Журнал iaop Июль-Август 2015

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PULSE FAST COMPANY HOT SPOT C-SUITE Hard and Soft Outsourcing Skills for Success p38-41 Nordic Region has Reason for Happiness p58-59 Sprint’s Gene Agee’s Tech Vision p42-48 ISSUE 18 | JULY / AUGUST 2015 THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONAL PUBLISHED BY WWW.IAOP.ORG the global outsourcing 100 2015 ratings of top providers and advisors p22--36 the global outsourcing 100 2015 European Outsourcing Summit preview p50-57 ©Can Stock Photo Inc. / cienpies

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Page 1: Журнал IAOP Июль-Август 2015

PULSE FAST COMPANY

HOT SPOT

C-SUITE

Hard and Soft Outsourcing Skills for Success p38-41

Nordic Region has Reason for Happiness p58-59

Sprint’s Gene Agee’s Tech Vision p42-48

ISSUE 18 | JULY / AUGUST 2015 THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONALPUBLISHED BY WWW.IAOP.ORG

the global outsourcing 100

2015 ratings of top providers and

advisorsp22--36

the global outsourcing 100

2015 European Outsourcing

Summit preview p50-57

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2 PULSE July/August 2015

ISSUE 18 | JULY / AUGUST 2015

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PULSE July/August 2015 3

PULSE ISSUE 18 | JULY / AUGUST 2015

T H E G L O BA L O U T S O U R C I N G 1 0 0 I S S U E

HOT SPOTOutsourcing and CSR

Gains Strength in Nordics

p58-59

An Inside Look at the New Star Rating

p22-36

Gene Agee of Sprint Sees Interconnected

Mobile World p42-480

C-SUITE

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

Hard and Soft Skills in Outsourcing Governance ..................p38-41

Knowledge Center Features:- Real Data Breach Threats .....................................................p14-17- SLAs are the Glue to Collaboration ......................................p18-21

THE MAGAZINE DRIVEN BY & FOR THE OUTSOURCING PROFESSIONAL

THE GLOBAL OUTSOURCING 100 SPECIAL REPORT

e e e e

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4 PULSE July/August 2015

T H E G L O BA L O U T S O U R C I N G 1 0 0 I S S U E

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

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

Pulse Contributors ....................................... p6

Taking the Pulse ........................................p8-9

The Beat: News & Commentary ................ p10

The Sandbox .............................................. p12

“O” Book Club ............................................ p13

Joining IAOP: New Members & Benefits ......p60-61

Pulse Professional .........................................p62-65

NEW IAOP Applause ......................................... p66

Chapter Roundup - Spotlight on the RPA Chapter ...........................p67

Pulse Flash: NEW - Roving Reporter ................................p68-70 - PULSE Flash: Toronto COP Master Class .......... p71

PREVIEW: EUROPEAN OUTSOURCING SUMMIT FRANKFURT, GERMANY OCT. 18-20, 2015

p50-57

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PULSE July/August 2015 5

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

As I write this message, there’s a lot of excitement going on at IAOP.

Our special advertising section in Fortune magazine on the Global Outsourcing 100 hit the newsstands on June 8 and that’s creating lots of buzz. We’re busy putting together all the program details for the upcoming European Outsourcing Summit this fall. And topics like robotics, mobile and data security continue to make news around us. You’ll find coverage on all these pertinent topics – and more – in this issue of PULSE.

As the headline reads in the Fortune section of the G0100, outsourcing continues to evolve ...and we’re changing right with it. After a decade, the GO100 program has been made better than ever with our new star system of rating outsourcing providers and advisors.

In our special coverage, we explain the changes, benefits and what’s ahead for the future. You’ll find the alphabetical lists of the World’s Best Service Pro-viders and World’s Best Outsourcing Advisors and see how many stars they earned in four judging categories: size and growth, delivery excellence, programs for innovation and CSR.

IAOP congratulates all the companies who showed their commitment to the

industry by applying to the program and especially those who made the list! It’s quite an accomplishment and you should feel great about it!

Along with the maturity of outsourcing, locations that are attractive to buyers also change. Europe is becoming increasingly attractive to customers, with its combination of multilingual skills, a highly educated and motivated workforce, and competitive pricing.

With growing demand in the European market, the time is right for IAOP to return to this region to produce our fourth European Outsourcing Summit, Oct. 18-20, at the Frankfurt Marriott Hotel in Frankfurt, Germany. We would like to thank our founding members, global partners, Regional Advisory Boards, and European and Eastern European chapters, for their support in organizing this important Summit.

EOS15 will focus on such trending topics as relationship management, flexible contracts, digital technologies and Robotic Process Automation (RPA). For more on the program and speakers, see our story. And for more on locations of importance in Europe, check out our Hot Spot on the Nordic region.

In last issue’s PULSE, a story asked readers – Are the Robots Really coming? Our Sandbox question talks about the reality versus hype in robotics and automation in outsourcing. You’ll also

find out more about our newly formed RPA Chapter in the Chapter Spotlight.

In our View from the C-Suite, Gene Agee, Vice President Procurement and Real Estate for Sprint Nextel, shares his vision for the not-too-distant future where all mobile calls will be seamlessly inter-connected over data networks and voice networks will become a thing of the past.

Other fresh topics in this issue include an article looking at the biggest threats to data security. The new Verizon report finds mobile data is not as at risk as people may think but that phishing is on the rise. For more on this topic and how Service Level Agreements (SLA) are the glue creating collaboration, see our Knowledge Center. We also feature a story on the Skills Needed to Manage Outsourcing from two members of PULSE’s editorial board.

Since IAOP is all about its members, we are pleased to launch a new feature called IAOP Applauds, featuring awards, achievements and other notable accomplishments by our members. Please join me in recognizing our members for their leadership in their respective areas. If you have a recent honor you want to brag about, please share it with us by emailing [email protected].

Regards,Debi

DEBI HAMILLCEO IAOP

global outsourcing 100

issue

WELCOME TO THE

MESSAGE FROM THE CEO

Page 6: Журнал IAOP Июль-Август 2015

PULSECONTRIBUTORS

J U LY / AU G U S T 2 0 1 5 I S S U E : 1 8

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 BOARDJan Erik Aase, COP, Principal Consultant - ISG

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

Michael F. Corbett, Chairman, IAOP

John Hindle, Founding Partner, Knowledge Capital Partners

Neil Hirshman, COP, Partner, Kirkland & Ellis

Bryan Jacobs, Managing Director, Jones Lang LaSalle

Eugene Kublanov, COP, Managing Director, KPMG

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

Renée Preston, Managing Director, Association Development, IAOP

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

CONTRIBUTIONSPULSE welcomes contributors! Please email: [email protected]

IAOP, Inc.13506 Summerport Village Parkway, Suite 119Windermere, FL 34786+1.845.452.0600

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

SHANNON YAVORSKY An intellectual property partner in the San Francisco office of Kirkland & Ellis LLP. Handles contentious and

non-contentious intellectual property and information technology work.

Loves coffee and running.

MARINA ANSHINA Has more than 35 years of experience in the IT industry. An expert in IT

strategy, IT services support operation management, business process improvement,

outsourcing and cloud computing. Enjoys skiing, art and classical music.

EUGENE M. KUBLANOV COP – Has advised leading organizations across many industries on effectively globalizing their services port-

folios. Serves on IAOP’s strategic advisory board. Likes to run and take photos.

JAN ERIK AASE COP – Has 33 years of expertise in IT. Previously worked as a

customer at American Express and Ameriprise Financial; a provider at Infosys and

an analyst at Forrester Research. Downhill skiing and biking are among his interests.

6 PULSE July/August 2015

eos15frankfurt marriott hotel, frankfurt, germany18-20 october, 2015

Part of The Outsourcing World Summit® Conference Series

www.IAOP.org

Special Offer for PULSE readersAct Now and Take an extra €100 off

Register online at

www.IAOP.org/EOS15and enter code

PULSE100

Page 7: Журнал IAOP Июль-Август 2015

eos15frankfurt marriott hotel, frankfurt, germany18-20 october, 2015

Part of The Outsourcing World Summit® Conference Series

www.IAOP.org

Special Offer for PULSE readersAct Now and Take an extra €100 off

Register online at

www.IAOP.org/EOS15and enter code

PULSE100

Page 8: Журнал IAOP Июль-Август 2015

Technology and talent are two traits that high-performing BPO companies share as the key to extracting the most benefit from their outsourcing relations, according to new research from Accenture. These companies view BPO as a value multiplier rather than a process substitute, this year’s Accenture High Performance BPO Report found.

For more, see next issue’s PULSE in September/October.

The Role of Technology and Talent in High Performance BPO

Technology

A provider’s ability to bring specialized technology solutions and expertise is becoming a critical factor in unlocking new forms of value from BPO.

Talent

BPO providers and buyers alike are finding that talent—both in the retained organization and among providers—is becoming a critical success factor in BPO.

TAKING THE

PULSE

69% 27% 78% 19% 76% 38%

Access to industry and process expertise is an important priority for high performers

Access to industry and process expertise is an important priority for high performers

High performers say that the BPO relationship enabled the augmentation of the talent pool

high performers typical performers

Source: Accenture High Performance BPO Report

High Performance BPO and the Value Multiplier Effect

8 PULSE July/August 2015

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PULSE July/August 2015 9

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

BEST OF THE PULSE BLOG >“I believe we are now on a journey where companies and entire industries are about to be reshaped. The way customers interact with brands has fundamentally changed. From a world where most communication was post-sale - and only if there was a problem - to the present, where customers expect an ongoing relationship with the brand, regardless of whether they are buying or not. And they expect to have a consistent experience and relationship with the brand across their journey with the brand.” – From Customer Service At The Heart of Your Business by guest blogger, Amit Shankardass

“Businesses that evaluate social customer care experiences are three times more likely to retain their customers. Understanding customer aspirations and their business impact help you to draft an approach that identifies and predicts the types of customer behavior and their unintended outcomes. Social listening and sentiment analysis tools can be used to analyze the data being generated through customers’ and influencers’ social interactions.” – From Criticized for Your Customer Service? Turn Adversity Into a Business Opportunity by guest blogger Matthew Park

COMING NEXT IN PULSE It’s our Innovation Issue. Plus, Latin America Preview. Japan in the Hot Spot. Vertical Focus on R&D and more. To contribute content, email [email protected][

Automation

Talent

Analytics

Deliver industry insights and expertise

Automate repetitive transaction processing

Identify trends and opportunities

Technology advancements such as automation and analytics are altering the balance between talent and technology in the top-performing BPO relationship.

The Pyramid of Work

Transaction Processing and AutomationAutomation technologies replace task-based transactions.

SpeedIncrease

StandardizationAccuracy Productivity

Source: Accenture High Performance BPO Report

For more on automation and its potential impact on outsourcing, see our Sandbox feature.

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10 PULSE July/August 2015

Outsourcing is continuously changing and facing new issues as seen in these two articles. One looks at a major auto maker building its own technology transformation in-house, while the other explores the protection of data security. Both call for change. IAOP Chief Advisor of Thought Leadership Jag Dalal, COP-GOV, comments below.

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THE NEWS HEADLINES THE IAOP DISH

PROTECT WITH GOVERNANCE At the last IAOP Advanced Intensive COP workshop, I addressed the issue of data privacy and protection of information. This is already a major issue among companies that deal with private data.

I wonder how many of these steps have translated into outsourcing agreements as contractual terms or a part of a SLA. These steps also need to be a part of the governance process and be periodically evaluated.

The time has come for customers and providers to work together to identify risks and take pre-emptive steps to protect data and computer systems, and be vigilant through an adequate governance process.

STOP THE HACKERS

APRIL 19, 2015 WSJ, FIVE SIMPLE STEPS TO PROTECT CORPORATE DATA

Hacking has appeared to become a new norm with megabreaches experienced by Target Corp., Home Depot Inc., Adobe Systems

Inc., J.P. Morgan Chase & Co., eBay Inc., Anthem Inc., and others. Preventing hacks can be as easy as “cyberhygiene, as some call it. This includes boring things that companies ought to be doing anyway but often skip – things like regularly updating software, doing routine audits of their systems and ensuring vendors adhere to strict security standards,” the authors say.

The Beat / NEWS & COMMENTARY AS COVERED BY JAG DALAL

PROVIDERS NEEDS TO BE CHANGE CATALYSTS Is this a trend? Is this the beginning of the end? On the contrary, this is a great example of “aligning business goals with outsourcing objectives,” as we promote in the third chapter of IAOP’s OPBOK. GM is not the first to bring IT in-house. JP Morgan Chase did this a few years back – almost for the same reason.

At the same time though, it does raise a question as to what the service providers are doing to provide that platform of change for their clients, rather than just keeping the “legacy” running (as GM’s CIO indicated).

The time has come for service providers to go beyond being good at keeping it running to becoming a catalyst for change for their customers.

GM BRINGS BACK MORE TECH WORK

MAY 14, 2015 WSJ, GM BUILDS UPON IT TRANSFORMATION WITH NEW INVESTMENTS

This blog talks about GM’s recent announcement that it will spend $1 billion on a makeover of its technical center in suburban Detroit that

has long served as its engineering and design hub. The investment comes after GM announced last month that it would invest $5.4 billion in U.S. factories over the next three years. “Because we brought the [information technology] work back in-house, we can take the lid off of what is possible,” CIO Randy Mott previously told the WSJ. “To transform the company, you really need IT, which touches all parts of the business. And you need IT that is designed around GM.”

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PULSE July/August 2015 11

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Focusing on a piece of the function only fixes a piece of the function.You’re under increasing pressure to meet competitive demands. Cutting costs alone won’t cut it. By taking a more holistic approach to functional improvement, EY’s outsourcing advisors can help you optimize efficiencies and achieve the sustainable performance you seek from your outsourcing initiatives.

What makes us different is that we see things differently. You will, too.

Find out more at ey.com/advisory.

Page 12: Журнал IAOP Июль-Август 2015

12 PULSE July/August 2015

Manager, AdvisoryKPMG

Sandboxthe

Managing Director, Intelligent Process Automation, Alsbridge

A DV I S O RA DV I S O R

Head – Services Transformation GroupSyntel

T H O M A S H E L F R I C H D E R E K T O O N E A S H O K BA L A S U B R A M A N I A N

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What is reality versus hype when it comes to robotics and automation in outsourcing? We asked IAOP members who are involved as co-chairs launching the new Robotic Process Automation (RPA) chapter to share what they are seeing in their organizations and the customers they work with. For more on RPA, see our Chapter Spotlight.

“The promise of robotic process automation, artificial intelligence and cognitive technologies is taking shape with practical applications to real business problems. We are experi-encing this first-hand with our clients during pilot testing and live implemen-tations. While in their infancy, these technologies address the questions of how to manage rising cost pressures and leverage advanced knowledge and skills in an increasingly borderless and digital economy. Today’s evolving solutions are more accessible than ever and quickly improving, providing the catalyst for a technology revolution. To succeed, organizations must consider how digital technologies will propel their business into this new era.”

“We are at the tipping point of leveraging powerful automation tools to enable clients to implement truly digital IT. The previous generation of outsourcing focused on process maturity. Over time, technology has matured and virtualized across all layers, or what we call ‘software defined everything.’ At the same time digital disruption requires businesses to spend more time on transformation. IT must deliver faster than ever and systems should be always-on. This combination has started driving RPA and automation across BPO, Service Desk and DevOps. In coming years, we’ll see automation growing more intelligent and deeper in outsourcing.”

