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Architects of Global Business

The Four Principles of Progressive Operations



Phil Fersht
Founder and CEO, HfS
phil.fersht@hfsresearch.com
Charles Sutherland
EVP Research, HfS
charles.sutherland@hfsresearch.com
Ned May
SVP Research, HfS
ned.may@hfsresearch.com
2014 HfS Research Ltd. Proprietary Page 2
Contents
Topic Page
Principle 1:
Understanding Value Beyond Cost from
Business Operations
4
Principle 2:
Integrating Services Across the Extended
Enterprise
11
Principle 3:
Reorienting and Redefining Operations
Talent
21
Principle 4: Evolving to Digital Processes and Services 25
Appendices 41
2014 HfS Research Ltd. Proprietary Page 3
1. Understanding Value Beyond Cost
from Business Operations
Focusing less on the How and more on
the What to achieve business outcomes
3. Reorienting and
Redefining Operations Talent
Instilling a progressive approach to
developing, acquiring and motivating
talent
2. Integrating Services Across the
Extended Enterprise
Achieving greater control and visibility
over operations across the extended
enterprise
4. Leveraging Technology to
Enable Better Outcomes
Finding new value from collaborative,
automated, analytical, mobile-enabled
business processes
HfS Four
Principles of
Progressive
Operations
HfS Bases its Research on its Four Principles of Progressive
Operations
2014 HfS Research Ltd. Proprietary Page 4
1. Understanding Value Beyond Cost
from Business Operations
Focusing less on the How and more on the
What to achieve business outcomes
HfS Four
Principles of
Progressive
Operations
Principle One of Progressive Operations
2014 HfS Research Ltd. Proprietary Page 5
The World of Operations is Developing a Self-Awareness of
Where Were Heading
The conversation is moving rapidly away from process improvement and cost reduction:
- Anything rules-based must be automated / moved into the cloud / outsourced
- Labor costs are the new dirty word
- Businesses are increasingly externalizing their services supply chain
- Transactional talent needs to become digital talent
Small innovations are less attractive its all about the big transformation
Decisions are rapidly democratizing very different from 3 years ago
Information is suddenly everywhere the pace of new thinking (and noise) is staggering
2014 HfS Research Ltd. Proprietary Page 6
Operations Leaders Expect Rapid Change to Cross the Chasm
from Legacy to Value!

49%
23%
28%
26% 26%
49%
Mainly a "lift and shift" of people and existing
processes, with limited transformation of
processes or their enabling technologies
A genuine transformation of business
processes, but limited use of technology
A wide-scale transformation of business
processes enabled by new technology tools /
platforms
Now 2 Years' time
Source: HfS Research, 2014. Sample = 189 Major Enterprises
Example: State of BPO Engagements today and expectations for 2 years time
2014 HfS Research Ltd. Proprietary Page 7

L
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O
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Command of the Hybrid Model

