Sourcing Gurus Advisory Briefing Ver 1.0

© 2010 Systems Plus Proprietary and Confidential

www.SourcingGurus.com

Sourcing Gurus – Advisory Briefing

March 2010

http://www.sourcinggurus.com/




Agenda

About Systems Plus

Profiles

Background

Our Approach

Sourcing Advisory

Methodology

Vendor Classification & Timelines

Service Offerings

2




About Systems Plus Background

Our Approach Sourcing Advisory Methodology Vendor Classification & Timelines

Service Offerings





Systems Plus Solutions – Background

20 years of transforming global enterprises using Technology

Experience in 20+ countries, multi-lingual, multi time zone environment

Team of 300+ resources and growing

ISO Certified Processes (ISO 9001:2008)

Key practice areas:

Sourcing Advisory (services rendered under “Sourcing Gurus” brand)

Technology Solutions

Oracle E-Business

Support & Helpdesk

4

Oracle E-Business

Sourcing Advisory

Technology Solutions

24/7 Helpdesk &

Support


http://www.systems-plus.com/

http://www.spec-india.com/


Oracle E-Business Business Consulting Technology Solutions

Oracle E-Biz Implementation

Process Manufacturing

Financials, HRMS

Order Management

Advance Pricing, Workflow, EDI/E-Com Gateway

Oracle On Demand Support

CEMLI development & customization

DBA Services: DB Audit, Remote Server Management

Oracle DBI & BIEE

Forms / Reports / Discoverer / PL/SQL

Sourcing Advisory

Vendor Selection

VMO / PMO setup and sustain

Managed Services Scorecard

Governance, Risk & Compliance

IT Audit & Health Check

IT Compliance: Implementations of COSO/COBIT 4.0 compliant IT Operating Model

SOX & ITIL Framework

Financial Services / Alternative Investments

Operational processing expertise

Master data management

Operating model definition / process standardization

Application Development and Maintenance

Intranet Portals and Share point Implementation

Legacy system migration

Offshore Project Support Services

Staff Augmentation Services

Product Development

EAI

MS.Net, VB 6, J2EE

SQL Server, MS Access, MS Office

Pocket PC, Win CE,

Hospital Management System

Services Portfolio

5


© 2010 Systems Plus Proprietary and Confidential 6

ChinaJapan

Thailand

Malaysia

Korea

Singapore

Australia

India

Dallas

Los Angeles

Spain Greece

Belg/ Holland

Portugal

UKFort Atk

Chicago

San Diego

Mexico

Poland

Russia

HongKong

NewZealand

Romania

Taiwan

Offices Partners

Canada

UK

India

US

India

US

Customers

Gulf

Turkey

Germany

Geographies



Lilavati Hospital

Some of our Clients

7




About Systems Plus Background


Service Offerings





Vision

The leading India based sourcing advisor, preferred by clients for delivering outstanding value at minimum cost

Systems Plus Advisory

9

SourcingGurus is a boutique advisory firm offering end to end consulting for IT, BPO and Infrastructure outsourcing initiatives. Our advisory service provides a comprehensive understanding of the client’s IT sourcing options

SourcingGurus consults with mid-sized (US $ 1 – 5 bn) companies on their outsourcing needs. We have domain expertise in the Retail and Manufacturing verticals

SourcingGurus succeeds when clients save 20 – 40 % of outsourcing costs with an appropriately matched sourcing partner



Why a Sourcing Advisor?

Advisors bring in value through unbiased advice

92.6% of clients surveyed say - “An advisor would have improved their outsourcing initiative”

Over 2/3rd of clients say they will use an advisor for their next outsourcing initiative

91.8% of clients surveyed are satisfied with their outsourcing advisor

Source: 2008 Black Book of Outsourcing

10

Advisors have demonstrated their value and contribution to clients in both first time and repeat outsourcing engagements.

They bring insight, objectivity and local knowledge to enhance results for successful outsourcing initiatives



Typical Sourcing Lifecycle

11

Sourcing Strategy1 Vendor Selection2

Transition3Relationship Management4

Outsourcing Lifecycle

Sourcing Value

Assessment & Sourcing Readiness

Strategy Formulation

Transition to Vendor

Contract Review / Resource

Steady State Optimization

Requirement Definition RFI/RFP

Vendor Evaluation &

Selection

Due Diligence & Negotiation



Methodology: Vendor Selection

12

Validate Scope and Shortlist Vendor Data Collection and Analysis

Onsite support for data collection phase

Capture key data

Offshore data validation

Analyze and model data

Finalize and approve RFP with OSI team and Legal

Modify RFP, if required

Establish contact with vendors

Sign NDA with vendors for RFP release

Finalize RFP

RFP Finalization

Pro

cess

Det

ails

Scope WorkshopData Collection & RFP Build

Data collection, validation and Analysis

Build RFP & Annexure

RFP Finalization

Scope workshop to

Validate final information to be released in RFP

Final vendor short list for Financial and IT scope

RFP creation to start with data analysis

Create draft RFP for Financial and IT scope

Vendor NDA

Vendor shortlist: Finance and IT

Validate Scope and review RFP

Sourcing Readiness

Kick off and Readiness Assessment

RFP Creation

Readiness assessment

People, Process, Strategy checkpoints

Outsourcing Steering Committee formation

Briefing on vendor selection process

Data collection templates introduction

Plan for Internal Setup and Sustain (Client side activities)

