & COS-F&A certifications launched

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

CERTIFIED PROFESSIONALS IN COUNTRY=


IAOP Training & Certifications approved by Career OneStop

November 2010

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

More than 500 COP family and 1000 COS family certifications reached!

August 2014

Several Corporate & Professional Development Alliance partners added

2012

TRAINING ISSUE

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TRAINING ISSUECompanies and advisors seeking to educate employees and certify professionals as outsourcing leaders can conduct their own in-house training programs through licensing offerings from IAOP.

The licensing arrangements will enable companies, consultants and advisory firms to use the COP Master Class and/or Outsourcing Governance Workshop, along with related Outsourcing Professional Body of Knowledge (OPBOK) and Certified Outsourcing Professional (COP) program materials to train employees in their organizations.

IAOP initially will hold an Authorized Trainer led COP Master class in-house for the organization, and then a follow-up train-the-trainer program, which allows a number of employees to be authorized as internal trainers of the COP program. Internal trainers must also become COP certified by passing the required exam and completing experience project mapping.

“Since establishing the COP designation in 2007, COP has become the standard by which professionals in the field are measured for their leadership and expertise,” said IAOP CEO Debi Hamill. “Licensing the COP program will make the training more accessible to greater numbers, and give companies and individuals greater flexibility and convenience to pursue certification.”

Recent uptake of the COP program licensing from IAOP was formalized by a large aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems, which cited the following benefits of bringing the program in-house:

• Defining a common language, principles and leading processes enterprise-wide (across all stakeholder organizations)

• Allowing continuous adoption of industry leading practices (as codified by a standard-setting organization) that are applicable to the organization

• Accessing a formal training curriculum that grows and maintains company employee knowledge, skills and ability to perform at industry standards

• Helping new sourcing and supplier management employees become productive as expeditiously as possible

• Ensuring that proactive supplier risk management and compliance management practices are in place to protect the company

“The licensing program is one way an organization can train and certify large numbers of outsourcing professional over a short time and with maximum cost effectiveness,” according to Hamill.

IAOP also offers individual live, on-site private training for as few as 10 people; individual or bulk seats in live public classes held in North America and elsewhere globally; and a convenient self-paced online version.

All IAOP training and certification is based on the globally accepted IAOP COP Professional Standards and the full OPBOK recently released in the updated Version 10.

Licensing of COP Program Available from IAOP

0 20 40 60 80 100

73%

37%

16%

85%

All other factors being equal, would rather hire a COP as opposed to someone without the certification

Already do, or would pay a higher salary for someone with a COP certification

Require their service providers to have COPs on their staff

Get better results when they have COPs work on their programs

According to a 2013 IAOP member survey:

Survey Shows It Pays

PULSE Sept /Oct 2014 29PULPULSESE SSept /Ot /Oct 20120144 29

Implement Consulting Group has become the first consultancy firm in Denmark to have eight consultants certified as Certi-fied Outsourcing Specialists – FoundationPrinciples (COS-FP) under IAOP. The COP-FP designation powerfully demonstrates that these professionals possess exposure to and general knowledge required to design, implement, and manage outsourcing initiatives that have a high probability of achieving an organization’s intended outcomes. “COS-FP was the only global outsourcingcertification that met our criteria,” states Mike Polczynski, partner at Implement in Denmark, when explaining the company’s choice to invest in certifying the first group of consultants. Implement has experienced an unparalleled growth in the Nordics since its inception in 1996, rising from three to more than 400 consultants and reaching a turnover of approximately $100 Million USD in 2013-2014. Seeing increased demand for advisory work in the Nordic market in the areas of IT outsourcing, offshoring and BPO during the last couple of years, Implement decided to establish a new IT Selection & Sourcing Service Line in 2013.

Why COS-FP?Nicolai Brehm Suhr and Jørgen Langebek,partners and co-leads of the new serviceline, explain: “When launching the new service line, we were looking for a com-mon framework to bridge the experience of more than 60 consultants working within our Sourcing & Procurement and IT Management practices.” Implement consultants already have

numerous other certifications as tangibleevidence of their ongoing investment in capability building, including ITIL, TOGAF and CoBiT. It was important for the firm to select a professional certification that its clients would acknowledge brings added value to its services, which led them to get involved with IAOP. “IAOP is the leading global organizationfor sourcing professionals, actively working to share experience through seminars, conferences and local chapters, for the benefit of clients and vendors alike,” the partners said. “In the Nordic market, IAOP has seen a growing importance over the last couple of years.

“We are proud to be among leading organizations adopting the IAOP

framework by certifying our consultants, thereby demonstrating

our support to IAOP.”

The COS-FP designation met the criteria of being widely recognized and acknowledged, building upon a solid academic foundation and is very well aligned with Implement Consulting Group’scompany DNA of driving organizational change in collaboration with its customers and with a firm focus on creating impact.

“As a company, we have a strong focus on changing the mindsets and ways of working in the organizations we are involved in,” Polczynski said. “We also are passionate about sharing knowledge, challenging each other in developing novel approaches and utilizing the latest thinking from leading management academics.”

Consultants Gain COS-FP Certification in Denmark

Earning the Certification:The following eight Implement consultants received the professional designation:

Nicolai Brehm Suhr, COS-FPMike Polczynski, COS-FPMichael Holm Larsen, COS-FPJørgen Langebek Ostergaard, COS-FPBent Christensen, COS-FPFilip E. Larsen, COS-FPMartin Kregler Christensen, COS-FPTorben Schütze, COS-FP

The Sourcing Governance Foundationcourse, a requirement for the certification,has been mapped to the Outsourcing Professional Standards and accredited with 25 points towards the Certified-Out sourcing Professional (COP) certification, 15 CEHs towards COP recertification, and inclusion in the IAOP Outsourcing Professional Course Catalog. COS-FP is furthermore part of a larger certification framework that could support the subsequent competency growth of its consultants. The firm also said it was important that a respected accreditation body in the shape of APM Group issue the certificate for the certification body IAOP.