“The reality is that RPA is already having a material impact on both ITO and BPO. And that will only increase over time. The early adopter outsourcing providers have already refined their solutions to include an optimal mix of human and virtual workers with the latter being supplied by off-the-shelf or proprietary software or a hybrid thereof. Our clients – who are among the relatively small percentage of customers whose outsourcing deals include the use of robotics – are benefitting from lower costs and improved SLAs around quality, speed and other performance metrics important to their business.”

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PULSE July/August 2015 13

Overview: The relationship between teams working in an outsourcing arrangement can be complicated – or potentially enhanced, depending on the level of teamwork achieved – when the team is “virtual” and uses technology to bind it.While researching a speech I recently gave on this topic, I came across this book written in 2000 that clearly addresses what it takes to create a high-performing virtual team. The authors present what they call the “90/10 Rule,” which stresses how a virtual team’s success is based 90 percent on the people involved and 10 percent on technology.

Then, they break down the concept in seven steps a team must take to achieve results, which include: creating a team identity; drafting a mission statement and setting goals; determining milestones and establishing a schedule; identifying team members and their roles; and choosing the appropriate media.

From the Book: “Virtual teams and networks – effective, value-based, swiftly reconfiguring, high-performing, cost-sensitive, and decentralized – will profoundly reshape our shared world. As members of many virtual groups, we will all contribute to these ephemeral webs of relationships that together weave our future.”

Title: Virtual Teams – People Working Across Boundaries with TechnologyAuthors: Jessica Lipnack and Jeffrey Stamps

THE PULSEOLATEST RESEARCH, REPORTS AND READS FOR OUTSOURCING

PROFESSIONALSBOOK CLUB

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

Reviews: “The success of an outsourcing relationship emanates from how the team is created and how successfully they work together to achieve the results. This is further exacerbated when the team is virtual and separated by a long distance and time differential. Our experience has shown the use of technology helps shorten the divide but as the authors say, it is only 10 percent of the solution. The use of video/audio technology helps solve communication problems only if there is commonality of purpose and strong foundation of team principles. I highly recommend the book as additional material for review with IAOP’s Governance workshop.” — Jag Dalal, COP-GOV, Chief Advisor, Thought Leadership, IAOP

“This book provides a long overdue perspective on how to apply the discipline of real teams in the fast moving, increasingly dispersed information age of the future.” — Jon R. Katzenbach, author: The Wisdom of Teams

“If you want to see where organizational communications are going in the future, heed what these pioneers have written today.” — Howard Rheingold, author, The Virtual Community, and founder, Electric Mind

Book Topics: This book is broken into 14 very detailed chapters and provides an in-depth look and study of what makes a team successful in a virtual world. Among the topics addressed are:• The role of networks in creating long distance virtual teams• What makes a team a “team”• The system science of virtual teams – trust, role definitions and goal setting

Why We Like It: Since the advent of richer telecommunication environments, virtual teams are a reality of the business world – not just in outsourcing. IAOP practices this concept of being a “virtual” organization where the leadership and staff are not physically located in one centralized location but are working as a team with the use of technology globally. In the IAOP Governance workshop, we address the issue of creating a team in the outsourced environment and this book provides great supplemental material.

Available formats: Print and digital versions

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

By:

Shannon YavorskyKirkland & Ellis LLP

VERIZON’S 2015 REPORTSHOWS DATA BREACH

THREATS ARE REAL

Here’s what companies that outsource should

do to protect themselves from cyber risks

One of the risks associated with outsourcing is that a third party may be given a great deal of access to or control over an organization’s data. Organizations should conduct appropriate diligence of a service provider’s cybersecurity practices in advance of entering into an outsourcing transaction.

In particular, organizations should consider what access the proposed service provider will have to the organiza-tion’s data and what security measures and practices the service provider has implemented to protect such data.

As to what data breach issues are increasingly prevalent, in April Verizon published its 2015 Data Breach Investigations Report, which looked at 79,790 security incidents and 2,122 confirmed data breaches in 61 countries the prior year.

The Report contains several headline findings, including that phishing is apparently on the rise and that mobile devices are not a preferred vector in data breaches. The Report also found that the costs associated with a data breach, commonly thought to exceed $200 per compromised record, may actually be less.

Finally, the Report notes that most incidents fall into nine basic patterns which have remained roughly the same from the previous year ...

Organizations that outsource services would be well advised to keep abreast of the evolving threats that lead to security incidents so that they can conduct appropriate diligence, include appropriate contractual protections in an outsourcing agreement and ensure that any data breach is handled quickly, effectively and in accordance with applicable legal notification requirements.

most security incidents are caused by people, whether it’s by

“goofing up, getting infected, behaving badly or losing stuff.”

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PULSE July/August 2015 15

PHISHING: RISKS & SOLUTIONSIn the Report, Verizon indicates that phishing remains an effective and financially rewarding way to dupe the masses into parting with cash or data and is increasing ever year. According to the Report, in 2014, some 23 percent of recipients opened phishing messages and 11 percent clicked on attachments, which is an increase from previous years where the overall effectiveness of a phishing campaign had been between 10 to 20 percent. The numbers indicate a phishing campaign of just ten emails yields a greater than 90 percent chance that at least one person will fall prey and, in the Report’s cheeky tone, “it’s bag it, tag it, sell it to the butcher (or phishmonger) in the store.”

To measure the time it takes for an attacker to get a foothold, Verizon aggregated the results of over 150,000 e-mails sent as part of sanctioned tests by two of their security awareness partners and measured how much time passed from when the message was sent to when the recipient opened it, and tracked if the recipient clicked or provided information. The results showed that, within the first hour, almost 50 percent of users opened emails and clicked on phishing links.

The Report quotes Lance Spitzner, Training Director for the SANS Securing the Human Program, as saying “one of the most effective ways you can minimize the phishing threat is through awareness and training. Not only can you reduce the number of people that fall victim to (potentially)

less than 5 percent, you create a network of human sensors that are more effective at detecting phishing attacks than almost any technology.”

As part of a diligence process, companies looking to outsource any service should investigate what security awareness programs the service provider has in place and how it detects and responds to data security incidents.

Companies should also consider including reps and warranties with respect to cybersecurity in the outsourcing agreement, including but not limited to a term that the service provider has implemented administrative, physical and technical safeguards to protect personal information that are no less rigorous than accepted industry practices.

MOBILE MALWAREVerizon assessed stats and trends provided by various contributors and noted that, surprisingly, mobile devices are not a preferred vector in data breaches. In a section headed, “I’ve got 99 Problems and Mobile Malware isn’t even 1 Percent of them,” the Report indicates that only 0.03 percent out of millions of mobile devices were infected with so-called “higher grade” malicious code.

Interestingly, when Verizon took a first pass through data provided by Verizon Wireless, it found hundreds of thousands of malware infections but it turned out that most fell within the adware category. Adware is software that delivers advertisements to make money and, while not strictly speaking harmful, it can collect personal data from the phone onto which it has been downloaded.

Once Verizon stripped adware out of the data, it found that the number of compromised devices was actually lower than expected: only 0.03 percent of smartphones per week out of the millions of devices on Verizon’s network were infected with truly malicious malware.

For now, companies looking to outsource services should not be overly concerned about mobile malware. However, given that mobile devices (and particularly applications that enable users to interact with a company’s network) may one day be an entry point for infiltrating a corporate network, the mobile malware threat should not be written off.

So how do companies manage the phishing risk given how quickly an attack can be carried out and how gullible users can be?

The Report sets out a three-fold approach to mitigating phishing threats: 1. Improve email filtering before scam emails arrive to in-boxes

2. Develop and execute security awareness programs

3. Improve detection and response capabilities

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

INCIDENT CLASSIFICATION PATTERNSVerizon notes that many aspects of data breaches remain the same through the years and that there are no real outliers in terms of the types of incidents that occur.

The Report found that 96 percent of incidents follow these nine basic patterns, in order of their likelihood:

1. Miscellaneous errors (most likely)

2. Crimeware

3. Insider misuse

4. Physical theft/loss

5. Web app attacks

6. Denial of service

7. Cyber-espionage

8. POS intrusions

9. Payment card skimmers (least likely)

The threats may seem varied but the data shows that, year after year, they mostly fall into one of these nine buckets.

DATA BREACH - TRUE COST?For the first time in its eight years of publication, the Report includes a section on the cost of data breaches. In the “Impact” section, Verizon claims to have developed an alternative and more accurate approach to estimating the cost of data breaches that is based on a more complete data set and considers a number of influencing factors.

The widely accepted method of calculating the impact of a data breach has been a qualitative, cost per lost record method where the cost is calculated by dividing the sum of all losses by the number of records affected.

According to the 2014 Ponemon Cost of Data Breach Study, applying this formula results in an estimate of $201 per compromised record in 2014 – up from $188 in 2013. Verizon suggests that this method could be improved upon since it excludes from the data set breaches exceeding 100,000 records and includes soft costs that don’t show up in the insurance claims data.

The Report states that by applying a cost-per-record amount to loss claims data (and including losses over 100,000) the average cost of a data breach is 58 cents per record. However, Verizon notes that the $201 per record model and the 58 cents per record model both underestimate smaller breaches and overestimate large breaches, and therefore are poor estimators.

Verizon states that one of the problems with both calcula-tions is there are other unknown factors that contribute to the cost of breaches besides the number of records lost. According to the Report, “said differently-er, [the number of] records tell us only half the story when it comes to impact.”

Verizon suggests that more and different data could help identify the known unknowns that contribute to the cost of breaches. For now, it appears that estimates will continue to vary widely.

Companies negotiating an agreement with an outsourcing firm should consider including the following terms (amongst others): requirements for the service provider to notify the company in the event of a data breach, to remedy the data breach, and to reimburse the company for any costs incurred by the company in responding to, and mitigating damages caused by, any data breach. Companies also should consider requiring a service provider to obtain cyber security insurance to cover the costs of a data breach.

16 PULSE July/August 2015

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MAKE DATA SECURITY HIGH PRIORITY IN OUTSOURCINGThe Report points out that in 2014, the New York Times devoted 700 articles related to data breaches (compared to fewer than 125 in 2013) and that the term “data breach” has become part of the public vernacular.

The resounding message is that data breaches are not only increasingly prevalent but are increasingly likely to be considered at a boardroom level. It is noteworthy that the Ponemon Institute’s 2015 report on Global Megatrends in Cybersecurity found that one of the seven megatrends is cybersecurity becoming a competitive advantage and a C-level priority.

Worryingly, there is evidence that data breaches are taking longer to detect and that certain types (e.g., phishing campaigns) are on the rise. In terms of solutions, the Report recommends that prevention, awareness and education are key to reducing the longevity and impact of an attack.

As to data breach costs, the jury is still out. While Verizon has offered an interesting new formula for calculating the potential financial impact of a breach, there is still a lot of uncertainty in the resulting estimates. On the upside, it turns out that mobile malware is not a top priority threat (for now).

The increase in data breaches and rise in certain kinds of attacks means that organizations seeking to outsource need to think about data security at all times during an outsourcing engagement.

Before a service provider is engaged, companies should conduct a diligence process to understand what measures the service provider has implemented with respect to data security and whether these measures are sufficient to protect the company’s data. Once the service provider has been engaged, companies should consider conducting regular audits of the service provider’s security practices. In the event of a data breach, the company should ensure that the service provider has an obligation to remedy any data breach and should understand what steps the service provider will take in the event of such a breach (e.g., whether the service provider is obligated to notify affected individuals and government authorities). One lesson from Verizon’s report is that cybersecurity should be a high priority item for any organization seeking to outsource.

About the Author: Shannon Yavorsky holds a Masters in Commercial Intellectual Property from Nottingham Law School, UK. She also holds a masters from Trinity College, Dublin, Ireland and a bachelor’s from American University of Paris. She is fluent in French.

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

Outsourcing is no longer a simple method to buy and use IT These days, most often several different companies play a role in supporting and maintaining IT – not only for large customers but also for small and medium businesses.

These typically very complex and non-transparent relationships usually are governed by contractual relationships but sometimes they are not. The outsourcing chain of relationships many companies have can be compared to separate, non-connected branches on a tree.

These complex arrangements make it very difficult to support and control a high level of IT services quality because the responsibility for overall quality is divided between different companies and the customer doesn’t have direct agreements with some of them.

Service Level Agreements Glue Together Multiple Service Providers with Customers Creating Collaborative Outsourcing Relationships BY: MARINA ANSHINA, MAYKOR

Figure 1. Outsourcing chain where direct relationship is with a general contractor

Figure 2. Outsourcing chain without a general contractor

agre

emen

tag

reem

ent

agre

emen

t

ServiceProvider 1

ServiceProvider 2

GeneralContractor Customer

ServiceProvider 6

ServiceProvider 1

agreementagreementagreement

agreementagreementagreement

agreement

agreement

ServiceProvider 2

ServiceProvider 3

ServiceProvider 5

ServiceProvider 7

ServiceProvider 4

ServiceProvider 8

Customer

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The rapidly growing cloud computing market is influencing the outsourcing market very strongly. Obviously when the IT asset does not belong to the customer, there is no reason for customers to support it themselves.

For this reason, cloud computing is playing a very important role for outsourcing expansion all over the world. Some-times cloud computing providers have become outsourcing providers while in other cases, outsourcing providers have become cloud computing providers themselves.

In several cases, cloud computing providers attract other external outsourcing providers to support their assets and in still other cases they develop internal outsourcing expertise especially in the key areas. These trends have complicated outsourcing chains.

These standards defined the basic roles, sub-roles, functional components, activities and aspects for cloud computing. The last of them established the place for outsourcing providers inside the cloud service provider role, seen in the red hexagons in figure 3.

Cloud Changes the Picture and Makes it More Complicated

INTERNATIONAL STANDARDS As a result of the impact of cloud computing to IT, these two international standards emerged at the end of 2014:

• ISO/IEC 17288 Information Technology – Cloud computing – Overview and vocabulary

• ISO/IEC 17289 Information Technology – Cloud computing – Reference architecture

Cloud servicedeveloper

Cloud serviceauditor

Cloud servicebroker

CLOUD SERVICE PARTNER

(CSN)

CLOUD SERVICE CUSTOMER (CSC)

CLOUD SERVICE PROVIDER (CSP)

CSC:Cloud service

user

CSC:Cloud service administrator

CSC:Cloud service

businessmanager

CSC:Cloud service

integrator

CSP:Cloud service

operations manager

CSP:Cloud service deployment

manager

CSP:Cloud service

manager

CSP:Cloud service

business manager

CSP:Customer support

and care representative

CSP:Intercloudprovider

CSP:Cloud service

security and risk manager

CSP:Networkprovider

Figure 3. Main cloud computing roles and sub-roles for outsourcing providers from ISO/IEC 17289

Under the ISO/IEC 17289 standard, a cloud service manager provides services and performs service level management while the customer support and care representative responds to customer requests. Obviously these roles can be played by one company or several companies. Now and particularly in the future, outsourcing providers will perform other functions and play other sub-roles as the cloud service provider can also fulfill cloud service partner and cloud service customer roles. These considerations assume further specialization of IT outsourcing providers and complications in the relationships between them.

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

Service Level Agreements Glue Together Multiple Service Providers with Customers Creating Collaborative Outsourcing Relationships

customer. If outsourcing providers maintain components of the same architectural level their dependency on SLAs will be more complex and based on the integration types which exist between these components.

