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Simon Ormston, Head, Outsourcing Marketing, BT Global Services

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Information about Simon Ormston, Head, Outsourcing Marketing, BT Global Services

Published on February 13, 2008

Author: nasscom2008

Source: slideshare.net

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Shifting sights from America to Europe Simon Ormston Head of Outsourcing Marketing BT Global Services Version 1.0

2008 marketplace Europe USA Volatile times & high uncertainty Forrester’s view – the US economy will be decidedly weaker in 2008 - BUT there will not be a recession IT growth will be in line with economic growth US will continue to be the most important market for Indian ITS through to at least 2012 US Sub-prime disaster is having a global impact Massive uncertainty - more bad news – it will get worse before it gets better! Global economy and therefore IT spending will slow In 2009 tech market slide should reverse – increased focus on IT which delivers business results Global market Europe provides new opportunities but is heterogeneous with countries displaying very different levels of maturity UK is the largest European market for outsourcing and will see a slowdown due to its close financial ties with the US

Forrester’s view – the US economy will be decidedly weaker in 2008 - BUT there will not be a recession

IT growth will be in line with economic growth

US will continue to be the most important market for Indian ITS through to at least 2012

US Sub-prime disaster is having a global impact

Massive uncertainty - more bad news – it will get worse before it gets better!

Global economy and therefore IT spending will slow

In 2009 tech market slide should reverse – increased focus on IT which delivers business results

Europe provides new opportunities but is heterogeneous with countries displaying very different levels of maturity

UK is the largest European market for outsourcing and will see a slowdown due to its close financial ties with the US

India India will maintain its cost advantage for the foreseeable future Indian MNCs should continue their European strategies Strive to attain preferred supplier /partner status with leading accounts/brands – requires time, consistency in quality of service delivery and business value innovation Develop European recruitment strategy to build understanding of the market by middle management and senior IT professionals Build vertical market domain knowledge in order to move up the value and relationship stack Establish alliances which will achieve knowledge transfer and will provide access to skills, new capabilities and markets Look to make mid-tier acquisitions – build the geographic, skills and capability base in order to become prime SI or key niche partners to European organisations Develop existing propositions in testing, BPO, RIM, product eng, SOA Despite high attrition rates, increasing salary costs and the rising value of Rupee, India will maintain its cost advantage for the foreseeable future Expectations of staff must change – reward performance and not just technical capability, effort or even productivity gains Take the ‘currency’ hit on the chin, but ensure that a strategy is in place to manage this risk in future Cost advantage Building European business

Indian MNCs should continue their European strategies

Strive to attain preferred supplier /partner status with leading accounts/brands – requires time, consistency in quality of service delivery and business value innovation

Develop European recruitment strategy to build understanding of the market by middle management and senior IT professionals

Build vertical market domain knowledge in order to move up the value and relationship stack

Establish alliances which will achieve knowledge transfer and will provide access to skills, new capabilities and markets

Look to make mid-tier acquisitions – build the geographic, skills and capability base in order to become prime SI or key niche partners to European organisations

Develop existing propositions in testing, BPO, RIM, product eng, SOA

Despite high attrition rates, increasing salary costs and the rising value of Rupee, India will maintain its cost advantage for the foreseeable future

Expectations of staff must change – reward performance and not just technical capability, effort or even productivity gains

Take the ‘currency’ hit on the chin, but ensure that a strategy is in place to manage this risk in future

European clients IT services which deliver measurable business benefit Increasingly business value orientated CIOs are looking for value creation and will increasingly build in performance criteria into contracts – not just low cost but outcome driven measures – payment in relation to performance CIOs tend to see Indian companies as being process led and still not the best option for new solutions or working with internal transformation teams – barrier to overcome CIOs will increasingly demand contract terms/SLAs which: Insist on representation from HR in the programme Steering Committee Include penalties for excessive staff turnaround or mobility within the project Include severe penalties for non-delivery Push for delivery of the roadmap suggested in the RFP as the basis for payment Demand implementation on time/on budget metrics Measure responsiveness to ‘hot swap’ away from troubled locations CIOs want to understand global delivery capabilities - how the service will be executed – blended sourcing is a threat to India only companies CIOs will increasingly look for solution accelerators/re-usable components

CIOs are looking for value creation and will increasingly build in performance criteria into contracts – not just low cost but outcome driven measures – payment in relation to performance

CIOs tend to see Indian companies as being process led and still not the best option for new solutions or working with internal transformation teams – barrier to overcome

CIOs will increasingly demand contract terms/SLAs which:

Insist on representation from HR in the programme Steering Committee

Include penalties for excessive staff turnaround or mobility within the project

Include severe penalties for non-delivery

Push for delivery of the roadmap suggested in the RFP as the basis for payment

Demand implementation on time/on budget metrics

Measure responsiveness to ‘hot swap’ away from troubled locations

CIOs want to understand global delivery capabilities - how the service will be executed – blended sourcing is a threat to India only companies

CIOs will increasingly look for solution accelerators/re-usable components

Offices worldwide Telecommunications services described are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc's respective standard conditions of contract. Nothing in this publication forms any part of any contract. © British Telecommunications plc 2007 Thank you

Tech Mahindra strategic partnership BROADER SERVICE OFFERING IT Outsourcing IT Operations Outsourcing Business Process Outsourcing Shared Services Business Process Management GLOBAL DELIVERY STRATEGIC ASSET BT has a 31% stake in Tech Mahindra. Partnership offers significant savings to our customers. Faster time to market – with scale. TRACK RECORD Tech Mahindra 18 years experience. Business outcome driven services. Tech Mahindra is ISO 9001:2000 and BS7799 certified across all development centres and is assessed at SEI-CMMi Level 5. Supported by over 22,000 professionals. Seven state of the art software development centres. 13 regional offices. Unrivalled knowledge pool. Real-time client dashboards provide project performance metrics on delivery. Better Customer Experience Wider Capabilities Proven Approach Scalable Operations Long-term partnership offering a new global sourcing model

Wipro strategic partnership BROADER SERVICE OFFERING IT Services Product engineering services Infrastructure services Business Process outsourcing Consulting services GLOBAL DELIVERY STRATEGIC PARTNER Among the top 3 offshore BPO services provider in the world Delivering information technology and business process outsourcing services TRACK RECORD Largest third-party service provider in the world Largest Indian technology infrastructure management service provider First company to deploy six sigma in IT services 75,000 strong people From 40 nationalities Present across 29 countries Across 22 vertical markets Better Customer Experience Wider Capabilities Proven Approach Scalable Operations Leader in integrated business, technology & process solutions

Infosys strategic partnership BROADER SERVICE OFFERING Application services Systems integration Maintenance & support Business process outsourcing IT services Consulting services GLOBAL DELIVERY STRATEGIC PARTNER Long standing partner with BT Award winning integrated innovation partnership with BT that delivers results (NOA 2007 winners for Field Optimisation Suite FOS application) TRACK RECORD Voted best company to work for in India (TNS Mercer, 2006) Talent development is key differentiator – able to simultaneously evaluate 10,000+people across 7 cities in India 80,500 people 65 nationalities 22 countries 44 Global development centres (24 in India, 20 North America, Europe & Asia Pacific) Better Customer Experience Wider Capabilities Proven Approach Scalable Operations Pioneers of the Global delivery platform model for Global companies

Benefits of working with our strategic partners RISK Proven delivery and transition process Governance model QUALITY COST Circa: 40% reduction in existing cost Automation of processes FLEXIBILITY Quick ramp up and ramp down Modularised application support Standardized processes High quality resources Consolidate Teams Improve Processes Cross Train Resources Stabilise Systems Development Bandwidth Maintenance Effort Offering a holistic view across sectors and creating a shared learning approach Continuous cycle of process improvement, system stabilisation, cross training & consolidation of support teams

Proven delivery and transition process

Governance model

Circa: 40% reduction in existing cost

Automation of processes

Quick ramp up and ramp down

Modularised application support

Standardized processes

High quality resources

The BT Approach To establishing operational efficiency BT strategic sourcing approach Business Agility Disparate Multiple SLA’s & Vendors Fragmented Complexity Sub optimal High costs Lowering complexity Reduce risk and costs Transition Transformation Innovation Improved flexibility Speed to market Improve productivity React to change Further reduce costs Consolidate Greater Control Competitive differentiation Improved customer experience Extend Resources now focused on value creation versus managing complexity Converge Platform for business true agility

Next Steps Measure Execute 90 Day Plan Adopt & Consolidate Value Time Reduce Cost Remove Complexity Collaborative innovation Adapt & Converge Transform & Extend Continuous Service Improvement Business outcome alignment Strategic Sourcing and Benefits Roadmap Transformation plan Measurable benefits Contact novation TUPE People opportunities Collaborative innovation framework Governance Multisource service integration Commercial model Business Strategy Review Infrastructure Assessment Operational Assessment Service Level Assessment Multisource Partner ecosystem Business Outcome Alignment Business Outcome Measurement

Reduce Cost

Remove Complexity

Collaborative innovation

Transformation plan

Measurable benefits

Contact novation

TUPE

People opportunities

Collaborative innovation framework

Governance

Multisource service integration

Commercial model

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