Associated BenefitsBy certifying a group of consultants within the same service line, Implement used the occasion to review and adjust its current sourcing methodology. “Our sourcing methodology has been developed over the years, based on our experience in the Nordic market,” said Nicolai. “We now have embarked on aligning our methodology to the IAOP outsourcing model. Thus, it will be based on an acknowledged international framework, but still with a Nordic flavor, reflecting the specific conditions of our home market.” In practice, the IAOP certification has served as a catalyst for defining and sharpening the scope and focus for Implement’s IT Selection & Sourcing Service Line, updating its toolbox and giving its senior team a new common identity, according to the partners.


HOW A NEW INTERNATIONAL STANDARD WILL FIT WITH IAOP’S OPBOK

COMPARING OUTSOURCING’S BODY OF KNOWLEDGE TO ISO 37500

IAOP has defined an industry standard Outsourcing Professional Body of Knowledge (OPBOK). This standard has been revised continuously since its introduction in 2006, and is now in its Version 10, second edition. Today, IAOP members and Certified Outsourcing Professionals (COPs) provide leadership in defining the Outsourcing Professional Standards (OPS). These standards are used to certify individual competencies recognized as the Certified Outsourcing Professional (COP) designation.

The OPBOK is a public document that can be readily purchased online from distributors such as Amazon, or can be purchased directly from the publisher, Van Haren

Publishing, and is available electronically to IAOP members in its online knowledge center, Firmbuilder.com.

OUTSOURCING PROCESS The key component described in Chapter 2 of OPBOK is the Five-Stage Outsourcing Process that consists of the following stages: Idea, Assessment, Implementation, Transition and Management Stage. For each stage the

OPBOK defines key questions, the decision maker, the decision criteria, processes and deliverables and the approximate timeline for each stage. Subsequent chapters provide significant detail for each of the five stages. In addition, Appendix B provides over 100 pages of model templates to support the planning and execution of each stage in the Outsourcing Process.

NEW INTERNATIONAL STANDARD COMING Recognizing the importance of outsourcing, the International Standards Organization (ISO) has developed a public domain outsourcing guide, ISO 37500.

THE KEY COMPONENT OF THE GUIDE IS THE ISO OUTSOURCING LIFE CYCLE MODEL. ISO 37500 HAS BEEN IN DEVELOPMENT SINCE 2011 AND IS EXPECTED TO BE A CONFIRMED INTERNATIONAL STANDARD BY 2015.

The project committee has received input from buyers, providers, advisors and academic researchers from around the world. Key participants have come from ISO member countries in India, UK, Germany, the Netherlands, Bulgaria, Denmark, France, Finland, Spain and Canada. Over 100 committee members have participated in six meetings during the four years of development.

The impact of ISO37500 will be to bring standardization to the global outsourcing market. The guide is intended to “provide a good foundation to enable organizations to enter into, and continue to sustain, successful outsourcing arrangements throughout the contractual period.” Recognition of the standard will be voluntary. However, given the strong support from European members, it is reasonable to expect that the governments in the European Union will use ISO 37500 as the common requirement in outsourcing requests for proposal. The role of ISO in defining international standards suggests that ISO 37500 may become the Lingua Franca of the global IT and business outsourcing market. The standard will allow different buyers and providers to standardize outsourcing life cycle stages, deliverables, governance processes and risk management models. This should lead to more predictable, consistent management of outsourcing and improved value delivery.

ISO37500 introduces an outsourcing life cycle model that consists of four phases and a central governance capability. The four phases are: Outsourcing strategy analysis; Initiation and selection; Transition and Deliver Value. The life cycle is preceded with a sourcing strategy which is outside of the ISO 37500 scope and is completed with an outsourcing renewal/exit strategy. Each phase is described in detail within the model with a set of inputs, processes and outputs. The document provides several informative annexes regarding Governance Structure, Risk Assessment, Request for Proposal, Innovation Management and Life Cycle Exit.


Comparing OPBOK & ISO 37500

Both OPBOK and ISO 37500 provide information and guidance that is intended to improve the success, and reduce the risk, of outsourcing. However, the two standards are slightly different and are targeted at a different audience. The OPS and OPBOK create a standard for the individual practitioner and have become the guide for the COP Master Class and other IAOP training in outsourcing, as well as for

the COP certification family exami-nation. For example, OPBOK refers throughout the book to outsourcing standards that must be understood and demonstrated by an outsourcing professional. As well, the templates provide a “how-to” tool-kit model for the practitioner.

On the other hand, ISO37500 is targeted at the organization, with an

organizational perspective on how outsourcing processes operate. The ISO standard does not provide guidance on templates, or provide examples of deliverables. The standard is intended to be a guideline, so that it can be adopted by organizations with different needs, in different industries and geographies.

By Ron Babin, DBA, COP, Associate Professor, Ted Rogers School of Information Technology Management, Ryerson University

Comparison IAOP - OPS & OPBOK ISO – 37500

Audience Outsourcing professionals and the buyer, provider or advisor organizations they support

Outsourcing organization, buyer or provider

Development History

Developed under IAOP from mid-2000s; publically available since 2010

In development under ISO framework with formal participation approved by ISO country standards bodies; intended publication 2015

Geography Developed primarily in the U.S., applied, updated and adopted globally

Developed with strong European and Indian participation, to be adopted globally

Usage To certify individuals; train individuals and organizations

To guide organizations

Processes Process prescriptive – templates and tool kits for the practitioner

Process agnostic – to be adapted by organizations

Clearly the OPS & OPBOK are already in practice, with thousands of certified professionals using this standard globally. ISO 37500 will only begin to be communicated after it is agreed to be an international standard late in 2014 or into 2015. It remains to be seen how many organizations will take up ISO 37500, although it is reasonable to expect the author countries to support it at least at the national standards level. Given the open nature of both standards, it would make sense that each would recognize the other. OPBOK should

acknowledge that ISO may have a significant influence, particularly in Europe. OPBOK provides much of the implementation detail that ISO 37500 lacks. A certified outsourcing practitioner operating in a global environment should be aware and conversant with the ISO standard. Perhaps OPBOK should contain an appendix that maps the Five-Stage Outsourcing Process to the Four-Phase Outsourcing Life Cycle. This would allow both standards to mutually support the growing global market for outsourcing services.

How will Each Standard Influence the Other?