The SLAs between different outsourcing providers can be very sophisticated and non-transparent. Hence, it can be very difficult to control and manage the chain of outsourcing providers.

New TermsTo simplify the necessary SLAs clauses for cloud computing outsourcing providers cross-cutting aspects from international standard ISO/IEC 17289 can be used.

TECHNOLOGY

APPLICATION

DATA

BUSINESS

ServiceProvider 1

ServiceProvider 2

ServiceProvider 1

ServiceProvider 2

Vertical SLA

Hor

izon

tal

SLA

Figure 4. Different SLA types

SLAs Make It Simpler Coordinated and balanced Service Level Agreement (SLA) represents one of the best possible ways to decrease complexity and improve quality of IT services. Typical SLAs have gone from only a few terms to pages and pages of clauses because both customer and providers have well known SLAs; SLA has official status as an Agreement Appendix; and SLAs appear at all known IT Service management standards as ITIL, ISO/IEC 20000 and ISO/IEC 17289.

In comparing SLAs of different architectural levels, we see the SLA to maintain architectural components of higher architectural level should be stricter than the underlying level SLA. If software application incidents must be fixed in one hour then server incidents related to where this software application was installed should be fixed quicker than one hour because time will be needed to define the cause of the software incident and to test and verify after the server incident has been repaired.

Therefore for vertical SLAs with the same architectural component the following formula holds true:SLA1 > SLA2>SLA3>SLA4, where SLA 1 relates to outsourcing providers with the highest architectural level, SLA 2 belongs to the underlying level, etc.

Outsourcing providers who use subcontractors should keep this condition in mind and maintain a more rigorous SLA with their subcontractors than their SLA with the

Within Enterprise Architecture,SLA CAN BE DIVIDED IN TWO TYPES:• Vertical SLAs – connect outsourcing providers maintaining architectural components of the same architectural level

• Horizontal SLAs – connect architectural components of different architectural levels

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About the Author: Marina Anshina is Operational Director, Oil and Gas Sector, at MAYKOR, a leading Russian provider of IT and BPO services. She is also the Chairman of the Standard Committee, Russian CIO Unit. Anshina obtained an Executive MBA in Strategic Management and Leadership with honors from the University of Antwerp Management School.

To reach the author, email: [email protected].

These aspects should be included in the agreements of all parties involved in cloud computing services regardless of what role and sub-roles they hold, including outsourcing provider.

All cloud computing outsourcing providers should be open to external audits, such as auditability. Their services should be accessible for authorized users like availability. For service governance they should ensure control and alignment. And for interoperability their services should have the ability to interconnect with other services. SLAs should include clauses on maintenance and versioning that ensure bug and service fault fixes and accommodate necessary changes.

Many customers face outsourcing risks associated with the inability to change their outsourcing provider. Modern SLAs should include portability terms or the ability to change partners if needed. Another important aspect related to SLA is service protection of personally identifiable information that corresponds to legal systems of most countries, including Russia.

This protection should be provided by all outsourcing providers who have or could have access to such information. Security is a very important aspect that affects all roles and sub-roles and have many requirements, such as authentication, authorization, availability, confidentiality, non-repudiation, identity management, integrity, audit, security monitoring,

incident response and security policy management. Resiliency, as in the ability to perform services in spite of the different faults, and reversibility, the ability to return to previous data values and versions, also should be part of the agreement.

While customers are very much dependent on IT and cannot function effectively without IT services, they also are cost-conscious especially during periods of economic downturns.

Keeping this in mind, modern SLAs should include fine tuning of services, incidents and RFCs (request for change) and dividing them into even more defined groups. Each group then can hold different conditions and consequently have different payment terms. The modern trends of SLAs include increasing maintenance time while decreasing response and recovery time for critical services, serious incidents and important changes and will incorporate the new terms discussed above.

New technologies as well as increasing and stronger customer demands will require new standards and methodologies or significant development of existing tools. In the future, SLAs will occupy an even more important place in outsourcing.

TRADITIONAL AND NEW MODERN TERMS Service performance should also adhere to traditional SLA items such as:

• Service availability

• Response time to complete service requests

• Transaction rate at which service requests are executed

• Latency for service requests

• Data throughput rate (input and output)

• Number of concurrent service requests (scalability)

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AN INSIDE LOOK AT THE NEW STAR RATINGSBY: SANDY FRINTON

The results of the “new” Global Outsourcing 100 are out! What does the star rating system mean and how does it make these annual lists even more valuable to participating service providers and advisors, as well as customers who use it in decision making?

To find out more about the changes, benefits, and the application process, PULSE asked IAOP Chairman Michael Corbett, head of the 2015 judging panel; IAOP CEO Debi Hamill; and Director, Corporate and Professional Development, Pamela O’Dell.

First and most importantly, every service provider and advisor on these lists is tops for completing the rigorous, opt-in application that shows their commitment to the industry, desire for continuous improvement and interest in benchmarking against their counterparts, the IAOP team says.

The new lists for The Global Outsourcing 100 and World’s Best Outsourcing Advisors are alphabetical, instead of ranked, making it both easier to find companies by name and placing greater emphasis on the excellence required to make the list and less on relative ranking between all of these leading companies.

Companies can earn one full star for the highest rating or a half star based on four judging categories: Delivery, Programs for Innovation, Corporate Social Responsibility (CSR) and Size & Growth, areas that mirror the RFP process most customers use.

eSIZE &

GROWTH

eDELIVERY

EXCELLENCE

ePROGRAMS FOR

INNOVATION

eCSR

global outsourcing 100special report

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change on iaop,s 10th anniversary

SO WHY THE CHANGE?

IAOP thought it was timely on the 10th anniversary of the service provider lists to pause and look at how it could make this ever-evolving program even better, based on consultation and input from its members and judging panel, who are industry experts and customers like those who use the lists.

“Everything IAOP does is for and by its members. “We thought our 10th anniversary was the ideal time to re-evaluate the Global Outsourcing 100 program and make it even stronger for the decade ahead.” – Debi Hamill

IAOP found as the companies applying have matured over the past years, they’ve gotten better at not only what they do, but also understanding the application process and communicating their value. This has made the differences between many companies miniscule and it became extremely difficult to assign rankings over recent years.

“Sometimes an answer to a single question and determination by one judge would make the difference between places in the rankings,” Corbett says.

Also as the industry has evolved so have the factors customers use in selecting providers and advisors, making areas such as CSR and programs for innovation more important than they were at the program’s start. Based on this, these categories have been added to the judging.

The new system lets companies show first that they are a top service provider or advisor by making the list alone, and then secondly, the areas where they have distinguished themselves, according to O’Dell, who manages the program.

The lists also are more usable for customers because they can use the stars to filter the list based on the criteria that is most important to them, she says, which can vary by organization. Whereas some global companies may be looking for an established footprint around the world, other buyers might be more interested in a provider’s focus on CSR or programs that deliver ongoing innovation.

“Buyers understand there are hundreds of qualified service providers and advisors out there, but what they really need to understand now is what makes each exceptional,” said Hamill. “The new Global Outsourcing 100 has done just that.”

Applicants are rated based on two overall size categories: LEADERS, organizations above either $50 million in revenue or 5,000 FTEs or RISING STARS, emerging companies to watch who fall below these criteria.With the prior system, a Rising Star, or a smaller to mid-sized company, could not rise over number 75 in the overall rankings of 100, O’Dell noted. The new system lets all companies shine in their strongest areas and have the same opportunities to earn full stars as larger companies, leveling the playing field.

RISING STARS CAN SHINE BRIGHTER

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COMPANIES COMMIT TO PROCESS

The Global Outsourcing 100 is unique in that it is member driven with an independent panel of IAOP customer members with extensive experience in selecting outsourcing service providers and advisors for their organizations evaluating the applications. Many of the judges also hold the Certified Outsourcing Professional (COP) designation. (see box).

The companies who do the best approach the process as if they were pursuing a high-value customer opportunity and devote a pursuit team with their best resources, Corbett says, acknowledging there are other outstanding organizations out there that choose not to apply for various reasons, such as limited resources.

For those wondering if they should apply, Hamill says: “Customers really look at the list. It does get used by major corporations. It absolutely is worth the investment. Companies also get the internal benefit of independent benchmarking that is critical for their own continuous improvement.”

Customer organizations have reported to IAOP that the companies who do well on the Global Outsourcing 100 are good companies to enter into discussions with because they understand their strengths and how to

communicate them effectively, and it shows they are willing to compete for business.

“One CEO made achieving the best results in the Global Outsourcing 100 a strategic directive for their company,” Corbett says. “This company saw the power of focusing the energy and attention of the organization on this process. And when they achieved that, the whole organization had something to celebrate and share.”

Applicants aren’t being asked for anything that a good customer wouldn’t want at any time so completing the application puts them in a position to respond to the next RFP quickly and effectively, he says.

Companies making the list also benefit from the marketing value and bragging rights to their current and prospective customers, employees, and other stakeholders; and the acclaim of being listed in a special advertising feature on outsourcing produced by IAOP in the FORTUNE 500 issue of Fortune magazine that was published June 8.

In the end, the goal of the Global Outsourcing 100 program is to help customers make better informed comparisons and evaluations of providers and advisors in their selections to ultimately improve organizational results. And it’s achieving that.

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and improving outsourcing outcomes

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This year for the first time with the new system, four service providers earned four stars: Accenture, CBRE, ISS and Jones Lang Lasalle (JLL).

Here’s what their leaders said about their achievements in the media:

Four Star Organizations Share Their Achievements

four star organizations share their achievements

“JLL being recognized on the Global Outsourcing 100 is a testament to our ability to drive business productivity through the strategic use of real estate,” – John Forrest, Chair, Global Corporate Solutions Board and CEO, Americas Corporate Solutions, JLL

“We are proud to be recognized by the IAOP as one of the best outsourcing providers in the world. Our consistent presence on this list is a reflection of the great work that tens of thousands of Accenture professionals from around the world do every day to help our global clients gain better business insight, deliver business outcomes and achieve greater value,” – Mike Salvino, COP, Group Chief Executive of Accenture Operations

“The four full stars say something very significant about the consistency of ISS’ performance. I am very pleased of our high-scores in these categories. They represent values that are important to ISS, and they are crucial to our long-term business opportunities,” – Jeff Gravenhorst, Group CEO of ISS.

“CBRE’s strong performance in the IAOP Global Outsourcing 100 reflects the reputation we have established for delivering high-quality, integrated real estate outsourcing solutions,” – Bill Concannon, COP, CEO of Global Corporate Services for CBRE

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the global outsourcing 100

worlds best service providers

SIZE JUDGING SIZE & DELIVERY PROGRAMS FOR COMPANY GROUP GROWTH EXCELLENCE INNOVATION CSR

ACCELYAw3.accelya.com Leader

ACCENTUREaccenture.com Leader

AEGISaegisglobal.com Leader

AGS HEALTH PRIVATE LIMITEDagshealth.com

Rising Star

AJUBA INTERNATIONALajubanet.net

Rising Star

ALORICAalorica.com Leader

ALTISOURCE altisource.com Leader

AON HEWITTaonhewitt.com Leader

ARTEZIOartezio.com Rising Star

ASIAINFO TECHNOLOGIES (NANJING) asiainfo.com Leader

AURIGA auriga.com

Rising Star

BANNER MANAGED COMMUNICATION banner-managedcommunication.com Leader

BLEUM bleum.com

Rising Star

BROOKFIELD GRS brookfieldgrs.com Leader

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SIZE JUDGING SIZE & DELIVERY PROGRAMS FOR COMPANY GROUP GROWTH EXCELLENCE INNOVATION CSR

CANON BUSINESS PROCESS SERVICES cbps.canon.com Leader

CBRE cbre.com Leader

CGI cgi.com Leader

CIENET cienet.com Leader

CLUTCH GROUP clutchgroup.com

Rising Star

COLLIERS INTERNATIONAL colliers.com Leader

COMPETENCE CALL CENTER yourccc.com Leader

CONCENTRIX concentrix.com Leader

CYBAGE SOFTWARE cybage.com Leader

DATAMATICS GLOBAL SERVICES datamatics.com Leader

DDD digitaldividedata.org

Rising Star

DIEBOLD INTEGRATED SERVICES® diebold.com/integratedservices.com Leader

DONLEN donlen.com Leader

DTZ (FORMERLY CASSIDY TURLEY) dtz.com Leader

THE GLOBAL OUTSOURCING 100 KEY:

FULL STAR: HIGHEST RATED HALF STAR: DISTINGUISHED

LEADER SIZE GROUP - LARGER MORE ESTABLISHED FIRMS

RISING STAR SIZE GROUP - SMALLER, EMERGING COMPANIES

the global outsourcing 100

worlds best service providers

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the global outsourcing 100

worlds best service providers

SIZE JUDGING SIZE & DELIVERY PROGRAMS FOR COMPANY GROUP GROWTH EXCELLENCE INNOVATION CSR

ELEKS eleks.com Rising Star

EMERIO GLOBESOFT emeriocorp.com Leader

EXL exlservice.com Leader

FIRSTSOURCE firstsource.com Leader

FTP CORPORATIONfpt-software.com Leader

FUSION BPO SERVICES fusionbposervices.com Rising Star

GRUPO ASSA grupoassa.com Leader

GRUPO PROMINENTE grupoprominente.com Rising Star

HARBINGER SYSTEMS harbinger-systems.com Rising Star

HCL TECHNOLOGIES LIMITED hcltech.com Leader

HGS teamhgs.com Leader

HP ENTERPRISE SERVICES hp.com Leader

IBA GROUP ibagroupit.com Leader

INDECOMM GLOBAL SERVICES indecomm.net Leader

INSIGMA insigma.com.cn

Leader

INSPUR inspur.com

Leader

INTEGREON integreon.com

Leader

INTETICS intetics.com

Rising Star

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FULL STAR: HIGHEST RATED

HALF STAR: DISTINGUISHED

THE GLOBAL OUTSOURCING 100 KEY:

LEADER SIZE GROUP - LARGER MORE ESTABLISHED FIRMS

RISING STAR SIZE GROUP - SMALLER, EMERGING COMPANIES

SIZE JUDGING SIZE & DELIVERY PROGRAMS FOR COMPANY GROUP GROWTH EXCELLENCE INNOVATION CSR

ISOFTSTONE isoftstone.com/en Leader

ISS issworld.com Leader

ISS ART issart.com/en

Rising Star

ITC INFOTECH itcinfotech.com Leader

ITRANSITION itransition.com

Rising Star

JOHNSON CONTROLS GLOBAL WORKPLACE SOL johnsoncontrols.com/gws

Leader

JONES LANG LASALLE jll.com Leader

KELLY OUTSOURCING AND CONSULTING GROUP kellyocg.com

Leader

KNOAH SOLUTIONS knoah.com

Rising Star

L&T INFOTECH Lntinfotech.com Leader

LEASEPLAN USA us.leaseplan.com Leader

LEGALBASE legalbaselaw.com

Rising Star

LUXOFT luxoft.com Leader

MAYKOR maykor.com/en Leader

MERA merasws.com Leader

MINACS GROUP minacs.com Leader

MINDTREE mindtree.com Leader

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the global outsourcing 100

worlds best service providers

SIZE JUDGING SIZE & DELIVERY PROGRAMS FOR COMPANY GROUP GROWTH EXCELLENCE INNOVATION CSR

MIRATECH miratechgroup.com

Rising Star

MOTIF motifinc.com

Rising Star

NEORIS neoris.com Leader

NEWMARK GRUBB KNIGHT FRANK ngkf.com Leader

NIIT TECHNOLOGIES niit-tech.com Leader

ORANGE BUSINESS SERVICES orange-business.com Leader

OXAGILE oxagile.com

Rising Star

PACTERA pactera.com Leader

QUATRRO quatrro.com Leader

RESOURCE PRO resourcepro.com

Rising Star

RR DONNELLEY GLOBAL OUTSOURCING outsourcing.rrd.com Leader

SERVICENGINEBPO sebpo.com Rising Star

SITEL OPERATING CORPORATION sitel.com Leader

SOFTENGI softengi.com

Rising Star

SOFTJOURN softjourn.com

Rising Star

SOFTSERVE softserveinc.com Leader

SPI GLOBAL spi-global.com Leader

STEFANINI stefanini.com Leader

SUTHERLAND GLOBAL SERVICES sutherlandglobal.com Leader

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SIZE JUDGING SIZE & DELIVERY PROGRAMS FOR COMPANY GROUP GROWTH EXCELLENCE INNOVATION CSR