New Models for Governance

Next Generation Solution Architects

Process Automation Tools

Configurable Process Methodologies

Analytics Talent and Tools

Presentation Layers for Insights

Flexible Delivery Center Layouts
How do we Cross this Chasm?
2014 HfS Research Ltd. Proprietary Page 8
Todays Imperatives for Outsourcing: Drive Down Costs,
Increase Scale, Improve Processes
10%
14%
9%
21%
11%
12%
37%
22%
28%
18%
27%
22%
29%
33%
47%
36%
48%
48%
25%
45%
39%
51%
44%
50%
40%
33%
30%
34%
28%
32%
25%
24%
23%
24%
24%
21%
20%
20%
13%
10%
13%
9%
13%
10%
10%
7%
5%
6%
Better cloud-based delivery of services
Improved analytics to drive growth opportunities
Access to new technologies
Access to tactical talent
Access to strategic talent
Improved analytics to improve operations
Meet compliance / regulatory requirements
Better transformed / reconfigured processes
Greater flexibility to scale operations
Better automated processes
Significantly lower operating costs (25%+)
Better standardized processes
Likely to fire provider if not achieved Important, but not critical Somewhat Important Not Important
How important are the following business benefits that you EXPECT to be achieved from
your company's current IT outsourcing and BPO experiences over the next two years?
Source: 2014 State of Industry Study, May 2014. HfS Research in Conjunction with KPMG (Sample 270 Enterprises)
2014 HfS Research Ltd. Proprietary Page 9
What Clients are Actually Paying for
11%
16%
14%
21%
21%
26%
25%
28%
30%
44%
46%
10%
9%
15%
12%
15%
13%
15%
12%
15%
15%
13%
35%
41%
36%
47%
41%
40%
34%
37%
36%
25%
26%
44%
34%
35%
21%
23%
21%
26%
24%
18%
15%
15%
Provide robotic automation to reduce cost of labor
Provide cloud-based delivery of services
Provide analytics to drive growth
Develop a mechanism for outcome-based pricing
Provide analytics to improve operations
Provide automation to reduce manual interventions
Provide strategic talent
Provide new technologies
Provide transformed / reconfigured processes
Provide standardized processes
Significantly lower operating costs (25%+)
Currently have in contract(s) Will insist in future contract(s) Will conside in future contract(s) Don't know
Do you actually CONTRACT for these outcomes from your provider(s) in your major
outsourcing contracts? If not, will you do so when you renew/renegotiate?
Source: HfS Research in Conjunction with KPMG. Note n=312
2014 HfS Research Ltd. Proprietary Page 10
Higher Expectations Driving Poorer Client Satisfaction
2%
2%
5%
3%
4%
2%
5%
2%
8%
8%
9%
5%
21%
23%
24%
30%
29%
32%
32%
41%
42%
44%
44%
48%
66%
58%
50%
48%
45%
47%
41%
40%
34%
31%
34%
39%
8%
14%
17%
14%
18%
16%
17%
14%
14%
13%
10%
7%
5%
4%
5%
5%
4%
3%
5%
3%
2%
4%
3%
1%
Better cloud-based delivery of services
Improved analytics to drive growth
Better automated processes
Access to new technologies
Better transformed / reconfigured processes
Improved analytics to improve operations
Access to strategic talent beyond standard operations
Better standardized processes
Greater flexibility to scale operations
Significantly lower operating costs (25%+)
Access to tactical talent
Meet compliance / regulatory requirements
Very Satisfied Satisfied Neither Satisfied or Unsatisfied Unsatisfied Very Unsatisfied
How satisfied are you with your primary service providers' performance to meet each
outcome?
Source: HfS Research in Conjunction with KPMG. Note n=312
2014 HfS Research Ltd. Proprietary Page 11
1. Understanding Value Beyond Cost
from Business Operations
Focusing less on the How and more on
the What to achieve business outcomes
2. Integrating Services across
the Extended Enterprise
Achieving greater control and
visibility over operations across the
extended enterprise
HfS Four
Principles of
Progressive
Operations
Principle Two of Progressive Operations
2014 HfS Research Ltd. Proprietary Page 12
Onshore-Centric Majors vs. Offshore-Centric Majors Market
Share Comparison: Whos Geared to Succeed?
23.3%
22.8%
3.8%
7.0%
2009 2013
M
a
r
k
e
t