TRAINING ISSUE


R E P R I N T E D F R O M F O R T U N E M A G A Z I N E JAN. 13, 2014, U.S. EDITION, THE FUTURE ISSUE

Those who bet on Mexico last year are rightfully wary of being fooled again, but there’s a good case to be made that 2013’s optimism wasn’t wrong, just premature. Recent legislative reforms of the nation’s tax and education systems — as well as telecom and energy infrastructures (more on those in a bit) — are beginning to give Mexico’s sprawling middle class a boost.

That, says legendary investor Mark Mobius, executive chairman of Templeton Emerging Markets Group, is fueling “explosive growth in demand” for consumer products. And Mobius isn’t one to mince words: “We see a great future for Mexico and want to be part of that future,” he tells Fortune.

Indeed, on many fronts the investment picture in Mexico looks brighter than it did a year ago. Among the world’s emerging markets, Mexico stands to benefit the most from growth in the U.S., its biggest customer by far. It also has the least to lose from the expected “tapering” by the U.S. Federal Reserve, because Mexico has a smaller trade deficit than most of its peer countries.

“The reforms are sort of the cherry on top that could make Mexico really exciting over the next five years,” says Lewis Kaufman, who manages the $1.7 billion Thornburg Developing World Fund, which gained about 13 percent in total return through mid-December 2013 while its benchmark sank 4 percent.

EXPERTS HAVE PROCLAIMED THE COUNTRY THE NEXT BIG THING BEFORE. THIS TIME MAY BE DIFFERENT.

By: Jen Wieczner

At the start of 2013, investors were rushing into Mexico. A new President with an ambitious reform to-do list had just taken office. And the largest IPO in Mexican history, the $4 billion offering of Spanish bank Santander’s Mexican division, had just taken place. To listen to the government, 2013 would elevate Mexico to an economic powerhouse.

But the new administration pinched pennies and GDP growth slowed to just 1 percent, a fraction of 2013 expectations. By December, stocks were down 4 percent and many investors seemed to give up hope.

“They felt Mexico’s moment was slipping,” says David M. Darst, chief investment strategist for Morgan Stanley Wealth Management, who spent much of the past two years on the ground in Mexico studying the country’s prospects.

NOW MANY ARE SINGING THE SAME REFRAIN THEY SANG LAST YEAR: 2014 WILL BE THE MARKET FIESTA THAT 2013 WASN’T.

WHY 2014 COULD

BE MEXICO’S YEAR

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bottomed,” says T. Rowe Price equity analyst (and Mexico native) Paulina Amieva. “For us as investors, we find Mexico in a relatively sweet spot and in stark contrast to the majority of emerging markets.”

A few investors have found Mexico market plays north of the border. Thornburg’s Kaufman, for example, favors U.S.-based First Cash Financial Services, which gets the majority of its revenue from pawnshops in Mexico.

American oil companies like Halliburton and Schlumberger may also benefit from Mexican energy reform, says Morgan Stanley’s Darst.

And as U.S. growth trickles down into Mexico, spurring the housing market there, Darst—who calls Mexico the “Asia next door”—expects homebuilders like Cemex and real estate offer-ings such as Macquarie Mexican REIT to thrive.

Says Juan Carlos Pérez Macías, head of S&P Capital IQ’s new Mexico City office, which opened in September to cater to the burgeoning investor market there: “This is the Mexican moment—the next years will be a fantastic opportunity.” The next few months may bear that out.

A couple of weeks before Christmas, Mexico’s Congress approved a watershed constitutional amendment that could open up the country’s state-controlled oil reserves to private companies. The energy reform will require further legislation in 2014. But the progress already exceeds investors’ highest hopes, and it has reinvigorated belief that Mexico is on the cusp of a radical transformation.

Oil reform “was always the capstone; this was the apex,” says Darst, whose top pick, Mexico’s largest petrochemical producer, Alpek, should benefit from the policy change.

Rick Hoss, manager of the EP Latin America Fund, likes companies that will prosper in a post-reform Mexico, such as Infraestructura Energética Nova, a natural-gas-pipeline company that went public in 2013, and Alsea, which operates Mexican Starbucks stores.

Hoss, whose fund ranked first in its Morningstar category in 2013, now has 56 percent of his $20 million portfolio in Mexico — double the index benchmark—after a trip south of the border last June. (When the fund launched in 2011, it tipped 80 percent to Brazil.)

As with any emerging-markets investing strategy, a broad index approach can be the best and safest over the long term. But in the case of Mexico, that’s a challenge: The index-tracking ETFs are weighed down by the country’s traditional blue chips, whose future is less certain in an era of antitrust reform.

América Móvil and Televisa, for example—major targets of Mexico’s pro-competition telecom reform—alone constitute nearly 25 percent of the iShares MSCI Mexico Capped ETF. There’s also the question of valuation. Share prices of the relatively few companies listed on Mexico’s only stock exchange, the Bolsa Mexicana de Valores, peaked at an average of 20 times earnings in November—higher than the P/E of even the S&P 500.

Still, an investing window appears to have opened up, experts say. Valuations based on future earnings estimates (with P/E multiples averaging 17.5) look cheaper today than they did about six months ago. “There is already evidence that the economy has

For the full story, visit www.fortune.com.

IAOP and Fortune Content Marketing & Strategies have been partners for 20 years. Fortune publishes IAOP’s Global Outsourcing 100 ranked list in a special advertising section annually. For more information about the benefits of Fortune advertising to IAOP members, contact Ron Moss, Associate Director, Project Management Content Marketing & Strategies,[email protected].

“WE FIND MEXICO IN A RELATIVELY SWEET SPOT AND IN STARK CONTRAST TO THE MAJORITY OF EMERGING MARKETS.” – PAULINA AMIEVA, T. ROWE PRICE

DID YOU KNOW? IAOP has an active chapter network in this important region? Outsourcing customers, providers and advisors are welcome to get involved in our chapters in Brazil, Colombia, Costa Rica and Mexico. IAOP’s Latin America regional advisory board also works to tailor association programs to regional needs. For more info. on IAOP’s chapters, contact [email protected] and on the Latin America regional advisory board, contact [email protected].


