Sourcing Gurus Advisory Briefing Ver 1.0

Sourcing Gurus – Advisory Briefing

March 2010

www.SourcingGurus.com
© 2010 Systems Plus Proprietary and Confidential

Agenda

 About Systems Plus
 Profiles
 Background
 Our Approach
 Sourcing Advisory
 Methodology
 Vendor Classification & Timelines
 Service Offerings

© 2010 Systems Plus Proprietary and Confidential 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 Oracle E-
Business
Sourcing
Advisory

Support & Helpdesk

24/7
Technology
Helpdesk &
Solutions
Support


Services Portfolio

Oracle E-Business Business Consulting Technology Solutions
 Oracle E-Biz Implementation Sourcing Advisory  Application Development and
 Process Manufacturing  Vendor Selection Maintenance
 Financials, HRMS  VMO / PMO setup and sustain  Intranet Portals and Share
point Implementation
 Order Management  Managed Services Scorecard
 Legacy system migration
 Advance Pricing, Workflow,
EDI/E-Com Gateway Governance, Risk & Compliance  Offshore Project Support
 IT Audit & Health Check Services
 Oracle On Demand Support
 IT Compliance: Implementations  Staff Augmentation Services
 CEMLI development &
customization of COSO/COBIT 4.0 compliant IT  Product Development
Operating Model  EAI
 DBA Services: DB Audit,
Remote Server Management  SOX & ITIL Framework  MS.Net, VB 6, J2EE
 Oracle DBI & BIEE Financial Services / Alternative  SQL Server, MS Access, MS
 Forms / Reports / Discoverer / Investments Office
PL/SQL  Operational processing  Pocket PC, Win CE,
expertise  Hospital Management System
 Master data management
 Operating model definition /
process standardization


Geographies

Canada
Poland
Fort Belg/
Atk UK Holland Russia
Los Angeles Chicago UK Germany
Romania
San US Turkey
Portugal Spain
US Greece
Diego
Dallas Japan
China Korea
Gulf India Hong
Mexico India Kong
India Thailand
Taiwan
Malaysia

Singapore

Australia

New
Zealand

Offices Partners Customers


Some of our Clients

Lilavati Hospital


 Background

 Our Approach
 Methodology


Systems Plus Advisory

 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

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


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

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

1 Sourcing Strategy 2 Vendor Selection

Sourcing
Value Strategy Requirement Vendor
Assessment Formulation Definition Evaluation &
& Sourcing RFI/RFP Selection
Readiness

Due
Contract Steady State Transition to Diligence &
Review / Optimization Vendor Negotiation
Resource

4 Relationship Management 3 Transition

Outsourcing Lifecycle


Methodology: Vendor Selection
Sourcing Readiness Data Collection & RFP Build Scope Workshop RFP Finalization
Kick off and Readiness Data Collection RFP Creation Validate Scope and Shortlist Vendor RFP Finalization
Assessment and Analysis
Process

Validate Scope and review RFP Finalize RFP

TIER TIER
1 Giant 1
Contenders

Outsourcing preparation and Data collection, Build RFP &
TIER
gap identification validation and Annexure TIER
2 2
Global -
Pure Play India arm
Analysis
Vendor NDA
Vendor shortlist: Finance and IT

Readiness assessment Onsite support RFP creation Scope workshop to Finalize and approve RFP
People, Process, for data to start with Validate final information to be with OSI team and Legal
Strategy checkpoints collection phase data analysis released in RFP  Modify RFP, if required
Capture key Create draft
Details

Outsourcing Steering Final vendor short list for Financial Establish contact with
Committee formation data RFP for and IT scope vendors
Briefing on vendor Offshore data Financial and
Sign NDA with
selection process validation IT scope
vendors for RFP
Data collection templates Analyze and release
introduction model data
Plan for Internal Setup
and Sustain (Client side
activities)


RFP Management RFP Analysis
RFP Release, RFP Clarifications and final Proposals Quick Elimination Detailed Evaluation
Process

Vendor Clarification/ Vendor Elimination workshop Detailed Ratings of vendor response
contacts Additional data Proposal

Release of RFP to shortlisted vendors Determine elimination criteria to quickly The short listed vendors will go through
RFP clarifications evaluate knockouts and strikeouts from detailed response rating & analysis
Release RFP response / additional data to vendors vendor proposals process prior to vendor visit
Elimination Workshop is conducted to Analysis is carried out for vendors based
Details

 Manage all communication with vendors
shortlist vendors to visit on
Checkpoint for vendors selected that  Over all response
are common in both RFPs  Best fit (Technology and culture)
 Financials


Vendor Visits Negotiation Transition Support Relationship Management
Vendor Visits & Final walk through & Transition planning Sustain outsourcing relationship
Re-evaluation negotiation
Process

Detailed proposal and Due diligence and negotiation Transition oversight, Relationship Management Oversight
vendor team evaluation checklist based approach

Vendor facility visits for Vendor performs onsite due Review of transition plan Participation in quarterly
proposal defense diligence before final proposal Transition governance setup governance meeting with vendor
Evaluate Best and final offers Transition assessment and Review SLAs
Details

Delivery team Negotiation with selected analysis Issues
Solution assumptions vendors Transition checkpoints for various Escalations
Account executives Finalize draft MSA/SOW transition phases Relationship counselor and liaison
Process & Facility Shadow between client and vendor
Management Reverse shadow
attention
Finalize qualified vendors
Revised bid , if required


