We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byHelena Mulnix
Modified over 2 years ago
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Dr. Richard Sykes Chairman, Intellects Outsourcing & Offshore Group Sole Partner, Dr Richard Sykes BCS Offices, Covent Garden London, 5 th September 2006 BCS Globalisation Masterclasses Global Services: Moving to a level playing field Dr Richard Sykes Mark Kobayashi-Hillary Board Director, National Outsourcing Association
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Outsourcing/Offshoring Post-Millennium – Rapidly Changing Contexts The New Globalisation Consumerisation of the ICT offer Emergence of the Services Model Emergence of Loosely Coupled Technologies
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved A Decades Revolution to 2005 Calling in the New World to Redress the Balance of the Old [Canning] Four new Indian global players in the $1-2.5 bn band: revenue growth 25-40%+ p.a. (TCS, Infosys, Wipro, Satyam) Combined with relatively open global markets, involvement of the Diaspora & a determined focus on quality & technical professionalism Broad service mix: Application development & management; package implementation; systems integration; consulting; BPO; KPO; infrastructure management - and onsite/offshore blending Source – Anthony Miller Arete Research, @ 2006 Regent Conference
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Entrepreneurialism and Arbitrage The Millennial turn has seen offshore, near shore, smart shore, blended shore develop as a norm Euro-American majors globalising into India. Top 8 have >70,000 delivery staff in India Top 6 Indian majors forecast to employ > 50,000 staff in Europe by 2008 Professional labour arbitrage! TCS, Infosys, Wipro 2005 EBIT* margins of 25- 30%: Tier 2 players ~20% McKinsey (2005/6) forecast a $380bn ITO/BPO opportunity by 2010: 35% offshored, and India potentially placed to maintain its #1 position *Source – Anthony Miller Arete Research, @ 2006 Regent Conference; McKinseys
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Forecast GDP in $ Trillion Source – McKinsey Estimates. Courtesy of Regent Associates The Fundamental Market Shift - Geographic GDP 2010-2050
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved But the whole story? Calling in the Consumers World to Redress the Balance of Old Enterprise IT [With apologies to Canning] 1995 onward - new companies move to create & exploit the consumer opportunity New paradigms: The user shapes the game, sets the pace A kit sale ?(fancy mobile phones!) but really a service sale (& whoever heard of outsourcing?) The Internet as a significant delivery vehicle Advertising as the new earnings stream
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved A Decades Triple Revolution to 2005 The Second Globalisation Software and services follow hardware Consumerisation An even more radical breaking of the industry mould Rise of Application Professionalism Rapid expansion of practice boundaries
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved The Ever Widening Spectrum of Contemporary Professionalism Acknowledgement to CSC Leading Edge Forum
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Computer Services and Information/Data Services Exports Imports Trade Surplus 2003 £4.3 bn £1.8 bn £2.5 bn 2004 – 1H £2.3 bn £1.1 bn £1.2 bn Business Services – Professionally Rich & Technology Rich Exports Imports Trade Surplus 2003 £31.7 bn £14.1 bn £17.6 bn 2004 – 1H £15.9 bn £7.0 bn £8.9 bn What is the performance of the UK industry?
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved World trade in services (~$1.8 trillion in 2003) is only ~ 1/5 th of trade in manufacturing Only 10% of services enter international trade vs. 50% in manufacturing Top two in exports of computer services are Ireland and India: in business services are US and UK (who are both in trade surplus in services – both in trade deficit in manufacturing) Courtesy of Prof. Mari Sako, SAID Business School, Oxford. Global Trade in Services
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Within the M25 is found the highest concentration of non-national professionals in the world The City (Banking, Financial Services, Insurance) (2004): Trade surplus $25.3 bn; Employs > 1.0 million; Financial Services account for ~5.5.% GDP, rising to ~ 9% GDP when associated business services are included; The Creative Industries (Media, Design, Education) (2001): Revenues ~£112.5 bn; Employs ~1.3 million; Exports ~£10.3 bn; accounts for >5% GDP Major elaborators of ICT capabilities And not only Business Services………
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved The Five Virtualisations/Architectures Virtualisation of computing power Virtualisation of business process management (BPM) Systems/Services-Oriented Architecture (SOA) Virtualisation of the network (Over IP) Architecture for Software as a Service/Web Services From the tightly coupled to the loosely coupled Foundations for the Next Decades Revolution?