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OUTSOURCE2LAC 2014 WILL BE HELD NOV. 12-13 AT WESTIN CAMINO REAL HOTEL IN GUATEMALA CITY. FOR MORE ON THE EVENT PRESENTED BY IAOP AND IDB, SEE STORY.

THE GROWING MARKET OF GUATEMALA – NEARSHORE CALL CENTERS EXPANDING

Companies are expanding and creating jobs

History celebrated! Between The Maya ruins of Takal, ancient city of Antigua and the folk saint Maximon in Santiago Atitlán, Guatemalans love to celebrate the past; even in the most remote areas, a day doesn’t go by when there isn’t a fiesta somewhere. While Guatemalans are famous for their coffee, buñuelos, cowboys, volcanoes and Marimba music it is the indigenous, colorful ChiChi market that twice a week, brings them all together. The choice of transport for many is the chicken bus. Vibrantly painted and consisting of colorful murals, they are filled to maximum capacity with people,topped with roof racks full of cargo andtraveling at extremely high speeds throughout the country, over mountain passes and to its most remote of villages.

Outsourcing Outlook: Guatemalans continually impress and surpass expectations. Known for their hospitality, talent, innovation and quality professional education, they have generated a stable and profitable environment for economic development.

A result of positive customer service and the comparable cost of doing business, Capgemini in 2006 started a financial and accounting operation in Guatemala with a plan to continue its growth over the next five years. (see Knowledge Center story).

Other organizations are contributing to the growth of Guatemala and proving it as a nearshore call center

destination, including: Atento, whose new contact center in Guatemala City’s World Technology Center will quickly create more than 1,000 new jobs; and C3, who will be adding 500 additional employees when it launches its new contact center.

In 2013, Agexport, the Guatemalan Association of Exporters, announced the IT and BPO sectors created 3,000 jobs in the country. Between 2013 and 2014, Guatemala and Brazil were Latin America’s two biggest climbers in the World Bank’s Ease of Doing Business Index. The administration of Guatemalan President Otto Perez has been tirelessly working to attract new investments.

As the government continues its work toward economic reform, maintaining free trade and liberal markets, they can expect a continued, growing market in Guatemala.

Economy: : The largest economy in Central America, through trade, regional integration and tourism, Guatemala has made significant progress in achieving macroeconomic and democratic stability. Strategically located in the northern part of Central America, it is two hours from the United States, which is Guatemala’s primary trading partner, both in imports and exports. Other trading partners include El Salvador, Honduras, Mexico, Nicaragua and Panama.

By Kate Tulloch-Hammond, IAOP

GUATEMALA Growing Market | Call Centers Expanding

Location: Located in Central America at the southern tip of Mexico; bordering Belize, Honduras and El Salvador between the Caribbean Sea and the Pacific Ocean

Population: The most populous country in Central America – 14.7 million; 59 percent identify as mestizo, a mixed European ancestry

Language: Spanish is spoken by 93 percent of the people, with a small number of the population speaking one of 21 Mayan languages. Most of the professional workforce speaks English fluently©

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Now in its fourth edition, Outsource2LAC is unique in that it combines a technical forum featuring prominent leaders speaking on current and future market trends with customized business matchmaking meetings among its 500-plus attendees.

IAOP will present its Certified Outsourcing Professional (COP) Standards Workshop on Nov. 11 before registration to start the program and also contribute to the content and programming.

By signing up for the event at ConnectAmericas, the first social network for businesses in the Americas (www.connectamericas.com), attendees can specify their areas of interest in outsourcing and the sophisticated software system will pair them for business meetings during Outsource2LAC and build continued relationships after the event.

Latin America’s Ongoing Growth Latin America’s appeal as both a nearshore and farshore outsourcing destination is well understood by IAOP global members.

“Latin America is capturing a small – less than 10 percent – but increasing part of the global outsourcing market of $350-400 billion,” Opertti says. “Latin America has a strong value proposition. It’s the ‘follow the sun’ model,’ that allows companies to do both nearshore and farshore outsourcing with 24-hour continuous access to services.”

In addition, the region is well positioned to serve the language needs of the U.S., which has 54 million people who speak Spanish, second in the world to only Mexico. Skills training and education is improving through investments by IDB and other agencies in finishing schools in countries such as Uruguay, Colombia, Trinidad and Tobago, according to Opertti.

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“We’ve partnered to bring together IAOP’s knowledge, expertise and global reach with IDB’s strong clout and predominance in the region,” says Fabrizio Opertti, Chief of Trade and Investment at Inter-American Development Bank. “This is only the beginning of our collaboration with IAOP.”

Fabrizio Opertti Chief of Trade and Investment at Inter-American Development Bank

MARK YOUR CALENDAR: NOV. 11-13


Outsource2LAC will feature participation from agencies promoting trade and investment buyers and technology services. Partners include, in addition to IAOP, the Ministry of Economics of Guatemala, Invest in Guatemala, the Guatemala Exporters Association (AGEXPORT) and Tholons.

The event has previously been held in Montevideo, Uruguay; Medellin, Colombia; and in Buenos Aires, Argentina. Outsource2LAC has gathered nearly 2,000 professionals from more than 20 Latin American and Caribbean countries and from the United States, Ireland, Spain, France, Egypt, India and the Philippines. Thousands of matchmaking meetings have been organized, which led to more than $14 million in actual deals made, according to its organizers.

Registration is free to IAOP members. For more information, visit IAOP’s web site at http://www.iaop.org/Content/23/154/3988/Default.aspx and ConnectAmericas.

Nov. 11 • IAOP presents its Certified Outsourcing

Professional (COP) Standards Workshop • Registration and check in• Networking cocktails• Trade Show Exhibition Hall Opens

Nov. 12 • Opening ceremony• Plenary sessions on: Changing market

dynamics, opportunities and implications; upgrading the talent pool skills; legal process outsourcing; Social, Mobile, Analytics and Cloud; understanding investors; outsourcing in biotechnology and medical services; and creative industries: films, videogames and animation

• Future Flash sessions on: Connect Americas, social media networks, successful sales pitches

• Dinner and cultural show

Nov. 13 • Business matchmaking meetings• Business lunch• Site visit

EVENT HIGHLIGHTS GUATEMALA CITY, GUATEMALA

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P: Tell me about your history with Softtek. What was it like starting this company?