S
h
a
r
e

i
f

G
l
o
b
a
l

I
T

S
e
r
v
i
c
e
s

a
n
d

B
P
O

M
a
r
k
e
t

Offshore-centric Majors (Wipro,
Infosys, TCS, Cognizant, HCL)
Onshore-centric Majors
(Accenture, IBM GS, HP ES, CSC,
Cap Gemini)
2014 HfS Research Ltd. Proprietary Page 13
2007 2008 2009 2010 2011 2012 2013 CAGR
Employee Cost (Rs. Billion) 90.0 114.1 144.8 150.7 188.1 246.8 319.2
EOY Headcount (000) 89.4 111.4 143.8 160.4 198.6 238.6 276.2
Average Headcount (000) 77.9 100.4 127.6 152.1 179.5 218.6 257.4
Net Headcount Additions (000) 22.9 22.0 32.4 16.7 38.2 40.0 37.6
Initial Learning Program (ILP)
Participants (000)
11.7 14.5 19.6 17.5 28.2 32.3 30.5
Other Operating Cost
(Rs. Billion)
45.4 55.0 61.6 62.7 73.4 97.8 130.3
Employee Cost per Headcount (Rs.
Million)
1.155 1.136 1.135 0.991 1.048 1.129 1.240 1.2%
Trainee/ Fresher % in Net
Headcount Additions
51% 66% 76%* 76%* 74% 81% 81%
Other Operating Cost per
Headcount (Rs. Million)
0.583 0.547 0.483 0.412 0.409 0.447 0.506 -2.3%
TCS Cost & Headcount Analysis 2007-2013
2014 HfS Research Ltd. Proprietary Page 14
2007-2013
Employee Cost per Headcount 1.2% CAGR
Estimated Weighted Average Wage Hike 7.5% CAGR
Annual Reduction in Employee Cost Base 6.30%
Estimated Annual Reduction in TCS Employee Cost Base 2007-
2013
The offshore millennials impact
cannot be understated
Source: TCS Annual Reports HfS Analysis 2014
2014 HfS Research Ltd. Proprietary Page 15
Change in Offshoring Outsourced and Shared Services
-13%
-5% -5% -4%
-3%
-3% -5%
-1% -1%
31%
29% 28%
26%
21%
18% 17% 16% 16%
-20%
-10%
0%
10%
20%
30%
40%
Application
Development &
Maintenance
Finance and
Accounting
IT Infrastructure Industry-specific
Operations
Procurement Human
Resources
Customer
Service
Supply Chain
and Logistics
Marketing
Support
Decreasing Increasing
-9%
-7% -6%
-2%
-3% -3%
-4%
-1%
-3%
18%
26%
19%
17%
20% 20%
16% 16%
14%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Application
Development &
Maintenance
Finance and
Accounting
IT Infrastructure Industry-specific
Operations
Procurement Human
Resources
Customer Service Supply Chain and
Logistics
Marketing
Support
How will this change in the next year? (Outsourcing)
How will this change in the next year? (Shared Services)
Source: 2014 State of Industry Study, May 2014. HfS Research in Conjunction with KPMG (Sample 312 Enterprises)
2014 HfS Research Ltd. Proprietary Page 16
Operating Models: Outsourcing Forms a Critical Lever for an
Integrated Services Model
4%
10%
13%
24%
13%
46%
59%
37%
43%
28%
17%
28%
20%
3%
6%
3%
7%
1%
2%
12%
12%
4%
7%
Internal Business Units (Distributed)
Hybrid of Outsourcing and Shared Services (Centralized
Governance)
Outsourcing
Shared Services
Increase significantly Increase moderately Will remain at the same level
Reduce moderately Reduce significantly N/A
Over the next 2 years will your company increase / reduce its reliance on the following
operating models for your general and administrative functions?
Source: 2014 State of Industry Study, May 2014. HfS Research in Conjunction with KPMG (Sample 312 Enterprises)
2014 HfS Research Ltd. Proprietary Page 17
Six Maturity Leaps with Shared Services and Outsourcing
Relocate Functions
Headquarter functions and related BU staff
relocated to low-cost geographies

Integrated
Standard solutions across BUs, geographies,
and functions

Wide-Ranging
Organized by process across BUs and
geographies

Run it Like Business
Service level measurement and
accountability with transparent pricing

Rapid Deployment
Willingness to impact people, change
culture and invest in long-term strategy

Transactional and COE
Centers of scale and skill delivering
transactional and analytical services


Proximate to Business
Maintain staff in current location

Independent
Specific to BUs, geographies, and functions

Functionally Focused
Processes aligned and optimized within
functional towers at BU levels