Outsourcing preparation and gap identification

GiantTIER

1Contenders

TIER 1

Global -India arm

TIER 2Pure Play

TIER 2



Release of RFP to shortlisted vendors

RFP clarifications

Release RFP response / additional data to vendors

Manage all communication with vendors

Determine elimination criteria to quickly evaluate knockouts and strikeouts from vendor proposals

Elimination Workshop is conducted to shortlist vendors to visit

Checkpoint for vendors selected that are common in both RFPs


13

Detailed Evaluation

The short listed vendors will go through detailed response rating & analysis process prior to vendor visit

Analysis is carried out for vendors based on

Over all response

Best fit (Technology and culture)

Financials

Quick Elimination

RFP Analysis

Vendor Proposal

RFP Management

Vendor contacts

RFP Release, RFP Clarifications and final Proposals

Det

ails

Pro

cess

Clarification/ Additional data

Elimination workshop Detailed Ratings of vendor response




14

Participation in quarterly governance meeting with vendor

Review SLAs

Issues

Escalations

Relationship counselor and liaison between client and vendor

Review of transition plan

Transition governance setup

Transition assessment and analysis

Transition checkpoints for various transition phases

Shadow

Reverse shadow

Transition Support Relationship Management

Vendor Visits & Re-evaluation

Vendor facility visits for proposal defense

Evaluate

Delivery team

Solution assumptions

Account executives

Process & Facility

Management attention

Finalize qualified vendors

Revised bid , if required

Final walk through & negotiation

Vendor Visits Negotiation

Det

ails

Pro

cess

Detailed proposal and vendor team evaluation

Due diligence and negotiation Transition oversight, checklist based approach

Relationship Management Oversight

Transition planning Sustain outsourcing relationship

Vendor performs onsite due diligence before final proposal

Best and final offers

Negotiation with selected vendors

Finalize draft MSA/SOW




About Systems Plus Profiles Background


Service Offerings





Vendor Classification – IT

16

InfosysTCS

Wipro

CognizantHCL

Mahindra-Satyam Patni

AccentureCapgemini

CSCHP (EDS)

IBM

HexawareiGate

MastekMindtree

Syntel

Pure PlayTIER

2ContendersTIER

1GiantTIER

1Global -India arm

TIER 2

Leading Indian offshore providersEqually strong in IT, BPO and Infrastructure offerings Competing with Global players on equal footing

Revenue $4 bn +

Employees 50,000 +

Vendors with significant Indian delivery teams & global presenceBuilding competencies in Integrated BPO and Infrastructure offerings

Revenue $500 mn- $3 bn

Employees ~30,000 +

Mid sized companies with good delivery capabilityTraditionally stronger in Application Development and Support

Revenue $200 mn -

$500mnEmployees ~ 5,000 +

Mature Model –building synergies with local operationsGlobal vendors with good Indian presence Have acquired sizeable firms to leverage offshore model

Sales - India in infancy India Employees 15,000 +



Vendor Classification – BPO

17

AegisFirstSource

GenpactIntelenet

WNS

TIER 1 Pure Play

Proven global delivery track record, rapidly expanding, focused on providing BPO offerings for different domains

Revenue

$500 mn +

Employees

15K +

CognizantHCL Tech

IBM DakshInfosys

Mahindra SatyamTCS

Wipro

TIER 1 ITO & BPO

Vendors

Has a mature service delivery footprint in ITO domain, with BPO as an extension to their service offerings. Have setup delivery centers in India as well as global for more competitiveness in the BPO service offerings

Revenue

$ 500 mn

Employees

~12K +

24/7

Cambridge

EXL

HTMT

Minacs

Sitel

Pure PlayTIER

2

Gained global exposure and capabilities by servicing their large client accounts. They are strong in niche area and compete with all other players