SWISS POST SOLUTIONS swisspostsolutions.com Leader

SYKES ENTERPRISES sykes.com Leader

SYNTEL syntelinc.com Leader

TATA COMMUNICATIONS TRANSFORMATION SERVICES tatacommunications-ts.com

Leader

TEAM INTERNATIONAL SERVICES teaminternational.com Rising Star

TECH MAHINDRA BUSINESS SERVICES GROUP techmahindra.com

Leader

TELEPERFORMANCE teleperformance.com Leader

TELETECH teletech.com Leader

TGESTIONA tgestiona.com.pe Leader

TIVIT tivit.com.br Leader

TOWERS WATSON towerswatson.com Leader

TRANSCOSMOS trans-cosmos.co.jp/english Leader

TRIGENT SOFTWARE trigent.com Rising Star

VADS BUSINESS PROCESS SDN. BHD. vads.com Leader

VIRTUSA CORPORATION virtusa.com Leader

WICRESOFT wicresoft.com Leader

WNS GLOBAL SERVICES PRIVATE LIMITED wns.com

Leader

XCHANGING xchanging.com Leader

FULL STAR: HIGHEST RATED

HALF STAR: DISTINGUISHED

THE GLOBAL OUTSOURCING 100 KEY:

LEADER SIZE GROUP - LARGER MORE ESTABLISHED FIRMS

RISING STAR SIZE GROUP - SMALLER, EMERGING COMPANIES

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THE GLOBAL OUTSOURCING

100 RATINGS KEY:

FULL STAR: HIGHEST RATED

HALF STAR: DISTINGUISHED

LEADER SIZE GROUP -

LARGER MORE ESTABLISHED

FIRMS

RISING STAR SIZE GROUP -

SMALLER, EMERGING

COMPANIES

the global outsourcing

100

world'sbest

outsourcing Advisors

SIZE & DELIVERY PROGRAMS FOR COMPANY GROWTH EXCELLENCE INNOVATION

ALSBRIDGE alsbridge.com

AVASANT avasant.com

BAKER & MCKENZIE bakermckenzie.com

BIRD & BIRD twobirds.com

DELOITTE deloitte.com/us

ELIX-IRR PARTNERS elix-irr.com/

EYey.com

FOLEY & LARDNER foley.com

KIRKLAND & ELLIS kirkland.com

KPMG kpmg.com

MATRYZEL CONSULTING matryzel.com

MAYER BROWN mayerbrown.com

NEO GROUP neogroup.com

OLSWANG olswang.com/

PACE HARMON paceharmon.com

PILLSBURY WINTHROP SHAW PITTMAN pillsburylaw.com/globalsourcing

PWC STRATEGY& strategyand.pwc.com; pwc.com

QUINT WELLINGTON REDWOOD quintgroup.com

ZINNOV MANAGEMENT CONSULTING zinnov.com

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2adpro

AGS Health Private Limited

Clutch Group

CrysTelCall

Elevate

Fusion BPO Services

ISS Art

Itransition

Knoah Solutions

National Medical Billing Services

AltisourceBeyondsoft CorporationBrookfield GRSCGIConcentrixDiebold Integrated Services®

EndavaFPT CorporationHGSInspuriSoftStone

Kelly Outsourcing and Consulting Group

Luxoft

MAYKOR

QuEST Global Services

SoftServe

Sutherland Global Services

Tata Communications

Transformation Services

The Results Companies

Towers Watson

LEADERS IN REVENUE GROWTH

RISING STARS IN REVENUE GROWTH

PromonLogicalis

ProximityCR

Pythian

ReSource Pro

Rural Sourcing

Softengi

Softjourn

Talentica Software

TEAM International Services

Trigent Software

Beyondsoft Corporation

Brookfield GRS

CBRE

CGI

Competence Call Center

Concentrix

Endava

FPT Corporation

INSIGMA

Inspur

LEADERS IN EMPLOYEE GROWTH

iSoftStone

Kelly Outsourcing and Consulting Group

Luxoft

MAYKOR

SoftServe

Tata Communications Transformation Services

The Millennium Group

The Results Companies

Towers Watson

Virtusa Corporation

RISING STARS IN EMPLOYEE GROWTH

2adproAGS Health Private LimitedAjuba InternationalClutch GroupCrysTelCallELEKSElevateItransitionKnoah SolutionsMiratech

MOTIFNational Medical Billing ServicesProximityCRPythianReSource ProRural SourcingServicEngineBPOSoftengiTalentica SoftwareTrigent Software

AccentureBleumCGIColliers InternationalHCL TechnologiesJohnson Controls Global WorkPlace SolutionsPacteraSPi Global

MULTI-YEAR WINNERS*

*These companies have appeared on the Global Outsourcing 100 list each year since its inception.

SIZE & DELIVERY PROGRAMS FOR COMPANY GROWTH EXCELLENCE INNOVATION

ALSBRIDGE alsbridge.com

AVASANT avasant.com

BAKER & MCKENZIE bakermckenzie.com

BIRD & BIRD twobirds.com

DELOITTE deloitte.com/us

ELIX-IRR PARTNERS elix-irr.com/

EYey.com

FOLEY & LARDNER foley.com

KIRKLAND & ELLIS kirkland.com

KPMG kpmg.com

MATRYZEL CONSULTING matryzel.com

MAYER BROWN mayerbrown.com

NEO GROUP neogroup.com

OLSWANG olswang.com/

PACE HARMON paceharmon.com

PILLSBURY WINTHROP SHAW PITTMAN pillsburylaw.com/globalsourcing

PWC STRATEGY& strategyand.pwc.com; pwc.com

QUINT WELLINGTON REDWOOD quintgroup.com

ZINNOV MANAGEMENT CONSULTING zinnov.com

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SIZE &GROWTH

DELIVERYEXCELLENCE

PROGRAMS FORINNOVATION

CSR

the global outsourcing 100

full stars by judging category

e

e

e

e

• ACCENTURE • AON HEWITT • CBRE • CGI • COLLIERS INTERNATIONAL • CONCENTRIX

• DTZ (FORMERLY CASSIDY TURLEY) • HCL TECHNOLOGIES LIMITED • HGS

• HP ENTERPRISE SERVICES • INSPUR • ISS • JONES LANG LASALLE

• NEWMARK GRUBB KNIGHT FRANK • SITEL OPERATING CORPORATION

• STEFANINI • SUTHERLAND GLOBAL SERVICES • SYKES ENTERPRISES

• TECH MAHINDRA BUSINESS SERVICES GROUP •TELEPERFORMANCE • TOWERS WATSON

• ACCENTURE • CANON BUSINESS PROCESS SERVICES • CBRE • CIENET

• COLLIERS INTERNATIONAL • DATAMATICS GLOBAL SERVICES • EXL • INTETICS (RISING STAR)

• ISS • ITC INFOTECH • JOHNSON CONTROLS GLOBAL WORKPLACE SOLUTIONS

• JONES LANG LASALLE • KELLY OUTSOURCING AND CONSULTING GROUP • LUXOFT

• MAYKOR • MINDTREE • PACTERA • TGESTIONA • TIVIT

• ACCELYA • ACCENTURE • AON HEWITT • CANON BUSINESS PROCESS SERVICES

• CBRE • COLLIERS INTERNATIONAL • HCL TECHNOLOGIES LIMITED• IBA GROUP • ISS

• JONES LANG LASALLE • KELLY OUTSOURCING AND CONSULTING GROUP

• L&T INFOTECH • MAYKOR • WICRESOFT

• ACCENTURE • AEGIS • AON HEWITT • AURIGA (RISING STAR)

• CANON BUSINESS PROCESS SERVICES • CBRE • CGI • HCL TECHNOLOGIES LIMITED

• HP ENTERPRISE SERVICES • ISS • ITC INFOTECH

• JOHNSON CONTROLS GLOBAL WORKPLACE SOLUTIONS • JONES LANG LASALLE

• L&T INFOTECH • ORANGE BUSINESS SERVICES • PACTERA

• RR DONNELLEY GLOBAL OUTSOURCING • TECH MAHINDRA BUSINESS SERVICES GROUP

• TELEPERFORMANCE • VIRTUSA CORPORATION • XCHANGING

34 PULSE July/August 2015

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SIZE &GROWTH

DELIVERYEXCELLENCE

PROGRAMS FORINNOVATION

e

e

e

• ALSBRIDGE • BAKER & MCKENZIE • DELOITTE • EY

KPMG • OLSWANG• PWC STRATEGY&

world’s best outsourcing Advisors

full stars by judging category

• AVASANT • EY • KIRKLAND & ELLIS • KPMG

• QUINT WELLINGTON REDWOOD

• ALSBRIDGE • DELOITTE • KIRKLAND & ELLIS • NEO GROUP

• QUINT WELLINGTON REDWOOD • ZINNOV MANAGEMENT CONSULTING

4 STARCOMPANIES

ACCENTURE CBREISS

JONES LANG LASALLE

e ee e4H

PULSE July/August 2015 35

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The Global Outsourcing 100 and World’s Best Outsourcing Advisors will be based on five judging categories, starting in 2016, giving all companies applying the opportunity to earn a total of five stars. The Delivery category will be divided into: Customer References and Recognitions/Certifications, along with the categories of Programs for Innovation, Corporate Social Responsibility (CSR) and Size & Growth.

The application process will open on Sept. 1 with a deadline of Nov. 1 to complete the application.

For more on the lists and sublists, click here. Also see the PULSE blog for a four-part series on The Global Outsourcing 100. To learn more, contact Pamela O’Dell at [email protected].

THE 2015 EVALUATION TEAM

• Michael F. Corbett, Chairman, IAOP

• Jagdish Dalal, COP-GOV, President, JDalal Associates, LLC, Chief Advisor of Thought Leadership, IAOP

• Gregory Dawson, Ph.D., COP, Assistant Professor of Information Systems, W.P. Carey School of Business, Arizona State University

• Teresa Harris, COP-GOV, Global Supplier Relationship Manager, GE

• William Hefley, Ph.D., CDP, COP, Clinical Associate Professor, Katz Graduate School of Business and College of Business Administration, University of Pittsburgh, and Director, ITSqc, LLC.

• Mary D. Lewis, Sourcing Manager II, Supply Chain Management, Sprint

• Cheryl Seely, COP, Manager, Thomson Reuters

• Paul Quaglia, COP, CIO, Scientific Games

Data from applicants showed over the past two years:

• The average revenue growth for Global Outsourcing 100 companies was 16 percent

• The average employee growth was 10 percent

The faster revenue growth than employee growth reflects increased efficiency, which is corner-stone of today’s outsourcing industry, Corbett says.

Customers are realizing true productivity gains, he says, through providers developing specialized processes and expertise – and not just labor arbitrage.

global outsourcing 100 overall findings

what’s coming next for the global outsourcing 100

eSIZE &

GROWTH

eCUSTOMER

REFERENCES

ePROGRAMS FOR

INNOVATION

eCSR

eRECOGNITIONS/CERTIFICATIONS

36 PULSE July/August 2015

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PULSE July/August 2015 37

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Page 38: Журнал IAOP Июль-Август 2015

To be effective in their roles, governance professionals need to possess a special combination of both hard and soft capabilities.

The first of the eight hard governance capabilities is LEADERSHIP. It takes courage to lead and it could not be more true in the case of leading a vendor management organization. Considering the myriad stakeholders, agendas and priorities, governance professionals must be able to develop vision and strategy; plan and organize; set priorities; drive accountability; and innovate all while managing risks. In a governance context combining all of these elements and driving results is the definition of leadership.

Second is COMMUNICATION. Very few organizations today have the luxury of operating under a mandate; the rest must influence, convince and demonstrate their value to the enterprise. To do so effectively, written and verbal communication

skills are absolutely essential. In fact, leading organizations that have a track record of effectively leveraging outsourcing, shared services and GBS models point back to their dedicated marketing and communications teams as a pillar of their success.

Following this is TEAMING. The essence of the governance role is creating value by harnessing supply to address the demand of the enterprise for services. In this context key stakeholder groups emerge, including the client, the supplier, the governance organization itself and the various internal supporting functions. The ability to team with internal clients to drive consistency, cost and compliance are essential to achieve high satisfaction and to help the enterprise meet its

objectives. Teaming with suppliers to provide the required capacity, but even beyond that find ways to innovate and create incremental value is central to the role. Coaching and teaming with other members of the governance group produces a work environment that facilitates growth. And lastly, teaming with supporting functions such as legal and procurement creates an efficient mechanism for managing the portfolio.

The fourth capability required is a PROGRAMMATIC APPROACH. The hard work really starts once the contract is signed – a statement often made but seldom truly understood except by gov-ernance professionals. In order to deliver on the business case, which might have a five- to ten-year lifespan, a programmatic

By: Jan Erik Aase , COP, ISG and Eugene M. Kublanov, COP, KPMG

Let’s explore each of those capabilities:

HARD AND SOFT SKILLS NEEDED FOR OUTSOURCING GOVERNANCE SUCCESS

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HARD CAPABILITIES form the basis for execution of the various governance functions. SOFT SKILLS enable the successful performance of critical but less tangible facets of the role.

approach to governance functions must be applied. Developing a program and more importantly executing the program each week, each month and each quarter for the duration of a five-year outsourcing agreement takes dedication, discipline and method.

Outsourcing relationships are rarely static. There’s a continuous stream of issues, demands from the business, risks that creep up, options to be considered and that doesn’t account for the occasional acquisition of divestiture your organization may undertake. That said, ANALYTICAL THINKING is the fifth governance capabil-ity. A governance professional must be able to readily analyze multiple factors – both quantitative and qualitative – and make good decisions that balance the needs of multiple stakeholders.

As important as the relationship aspect is in outsourcing, the contract is still what guides the facets of the relationship. As such, CONTRACT MANAGEMENT is the sixth governance capability. A healthy relationship should have a foundation of transparency and accountability. Governance professionals need to be well-versed in developing and managing outsourcing agreements and drive adherence to performance, financial and other matters that protect the enterprise and claim value.

Most clients still rate cost savings as the number one reason for outsourcing. SOURCING AND NEGOTIATION is the next governance capability. Ultimately, many governance organizations are judged and measured by the business case they help

realize. To do so effectively, governance professionals need to be adept at both sourcing in a structured, systematic fashion and also negotiating deals and ongoing contract change to maximize value for the enterprise.