Staff Function
Cost center focus with modest
measurement against metrics

Measured
Low impact on people, culture, minimal
investment

Transactional
Transactional services delivering
economies of scale


Location
Standardization
Process Orientation
Commercial Orientation
Pace of Change
Service Portfolio
Low Maturity
Legacy
High Maturity
Progressive Operations
2.9
2.9
2.7
2.9
2.8

2.8
Source: HfS Research in Conjunction with KPMG . Sample: n=343 Enterprises
2014 HfS Research Ltd. Proprietary Page 18
17%
27%
21%
28%
38%
40%
20%
29%
27%
15%
35%
33%
19%
18%
22%
20%
25%
42%
44%
44%
48%
49%
61%
63%
Innovations to Operations and
Processes
Greater Collaborative Culture with
Managers and Staff in the Service
Provider teams
Greater Control over Functions /
End-to-End Processes
Developing / Acquiring Talent to
align the Corporate Goals with the
Operations Strategy
Improved Quality of Operational
Data to drive management
decisions
Reduced Cost Structure of
Operations
Top Maturity Percentile: >75%
Upper-Middle Maturity
Percentile: 51-75%
Lower-Middle Maturity
Percentile: 26-50%
Bottom Maturity Percentile:
<25%
The Six Desired Outcomes of Outsourcing & Shared Services:
Cost, Data, Talent, Control, Collaboration and Innovation
How important is achieving the following business outcomes with your organizations
current shared services and/or outsourcing program, over the next 2-3 years? (Critical to
the Success of the Program responses)
Source: HfS Research in Conjunction with KPMG . Sample: n=343 Enterprises
Outcomes
critical to the
success of the
program
2014 HfS Research Ltd. Proprietary Page 19
0%
0%
2%
4%
2%
2%
4%
4%
2%
6%
3%
6%
8%
6%
14%
4%
13%
12%
10%
20%
9%
9%
13%
8%
15%
18%
21%
24%
34%
37%
20%
29%
31%
33%
39%
42%
46%
50%
53%
60%
Support for Accelerating M&A activity
Developing Talent to align to the Corporate Goals
Innovations to Operations and Processes
Improved Quality of Operational Data
Greater Collaborative Culture with Service
Provider teams
Greater Accountability of Operations Staff
Greater Standardization of Processes
Greater Control over End-to-End Processes
Greater Scalability of Operations
Reduced Cost Structure of Operations
Top Maturity Percentile:
>75%
Upper-Middle Maturity
Percentile: 51-75%
Lower-Middle Maturity
Percentile: 26-50%
Bottom Maturity
Percentile: <25%
Once the Maturity Chasm is Crossed, Progress Leaps Forward
Please evaluate the level of progress made toward achieving these business outcomes by
your organizations shared services and/or outsourcing program (Great Progress
responses)
Source: HfS Research in Conjunction with KPMG . Sample: n=343 Enterprises
Achieving great
progress against
achieving these
outcomes
2014 HfS Research Ltd. Proprietary Page 20
Principle Three of Progressive Operations
1. Understanding Value Beyond Cost
from Business Operations
Focusing less on the How and more on
the What to achieve business outcomes
3. Reorienting and
Redefining Operations Talent
Instilling a progressive approach to
developing, acquiring and motivating
talent
2. Integrating Services Across the
Extended Enterprise
Achieving greater control and visibility
over operations across the extended
enterprise
HfS Four
Principles of
Progressive
Operations
2014 HfS Research Ltd. Proprietary Page 21
Importance of Business Objectives at the Commencement of
Outsourcing and Shared Services Initiatives

External Benchmarking
Raising the Bar for Existing SLAs
Improving Industry Acumen
Defining and Adding New In-Scope Processes
Improving Analytics
Adding Addition Volumes to Existing Services
Improving Service Provider Relationships
Driving Innovation
Defining Business Outcomes Beyond Cost Reduction and
Managing Financial Business Cases
Contract Negotiation
Influencing Executives
Service Provider Selection
SLA Performance Management
Managing Transitions
Not
Important
Somewhat
Important
Important
Mission
Critical
Strategic Objectives
Tactical Objectives
How important are the following objectives to your team.... When you first started your
outsourcing and/or shared services initiatives?
Source: HfS Research 2013 , n = 282 Enterprise Buy-side Executives
2014 HfS Research Ltd. Proprietary Page 22
Strategic Objectives Become much more Important after
Commencing Outsourcing and Shared Services Initiatives