Revenue

$50 mn – $500 mn

Employees

~<10K



Vendor Selection Process – IT

1

Giants

Contenders

Pure Play

Global -India arm

8 - 10 ~ 4 - 5 2

- Milestone

RFP Release

Due Diligence begins

RFP Submission

Scope Workshop

Readiness Checklist

Letter of intent

Vendor visits

Filter 1

Elimination

Filter 2

Vendor visits

Filter 3

Contract negotiation

3 Months 3 Years

18

RFP release and clarification

Elimination workshop

Delivery model, & finalize RFP vendors

Data Collection,RFP Build RFP Management Vendor Selection

Proposal Defense

Internal Preparation

Sourcing Readiness

Transition

KickoffSourcing Readiness

RFP Creation

Data Gathering

Vendor Visits

RFPAnalysis

RFPManagement

RFP Release

FinalizationDue

Diligence

Negotiation Relationship Management

TransitionSteady State Optimization

Contract Review

Transition

Pricing & negotiation / Vendor recommendation

Performance monitoring & Vendor management



Tim

elin

e

MarJan FebDec Apr May Jun Jul Aug

Timelines – IT

19

Vendor Selection Transition RM

PMO Setup

VMO Setup

Process Harmonization

Inte

rnal

Set

up

an

d S

ust

ain

Finalize SLA

Finalize Engagement Governance

VMO ,Governance and Process Support (Ongoing)

Co

re P

has

e

Sourcing Readiness

RFP Management

RFP Analysis

Readiness Assessment

Vendor Visits

Data Collection & RFP BuildBuild Scope and Scope Workshop

Transition Support

Vendor Visit

RFP Submission RFP Release

Elimination Workshop

Relationship Management

Transition Preparation and Set up

LOI Negotiation

Y1 Y2 Y3

Outsourcing Remediation

Client side project management



Client List – Sourcing Advisory

Client Scope Description Sourcing Strategy

Vendor Selection Relationship Management

Vendor Evaluation and Selection

Due diligence and Negotiation

Contract Review / Resource

Steady State Optimization

Application Development and Maintenance (ADM)

Application Portfolio Analysis

Sourcing value assessment

Strategy formulation

Requirement definition

RFI/ RFP

Vendor evaluation and selection

SOW

MSA review

Alternate vendor strategy

Captive unit Business Case

Incumbent vendor performance improvement

Process Audit

ADM Outsourcing

Infra Outsourcing

Competency Centers

QA

DW/BI



RFP Management

RFP response analysisVendor visitsRecommendations

SOWMSA review

VMO Back office

ADM Outsourcing

BPO - Finance & Accounting (F&A)



RFP


SOW

MSA review

Negotiation & Contracts

ADM Outsourcing

Helpdesk Outsourcing

VMO

PMO



RFI / RFP

Data collection and analysis


SOW

MSA review

Negotiation & Contracts

Vendor management office Setup

Project management office Setup

ADM Outsourcing Requirement definition

RFP Management

Vendor evaluation and selection

RFP analysisVendor visits

F&A outsourcing RFI –APAC SAP resource

augmentation RFI –Europe

Scope buildRFI process finalizationRFI creation RFI Management

Vendor research & shortlistRFI response analysisRecommendations

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Our Differentiators

We leverage knowledge of being both an IT vendor and a client in our advisory services

Over 20 years of experience as an India based IT solutions provider

Vendor selection process formulated by the CEO based on his prior CIO experience.( as an outsourced CIO of OIS, a Santander group company, and ex-outsourced CIO of Frito-Lay Asia Pacific )

A highly knowledgeable team of consultants and domain specialists to support the processes

Advisory services based out of India

Insights into the Indian market scenario and evolving vendor capabilities

Provide valuable perspective in the selection process through our understanding of cultural nuances and regional diversity

Efficient scheduling and coordination of logistics of vendors visits

We are close to the clients through our offices in the USA and UK

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Advisory value adds

Vendor Selection process with advantages

Advice and direction from the starting of process

Relationship management oversight (3 years ongoing during contract period included)

Vendor SWOT of India delivery operations

Cost benchmarking

Fast tracking of selection if required

Experience as Tier 3 IT software vendor provides

Direct knowledge of market conditions

Easy access to all vendors (global and Indian)

Immediate information of skill availability – zero lag

Acclimatizing client team

Coordination of all India travel, scheduling and vendors visits

Sensitizing to local culture and norms

Establish and sustain outsourcing governance process

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About Systems Plus Profiles Background


Service Offerings





Service Offerings

24

• Internal preparedness and reorganization

Sourcing Readiness Assessment and Strategy Formulation

Vendor Evaluation and Selection through a RFI / RFP process

• Establish PMO / VMO

• Provide Back Office support for VMO

Steady State Optimization and Relationship Management

Contract Review and Resourcing Alternatives

• Web based tool using the Balance Scorecard framework

Relationship Management Scorecard




Thank You




Sourcing Gurus Advisory Briefing Ver 1.0

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Transcript of Sourcing Gurus Advisory Briefing Ver 1.0