Most companies struggle with governance not for a lack of models or strategies, but simply because the discipline required sustaining the effort is extremely difficult to maintain over the course of an outsourcing relationship. PROCESS ORIENTATION is the final governance capability. In order to execute the governance function effectively and efficiently, a process orientation is critical to weathering staff turnover, organizational changes and providing consistent service to the enterprise.

8 KEY HARD CAPABILITIES

• Leadership• Communication• Teaming• Programmatic Approach• Analytical Thinking• Contract Management• Sourcing and Negotiation• Process Orientation

HARD AND SOFT SKILLS NEEDED FOR OUTSOURCING GOVERNANCE SUCCESS

PULSE July/August 2015 39

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SOFT SKILLS Move Outcomes from Good to Great Each of these hard skills is critical for a successful relationship with outsourcing providers but also to demonstrate the value to the internal company stakeholders. The soft skills are often what differentiate between a good governance program and a great one. Typically the hard skills can be established through a combination of policies and procedures and a consistent approach. Soft skills are learned and honed over time.

Many clients feel that only their vendors should be asked to adapt culturally and operationally to their clients, but strong governance professionals realize they also must be able and willing to adapt and use MULTIPLE MANAGEMENT STYLES when interacting and maintaining a relationship with their various vendors. The ultimate goal is to ensure your vendor is successful;

you’ve spent too much time selecting and negotiating with these companies to let them fail.

Having said that, the governance professional must also POSSESS STRONG PERSUASION SKILLS to meet the needs of their company. One of the biggest challenges of outsourcing is the change management aspect of the transaction. Persuading all parties to be more flexible and tolerant is one of the key drivers to getting them to change and to accept alternate delivery methodologies.

One of the most difficult parts of change management is “letting go.” Although the contract might stipulate that the vendor now has end-to-end accountability for a set of processes, many clients find it difficult to trust the provider and relinquish control.

BUILDING TRUSTED PARTNERSHIPS requires effort, it doesn’t come naturally.

In the recent State of the Industry survey conducted by IAOP and ISG, vendors reported the top incentive provided by clients who have a strong Service Integra-tion and Management (SIAM) methodology was that they “conduct joint operations governance forums.” The ability to get collaboration and BUILD A COALITION is a critical skill, conducting forums is just one of many ways to accomplish this objective.

One of the tougher soft skills to teach or to learn is COMMERCIAL ACUMEN. The ability to “smell a good deal” isn’t just about running the numbers, it’s also about combining the SLAs, the processes, the warranties, value adds and all of the contractual terms and conditions together

8 KEY SOFT CAPABILITIES

• Deploy multiple management styles• Build trusted partners• Demonstrate commercial acumen• Understand “what” not “how”• Possess signifigant powers of persuasion• Capability in coalition building• Genuine business unit empathy• Act as an informed buyer

HARD AND SOFT SKILLS NEEDED FOR OUTSOURCING GOVERNANCE SUCCESS

Aptitude and interest are nearly as important as specific knowledge. These soft skills are required for every governance job:

40 PULSE July/August 2015

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to determine if the relationship has all of the right elements to be successful. This is best learned by closely examining those relationships that work and why they work.

Too often in governance we focus all of our attention on the contract, the price and the terms of the deal and we lose sight of the fact that our corporate colleagues are the consumers of those outsourced products and services. We have to always be mindful of the needs of the business units and HAVE EMPATHY FOR OUR BUSINESS PARTNERS who have to meet their goals and objectives in order to keep the company in business.

The real challenge of modern outsourcing is the need to FOCUS ON THE “WHAT” AND NOT THE “HOW.” The majority of

contracts are now outcome-based or unit-based managed services agreements and they require giving the vendors the latitude to execute the services in the most effective and efficient manner. It is rare that this would match the way the client has historically delivered those services. Let’s face it, if the clients were as efficient and effective as they think they are, they wouldn’t have needed to outsource in the first place. The outsourcing providers’ mantra must be: “Stay Calm and Get out of My Way.”

Finally, the governance professional must BE AN INFORMED BUYER. That doesn’t happen by staying holed up in your ivory tower and passing down edicts. The most informed buyer is one who is constantly

networking, and traveling to vendor sites and around their own company. Ensure you know how things are being delivered in your own company and then seek out the best practices so that you know what you should be buying.

The governance professionals of today must establish the appropriate structure and enable the “hard skills” that make a program run smoothly and effectively, but they must also be aware of the required “soft skills” and look for opportunities to develop and mature those capabilities.

About the Authors: Jan Erik Aase, COP, Principal Consultant, Americas, ISG and Eugene M. Kublanov, COP, Managing Director, Asset Business, KPMG LLP, both serve on the editorial board of PULSE.

PULSE July/August 2015 41

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42 PULSE July/August 2015

GENE AGEE OF SPRINT’S VISION FOR AN INTERCONNECTED MOBILE WORLDVIEW FROM THE

C-SUITE

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PULSE July/August 2015 43

A SCI-FI BUFF, GENE AGEE LIKES READING THESE

BOOKS BECAUSE THEY SHOW ANOTHER PERSON’S

VISION OF WHAT THE FUTURE WILL LOOK LIKE.

WHEN AGEE LOOKS TO THE FUTURE,

HE SEES A WORLD WHERE EVERY MOBILE CALL IS

INTERCONNECTED SEAMLESSLY NO MATTER WHAT

NETWORK YOU’RE ON, WHERE YOU’RE LOCATED

OR WHO YOU’RE TALKING TO.

FROM HIS START WORKING IN TELECOMM AT

UNITED TELEPHONE, WHERE THE WIRELINE PUBLIC

SWITCH TELEPHONE NETWORK (PSTN) CONNECTED

ALL PHONES,

HE ENVISIONS THE SAME UBIQUITOUS WIRELESS

NETWORK COMING VERY SOON.

I N T E RV I E W B Y S A N DY F R I N TO N

GENE AGEE OF SPRINT’S VISION FOR AN INTERCONNECTED MOBILE WORLD

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44 PULSE July/August 2015

majority are outsourced. It is the same with credit and collections. Those remain a significant portion of outsourcing today.

Legal is one of the few fields that no one talks about outsourcing but that’s in fact what it is. Every corporation hires legal firms to represent them in various legal pro-ceedings. The companies also maintain an internal set of attorneys who manage or oversee the legal firms. But, they are never referred to as outsourcing.

P: In 2013, your team was recognized with the GEO award for creating value and innovation in services from strategic alliances in outsourcing as shown through your partnership with CBRE. Tell me about Sprint’s outsourcing of its real estate function?

When I took over the role at the end of 2008, we were in the process of outsourcing the real estate function to CBRE. The total cost to maintain these assets is almost $1 billion on an annual basis. Approximately 250 Sprint as-sociates managed these assets for Sprint.

Sprint made the decision to outsource all of the functions, which include: transactions, facilities management and project management, to CBRE.

When we made the decision we probably had in excess of 250 employees in the real estate function providing those very same services. CBRE provides all of these services to us today. In fact, we rebadged or transitioned in excess of 100 employees from Sprint to CBRE.

It was a win, win for CBRE and Sprint. There were some specific savings goals that CBRE needed to meet over the period of that initial contract. From a financial standpoint, they have met every financial target we had for them. It was a huge success from a financial standpoint.From an employee standpoint, those former Sprint employees were in areas with limited growth potential. The rebadged employees became part of an organization whose sole focus is real estate. It provided tremendous growth opportunity for those employees, many of which to this day remain at CBRE.

Sprint had fairly strong processes and tools in support of real estate. These skill sets and management practices were quickly realized as “leading edge” within the indus-try. As a result, several of the rebadged Sprint employees have gone on to greater roles in CBRE.

orldwide ubiquity through a common data network replacing voice networks is in the near horizon of less than five years, says Agee, Vice President Procurement and Real Estate for Sprint, a leading telecommunication company with $35 billion in revenue in 2013.

“IT’S LIKE THE TERMINATOR MOVIES WITH SKYNET,“ AGEE SAYS. “THE INTERNET DOESN’T EXIST ANYWHERE AND YET IT’S EVERYWHERE.“

In his many roles at Sprint over the past 25-plus years, he’s been involved with one of the largest outsourcing deals in the world, the outsourcing of the maintenance of Sprint’s wireless networks to Ericsson. In addition, Agee completed the outsourcing of Sprint’s real estate function to CBRE.

Agee’s team has been recognized by IAOP over the past two consecutive years with the Global Award for Out-sourcing Excellence (GEO), earning the honor in 2013 for innovation and again in 2014 for best practices.

PULSE talked to Agee, a member of IAOP’s strategic advisory board and past speaker at the Outsourcing World Summit, about telecommunications trends, supplier diversity, and the skills and processes required for successful outsourcing relationships.

P: Tell me about your current role as Vice President Procurement and Real Estate?

My role basically handles the procurement function, which includes supplier identification and negotiation of price, terms and conditions for about $17 billion in spend. This includes network equipment required to maintain Sprint’s mobile telephone infrastructure. The next largest portion of the spend goes to marketing, customer service (which includes call center operations, credit and collections) HR-related, legal-related functions and finance support. On the real estate side, I manage about 100 million square feet of real estate broken up into: commercial, retail and technical.

P: What areas of that does Sprint outsource?

We outsource a large percentage of call centers to third parties. We do retain some as company operated but the

W

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PULSE July/August 2015 45

I N T E RV I E W: G E N E AG E E

CURRENT: Vice President Procurement and Real Estate for Sprint Nextel, also heads Supplier Diversity

PRIOR SPRINT POSITIONS: Vice President of Corporate Audit Services, Corporate Security, Assistant Vice President of Strategic Sourcing and NIS Finance and other roles with responsibilities for telephone companies in Minnesota, Nebraska, Wyoming and Missouri

OTHER ROLES: : Also held audit positions in the food industry and for Peat, Marwick, Mitchell and Company

AWARDS: : 2015 University of Missouri – Kansas City, alumni of the year. 2009 National Eagle Leadership Institute Award winner. Serves

as a board member on the Mountain Plains Minority Supplier Development Council, the100 Black Men of Greater Kansas City and advisory board member to the Kansas University School of Supply Chain Management

PERSONAL: Raised on the south side of Chicago, Agee joined the U.S. Air Force at the age of 17 and began his college career while on the GI Bill

CERTIFICATION AND EDUCATION: A CPA, he holds an undergraduate degree in accounting and a Master of Business Administration in finance from University of Missouri-Kansas City and a bachelor’s from Southern Illinois University, Carbondale

Gene Agee, center, accepts the GEO Award for Innovation in 2013 on behalf of Sprint Nextel with Brian Jordan, Director of Real Estate, and

Scott Woodrome, Strategy & Partnership Management

GENE AGEE AT A GLANCE

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46 PULSE July/August 2015

P: In 2009, Sprint Nextel and Ericsson announced a seven-year outsourcing deal valued at up to $5 billion and involving 6,000 Sprint employees, which it called “Network Advantage,” according to media reports. Tell me about that.

THE OUTSOURCING OF THE MAINTENANCE

OF SPRINT’S WIRELESS NETWORK TO

A THIRD PARTY, ERICSSON, IS ONE OF

THE BIGGEST OUTSOURCING DEALS IN

THE WORLD. THAT WENT INTO EFFECT

IN LATE 2009 – EARLY 2010 AND

REMAINS IN EFFECT TODAY.

It was at this time that I became involved with IAOP. The association was instrumental in helping Sprint understand how to govern an outsourcing relationship of this size and breadth. Several individuals in Sprint’s organization enrolled in IAOP’s training program in governance and they ultimately became Certified Outsourcing Profes-sionals (COPs). IAOP helped us tremendously. Members of my procurement organization continue to seek COP certification and participate in IAOP events because of the obvious relationship between sourcing and outsourcing.

P: How did your background in accounting and finance help in your current role?

The first time I came to the procurement function was 1991. I was working for the CFO of Sprint and just had shut down a venture we were involved in. I had done a lot of analytics with my finance and accounting background. I was using my financial expertise to help solve financial-related issues or acting as a consultant to a business unit or a project.

The CFO said ‘you’ve done a lot of analytics and you’re very good at it but you never done any process, how would you like to work in procurement?’ And I thought ‘I don’t know anything about procurement.’

He selected me to be the Assistant Vice President of Sourcing within Sprint. My charge was to consolidate the three functioning Sprint business units (local, long distance and the emerging wireless business), into a single procurement functions representing the entire enterprise. In this way Sprint would ensure the advantage of size and scale were

included in the negotiations with all suppliers to Sprint. Although the challenge appeared to be simple, it was very difficult to implement. The first thing I learned is the people who are procurement professionals are in fact “professionals.” They have a very structured process and approach to the engagement of suppliers, and the negotiation of price, terms and conditions.

Most people believes that they are great negotiators because they’ve bought a car or a house. It’s simply not true. Procurement professionals have skills, knowledge and abilities that others do not have. Convincing an organization that they needed to work with these professionals and allow them to engage the suppliers was a very difficult thing to undertake.

People tend to want to hold on to the power of the purse. Although my team – the sourcing professionals – will drive the sourcing process, which culminates with a short list or a recommendation of who should be selected, the actual selection always remains with the end user.

The end user may have a long standing relationship with these suppliers, which is exactly why they shouldn’t be negotiating with that supplier. They need to maintain that relationship on a go-forward basis, post the award of the contract. But someone needs to be very critical around price, terms and conditions and that needs to be a separate party, which is exactly what the procurement organization is designed to do.

P: You also manage Sprint’s supplier diversity initiatives. Could you tell me more about that?

You can think of supplier diversity through a lot of different lenses (economic development, corporate social responsibility, compliance with law, a level playing field, etc.). However, at its core supplier diversity allows the suppliers of goods and services to reflect the customers base which buys Sprint’s product and services. Diverse suppliers provide a competitive advantage. Sprint has a goal and always had a goal related to supplier diversity.

Supplier diversity – which would include minorities, women and disabled veterans to name a few – provides these companies the opportunity to compete to be a supplier of goods and services to a corporation. It is extremely difficult for smaller diverse companies to even get a foothold. There also is an inherit bias that diverse companies are somehow inferior, which is not true.

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PULSE July/August 2015 47

I N T E RV I E W: G E N E AG E E

As a provider of services to the federal government, Sprint is subject to the General Services Administration (GSA) requirement that all suppliers to the federal government have a supplier diversity program in place. The same thing holds true for many states, municipalities and Fortune 500 companies. Sprint reports on an annual basis how it engages in supplier diversity and what success it has had. I’m particularly proud of what we have been able to achieve. In the last six years, we’ve come within 90 percent of our goal. We’ve had a significant increase in the actual dollars we spend with diverse suppliers and we’ve increased the effectiveness and efficiency of our supply chain in doing so.

P: Tell me about the latest trends in the telecomm segment.

The most significant thing is the continued evolution of mobile. I started in telecomm at United Telephone. It was a single telephone network that served the entire world. It was called the public switch telephone network and allowed you to call anywhere in world. All calls were interconnected. You were able to reach anyone, anywhere, any time.

In the mobile world, it’s not quite so. We have two competing technologies that are the protocol around which mobile telephony is built – GSM and CDMA. And in reality, those two networks don’t talk to each other.

If you travel from another country that has GSM to another that has CDMA, unless you get a new phone, your service probably won’t work.