B: It has been an incredible ride. When I think of those years, so many things were different and some of them have been here forever. It was not just that outsourcing wasn’t here, Mexico was not yet understood as being a technology provider.

P: How did you get involved with Softtek?

B: While I was still at the University (Instituto Tecnológico de Estudios Superiores de Monterrey) I got my first job at Dinamica, a company that was a division of and provided services to Grupo Alfa (an industrial group in Mexico). When I graduated in 1981, I decided to stay at Dinamica. It was a very difficult year in Mexico in 1982, and some of my friends from Dinamica were laid off. They were the ones with the idea of starting Softtek. I stayed in Dinamica until we got our first contract in 1985 and soon after, in 1986, I got married.

P: What was the vision for Softtek when launching it?

B: From the very beginning, we had decided we wanted to be a global company. Our target market was, and still is, large corporations. To us, being global was much more than just exporting services. We wanted to have a direct presence in those countries and be able to replicate what we were doing in Mexico. We never wanted to be an IT services company solely supporting the local market.

P: Why do you think Softtek has been successful?

B: We’ve been very ambitious from square one! People used to say we were crazy. We have always created our own dreams, and we were not afraid to share them. Sharing a dream shows you are serious, and it becomes a commit-ment. We are not reluctant to make those huge statements.

Following the economic declines in her native country in the 1980s, she once again took a brave step by joining friends in starting Softtek, a small IT services company in Monterrey, in 1982 with the goal of not just being a local company but serving the world.

This was about a decade before people even started talking about nearshore. Softtek would later coin the phrase “nearshore” in 1997 for its trademarked delivery model, which is now widely used in the industry to define outsourcing services provided by countries within close proximity.

Under Treviño’s leadership since 2000, Softtek has become the leading information technology services com-pany in Latin America with 9,000 employees and 30 global offices in Latin America, United States, Europe and Asia.

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Treviño has been called by several media outlets one of the most influential executives in Mexico and throughout Latin America. She achieved another milestone when she was inducted as the first woman into IAOP’s Outsourcing Hall of Fame at the Latin America Outsourcing Summit in Colombia in 2011.

Widely admired for her honest, straight-forward business approach, Treviño talked with Pulse about her ambitions and challenges in the early years; the evolution of near-shore outsourcing; her close-knit family as one of seven children; and what she likes to eat best when she returns home to Mexico.

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We understood starting the company had to be done as a team. Other companies have one founder. There were six of us partners in 1985, which turned into eight and 10 partners—many of whom are still at Softtek. We mutually recognized that each one of us has a unique role that is integral and can complement each other.

Doubts never got in the way; it was like we were blind. We understood there would be challenges. I don’t know if it was because we were proud or over confident but there was always the conviction that we can make it. We did whatever was necessary.

There has never been a moment where we felt we were ‘already there.’ There is always more we could and can do. We would ask: Why not Argentina? Why not the U.S.?

BlancaBORN: A native and resident of Monterrey, Mexico

ROLES: Became a founding member of Softtek in 1982. Appointed president and CEO of Softtek in 2000

BOARD POSITIONS: Board of Directors for Walmart Mexico since 2006 and Goldcorp since 2012. Also active on the boards of ITESM and the U.S. -Mexico Foundation.

ACCOLADES & AWARDS: Forbes’ “50 Most Powerful Womenin Mexico;” member of the World Economic Forum’s B20 Task Force on ICT and Innovation; APEC Women and the Economy Summit; first woman inducted into the IAOP Outsourcing Hall of Fame and honorary COP; named global leader and entrepreneur by Endeavor; Top 25 Businesswomen by The Latin Business Chronicle; Rising Star on Fortune’s list of the 50 Most Powerful Women; Stevie Award for Women in Business; #4 on Forbes’ “Most Powerful Women in Mexico.

SPEAKING: Has participated in forums at the World Bank, Inter-American Development Bank, Kellogg School of Management, Harvard Business School and London Business School, Quartz ‘The Next Billion,’ Bloomberg Media Group, Americas Society/Council of the Americas

EDUCATION: Holds a degree in Computer Science from the Instituto Tecnológico de Estudios Superiores de Monterrey (ITESM)

PERSONAL: A recently new grandmother, she enjoys spending time with her granddaughter, two daughters and husband; reading, playing Canasta (a card game named after the Spanish word for basket) and learning to play bridge

YEAR FOUNDED: 1982

NUMBER OF EMPLOYEES: 9,000

LOCATIONS: Headquartered in Monterrey, Mexico with 30 global offices in Latin America, United States, Europe and Asia

SERVICES PROVIDED: Application-Related Services, Business Process Outsourcing,IT Infrastructure Support, Software Products and Associated Services

CUSTOMERS: A preferred service provider for several Fortune 500 organizations that serves top-tier corporations in the markets where it operates

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Why not China or India? The target is always moving. It’s what keeps us successful.

P: Tell me about your current role as president and CEO.

B: I travel 46 to 48 weeks a year to countries where we have operations. I go to see what we’re doing and come back and spread it throughout the company. I always feel more energetic after travelling; visiting our different operations allows me to be close to our stakeholders - our people, our clients and the different institutions with whom we work. A large percentage of our revenue comes

IAOP OUTSOURCING HALL OF FAME: Being the first woman is a great honor and privilege. It’s amazing to get an award like that from such a respected organization. Bio on



from recurring clients, many with whom we have been working for numerous years. We have grown together over the years, and thus have a unique bond.

With Softtek as a leading regional leader for IT services, I am very involved with the government to promote the IT industry and the people in it. For the same reason, and with our experience as entrepreneurs, I am frequently invited to speak at conferences and panels on entrepreneurship, LATAM as an IT player, and women in leadership. It’s a passion of mine. I am privileged to also be an active board member with other companies, universities and non-governmental organizations.

P: Tell me about how it was selling the nearshore concept to customers in the earlier days versus now.

B: Today nearshore is mainstream. The advantages of nearshore are well understood. People now talk about global sourcing and understand it’s not just India. In the mid 1990s when we launched the nearshore concept, that was a different story. People, analysts, even our government, thought we were crazy because they never considered that Latin America or Mexico could produce advanced technology or offer IT services.