 Profiles
 Background

 Our Approach
 Methodology


Vendor Classification – IT

TIER TIER TIER TIER Global -
1 Giant 1 Contenders 2 Pure Play 2
India arm

Leading Indian offshore Vendors with significant Mid sized companies Mature Model –
providers Indian delivery teams & with good delivery building synergies with
Equally strong in IT, BPO global presence capability local operations
and Infrastructure Building competencies Traditionally stronger in Global vendors with
offerings in Integrated BPO and Application good Indian presence
Competing with Global Infrastructure offerings Development and Have acquired sizeable
players on equal footing Support firms to leverage
 Revenue offshore model
 Revenue $500 mn- $3 bn Revenue
$4 bn +  Employees $200 mn - Sales - India in infancy
 Employees  ~30,000 + $500mn India Employees
 50,000 + Employees 15,000 +
~ 5,000 +

Hexaware Accenture
Cognizant
Infosys iGate Capgemini
HCL
TCS Mastek CSC
Mahindra-Satyam
Wipro Mindtree HP (EDS)
Patni
Syntel IBM


Vendor Classification – BPO

TIER TIER TIER
1 Pure Play 1 ITO & BPO 2 Pure Play
Vendors
Proven global delivery Has a mature service Gained global exposure
track record, rapidly delivery footprint in ITO and capabilities by
expanding, focused on domain, with BPO as an servicing their large client
providing BPO offerings extension to their service accounts. They are strong
for different domains offerings. Have setup in niche area and compete
delivery centers in India as with all other players
Revenue
well as global for more
 Revenue
 $500 mn + competitiveness in the
BPO service offerings  $50 mn – $500 mn
Employees
 Revenue  Employees
 15K +
 $ 500 mn  ~<10K
 Employees
 ~12K +

Cognizant
24/7
Aegis HCL Tech
Cambridge
FirstSource IBM Daksh
EXL
Genpact Infosys
HTMT
Intelenet Mahindra Satyam
Minacs
WNS TCS
Sitel
Wipro


Vendor Selection Process – IT
3 Months 3 Years

Readiness Scope RFP RFP Vendor Due Diligence Letter of
Checklist Workshop Release Submission visits begins intent

Sourcing Readiness Data Collection,RFP Build RFP Management Vendor Selection Negotiation Transition Relationship Management

Sourcing Data RFP RFP RFP RFP Vendor Due Steady State Contract
Kickoff Finalization Transition
Readiness Gathering Creation Release Management Analysis Visits Diligence Optimization Review

Internal Delivery model, & RFP release and Elimination Proposal Pricing & negotiation / Transition Performance
Preparation finalize RFP vendors clarification workshop Defense Vendor monitoring & Vendor
recommendation management

Giants

Contenders

8 - 10 ~4-5 2 1

Pure Play

Global -
India arm Filter Filter Filter
1 2 3
- Milestone Elimination Vendor visits Contract negotiation


Timelines – IT
Timeline

Vendor Selection Transition RM

Dec Jan Feb Mar Apr May Jun Jul Aug Y1 Y2 Y3

 Sourcing Readiness Readiness Assessment

 Data Collection & RFP Build
Build Scope and Scope Workshop

 RFP Management RFP Release RFP Submission
Core Phase

 RFP Analysis Elimination Workshop

 Vendor Visits Vendor Visit

 Negotiation LOI

 Transition Support

 Relationship Management

 Outsourcing Remediation
Internal Setup and Sustain

 Client side project management

 PMO Setup

 VMO Setup

 Process Harmonization

 Transition Preparation and Set up

 Finalize SLA

 Finalize Engagement Governance

 VMO ,Governance and Process Support (Ongoing)


Client List – Sourcing Advisory
Vendor Selection Relationship Management
Client Scope Description Sourcing Strategy Vendor Evaluation and Due diligence Contract Review / Steady State
Selection and Negotiation Resource Optimization
 Application Sourcing value Vendor evaluation and SOW Alternate vendor Incumbent
Development and assessment selection MSA review strategy vendor
Maintenance (ADM) Strategy formulation Captive unit performance
Application Portfolio Requirement definition Business Case improvement
Analysis RFI/ RFP Process Audit

 ADM Outsourcing Strategy formulation RFP response analysis SOW VMO Back
Infra Outsourcing Requirement definition Vendor visits MSA review office
Competency Centers RFP Management Recommendations
QA
DW/BI
 ADM Outsourcing Strategy formulation RFP response analysis SOW Negotiation &
BPO - Finance & Requirement definition Vendor visits MSA review Contracts
Accounting (F&A) RFP Recommendations

 ADM Outsourcing Strategy formulation RFP response analysis SOW Negotiation & Vendor
 Helpdesk Outsourcing Requirement definition Vendor visits MSA review Contracts management
VMO RFI / RFP Recommendations office Setup
PMO Data collection and Project
analysis management
office Setup
 ADM Outsourcing Requirement definition Vendor evaluation and
RFP Management selection
RFP analysis
Vendor visits
 F&A outsourcing RFI – Scope build Vendor research &
APAC RFI process finalization shortlist
 SAP resource RFI creation RFI response analysis
augmentation RFI – RFI Management Recommendations
Europe


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


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


 Profiles
 Background
 Our Approach
 Methodology



Service Offerings

Sourcing Readiness Assessment and Strategy Formulation

• Internal preparedness and reorganization

Vendor Evaluation and Selection through a RFI / RFP process

Steady State Optimization and Relationship Management

• Establish PMO / VMO
• Provide Back Office support for VMO

Contract Review and Resourcing Alternatives

Relationship Management Scorecard

• Web based tool using the Balance Scorecard framework


Thank You


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