ALL THE WIRELESS CARRIERS AROUND

THE WORLD ARE CURRENTLY DEPLOYING

A NEW TECHNOLOGY CALLED LTE. IT IS A

DATA PROTOCOL, NOT A VOICE PROTOCOL.

SPRINT MAINTAINS ONE NETWORK FOR

VOICE TODAY AND ONE FOR DATA.

As we deploy LTE, we will eventually move to voice over LTE, and voice traffic becomes just another data ele-ment moving over data transport. This will get us back to worldwide ubiquity, which means it’s the same everywhere and every call is interconnected seamlessly. Everything becomes data and there’s no more voice network.

Sprint Wins the 2014 GEO Award for Best Practices

From left to right: IAOP CEO Debi Hamill; Donna Schnorf, Sean Heston, COP, and Gene Agee of Sprint; and Bill Hall, Chair of IAOP’s Membership Committee

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48 PULSE July/August 2015

I N T E RV I E W: G E N E AG E E

P: How far is that in the horizon?

We’re right there. It will be less than 5 years but as short as two to three years. It will cost billions of dollars in investment to get there but the cost savings to carriers is significant. If you go to one network there has to be cost savings in the long run. You also improve the customer experience because now it doesn’t matter what technology is used. It’s all the same data, using the same protocol. As we move to the ‘Internet of Things,’ it’s just one more data application.

P: What is the current state of the mobile industry? There’s a lot of convergence going on in the mobile industry, particularly in Europe and also in the East. Mobile telephony is a very capital intensive industry. Consumers tend to want lower costs. There are potential mergers and acquisitions going on in Europe and even in the U.S.

P: What is the best advice you’ve received or that you give to others?

The best advice I’ve ever received is ‘believe in yourself and maybe others might believe in you.’ If you don’t believe in yourself, you’re not going anywhere. I received that advice from a mentor.

THE BEST ADVICE I GIVE TO MY TEAM

AND OTHERS IS: EVERY DAY WHEN YOU

GO TO WORK PROVIDE VALUE TO YOUR

ORGANIZATION. VALUE IS MEASURABLE

AND ONLY CAN BE ACHIEVED IN THREE

OR FOUR WAYS – BY GROWING

REVENUES, DECREASING COSTS,

IMPROVING CUSTOMER SERVICE OR

IMPROVING PROCESSES. IF YOU’RE

NOT DOING ONE OF THOSE, YOU SHOULD

QUESTION WHAT YOU ARE DOING. IT’S

ALL MEASURABLE.

P: Who are your role models?

My mentors in who and role models that have come into my life are individuals that I see personal traits that I really admire – they have to do with a willingness to serve others.

I like that when I see it in people and I gravitate toward those people. The mentors I had saw more in me than I saw in myself in my younger days when I was a little wild and rambunctious. But someone saw more in me and had me stop and think that there is more in life and if you focus on it, it can be yours.

P: What do you like to read?

I’m a science fiction reader. There’s no particular author because I’ve read so many. I think science fiction is the future, simply shown through someone’s view of what the future world could look like. Many of the products and services we have today are the results of someone’s vision of the future.

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

I like to go to different places and try different fish. Everyone has a different recipe on how they prepare fish, whether it’s catfish, snapper or salmon. I love getting other people’s thoughts on how they prepare fish and tasting it.

Hitting the greens at the IAOP/PULSE Publisher’s Golf Tournament at

The 2015 Outsourcing World Summit in Phoenix are: John Maher and

Charemon D. Tovar, CBRE; Jag Dalal, IAOP Chief Advisor Thought Leadership and Agee.

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PULSE July/August 2015 49

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50 PULSE July/August 2015

The Time Has Come:

EOS15

PREVIEW

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With Europe offering the largest potential market for outsourcing to be unlocked in the near future,

excitement is mounting for IAOP’s fifth European Outsourcing Summit, EOS15, in Frankfurt, Germany, this fall.

PULSE July/August 2015 51

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52 PULSE July/August 2015

Part of the Outsourcing World Summit Conference Series, IAOP returns to this growing region for the industry event outsourcing professionals from around the world won’t want to miss, Oct. 18-20, at the Frankfurt Marriott Hotel.

The Frankfurt Marriott Hotel Oct. 18-20

Held in the world’s second largest economy of Germany and the European economic capital of Frankfurt, EOS16 will draw customers, providers and advisors from around the world who want to know what Europe’s importance in the global land-scape means to them, and what the future holds.

“The combination of multilingual skills, a highly educated and motivated workforce, and competitive pricing makes the European region stand out to outsourcing buyers,”

– Debi Hamill, IAOP CEO

Europe’s importance in the global landscape The successes and challenges of Europe

The Time Has Come:

EOS15

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New frontiers in Eastern Europe also are opening up as potential and attractive sourcing locations with today’s growing inflations and depreciating currencies in major offshoring/developing countries. These new destinations offer better proximity, culture embedment and reliability, and are being accelerated by the political resolve of the European Union (EU) to predict longer-term sustainable relationships. PULSE has the early event

preview on the keynote speakers and conference highlights; sights to see in Frankfurt; comments from European leaders on why to attend; and some factoids on IAOP’s presence in the region.

Stay tuned to IAOP’s social media for EOS15 updates as they happen.

The successes and challenges of Europe

Throughout three days, delegates will have endless opportunities to network and learn. EOS15 will be filled with top-notch keynote speakers, educational sessions on cutting-edge topics, lessons shared from regional case studies, and roundtable panel discussions from IAOP’s European Chapters.

Stay tuned to IAOP’s social media for updatesSourcing New frontiers in Eastern Europe

“EOS15 will bring IAOP’s community together as one to focus on the successes and challenges of each part of Europe, leveraging the collective thought leadership of our members globally.”

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Results of IAOP’s Annual Member Survey and Latest European Member Survey

Learn what our members think about outsourcing industry trends, opportunities and challenges based on their responses to this annual benchmark survey.

The results show companies are considering outsourcing more functions than ever before and are doing it in ways they haven’t done before. To find out what the results mean to your operations, attend this session sponsored by ISG.

Global Business Services & Governance Keynote Presentation

GBS is a fast rising global sourcing model with many variations that is getting a lot of attention. Hear about how European companies are using this model in their operations from Atul Vashistha, COP, CEO, Neo Group and member of IAOP’s Strategic Advisory Board. Customer Soumitra Rathod, Vice President of Globalization, Time, Inc. will present a case study on a GBS model, including the governance that is exercised in the U.S., Europe and Asia.

Oct. 19: Results of the survey

Automation and the Future of Outsourcing: The Robots Really Are Coming

A big question these days is: What role will robotic process automation (RPA) play in future outsourcing? This presentation will look at how automation will significantly impact outsourcing for companies and service providers, and how it could transform the basis for onshore/offshore sourcing decisions. Leslie P. Willcocks, COP, Professor, Technology Work and Globalization, Department of Management at London School of Economics and Political Science, will share management lessons on RPA based on his latest research and a forthcoming book on service automation. (See Knowledge Center story in the May/June Issue 17 of PULSE)

Benefiting from Improved Outsourcing Outcomes through Standards

Presenters in this keynote session will explore how common standards could be used in the development of outsourcing deals and relationships to identify the business case for outsourcing, select the most appropriate partners, transition to new operating models and ensure that value is delivered through effective governance. Sharing their expertise will be Adrian Quayle, Managing Partner Europe, Avasant, and Ron Babin (via video link), COP, Professor, Ryerson University, Toronto, Canada.

PULSE PICKSOct. 20: Automation & the Future

The Time Has Come:

EOS15

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Cutting-edge Topics: Cultivating High Value Outsourcing Relationships; Getting Your Outsourcing Contracts Right; The Potential of Knowledge Process Outsourcing: A Client-Vendor Perspective and more.

Chapter Panels: IAOP European chapter chairs and advisory board members will present roundtable discussions on the successes and challenges in their region.

Regional Case Studies: Some sessions include: How to Make Collaboration and Innovation in Outsourcing Relationships Work; Outsourcing in the Midmarket: Life Outside the Mega-Deals; How to Effectively Manage Relationships in Nearshore Outsourcing; The Private Cloud; How Does Europe Tick? Challenges when Outsourcing in Europe.

Outsourcing Governance Workshop

Learn how to manage outsourcing risk at a separate, by-registration, one-day intensive Outsourcing Governance Workshop. Content is based on the Outsourcing Professional Body of Knowledge (OPBOK) and the Outsourcing Professional Standards developed by IAOP and the Outsourcing Standards Board. For more, see story in PULSE Professional.

Oct. 19-20: Cutting-edge Topics: Oct. 21: Governance Workshop

Frankfurt AwaitsTake some time to discover Frankfurt while at EOS15 where you’ll find many attractions close to the city center. Ride the nostalgic and colorful tram, the “Ebbelwei Express,” for a memorable and unique city tour with a glass of cider. Or take public transportation to the Palm Garden and Frankfurt Zoological Garden. Culture lovers will find an impressive selection of renowned museums on both banks of the Main exploring topics ranging from architecture and film to painting.

For more about sightseeing in Frankfurt, click here.

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“EOS15 will explore the new world of outsourcing unity in Europe. This event launches the right journey for IAOP in the right place at the right time now that the European Union is a matured market

for fostering dynamic and sustainable outsourcing relationships. This is a wonderful opportunity to expand IAOP’s presence in the region.”

- Vijayakumar Gounder, Senior Manager, Technology, Accenture, DACH Chapter Chair

“It’s exciting that this event is finally coming to Europe. The European demand for outsourcing is growing, as access to knowledge, talent and lower costs become the main focus of companies

involved in outsourcing. With growing demand, the process of refining outsourcing strategies is vital to business success – and this event could not be coming at a better time. It serves as a platform to discuss and compare outsourcing best practices from all over the world. As such, it provides outstanding information not only on how to run outsourcing projects, but it also gives new perspectives on best areas and partners for outsourcing, and new technological and organizational trends for business transformation.”

- Boris Kontsevoi, COP, President, Intetics Co. The Remote In-Sourcing® Company, Ukraine Chapter Chair

Europe Outsourcing Community Ready to Welcome EOS15

“The global services, sourcing and outsourcing industries are continuing their steady growth world-wide. This valuable event will address current geopolitical risks in Europe

as the Eastern Europe and Baltic States remain reliable, high-quality and cost-effective outsourcing destinations for global businesses. EOS15 will bring new excitement to outsourcing education, training and certification programs development in Europe, as having qualified personnel remains and will continue to be a key component in every outsourcing services engagement.”

- Sergei Makedonski, ASTRA President, IAOP Eastern European Advisory Board Co-Chair

“EOS15 is the event where thought leaders from different areas will convene and share their ideas, insights and experiences. EOS15 participants will learn about the latest

trends and approaches in the industry and how to apply them to their business activities and work more effectively. As we go through business cycles, it is important to adapt our business strategies in order to emerge stronger and healthier than before – especially in an economic downturn like the one we are currently facing. And this is the ideal time to come together and think not only of today but also of tomorrow and the future of outsourcing across all European countries.”

- Irina Semenova, Vice President of Marketing, MAYKOR

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EOS15 is being produced by IAOP with the support of our Founding Members, Global Partners, Regional Advisory Boards, and European and Eastern European Chapters. For registration, sponsorship, exhibition, venue and other important information about taking part in EOS15, visit www.iaop.org

Active Chapters: DACH (includes Germany, Austria and Switzerland), Brussels, Italy, UK & Ireland, Nordic, Eastern Europe, Russia

Past Conferences and Events: Paris, France; Barcelona, Spain; Copenhagen, Denmark; Lisbon, Portugal

An Impactful Force: IAOP Members represent 23 countries in Europe and Eastern Europe - Austria, Belarus, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal , Romania, Russia, Spain, Sweden, Switzerland, Ukraine and United Kingdom

IAOP’s Powerful Presence In Europe EOS15 Info

Mark your calendar: EOS15Oct. 18-20 Frankfurt, GermanyFrankfurt Marriott Hotel

Stay tuned to IAOP’s social media for EOS15 updates as they happen

The Time Has Come:

EOS15

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According to the UN’s World Happiness Report, year after year, Nordic people are considered some of the happiest in the world. If you ask this writer, it’s because they invented Legos

and brew up some serious Scandinavian coffee. But as the old Nordic saying goes: “Jafnan er hálfsögð saga ef einn segir,” meaning, “A tale is but half told when only one person

tells it.” So, in terms of outsourcing, we’ll let the experts explain.

As EOS15 approaches, PULSE is turning its Hot Spot focus to the Nordic countries. We interviewed three industry experts from the region, including: Peter Ankerstjerne – Head of Group Marketing (VP), ISS, whose focuses are on the services sector, facilities management and corporate real estate; Katie Gove, Managing Director, Trellis, whose focus is on IT, R&D and manufacturing; and Ole Horsfeldt, Partner, Gorrissen Federspiel, whose focuses are on IT and BPO.

OUTSOURCING OUTLOOKThe Nordic region has a bustling moderate-to-mature outsourc-ing market and, according to our industry experts, it’s only getting better. All three professionals interviewed for PULSE stated that even during the financial crisis, the outsourcing industry in the Nordic region was able to substantially grow and today is third in the world behind the United States and the United Kingdom.

“When the financial crisis hit, organizations were forced to think about cost optimization and were looking at outsourcing very interestedly,” said Gove. “I wouldn’t say their motivations were from a value point of view but certainly there was activity and a focus based on cost optimization that really spurred outsourcing in a way that it hadn’t been thought of before.”

According to ISG, from 2013-2014, the total market value of the

Nordic outsourcing market was $23.5 billion USD. Eight years earlier, the market was $9.1 billion USD. This shows that even through the global financial crisis there has been considerable growth in the outsourcing market.

Of the $23.5 billion USD outsourcing market, the private sector accounts for $18 billion USD and the public sector accounts for $5.5 billion USD. While IT remains the predominant focus area of outsourcing at $20.3 billion USD, BPO has been growing steadily and is now a $3.2 billion USD market in the Nordics.

Sector-wise, since 2007, there has been notable growth in financial sector outsourcing and a notable drop in energy sector outsourcing. The financial and manufacturing sectors account for 64 percent of the outsourcing in the Nordic markets. Regarding contract size, the most common are between $10 and 24 million USD (representing 31 percent of the total contracts awarded).“The future is really looking bright for the Nordic region,” said Ankerstjerne. “There are some really interesting companies looking at outsourcing in new and different ways, especially in the private sector. International Nordic organizations are looking at new ways of partnering and new ways of getting the best out of outsourcing.”

Gove believes that today there is greater attention, sensitivity and interest toward three things: value outsourcing, the maturity of

HOTSPOT Location: Denmark, Finland, Iceland, Norway

and Sweden; includes the Åland Islands,

the Faroe Islands and Greenland.

Population and Language: Just over

26 million – 80 percent speak Danish,

Norwegian or Swedish; 20 percent speak

Finnish; with several minority languages.

Economy: Small countries; open economies

in which foreign trade has great economic

significance, large public sectors, including

welfare services, and high taxation.

NORDIC Outsourcing and CSR Growing In this Region

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“The future is really looking bright for the Nordic region. There are some really interesting companies looking at outsourcing

in new and different ways, especially in the private sector. International Nordic organizations are looking at new ways of partnering and new ways of getting the best out of outsourcing.”