We started by positioning the region as a capable and valuable location for offering those kinds of services. During those years it was not about Softtek; it was about the nearshore concept and establishing that the region had the talent and capabilities to offer these kinds of services and a strong value proposition.

We worked very closely with our Mexican government to position the concept and the region. It took about five years— I wish it could have been faster. At every confer-ence we attended, we invited some type of government constituent to show that we had their support and that it was a “national initiative.”

We incorporated English classes in our training programs as part of our efforts towards strengthening the industry. I remember one article that said “Softtek is the jewel of the crown.” We were and are proud to have started nearshore; however, we also understand that to position Mexico, a very strong industry must be in place. Working with customers is important but likewise it is fundamental to collaborate closely with government and universities.

P: What are the nearshore advantages?

B: We can be very competitive as a region. Initially, the market thought the only advantage of nearshore was convenience – that it was easier to fly to Mexico. We do have geopolitical advantages but the value proposition is more than that. We have very strong processes, and working in similar time zones allows us to be very productive and, thus, cost competitive. For more collab-orative applications or services, working in the same time zone or in a nearby location is certainly an advantage.

P: What is the outlook for Latin America?

B: It’s a great opportunity from different perspectives. LATAM is an important player, not only for providing IT services globally but for its huge potential as a market/consumer of IT services. Softtek is the leader to, from and in Latin America.

P: What about the opportunities for Mexico?

B: With the recently approved reforms we do expect to recover Mexico´s economic growth. The energy reform alone opens doors for huge direct foreign investments that should be translated into economic growth. President Peña Nieto and his cabinet understand the role of IT in our competitiveness. We should see important governmental transformational projects. They are really pushing technology in Mexico and making it accessible for citizens. We see a huge opportunity in Mexico for our industry, our region and our company. (See related story from Fortune.)

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P: How did you get into studying computers?

B: I started college in the late 1970s and graduated in 1981. No one talked about technology; there were no laptops or even desktops. The technology wasn’t there. When they told me about “computers” it sounded challenging, and I remember telling my Dad that I would study “computing.” He didn´t understand it (neither did I), but he was so proud and he would tell anybody that would listen to him that his daughter was going to study “computers.”

I went to register and at the last moment got cold feet and decided to go into marketing. When I returned home and told my Dad, he was so mad at me. He asked me why I wasn’t studying computing. I told him I was scared that I was not going to be able to do it and that I wouldn’t have time to spend with my friends.

My Dad said that if he had a daughter that was not smart enough to study IT, he could live with that. But he certainly wouldn’t allow for his daughter to be scared. I went back to the university and changed my field to computing. My Dad always supported, inspired and pushed me, and was definitely proud and amazed of the things I achieved. Making him proud was an important driver for me.

P: What is your leadership style?

B: I like to describe it as “inclusive leadership.” There is no other way to lead this company than to have a very strong team. Having a talented, diverse and cohesive team allows me to be more effective as a leader. We complement, support and empower each other.

P: What is the culture at Softtek?

B: A strong and dynamic company culture is in our roots. We have always seen our culture as one of our most important differentiators. One of our most important values is sharing the vision, the implications, the benefits, the responsibilities and the future. We embrace

innovation and promote self-determination. We encourage openness and flexibility. Softtek has been ranked by Great Place to Work® Institute, but what makes me more proud is the fact that people choose to work here to launch their professional future. (Softtek has achieved recognition by CNN Expansion as a “Super Company for Launching Young Careers.”)

P: Who are your role models?

B: I can’t say any one individual. There have been people who have been with me my whole life and have been sup-portive. I have a very close family who has always pushed me. Also, my partners at Softtek have been amazing. I see role models as being a two-way street. I am often asked – ‘do you support or advise other women?’ I am a mentor and they are mentors for me. I am always learning from others.

P: What advice would you give young professionals?

B: Don’t be afraid of clearly and openly voicing your ambitions. Don’t look at your weaknesses; look at your strengths. Always be accountable for the commitment you make. Share your vision with someone else; it’s more important to be part of a team.

P: What does the honor of being named to IAOP’s Outsourcing Hall of Fame in 2011 mean to you?

B: It is incredible. I feel very proud. Any time I have been given an award, I truly believe it’s for the entire company. Being the first woman is a great honor and privilege. It’s amazing to get an award like that from such a respected organization.

P: What are your favorite reading materials?

B: I used to read whatever I could get my hands on at the airport! Lately, I’ve been enjoying reading about meditation and emotions and happiness.

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

B: When I travel, I love to come back home and I want tacos and very typical Mexican food. Mexican food is the best food in the world.

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Accenture; Ace Group; Alorica; Andreas Schneider Dienstleistungen; AON Plc; Applied Materials; Aptara; Assurant; AT&T; Bayer Cropscience; Blecha Strategy Group; Boston College; BP; Bridgewater SA; Bristol-Myers Squibb; Bull; CA Inc.; CBRE; Chubb; Cigna; Citihub Consulting; CMC Limited; Corium Consulting Services Ltd; Cranfield University;Delhaize Group; DTSI Group; Duke Energy; Empacus; Erasmus University Rotterdam; Federal Home Loan Bank of Chicago; Fruition Partners; Goodmans LLP; Guardian Life Insurance; HCL; HCSC; Hess Corporation; Highpoint Solutions; HP; Infosys; Intel; Intetics; ISG; Kelly; Kirkland & Ellis; Kodak; KPMG; LSG Sky Chefs; Luxoft; Manulife; McKesson; Merck & Co.; MetLife Global Operations Support Center; Microsoft; Miratech; National Bank of Canada; Open Source Development; Orange Business Services; Ordina Belgium; P+L; PepsiCo; Pillsbury Winthrop Shaw Pittman LLP; PPA GmbH; Procter & Gamble; ProView Global US; PwC; Q/P Management Group; Quint Wellington Redwood; RampRate; ReadSoft; Re-Source America, LLC; ResourcePro; Riverwood Solutions Inc; Robert Gordon Univerity; Rural Sourcing; SAG Infotech Private Limited; Seven Seven Softwares, Inc.; Sikich, LLP; Sourcing Matters LLC; State Farm; Suncorp; Sutherland Global Services; Targacept, Inc.; The Capital Group of Companies; The DDC Group; The Guardian Life Insurance; The Pythian Group; Tieto; Time Warner; Union Bank; University of Liverpool; USAA; Vee Technologies USA; Virtacore Systems Inc.; Walgreen; Western Union; and WNS Global Services.