0% 10% 20% 30% 40%
Managing Transitions
Service Provider Selection
SLA Performance Management
Managing Financial Business Cases
Contract Negotiation
Influencing Executives
Adding Addition Volumes to Existing Services
Improving Industry Acumen
Improving Service Provider Relationships
External Benchmarking
Defining and Adding New In-Scope Processes
Driving Innovation
Raising the Bar for Existing SLAs
Defining Business Outcomes Beyond Cost Reduction and
Improving Analytics
% Increase in Importance
Strategic Objectives
Tactical Objectives
Progression,
not Succession
is the key
How important are the following objectives to your team.... When you first started your
outsourcing and/or shared services initiatives? And today?
Source: HfS Research 2013 , n = 282 Enterprise Buy-side Executives
2014 HfS Research Ltd. Proprietary Page 23
US Example The Great Talent Shift Impacts Ops
900,000
office support
2020 excess
400,000
data scientists
gap per year
Source: HfS Research / McKinsey Global Institute
2014 HfS Research Ltd. Proprietary Page 24
Talent, Lack of Vision, Silos, Inability to Change and Fear of
Disruption Prevent the Path to Value
75%
27%
27%
34%
40%
31%
37%
31%
24%
26%
23%
48%
48%
40%
34%
43%
34%
30%
37%
26%
2%
24%
25%
26%
26%
26%
29%
39%
40%
48%
0% 25% 50% 75% 100%
Too much has been outsourced and we've lost control
over many processes
Lack of talent and capability to lead and implement
higher value services
Operations management too afraid to rock the boat
Operations functions lack visionaries to drive new
initiatives
Lack of understanding from senior management of
value of Global Business Services
Inability to run change management programs
effectively
Senior management unconvinced of business benefits
of Global Business Services
Disruption to the internal power structure
Organization is business-unit led and resistant to
consolidation / centralization
Major change management requirements
Not an impediment at all Somewhat of an impediment A major impediment
To what extent are the following issues impeding your development towards a more
centralized and empowered operations framework, such as Global Business Services?
Source: HfS Research in Conjunction with KPMG. Note: n=106 CEO, VP, SVPs
2014 HfS Research Ltd. Proprietary Page 25
1. Understanding Value Beyond Cost
from Business Operations
Focusing less on the How and more on
the What to achieve business outcomes
3. Reorienting and
Redefining Operations Talent
Instilling a progressive approach to
developing, acquiring and motivating
talent
2. Integrating Services Across the
Extended Enterprise
Achieving greater control and visibility
over operations across the extended
enterprise
4. Leveraging Technology to
Enable Better Outcomes
Finding new value from collaborative,
automated, analytical, mobile-
enabled business processes
HfS Four
Principles of
Progressive
Operations
Principle Four of Progressive Operations
2014 HfS Research Ltd. Proprietary Page 26
Options are Democratizing: Is Cloud/BPaaS now a Serious
Alternative to BPO?
2%
4%
6%
9%
11%
14%
15%
20%
22%
16%
13%
6%
9%
19%
12%
17%
8%
8%
37%
23%
29%
24%
28%
37%
37%
35%
39%
45%
60%
58%
59%
42%
37%
31%
37%
31%
0% 25% 50% 75% 100%
Marketing
Legal
Supply Chain and Logistics
Sales
Procurement
Customer Service/Support
Finance and Accounting
Business-specific Operations
Human Resources
We have at least one cloud based service for this function
Starting to evaluate / test solutions
We are interested but yet to find anything suitable
Nothing in place & see no value
In what areas are you considering cloud / as-a-service options to augment / replace
traditional outsourcing?
Source: HfS Research in Conjunction with KPMG
2014 HfS Research Ltd. Proprietary Page 27
Technology-Enabled Outsourcing Buyers Outperform both
Tactically and Strategically
28%
38%
29%
30%
34%
50%
40%
57%
65%
27%
38%
35%
25%
30%
43%
26%
54%
67%
42%
45%
50%
52%
52%
60%
63%
63%
80%
Executing on gainsharing incentives
Providing analytical insight
Creating new ideas/initiatives that add value
Actively fosters business-outcomes vs FTE pricing
Moving processes into the Cloud
Providing knowledge/experience of specific industry
processes
Incorporating automation into our operations and processes
Reducing the costs we agreed contractually
Delivering standard operational services
Technology enabled
transformation
Process Transformation,