– PETER ANKERSTJERNE –aCOP, HEAD OF GROUP MARKETING (VP), ISS

the client organizations themselves and investing in vendor management, whereas five years ago if outsourcing was even discussed, it was a conversation about who within the organiza-tion would handle it, which would either be procurement or a project manager who had the time. Today, from a management point of view, there is very much a deliberate focus on developing an internal capacity toward outsourcing for the organization. According to Horsfeldt, the Nordic region doesn’t have any backlash when it comes to the yesteryear stereotypical views on outsourcing.

“When we think of outsourcing we don’t think of offshoring anymore,” said Horsfeldt. “It’s not about onshore, offshore or nearshore. It’s about what services should be outsourced.”

He went on to say that over the past 10 years or so, globalization has fundamentally changed how outsourcing deals are handled. “Globalization has changed prices. It has changed service delivery,” Horsfeldt said. “It has been climactic. We’re seeing more development in outcome-based, vested outsourcing with service provider arrangements and a foundation based on performance and achievement rather than spend. If you look at the year-to-year efficiency gains, we expect to see dramatic cost reductions per year because of the introduction of automation. That being said, the risk of intrusion grows tremendously as IT providers are being targeted, so we expect to see many developments in contracting models and contracting provisions.”

CORPORATE SOCIAL RESPONSIBILITYAll three agreed that Corporate Social Responsibility in the Nordic region is standard practice.

“I think that CSR is playing a much more important role here and that is really where the Nordics differentiate themselves from the rest of the world,” said Ankerstjerne. “It’s embedded. I think the

trend that we are seeing is that CSR is more and more becoming the rule and playing a very important role in any outsourcing project, whether it’s IT, BPO or services outsourcing. It’s not only about sustainability and having environmentally safe alternatives, but also in terms of social responsibility, being part of the community and taking care of the people who are being outsourced.”Added Horsfeldt, “It’s come to the point where you don’t really negotiate CSR anymore. The basic clause is that the service provider will comply with CSR policies as amended from time to time. Vendors know that in the Nordics CSR policies rate highly and are under-

stood in a manner of global context.”

Said Gove: “Corporate Social Responsibility is such a relevant topic and it’s something that is very close to my heart as I’m very interested in and supportive of impact sourcing. I think for a lot of people it’s important and for others it’s window dressing as it tends to be motivated by risk management first and then CSR from a human view, second. But at the end of the day if it means that companies are putting any sort of resources or attention toward these issues, then that should be OK.”

Earlier in 2015, ISS won the IAOP/ISG third annual Global Outsourcing 100®

Global Outsourcing Social Responsibility Impact Award (GOSRIA) for its exemplary leadership and ongoing commitment to CSR.

IN SUMMARYTime to throw a little ice in that espresso, because despite being known for its colder climate and having an island country named Iceland, there is no denying that the Nordic region is hot, hot, hot! The outsourcing industry is booming and it’s only going to get better.

Story by: Kate Tulloch-Hammond, IAOP

COPENHAGEN, DENMARK

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Accenture; Aetna; Allstate; Andesa Services Inc.; Avon Products; Boeing; CA Inc.;

CBE Companies; CBRE; Cigna; Citigroup; CliftonLarsonAllen; Colliers International;

Comfort Systems USA; Compassion International; Contract Management Solutions

Group, Inc; Delhaize Group; Diebold; ELLUCIAN; Enlighta; Equifax; Everest Group;

Golden Gate University; Haynes and Boone, LLP; HP; IBM; Integrated Corporate

Services; ISG; Joy Global; Kimberly-Clark; KPMG; Lexi Consulting AB; Manulife

Financial; MAYKOR; McKesson; Merck; MetLife Global Operations Support Center;

Metrolink Outsourcing Services; Microsoft; Nexient; North Dakota Dept. of Commerce;

PepsiCo; PPA GmbH; Pretium Partners, Inc.; PricewaterhouseCoopers; PwC;

RadiusPoint; ReadyFine; Rent-A-Center; Reserve Bank of Australia; Scientific Games;

Silver Birch Partners; Syntel; Tech Mahindra; TOC Accountants - Paybond; USAA;

USC; Voya; Westpac; WNS; and Zale.

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

WELCOME

NEW MEMBERS

IAOP thanks these new and renewing corporate and professional members for joining our global network:

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

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

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[

[

PULSE July/August 2015 61

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Dear Colleagues:

Until recent years, legal requirements had little impact on outsourcing governance. According to IAOP’s Outsourcing Professional Body of Knowledge (OPBOK), they were only taken into account for obvious legal issues, such as bribery or egregiously unlawful acts.

This has changed with the enactment of recent regulations. Now the OPBOK states: “Businesses not only have to certify their results but also compliance to processes that produce the results. Contractual compliance, as a part of governance, is now more critical than it was in the past. Outsourcing agreements must clearly identify applicable legal regulations, violations reported, corrective actions taken and compliance monitored.”

Outsourcing professionals now have a proven, de facto set of standards as defined in the OPBOK from IAOP that will allow them to design and oversee successful outsourced relationships every time. Just as CPAs and Project Managers are essential in today’s business climate, so are Certified Outsourcing Professionals (COPs) necessary commanders to steer your ship in navigating the sea of regulations.

Increasingly, our customer and advisory members have told us that they are upgrading their hiring and promotional criteria, particularly for higher level jobs, as they are seeking managers who can take “end to end” responsibility in outsourcing relationships. This also applies to vendors going through the RFP process with customers, who are requiring or highly preferring COPs on project leads.

Says Bonny Boonyanurak, COP, Union Bank: “Today’s banking environment is becoming increasingly competitive and banking regulators are more adamant about imposing strict guidelines to govern outsourcing engagements. To this end, I wanted a solid best-practice foundation from which to tie my hands-on outsourcing experience; I have gained this through IAOP and my certification.”

I couldn’t agree more with Bonny’s comments. Please connect with any of the COP program team or your account executive to learn how you can bolster performance and good governance while reducing your risks.

Best regards, Pamela O’Dell

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].

My COP experience is being applied to create a robust, effective and repeatable framework for outsourcing. This is a key step in managing outsourcing risk and maturing the outsourcing discipline for my organization.

“”– BONNY BOONYANURAK, COP, UNION BANK

LETTER FROM THE DIRECTOR

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].

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COP FAMILY ADDITIONS

LYNN C. ACHESON, COP, Sourcing Strategy Specialist, Boeing

TIMOTHY BERGIN, COP, Manager, IT Global Sourcing, Walgreens

NEIDER CAPALUNGAN, COP, Manager, Business Process Outsourcing, Capital Blue Cross

HERON GONZALEZ JR, aCOP, Senior Migration Manager, USAA

TERESA HARRIS, COP-GOV, Corporate Sourcing Leader, GE

DARSHAN KAUR, COP, Enterprise Sourcing Manager, Assurant

PAMELA LEWIS, COP, Director, PwC

KEVIN MCADAMS, aCOP, Migration Manager, USAA

MELISSA RUTLEDGE, COP, Director, USAA

HUSSEIN D. SAAB, COP, Strategy and Business Development, Boeing

IAOP congratulates the following professionals on earning their new designations:

TRAINING CALENDAR

COP WEBINARSCOMPLIMENTARY 60-MINUTE COP WEBINARS WILL BE HELD:

July 22 | Aug 12 | Sept. 2

COP TRAINING OFFERINGS*Sept. 21 - 24: DENVER, COLORADO

*Sept. 22 - 25: THE NETHERLANDS

Nov. 25 - 27: THE NETHERLANDS

Oct. 21: OUTSOURCING GOVERNANCE

WORKSHOP: FRANKFURT, GERMANY (see below)

*Includes the One-day Outsourcing Governance Workshop

Learn How to Manage Risks at Governance Workshop

IAOP is pleased to present a one-day intensive Outsourcing Governance Workshop immediately following The 2015 European Outsourcing Summit.

Content is based on the Outsourcing Professional Body of Knowledge (OPBOK) and the Outsourcing Professional Standards developed by IAOP and the Outsourcing Standards Board.

Studies have found that more than half of all organizations spend 2 percent or less of an outsourcing contract’s cost on governance. However, more than 60 percent report losing 10 percent or more of the contract’s value because of poor governance between the customer and the provider. Given this, professionals involved in outsourcing clearly have an important role to play in helping their organizations plan, invest in, and execute a cohesive set of business practices for designing and implementing a strong governance program.

Whether your goal is to earn 15 points toward the Certified Outsourcing Professional (COP) designation or simply to gain comprehensive cutting-edge knowledge on all aspects of creating and sustaining successful relationships with your outsourcing partners – this workshop is for you!

Click here for program and registration information.

PULSE July/August 2015 63

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CERTIFICATION ADDS VALUE TO ORGANIZATIONAL PARTNERSHIPSAs the state of outsourcing continues to shift in the likes of emerging markets and regulations, organizations need to be sure their current talent is prepared to handle the innovative and forward-looking tasks that lay ahead. Teams need to ensure project success with improved outcomes that can save time and money and reduce risk. Developing a team of highly skilled and knowledgeable professionals in today’s global market is imperative. IAOP’s Certified Outsourcing Professional program was developed to identify the industry’s most elite professionals for this very reason. By embracing the COP program internally, organizations are proving to their partners that they can deliver high quality results based on the rigorous requirement process of the COP certification. Professional certifications can add value to your organizational partnerships.

HERE ARE FIVE REASONS WHY:

1234

5

1) All COP applicants are required to pass a 200 question exam on the industry’s most widely accepted standards prior to earning their COP designation. With questions that span the full end-to-end process of outsourcing, organizations can expect these professionals to have a full understanding of how to design, implement and manage outsourcing initiatives, and foster vendor relationships prior to, during and beyond the contract phase. 2) About 80 percent of those who have earned the Certified Outsourcing Professional designation have completed the COP Master Class. All COP Master Classes are taught by IAOP Authorized Trainers who have not only completed the IAOP Train the Trainer process, but have extensive involvement within the industry and are able to share first hand knowledge and experience through real life scenarios.

This intensive training also requires attendees to apply what they’ve learned throughout the course in a case study presentation based on of IAOP’s Outsourcing Professional Standards, the industry’s most widely accepted practices. All participants receive a class certificate validating successful completion of these 40 training hours.

3) Those going through the application process are required to document a minimum amount of experience points in order to earn certification with IAOP. All project involvement documented must align with the standards in IAOP’s Outsourcing Professional Body of Knowledge (OPBOK). By requiring this portion within the COP application, our designation holders have proven that they have a track record of leading successful outsourcing projects across multiple industry standards.

4) The OPBOK was designed to give all parties of an outsourcing relationship, whether customer, provider or advisor, a common approach and universal language to work from to ensure goals of each party are aligned. With the Certified Outsourcing Professional Family of Certifications deriving from the OPBOK, all organizations can be assured that while working with COP designation holders they are capable of following the steps documented within the OPBOK through each stage of the outsourcing process to ensure a successful outcome.

5) Now, more than ever, companies that outsource their non-core services find that their outsourcing partners must adhere to a flood of regulations, and that strict governance must be in place in order to comply. (See our Director’s Letter).To face this dilemma head on, IAOP has created a specialized certification in Governance. To earn this certification, current COP’s must document at least three years of extensive experi-ence within Governance as well as complete the Outsourcing Governance Workshop and pass a field related exam assuring understanding of this specialization.

The full-day workshop gives applicants the ability to establish audit process and methodology that assure compliance not only to governance, but also to various statutory requirements such as SOX compliance in the U.S. or Safe Harbor Act for EU countries. Those who earn the COP-GOV designation acknowledge commitment to all parties existing through the life of outsourcing engagement and prove understanding that they can establish a governance framework planned, funded and managed as a key function.

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BE IN THE KNOW ...To become a Certified Outsourcing Professional and establish yourself as one of the industry’s elite, you must take and pass the Certified Outsourcing Professional exam. This 200 multiple choice question exam will challenge your thinking and transform your mindset to follow the most cohesive and comprehensive outline of the commonly accepted practices and skills required to ensure outsourcing success. In order to prepare applicants for the exam, IAOP’s Training & Certification team is giving you six insider tools and tips on just what you need to do to ace the exam and become a step closer to earning the IAOP designation.

GET THE LOW DOWN FROM IAOP’S EXPERT COP TEAM ON WHAT YOU NEED TO KNOW TO ACE THE COP EXAM{ }

COURTNEY’S INSIDE TIPS:• DOWNLOAD AND REVIEW THE STUDY GUIDE IAOP offers an inside look at the type of content you will find on the COP exam in their online study guide. This guide is available via download to every COP ap-plicant within their COP application. Read each question carefully and familiarize yourself with the section of the OPBOK from which it’s derived. This will not only help you understand how questions are asked on the exam and in what context, but it will also better prepare you for how to choose the answers to questions asked.

• GET COMFORTABLE WITH WRITTEN ENGLISH Those taking the COP Exam should be comfortable understanding written English. As IAOP believes English to be the universal language of outsourcing, the exam has been created to reflect this. Although the questions have been created with the non- English speaking in mind, if it is not your first language, make sure that you spend some time prior to the exam brushing up on your written language skills to better understand the content.

DANA’S INSIDE TIPS:

• DO IT SOONER RATHER THAN LATER Eighty percent of those who take the COP Exam previously attend a COP Master Class training. Since the COP Master Class module content was created directly from the OPBOK, attendees gained a wealth of knowledge that they will find on the COP exam. IAOP recommends taking the exam no more than two weeks after attending a training while the discussions and content are still in the fore-front of your mind. It’s very easy to settle back into your work routine and shift your focus back to organizational functions, neglecting to complete the exam until many months later when you’ll have to spend time refreshing.

• GET A COP MENTOR IAOP now offers all COP applicants the opportunity to be paired with a COP throughout the application process. This is a great opportunity to work exclusively with someone who has been through it all. Take advantage of this program as you can’t beat the one-on-one exclusivity this program provides.

PAM’S INSIDE TIPS:

• KNOW THE OPBOK Every question from the multiple choice exam comes from IAOP’s Outsourcing Professional Body of Knowledge. It is important, especially if you have not taken the COP Master Class, to start reviewing the OPBOK at least 90 days before you plan on taking the exam. While reviewing the OPBOK, you should understand the different tactics and drivers used in outsourcing. Know key risks and strategies and familiarize yourself with the business models and step by step project implementation process. Take time to look over the charts related to each standard as well as the templates that correlate.

• DON’T SECOND GUESS YOURSELF When it comes time to take the exam, if you’ve utilized all the study material and prepared well, then have confidence you are ready. Trust your instincts. More often than not, your first answer will be correct. So, if you aren’t sure of the answer to a question, go ahead and skip it and go back later. But, don’t spend too much time second guessing yourself on the questions you’ve already completed. You’ve studied, you have the knowledge, trust in yourself.

IAOP’s Training & Certification Team (from left to right) Courtney Giardina, Pam O’Dell, Dana Corbett

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RECOGNIZING AWARDS & ACHIEVEMENTS

BY OUR MEMBERS

ReSource Pro Recognized with Best Innovation Practices Award Selected for Science and Technology Service in China IAOP and PULSE are excited to congratulate corporate member ReSource Pro for recently being named winner of the Best Innovation Practices Award for Science and Technology Service Industry in China during the 4th Devott Global IT & Outsourcing Leadership Summit.

“The power of innovation lies in the mass, as we believe in our people’s immense innovative capability, which has helped create increasing value in our services,” said Matthew Bruno, ReSource Pro Founder and Managing Director of Operations, Qingdao. “The key is to power our people with knowledge and free their minds and allow everyone to pilot their ideas with encouragement from management.”