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

WELCOMENEW MEMBERS

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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 Cor-porate Members. This membership provides the same organization-wide access to IAOP’s research, train-ing, certification, and networking programs as Customer Corporate Membership, but also includes member-only sponsorship opportu-nities 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 Cor-porate 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 sec-tors 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, re-search, training and certifications and surveys. Members get a free subscrip-tion, 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, includ-ing 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 inter-ested 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 – A unique Web-based product that enables clients to monitor, predictand manage the various risks in theirservices 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.

For more detailed information on membership and member services, visit www.IAOP.org/MemberServices

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


LETTER FROM THE DIRECTOR

Dear Colleagues:

This issue of PULSE is focused on training and the importance of it to organizations and individuals in the outsourcing profession and industry. Just as you would want to entrust your complex tax issues to a CPA, or have your delicate operation performed by a Board Certified physician, sourcing relationships should have trained and qualified professionals involved at every step of the deal – both as customers and providers/advisors. It makes sense, but we often forget that train-ing, as with learning, is a life-long journey, and there’s always something we can learn from fellow colleagues. While IAOP offers its own COP training delivered by one of our 18 COP Authorized Trainers globally, we also work with several Corporate & Professional Development Alliance Partners to deliver and promote best standards through related or endorsed training courses. I wanted to share with you information about our partners and the services they provide – from testing to accreditation and publishing best practices. APMG-International is a global examination institute accredited by the APM Group. They provide testing services and the platform for the Certified Outsourcing Specialist – Foundations Principles (COS-FP) designation, and also accredit Authorized Training Organizations for the COS-FP qualifying Sourcing Governance Foundation course. CDI Online Learning Management Services is led by Jim Shea, COP-GOV-SP, who designs, develops and hosts the platform for all of IAOP’s online courses, as well as various certification exams, including the COP exam. While the IAOP focuses on one “pillar” of outsourcing success for professionals, the ITSqc delivers organizational development and certification focused on

PROFESSIONALPULSE PAMELA O’DELL is the Director

of Corporate & Professional Development at IAOP and can be reached at +1.845.452.0600 ext. 121 or at [email protected].

developing the capability of the organizations involved in sourcing. The alliance includes co-branding and promotion of each other’s programs; endorsement of the eSCM Models and associated publications; mapping of the Outsourcing Professional Standards against the eSCM models in our OPBOK; and participation in chapters, research and committees. The ITSqc founders are all COPs and global Authorized Trainers for the COP courses. Quint Wellington Redwood, a global independent firm specializing in organizing IT management, has a number of IAOP Authorized Trainers on staff and partners with IAOP to hold COP Master Class training in Europe. Lastly, Van Haren Publishing is a leading international publisher specializing in publications on management best practices. It publishes the IAOP Outsourcing Professional Body of Knowledge (OPBOK), now in its second edition, as well as the Outsourcing Professionals’ Guide to Corporate Responsibility management guide. Van Haren also publishes the IAOP endorsed eSCM books from ITSqc. IAOP and its corporate and professional development alliance partners bring a wealth of knowledge to the outsourcing industry and professionals they support. Together, we are committed to continually educating our members by developing training and certification platforms using best standards that improve the industry and outsourcing as a profession.

Best regards, Pamela O’Dell


Earning the Certified Outsourcing Professional Designation:Pamela Chiechi, COP, Manager, Walgreen Co.Gary Courtney, COP, Globalization, PMO Lead, CIGNA Margaret Day, COP, Alliance Director, CBREBruce D’Amico, COP, VP, Application Development: Strategic Sourcing, Assurant SolutionsMaria de Huelbes, COP, Operations Manager, PwC Gary Dobbins, COP, Sr. Director, CovidienRyan Dunn, COP, Manager, USAARoy Hoh, COP, Director, IHSLawrence Kane, COP-GOV, Senior Leader, ITI Strategy, Sourcing David Kohl, COP, Senior Staff Underwriter, USAASamara Makinsi, COP, Senior Staff Underwriter, USAATodd Moschner, COP, VP, Apria HealthcareRobert Oosting, COP, HR Manager, ISSWalead Refai, COP, Global Compensation, CSCIvan Sachkov, COP, ITO Country Delivery Manager, HP RussiaSailesh Thakur, COP, Director, Outsourcing Management, CME GroupSimon Vrolijk, COP, Senior Consultant, Quint Wellington Redwood

New to the Ranks of Associate Certified Outsourcing Professionals:George Agyei, aCOP, Business Development Executive, e.Services Africa Ltd.

Punit Bhatia, aCOP, Program Manager, ING Belgium

Marc Bruyland, aCOP, Manager, ING Belgium

Karine De Schrijver, aCOP, Manager, ING Belgium

Dmitry Kashtanov, aCOP, Head of Application Services, GDC

Galina V. Musina, aCOP, Head of Application Services, Fujitsu

Ernest A. Otu, aCOP, Business Development Executive, e.Services Africa Ltd.

Chitra Rajeshwari, aCOP, Executive Director, Avasant Foundation

Mary Skekel, aCOP, Director, Procurement, USAA

COP STANDARDS WORKSHOP9/22Mandarin Orchard, Singapore

COP MASTER CLASS 11/5-7Quint Wellington Redwood OfficesThe Netherlands

COP MASTER CLASS &GOVERNANCE WORKSHOP3/30-4/2Dolce Atlanta-Peachtree, Atlanta, Ga.