limited technology
"Lift & Shift"
How effective is your current primary service provider at delivering the following business
benefits with your current outsourcing initiative? (quite effective and highly effective
responses)
Source: HfS Research, 2014. Sample = 189 Major Enterprises
2014 HfS Research Ltd. Proprietary Page 28
Impact of Technology in Business Processes
12%
25%
30%
47%
49%
24%
29%
31%
29%
33%
24%
31%
28%
17%
13%
24%
9%
7%
4%
3%
16%
6%
4%
3%
2%
Social
Mobile
Cloud
Automation
Analytics
5. It is a critical component 4 3 2 1. None - no value in it for BPO
What role can each of the following emerging technologies play in improving the outcomes
of your current and future outsourcing engagement(s)?
Source: HfS Research 2014. Note: n=189 Enterprise BPO Clients
2014 HfS Research Ltd. Proprietary Page 29
15%
25%
29%
32%
38%
40%
44%
47%
15%
26%
40%
36%
33%
44%
37%
36%
21%
31%
23%
22%
21%
12%
15%
14%
50%
18%
7%
10%
8%
4%
5%
3%
0% 25% 50% 75% 100%
SMAC
Robotic Automation
Digital
Big data
Transformation
Business outcomes
Cloud
Analytics
Yes, it is very clear what they mean Yes, it is mostly clear
No, I only partially understand No, it is totally unclear
Source: HfS Research in Conjunction with KPMG. Note n=312
Too much Ambiguity Surrounds many Buzz Terms
When service providers / consultants use the phrases below, is it clear to you what they
mean and what value they represent?
2014 HfS Research Ltd. Proprietary Page 30
Cloud:
Accessible
Analytics:
Enlightened
Social:
Communal
Mobile:
Ubiquitous
The Four Horseman of Digital Disruption
are all combining to create Business Transformation
2014 HfS Research Ltd.
Yet Cloud will Largely Drive Change in 2014 and Beyond
4.3%
4.6%
5.0%
6.1%
6.8%
10.8%
14.2%
19.3%
Application modernization
Data Center optimization (incl. green IT)
Standardized, yet flexible APIs
Flexible re-negotiating of outsourcing contracts
IT Opearations and Service Management
Mobile Apps and Dev (incl. BYOD)
BI, Big Data and Analytics
Cloud (Infrastructure, Apps, or Hybrid)
What is your number one investment are in IT for 2014?
Source: HfS Research, N=740 IT Managers in Enterprises
2014 HfS Research Ltd. Proprietary Page 32
Cloud Growth
28%
24%
17%
15%
13% 13%
8%
5%
5%
9%
7%
5%
8%
11%
16%
22%
56%
43%
39%
65%
145%
0%
20%
40%
60%
80%
100%
120%
140%
160%
0%
5%
10%
15%
20%
25%
30%
35%
Messaging
software
VOIP software IT Server
Infrastructure
Infrastructure
management
software
Email software Enterprise
applications
Overall
Today Tomorrow Growth
How will the proportion of cloud delivery change in the next 2 years?
Source: HfS Research in Conjunction with KPMG
2014 HfS Research Ltd.
Why? Because Cloud Creates a Virtuous Cycle of Supply
Better
Faster
Cheaper
2014 HfS Research Ltd.
And Cloud Concerns Largely Sophomoric
22%
30%
40%
41%
41%
52%
46%
46%
34%
33%
33%
28%
15%
7%
15%
15%
12%
8%
16%
16%
12%
12%
14%
13%
Lack of customization to suit our needs
The difficulty of integrating data across multiple cloud apps
Uncertainty as to where our data is actually residing
Won't know with whom the issue resides when a failure occurs
Security in the cloud isn't robust enough
Worried about data portability if we want to switch
Very concerned Somewhat concerned Not concerned Don't know
Reasons for avoiding BPaaS
Source: HfS Research 2 014. n =740 IT Managers in Enterprises
2014 HfS Research Ltd. Proprietary Page 35
Rigid and Vast Flexible and Agile
On Premise IT Environment
Design, Build, Run
Purchase / TCO
Complex implementation
Hard coded
Weighted toward maintenance
Long-term planning
IT as gate keeper
Cloud Driven IT Environment
Consume
Rent / ROI
Complex integration
Configurable
Focused on new applications
Upfront analysis
Collaborative
The Pending Shift Across Enterprise IT
Provider Landscape Will See
Significant Shifts
2014 HfS Research Ltd. Proprietary Page 37
From the Traditional IT Services Continuum
Design Build Run
2014 HfS Research Ltd. Proprietary Page 38
To a Discrete Set of Opportunities
Build
for Providers
IaaS / PaaS
SaaS
for Enterprises
Private cloud
Hybrid cloud
Manage
Consumption
IaaS / PaaS
of SaaS
BPaaS
Provide
IaaS / PaaS
SaaS
BPaaS
2014 HfS Research Ltd. Proprietary Page 39
Implications
Were About to Enter a Buyer Market
Yet the Pace of Change Accelerates
Services Integration replaces Traditional SI
Complexity of Governance Grows
And a Broad Re-Alignment Occurs