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved From Tightly Coupled to Loosely Coupled Classic Outsourcing models are based on Enterprise IT/ Facilities Management model (tightly coupled) Emergent shift to the Sourcing model (loosely coupled) The Assembly of Service/Value Chains Exploitation of global networks & the Internet potentially enables global service sourcing strategies BUT Geography only one factor in an increasingly rich decision mix ( fit for purpose, fit for use test) Business Assurance of Service/Value Chains a major new challenge
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved The Global Delivery Model: Direction Setters in this Wider Context - 1 The Services Model Technology rich/professionally rich Focus on technology productivity? Focus on application effectiveness? Innovation & development Focus on technology productivity? Focus on application effectiveness?
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Volume IT Organisations & IT Services firms Commoditised Services – Labour intensive – One-to-one High Human/Technology Ratio High Technology/Human Ratio Transactional Cost – Capital intensive – One-to-many Maturity brings potential for commoditisation Acknowledgement to CSC Leading Edge Forum The Global Delivery Model: Direction Setters in this Wider Context - 2
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Best of Breed/Competitively Fit for Purpose Focus in making the technology sweat the assets (high utilisation/reliability/flexibility): commoditised infrastructural services commoditised transactional services Vs. Focus in delivering high application specificity: Specialty end-application-aligned services Highly tuned to end-market requirements The Global Delivery Model: Direction Setters in this Wider Context - 3
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved And neer the twain shall (sustainably) meet! The Global Delivery Model: Direction Setters in this Wider Context - 3
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved The New Globalisation Model: Four Fundamentals to Address Clarity of business objectives in a genuinely global market place [what makes for sustainable edge ?] Back office, infrastructure as commoditised services [from outsourcing to sourcing] Sharp end/front end requires partners with deep experience of the business [from domain knowledge to end-market intimacy] Ascendance of relationship structuring over adversarial procurement
www.dr.richard-sykes.com Copyright © 2006 Dr Richard Sykes and all rights reserved Dr Richard Sykes www.dr.richard-sykes.com +44 (0)20 7917 1715 (office) +44 (0)20 7354 0848 (fax) email@example.com Global Services: Moving to a level playing field Thank You! Book to be published by the BCS in Feb 2007 Mark Kobayashi-Hillary firstname.lastname@example.org www.markhillary.com 07952 267 074
Select China as an Alternative Destination
IBM’s Transformation to a Services Company and the Growth of Digital Trade Michael DiPaula-Coyle IBM Governmental Programs.
Fiji Australia Business Council Business Tomorrow Ian Lyons Group General Manager Sales, Marketing & Business Development Business Tomorrow.
June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain.
ObjectWin Confidential ObjectWin Corporate Presentation.
1 Services Globalisation in Australia - Trends and Perspectives Pradeep Khanna Chief Executive, GLOBAL MINDSET.
TECHNOLOGIA is a startup company in Bangalore in 2007 which is completely owned by emirates telecommunication corporation- ETISALAT. It has helped.
WHICH TO CHOOSE RIGHT SERVER FOR THE RIGHT JOB. Today’s business environment demands that small and midsize businesses do more with less. The large majority.
© Steria Steria in Utilities We Go Beyond Copyright Steria 2010.
Globalization, Knowledge and Regions Philip McCann University of Waikato NZ and University of Reading UK.
Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Irwin/McGraw-Hill Copyright © 2002, The.
Prof. Yuan-Shyi Peter Chiu
E-Commerce: An Enron View Mike S. McConnell Vice Chairman & Chief Operating Officer Enron Net Works.
For further information or copies of this presentation
CONFIDENTIAL © 2007 Infosys Technologies Ltd. Strictly private and confidential. No part of this document should be reproduced or distributed without the.
© Copyright IBM Corporation 2009 IBM Global Business Services Innovation driving strategic choices for P2P Saul Berman Global & Americas Leader, IBM Strategy.
Confederation of Indian Industry 1 October 4, 2004.