2015 OUTSOURCING WORLD SUMMIT WORKSHOPS Whether just interested in learning more

about certification or already a COP, stay

later to The 2015 Outsourcing World

Summit and take advantage of these

workshops on Wed. Feb. 18 in Phoenix, Ariz.:

• Certified Outsourcing Professional (COP)

Accelerated Application Process

• Outsourcing Certification Primer –

Earning Your Certification & Beyond

• COP Advanced Intensive Workshop

COPCALENDAR

LEARN MORE ABOUT THE COP PROGRAMUpcoming Complimentary Webinars:

Dates: Oct. 8, Oct. 29, Nov. 19 & Dec. 10

Time: 12 p.m. EST

CONGRATSIAOP CONGRATULATES THESE NEWLY

CERTIFIED PROFESSIONALS


ROUND UPCHAPTER

UPCOMING CHAPTER MEETING CALENDAR

SEPTEMBER• Sept. 16 – China Week, Beijing Chapter Meeting • Sept. 17 - Nordic Chapter Meeting• Sept. 18 - Outsourcing Tools & Technology and NorCal Chapters’ Meeting• Sept. 18 – China Week, Shandong Chapter Meeting• Sept. 22 – China Week, Shanghai Chapter Meeting

OCTOBER• Oct. 8 - Governance Chapter Webinar • Oct. 9 - Rocky Mountain Chapter Meeting• Oct. 16 – Global Human Capital Chapter Webinar • Oct. 16 – Charlotte, NC Chapter Launch • Oct. 23 - Chicago Chapter Meeting

NOVEMBER• Nov. 6 – SoCal Chapter Meeting• Nov. 7 – Atlanta Chapter Meeting• Nov. 12 – Nordic Chapter• Nov. 12 – Midwest and Domestic Sourcing Chapters’ Meeting• Nov. 13 – Minnesota Chapter Meeting

The calendar is frequently updated. To stay current, check IAOP’s Web site for details at www.IAOP.org /calendar.

Professional Members may attend an unlimited number of chapter meetings. IAOP also offers complimentary Associate Membership that allows non-members to attend a chapter meeting as our guest and access select online resources. Create your Associate Membership now and then register online for the chapter meeting of your choice.


CHAPTER SPOTLIGHT: GOVERNANCE CHAPTER

CHAIR: Neo Group, Applied Materials, Blue Shield of California and Boston Scientific

RECENT EVENTS: Webinar in August on “Governance for Global Business Services and Hybrid Delivery,” moderated by Atul Vashistha, chairman of Neo Group. Jack Sanderson, COP, Senior Manager, Strategic Sourcing & Process Transformation Office at Boston Scientific, walked the audience through the overall governance model at his company.

UPCOMING NOT TO MISS: Oct. 8 Webinar will focus on the Outsourcing “Health Check” and the December virtual meeting will be on Outsourced Governance Services.

WHAT IT’S ALL ABOUT: The IAOP Governance Chapter is one of the oldest virtual chapters. Its mission is to instill a common definition and understanding of Supply Governance among IAOP members, help identify best-in-class frameworks in the field that amplify the probability of success, and diminish the risks inherent in global sourcing.

WHY GET INVOLVED: “Governance continues to be a top challenge facing outsourcing professionals today,” says Vashistha. “Outsourcing Governance is a complicated topic, encompassing a range of issues such as performance and change management, staffing and skills, metrics and incentives, mindset and culture, regulatory and contractual compliance, customer satisfaction and dare we say, provider satisfaction.”

This chapter provides a forum for IAOP members to come together to “demystify” Supply Governance and to begin to identify, define and im-prove established governance practices, by adopting the best-in-class today and making it better through collaboration among the members.

HOW TO LEARN MORE: The chapter meets virtually via its bi-monthly webinars, supports the COP-GOV certification and also is looking to launch a wiki-like effort to create a “Governance Playbook.” Corporate members are invited to join this effort by emailing Julie Huson, [email protected].

This chapter provides a forum for IAOP members to come together to “demystify” Supply Governance and to begin to identify, define and improve established governance practices, by adopting the best-in-class today and making it better through collaboration among the members.


Jane Siegel’s Outsourcing Legacy:

• Senior Scientist at Carnegie Mellon who taught courses about IT-enabled Service Management and participated in research to define meaningful measures of service performance and quality well before its time.

• Founded ITSqc, LLC, the spin-off from Carnegie Mellon University created to promote best practice models for the global IT-enabled services industry.

• Developed the eSourcing Capability Models for Service Providers and Client Organizations to provide a framework for industry best practices in sourcing and service management.

• Authorized trainer for IAOP’s COP program, member of IAOP’s Latin America Advisory Board, frequent presenterand a valued member of several IAOP committees. Recognized as IAOP’s 2014 Member of the Year.

JANE SIEGELPH.D., COP

A

A Tribute to an Outsourcing Visionary, Educator and Researcher

I A O P R E M E M B E R S

“Jane was not only a great person and friend to all of us at IAOP, but a true trailblazer in the outsourcing industry. Her work at Carnegie Mellon University, both through eSCM and more recently on cloud computing, provided insights and standards that all of us will continue to benefit from for years to come.’’ – Debi Hamill, CEO of IAOP, and Michael Corbett, Chairman of IAOP

“Jane was a brilliant researcher, sincere professional, wonderful person and clearly a ‘guru’ on outsourcing, committed to improving the outsourcing industry in Colombia and strengthening LATAM as a region. She always had a word of advice and support, and a human approach to solving issues.” – Santiago Pinzón Galán, Executive Director, Chamber of BPO/ITO/KPO, ANDI

“It is not often you meet a fellow professional who thoroughly impresses by not only their knowledge, but their personality and warmth as well. She was always there with ideas, thoughts and encouragement. It was done with a smile, patience and caring thoughts. She has left a void among outsourcing professionals, as she enriched all of us.” – Jag Dalal, COP-GOV, IAOP Chief Advisor, Thought Leadership

“Jane’s compassionate and caring spirit remains with us. Jane was soft-spoken yet her words and opinions conveyed the power in her intelligence. Her contribution to the outsourcing space is unmatchedand very much appreciated by theentire community. She was a pioneer and I am fortunate to have had known her for many years, not only as a colleague but also as a friend.” – Julia Santos, Executive Markets Advisor at Ernst & Young

“Dr. Siegel was a caring individual, who gave much of her time and energy to helping others, and she will be greatly missed by all who knew her.” – Bill Hefley, Ph.D., COP, Director, ITSqc, LLC


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Best Business Process Outsourcing Team 2013 National Outsourcing Association Outsourcing Professionals Awards

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