2014 HfS Research Ltd. Proprietary Page 40
Wrap-Up: What Will it Take to Reach the Next Inflection Point of
Value?
Fail. The executives leading the initial sourcing initiatives are
frequently not the ones left managing the engagement
Fail. Corporate leaders are still primarily cost-focused (72%
of the SEC)
Fail. Sourcing is still a foreign competency to 90% of
corporate employees
Buyers are reaching adequate a lot quicker than they may
have thought (24-36 months).
ButMany providers are simply incapable of delivering more
than adequate. Fail.
Governance teams want to align themselves to the business
and not find themselves becoming disconnected
procurement-esque divisions
But there is some significant DISRUPTION ON THE
HORIZON.

Architects of Global Business
Appendices
2014 HfS Research Ltd. Proprietary Page 42
Phil Fersht
Overview:
Over 18 years business experience in the global outsourcing and shared
services industry across US, Europe and Asia
An acknowledged industry advisor, strategist, author, speaker, practitioner
and blogger
Advised on 100s of global IT & BPO engagements

Previous Experience:
Practice Head for IT Services & BPO Practice, AMR Research (Gartner Inc)
BPO Marketplace Leader at Deloitte Consulting
Vice President for Everest Group, leading research and consulting teams
based in the US and India.
Prior career:
Regional Director, IDC Asia/Pacific
Program Manager, European IT Markets Services, IDC Europe

Education:
BS with Honors in European Business & Technology from Coventry
University, United Kingdom
Diplme Universitaire de Technologie in Business & Technology from the
University of Grenoble, France
phil.fersht@hfsresearch.com
Founder and CEO, HfS Research
2014 HfS Research Ltd. Proprietary Page 43
Charles Sutherland
Overview:
Over 18 years business experience in strategy development and delivery
in the global outsourcing industry across US, Europe and Asia
An industry advisor, strategist, author, speaker, practitioner and blogger