Challenges for EU competitiveness
UK TRADE & INVESTMENT (UKTI). Anthony Arkle Energy & Infrastructure Inward Investment Projects 4 th December 2009.
Research Department 1 Global Economic Crisis and the Israeli Economy Herzliya conference Dr. Karnit Flug Research Director, Bank of Israel February 2009.
1 Operations Management, Competitiveness, and Operations Strategy Lecture 1.
FINUAS Network Meeting 22 July 2009 Brendan Kelly, Director Financial Services Ireland.
ConclusionQuestion Mark Let the Markets Decide A Conclusion or a Question Mark ? Dr Mahesha Ranasoma.
1 Winning Professional Accountant Suresh Gooneratne Diesel & Motor Engineering PLC 20 October, 2012.
Welcome - Tea and Coffee – 11.00EI Strategy Overview Jim Cuddy, Dept Manageer, Software Division Enterprise Ireland, –
1 WIPO/AEPPI International Symposium on Intellectual Property: A Strategic Tool for Economic Growth Challenges and Opportunities for a Competitive Software.
NASSCOM BPO STRATEGY SUMMIT 2009 BPO :: INDIAN DOMESTIC MARKET S. VENKAT KUMAR RELIANCE BPO 10 TH June 2009.
An Introduction to Operations Strategy
Leveraging Structural Funds for Mobile Services Angelos Manglis President & Managing Director, Atlantis Consulting S.A. MOBIP project Coordinator.
1 The contribution of ICT in achieving the new Lisbon Agenda Brian Williamson David Lewin Puntoit/Key4Biz Workshop 7th June
MBT: Your Partner in Successful Change Vision 2008 MBT Shadow Board.
Presentation by: VIKRAM TIWATHIA CHIEF INFORMATION OFFICER CONFEDERATION of INDIAN INDUSTRY FOSTERING INDIAN ICT TO GLOBAL REACH.
REVENUE IMPACT OF OPTIMIZED NETWORKS Egbert Clarke Vice President International Business.
Copyright © 2008 Accenture All Rights Reserved. Changing the Game with Your Customers – A Supply Chain Strategy in Action ECR Asia Pacific Conference 2008,
March, 2010 OVERVIEW April, Scrap / Recycling Steel Mills Downstream Gerdau Ameristeel | Efficient vertical integration.
Anywhere AnITime in 2009 Going Global with Mobile IT Andy Mulholland Global CTO.
© Infosys Technologies Limited Akshaya Bhargava Reinventing Customer Processes.
High-Level Seminar on E- Communications The development of the ICT sector during the crisis: International comparisons Information Technology Outlook Graham.
© SSPA and TPSA 2006 HIGH TECH SERVICES The Role of Service Innovation In the Economy’s Most Famous Product Sector J.B. Wood President and CEO Service.
Vicky Pryce Chief Economic Adviser and DG, Economics DTI Economics Teachers’ National Conference An Ever Changing Business World: Globalisation & the.
Business Services in Europe: Raising the Game Norman Rose Vice-Chairman High Level Group on Business Services & Chairman European Business Services Round.
What is an Information System? Input of DataResourcesProcessing Data Data Control of System Performance Storage of Data Resources Output of InformationProducts.
WIPRO : A STRATEGIC PERSPECTIVE
Keshav R. Murugesh Keshav R. Murugesh Category: CA Business Achiever Category: CA Business Achiever Sub–Category: Corporate Category: CA.
Agile insurance carrier - What the carrier has to look like? Glenn Lottering Senior Director, EMEA Insurance Product Strategy and Sales Consulting.
© Grant Thornton LLP. All rights reserved. Next – Generation Outsourcing Kris Ruckman June 4, 2008.
All logos, trademarks, trade names and graphics used herein are the property of their respective owners© Infotech Enterprises Ltd All rights reserved.
6 th International Venture Capital Forum Athens, June 14 th 2005 Last years success story Konstantinos Zygouras – Vice President & Managing Director.
Context Rich Systems Market to Global Analysis and Forecasts by Component, Device and Vertical No of Pages: 150 Publishing Date: Feb 2017 Single.
© 2017 SlidePlayer.com Inc. All rights reserved.