Considered a top 15 BPO provider in China, ReSource Pro is an insurance processing and productivity solutions provider operating in both China and the US. In 2013, it launched an awards program that involves each employee in a campaign of innovation to submit ideas or process designs and programs to increase productivity and efficiency.

Matthew Bruno, ReSource Pro Founder and Managing Director of Operations, Qingdao wins award, with IAOP member Matt Shocklee.

Bobby Varanasi, right, accepts the 2015 Golden Globe Tiger award

IAOP Ambassador Bobby Varanasi Awarded 2015 Golden Globe Tiger Awards Honored for Contribution and Excellence in Leadership and OutsourcingWe are thrilled to congratulate long-time IAOP Member and Ambassador Bobby Varanasi, COP-GOV, on his recent recognition by World CSR Day, an organization dedicated to sustainability and organizational and professional development.

Launched in 2013, the Golden Globe Tiger Awards aim to recognize “tigers” in marketing, branding, corporate social responsibility (CSR), social innovation, education and academics across leadership levels for both individuals and organizations that aim at believing excellence is infinite, perfection has no limit and targets are milestones – not the end of a journey. The Golden Globe Tiger Awards is multifunctional, multidiscipline and industry-focused, recognizing leaders across all segments of the industry.

Varanasi is the Chairman and CEO of Matryzel Consulting, Inc.

IAOP Applauds publishes recent awards, recognitions and other notable achievements by members. To submit an item for consideration, email [email protected].

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SPOTLIGHT ON:ROBOTIC PROCESS AUTOMATION (RPA) CHAPTER

CHAIRS: Lead co-chair: Doug Bell, Automation Anywhere. Co-chairs: Thomas Helfrich, KPMG; Matt Smith, Cognizant; Derek Toone, Alsbridge; and Ashok Balasubramanian, Syntel.

WHAT IT’S ALL ABOUT: Robotic process automation has become an undeniable force in the outsourcing community. How do we know? The numbers tell us:

• 40 percent of all outsourcing contracts are ready to be impacted by automation, and have the potential to be affected quickly – within the next 18 months, in fact.

• RPA is four times as likely to be included in new F&A deals, a growth rate of 1,000 percent from two years ago to now.

• Service providers are required to provide anywhere between 3 to 5 percent efficiency every year, and need to constantly develop new ways to deliver that percentage to end customers.

• According to ISG, automation could result in 60-80 percent cost savings for outsourcing customers, versus 15-30 percent savings from the traditional Indian IT.

With RPA’s potential to reshape the global labor market, the RPA Chapter’s mission is to maintain the outsourcing industry’s early RPA leadership position while setting the standards for effective collaboration between robotic workers and their human counterparts.

WHY GET INVOLVED? Historically, IAOP’s strongest chapters have significant participation from buyers. With customers driving as much of the RPA agenda a possible, the RPA industry can deliver the most purpose-driven value to end-users.

UPCOMING EVENTS YOU WON’T WANT TO MISS:

INTRODUCTION OF RPA CHAPTERDate: July 9Time: 3 to 7 p.m. Place: Colonnade II Office Center 15303 Dallas Parkway Addison, Texas Theme: The Opportunities & Challenges with Automation & RPA

The newly launching RPA chapter will hold a joint meeting with IAOP’s Texas, and Outsourcing Tools & Technology chapters. The venue is sponsored by Alsbridge.

FOR REGISTRATION, VISIT: https://www.iaop.org/content/23/162/1262/.

HOW TO LEARN MORE: Contact Julie Huson, Director, Global Chapter Operations for IAOP at [email protected].

CHAPTER

ROUND UPPULSE JULY

• JULY 9 - Texas, Outsourcing Tools & Technology & RPA joint Chapter Meeting

• JULY 15 - Atlanta Chapter Meeting

• JULY 22 - VOTC Chapter Webinar – customers only please!

AUGUST

• AUG. 13 - Rocky Mountain Chapter MeetingThe calendar is frequently updated. To stay current, check IAOP’s Web site for details at www.IAOP.org /calendar. IAOP Professional Members may attend an unlimited number of chapter meetings. IAOP also offers complimentary Associate Membership that allows nonmembers the opportunity to attend up to two chapter meetings as IAOP’s guest. Go to www.IAOP.org/chapters for more information and to register.

UPCOMING CHAPTER MEETING CALENDAR

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In June I had the pleasure of sitting in on IAOP’s de facto training course, the COP Master Class.

During the four-day training, as bystander extraordinaire, I learned enough about outsourcing, industry professionals, provider-advisor-customer relationships, contracts, governance, risk assessment, supplier management, those pesky little abbreviations — RPA, BPO, RACI, ARC, RRC, GOV (to name a few) — to know it’s best if I stick with what I already do... communicate IAOP’s messages.

That said…I’ll start with a short and sweet 411 about the class, followed not only with my experiences, but with those of other attendees. I’ll include a Q&A with the instructor, Ron Babin, COP, and a few words from Courtney Giardina, IAOP’s manager of professional development and class coordinator.

A Brief LowdownThe class itself is three days long, followed by a Governance workshop on the fourth day. The first three days are spent delving deep into the Outsourcing Professional Body of Knowledge (OPBOK), which is the class textbook and represents a cohesive and comprehensive outline of the commonly accepted practices and skills required to ensure outsourcing success.

There are 10 chapters in the book, each one covered by a class module during those three days. The class is taught by an IAOP authorized instructor and includes a guest speaker/lawyer who delivered the module on contracts. But the pièce de résistance is the Governance Workshop. It turns out, Governance is on everyone’s mind; morning, noon and night. Most meals are also spent with the group, including the staff and instructor. I noticed that everyone really took the opportunity to network, get to know each other and share their experiences during those hearty feasts.

Each student had several agendas: to learn more about governance and negotiating the framework of governance; to gain the certification and industry validation; to understand supply chain management; to find out what is the standard, what is expected from an outsourcing professional these days; to learn about the vetting process for RFPs; to learn about Robotics; to learn about the services industry; and … to learn, what, exactly, is a COP?

My “Aha Moment”I’m starting with this because, well, it follows the last sentence above. But truthfully, to me, this section encompasses the palpable importance of the COP Master Class. The evening before the four-day training started, everyone met for dinner to make introductions and get to know each other a little. As I sat there with my fellow IAOP staffers, Courtney and Scott Douglas, Director, Association Development, one of the attendees came over and asked, “What does COP* stand for?”

It turned out this attendee had been thrust into a brand new position just three months prior to the class. Intrigued, I watched this person the next morning -- the first day of class -- ask a laundry list of questions. While the instructor was more than happy to answer them -- and he had a wealth of great responses – the part that really sort of hit home for me, was the round table discussions that ensued within the entire group; each sharing their experiences to help this person understand the industry.

This caused a domino effect, as other attendees – both new and seasoned – who weren’t asking questions, were starting to learn from each other and then they started asking questions. With the instructor at the helm, teaching modules and answering questions, followed by the round table discussions, this became the modus operandi for the next four days. You know you’re part of something big, when, at 2 p.m. – an hour

Roving Reporter

Editor’s Note: This is the first in a new PULSE series of first-person accounts of IAOP events. A BIRD’S EYE VIEW OF THE COP MASTER CLASS

By: Kate Tulloch-Hammond IAOP

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after a very heavy lunch – not one person has the mid-day coma brain. All day, every day, was a lively discussion; that or they broke out into their groups.

That first morning, I made a note to spend the next three days paying close attention to this one attendee’s journey; no lie, by the fourth day this person could have commanded the room. It was, simply put, an astonishing transformation. This person could talk-the-talk and walk-the-walk with the big guns…and even proved it with a fantastic and industry-relevant story about spaghetti and bread. Let’s just say, you may have ordered only the spaghetti, but sometimes you’re also going to want some bread. Let the contract re-negotiations begin.

When asked what the “Aha Moment” was, this attendee had a couple of answers: realizing there was a methodology to the outsourcing discipline of supplier management; and finally understanding ARC, RRC, Baselines, ARC Ceilings and RRC Floors, that had been outside this person’s realm until then.So, the “aha moment” that I took away from the COP Master Class? It really does take a village.

Forming, Storming, Norming, Performing…aka Tuckman’s Stages of Team DevelopmentThe class was split into two groups, each with a designated breakout room, to work on the same case study. Each day, time was set aside during class for the teams to work on their case study presentations. What unfolded over the next three days truly followed Tuckman’s theory.

• Forming: The groups were assigned and separated. Immediately it got quiet. Everyone was very cordial with each of their team members. Most of what I noticed was that everyone kind of kept to themselves, with a little bit of professional back and forth banter about the case study. My initial reaction was that this was going to be a long week.

• Storming: Enter day two of groups and it was as if they’d worked together for years. Everyone had an opinion and wanted it heard. There were agreements, disagreements, furrowed brows, smiles, laughter and “aha moments.” It was fantastic to have a bird’s eye view of the process as it unfolded.

• Norming: The “aha moments” during the storming process quickly turned into issues being resolved. Team members were not only listening to each other, they were hearing each other; appreciating the experiences that each team member brought to the table and focusing on the team goal.

• Performing: Issues resolved, confidence gained, roles and responsibilities set, the teams presented their case studies to the class. End scene.

A Backstage Pass with IAOP Authorized Instructor, Ron Babin, COP

PULSE: Do you find major challenges in teaching the COP Master Class?

RB: Professionally, I’m a teacher, so I’m very comfortable with it, but because of the diversity there can be challenges. Not only that, there is a wide range of experience. The trick is to make it common enough, so it’s not too basic and also engages those with experience. Two things help with this: the Case Study is a common denominator for everyone in the class when they break up into teams; and the OPBOK is a great reference for everyone, no matter the level of experience.

PULSE: What have you learned from teaching the COP Master Class?

RB: I learn by teaching. I’ve learned that some things remain constant. For example, Governance is always a challenge. I’ve also learned that some things evolve, such as new models like cloud and RPA. Something is always evolving and changing the market.

PULSE: Since taking the COP Master Class and now teaching it, what would you say are the differences between then and now? What changes have you made now that you’re the instructor?

RB: I’ve seen a shift since then. There is less emphasis on strategy and the reasons for outsourcing. There is also less of the debate as to should we outsource and how do we get the best value. Today there is much more emphasis and focus on Governance.

PULSE: Do you notice anything about the students that sets them apart from each other?

RB: For many, this will become their careers. It wasn’t like that even 10 years ago. Today it’s acceptable and recognized as a discipline, with countless opportunities. For them, they’re in here because it is their career and they know they need to learn a valued set of skills and stay current.

PULSE: What is one piece of advice for COP Master Class attendees?

RB: The industry is always changing. Something new is going to come and affect the outsourcing market, whether it is a new model like Cloud or RPA, or cyber security, privacy and exposure to risk. My advice is to stay current.

PULSE: What was the most valuable lesson you learned or connections you made while you were taking the COP Master Class?

RB: The most valuable lesson was knowing that IAOP and its members were going to be a great source of knowledge; a network I could call upon if I needed help, advice or a fresh perspective. The best connection was just knowing that I was part of the IAOP network.

By: Kate Tulloch-Hammond IAOP

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“No matter what you think your level of proficiency is, everyone in the industry would benefit from taking the COP Master Class. It’s not only great as a refresher, but also to hear the professional experience viewpoints of the instructor, the lawyer who discusses contracting issues and the other senior level attendees. It’s also good to hear the viewpoints of the clients who are going through the battles, so you can understand where their heads are at, what things they are particularly confused about or they need assistance with. By understanding such, as an advisor, I can make my sales calls more effective.”

— Michael Fraley, Principal, Ernst & Young (on his last day of class)

“I’m new in my role, so I’m really amazed by the class. As the youngest in the classroom, I really learned from the older professionals. They were very open in sharing their histories. That helped a lot, especially working in our teams. I really feel this is very valuable; I will continue and get certified.”

— Olympia Cobos, Manager of Global Infrastructure Resource Management, Fortune 50 Consumer Packaged Goods Company

“Are all the instructors this good? I’m very happy I took this class. And I’ll tell you, a key aspect for me was in the weeks building to the class. Courtney kept me informed and was very helpful in answering any questions I had.” — Fernando Yepez, Director, PricewaterhouseCoopers

“I am very impressed with the class. This information will be invaluable to go out and put it into practice.”

— Christian Nagel, Senior Process Consultant, ReadSoft

“The COP Master Class and Governance Class gave me a cohesive, beginning-to-end view of the outsourcing process – something I had been missing, despite many years’ experience in sourcing, contracting and managing suppliers. The instructor, Ron Babin, was fantastic, and the mix of participants provided a diversity of perspectives and exchange of ideas. I am energized and motivated to look at our processes in a new way.”

—Mary D. Lewis, Supply Chain Management, Sprint Corporation

“I’ve really been amazed at the knowledge sharing and networking that takes place at our public classes. During these four days I have watched invaluable relationships come to fruition. Everyone is learning from each other as they share their experiences. No matter what side of the spectrum our participants are on they always leave the training with a different thought process and methodology than they came in with. Many of these professionals stay in touch long after the class has ended and continue to share ideas.” — Courtney Giardina, IAOP Manager, Professional Development

The Toronto COP Master Class At a GlanceWhile attendees traveled from both the U.S. (Georgia, Illinois, Kansas, Louisiana, Texas and Virginia) and Mexico, the class was very diverse with three of the U.S. attendees originating from Colombia, Germany and India.

Class Attendees:Bekah Alexander, Senior Manager, Fortune 50 Consumer Packaged Goods Company (Customer)

Olympia Cobos, Manager of Global Infrastructure Resource Management, Fortune 50 Consumer Packaged Goods Company (Customer)

Michael Fraley, Principal, Ernst & Young (Provider/Advisor)

Hiren Kotak, Senior Operations Manager, Capital One (Customer)

Mary Lewis, Supply Chain Management, Sprint Corporation (Customer)

Christian Nagel, Senior Process Consultant, ReadSoft (Provider/Advisor)

Fernando Yepez, Director, PricewaterhouseCoopers (Provider/Advisor)

IAOP Authorized Instructor:Dr. Ron Babin, COP – Director of Corporate and Executive Education and Professor at Ted Rogers School of Mgmt, Ryerson University (Provider/Advisor/Academic)

Guest Speaker Lawyer:John Beardwood, Partner, Fasken Martineau

IAOP Staff:Courtney Giardina, Manager, Corporate & Professional Development

Scott Douglas, Director, Association Development

Kate Tulloch-Hammond, Manager, Media & Communications

*COP – Certified Outsourcing Professional®

Inside the COP Master Class in Toronto Our next North American class is Sept. 21-24 in Denver. Please email [email protected] for details

Seen and Heard on the Last Day of Class

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Inside the COP Master Class

Toronto, CanadaJune 15-18

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72 PULSE July/August 2015

I M P R O V I N G O U T S O U R C I N G O U T C O M E S B Y C O N N E C T I N G Y O U T O T H E R E S O U R C E S Y O U N E E D

85% of IAOP members credit IAOP for improvedoutsourcing outcomes at their organizations

Membership PULSE READERSSAVE 25%on Professional MembershipUse Code:IAOP-PM25

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Page 73: Журнал IAOP Июль-Август 2015

ows16Disney’s Yacht & Beach Club cONVENTION CENTERLake Buena Vista, FLorida | February 15-17, 2016

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Page 74: Журнал IAOP Июль-Август 2015

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