Previous Experience:
Chief Strategy Officer, SourceHOV
Managing Director, Growth & Strategy, Accenture BPO
Managing Director, Strategy, Accenture Infrastructure Outsourcing
Strategy Partner, Accenture Media & Entertainment Practice
Marketing Director, Olivetti

Education:
MBA, INSEAD, Fontainebleau France
Honors BA, Political Science and Economics, University of Toronto
charles.sutherland@hfsresearch.com
EVP of Research, HfS Research
2014 HfS Research Ltd. Proprietary Page 44
Ned May, HfS Research
Overview
Neds remit at HfS is to develop cutting edge research focused on the business impact
of emerging technologies across the full spectrum of IT services.
As a senior adviser to IT and business executives, Ned combines a love of long term
thinking with a strong appreciation for excellence in execution.
Over his 20 year career, he has helped hundreds of clients navigate and capitalize on
changing landscapes and led diverse research teams while launching and running new
products often aimed at directly cannibalizing existing offerings.
He is an acknowledged industry advisor, strategist, author, and speaker

Previous Experience
Vice President and Practice Leader, Outsell Inc. Authored groundbreaking studies on
the impact of emerging technologies, the evolution of business information, and the
new opportunities presented by mobile interfaces. Oversaw the development of an
interactive online benchmarking tool serving executives.
Program Manager, IDC Ran the Worldwide IT Services research program and covered
the largest global players during the emergence of offshore outsourcing and utility
computing. Was also responsible for the creation of the Worldwide Quarterly Services
Tracker - a successful product which continues to this day.
Education
MBA, summa cum laude, from Babson College
BA from Bowdoin College with a double major in Economics and Government

Ned.May@hfsresearch.com
Senior Vice President, Digital Transformation Services & Solutions, HfS Research
2014 HfS Research Ltd. Proprietary Page 45
HfS Research: Key Facts
A leading analyst authority and knowledge community for business and IT services strategies.
Unique focus on business services and global operations frameworks with technology as an
enabler.
Dedicated analyst team across US, Europe and Asia/Pac, headquartered in Cambridge.
Facilitates the HfS Sourcing Executive Council (SEC), the highest quality network of enterprise
buy-side executives leading sourcing initiatives.
The HfS Governance Academy delivers to SEC members the industry-leading certification for
sophisticated governance capability for shared services and outsourcing
Acclaimed data-driven research focus on demand-side trends, market landscapes, supplier
evaluations (Blueprints), pricing dynamics, market sizing and forecasting.
Leverages the vast HfS community of sourcing professionals to deliver rapid insights on global
sourcing industry trends & developments, surveying the opinions and dynamics of 25,000
organizations in 2011-14.
The largest web and social media presence in the sourcing industry with 145,000 research
subscribers and the leading blog in the industry (horsesforsources.com), which today gets 1
million web visits a year.
A well-regarded new generation media outlet qualified as a Google news source and regularly
quoted on services trends in Wall St Journal, The Economist, CIO Magazine and
BusinessWeek.


2014 HfS Research Ltd. Proprietary Page 46
HfS has Won the Premier Award for Analyst of the Year in
2010 and 2011 and Beat the likes of Gartner, Forrester,
Ovum and IDC to Win the Most Innovative Research Firm
in 2012
Today, HfS Research is widely
recognized as a Top Tier analyst brand
for IT and Business Services
2014 HfS Research Ltd. Proprietary Page 47
The firms most reported to have risen in influence by
respondents to the 2013 analyst value survey
2.1%
2.2%
2.3%
2.4%
2.8%
3.1%
3.8%
5.2%
5.6%
6.3%
6.6%
7.0%
12.9%
17.1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Redmonk
GigaOM
Frost & Sullivan
Pierra Audoin Consultants
Constellation Research
Ovum
Everest
Other
IDC
451 Group
Forrester
NelsonHall
Gartner
HfS Research
Degree to which is rising in Influence
Source: 2013 Analyst Value Survey , Sample: 352 buyers, providers, investors and journalist consumers of research

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