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Atul Vashistha
Atul Vashistha
Chairman Neo Group
www.GlobalSupplyRiskMonitor.com
www.NeoGroup.com
Since 1999
M&A
Pricing Wages/ Hiring
Risk Management
Rising Geographies
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
SERVICES
ADVISORY
NEO GROUP
RISK MONITORING
Exclusively focused on superior outcomes through global services, outsourcing and related issues
RESEARCH
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
MY VIEWS
TRENDS 2012
Demand outlook expected to improve in 2nd half Insourcing, managed services models dominate
Professionalization of Outsourcing
M&A continue but yield little benefits Pricing expected to be flat Hiring & Utilization will strengthen Wages will rise creating margin pressure New Geographies will take market share away from traditional locations New opportunities: Cloud and Mobile
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
MATURING
BUYERS
Optimal Demand Management Innovation - key to transformation beyond SLAs Greater emphasis on collaboration New and improved vendor partnering Increasing focus on Risk & Governance New destinations: moving beyond India Professionalization of talent
IN 2012
Professionalization of Outsourcing:
Supplier management and governance challenges will help clients recognize the need to have professionally trained managers. Programs such as COP from IAOP, and workshops from companies like Neo Group will be leveraged more. Recognition of clear differences in sourcing and managing the services category vs. product categories will lead to higher importance of sourcing leads and vendor managers.
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
IN 2012
Utilization will strengthen next year, increasing staffing challenges on fast ramp initiatives
Managed services move beneficial
TRAP
TRAP
Joint involvement and participation of client in key operational activities of supplier is critical to business transformation
Sustained innovation becomes reality in collaborative relationships Effective knowledge management between all stakeholders essential to gain competitive advantage
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
RISK MANAGEMENT
Proactive Risk Management is critical to continued growth of industry: Greater attention to the diversity of ones geographic portfolio Increased attention to monitoring of risk and compliance related to disruption at supply locations and the supplier base Real-time alerts and monitoring of events, and their disruptive impacts Sorry for the plug but Neos Global Supply Risk Monitor web-service (globalsupplyriskmonitor.com)
16-12-2011
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
10 10
LOCATIONS
pie is growing:
Rising Geographies take market share away from traditional locations but the
New destinations continue to take a share of an expanding pie Eastern Europe & Central and South America are surging Buyers will increasingly utilize existing supplier's Global Delivery Models to provide time zone coverage and realize true 24x7x365 support Offshore players will continue to expand and/or setup operations in new geographies, such as Brazil, Poland, China, Mexico, and Colombia etc
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
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WORKFORCE PROFILE
Canada Excellent education system Productive IT workforce Capable for complex project Shortage of IT labor supply Poland Highest Universities in EE Large IT Workforce Largest Labor Pool in EE Excellent Education System Multi-lingual Skills Set Promising ITO & BPO labor market Czech Republic World class IT skills Very small IT graduate Very limited labor force Shortage of IT labor pool Colombia Large graduate pool Huge labor force Bi-lingual skills Promising Labor supply
Belarus Excellent Software Skills Small Labor Force Suitable for Niche Operation Smart & hard worker Ukraine World class programmers Smart & hard worker Creative workforce Romania Multi-Language Skills Highly Skill Worker Promising IT O & BPO labor market
Russia Excellent programming Skills Large universities graduate pool Large IT workforce Capable for large operation Promising IT labor market China Large IT workforce Improving Project Manager Level Skills Good number of colleges & Universities Capable for large operation Promising labor market
United States World class IT workforce Capable to manage most complex project Excellent education system Shortage of IT labor supply Mexico Good education system Large IT graduate pool World class IT skills set Excellent bi-lingual skills Capable for large operation Guatemala , Panama, Honduras, Costa Rica, Peru, Chile Highly qualified graduate pool Good for higher end services Excellent bi-lingual Small workforce Limited labor supply
Argentina Large labor pool Bi-lingual capacity (English & Spanish) Good for large contact center operation Stable workforce in the long-run
Philippines Large workforce Huge graduate pool Fluent in English Promising labor market Israel Vietnam Highly qualified IT Egypt Large workforce graduate Large labor force Large # of universities Excellent IT Skills Good education graduate turnout Suitable for small system Good IT Skills operation Multi-lingual skills Promising IT labor market Limited IT labor supply Potential labor market Malaysia Excellent IT skills Brazil Good education system High turnout of IT graduates Limited labor supply Huge Labor pool India Good people skills and Large IT workforce Uruguay availability World class IT skills Limited IT workforce Quality human capital Excellent IT education system Small Population Capable for large operation Capable for large operation Higher end IT Skills Promising IT labor market KPO, BPO, Call Center skills labor pool Suitable for small operation Amazing IT labor market Small IT graduate turnout Shortage of IT labor supply Promising labor Pool
Shortage of labor pool
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
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SPECIALIZED FUNCTIONS
Canada IT Services R&D, ADM Medical Transcription KPO, BPO Voice and Non-Voice
Poland Multi-Language Call Center Shared Services BPO F&A BPO IT Application Services Czech Republic Infrastructure Management Multi-Language Call Center IT Services, R&D
Belarus Embedded Software Engineering Services IT Services Product Development R&D, Systems Integration Ukraine Engineering Services, IT Services Product Development Systems Integration
Russia Embedded Software Engineering Services Product Development R&D, Systems Integration Web Development China Engineering Services F&A BPO IT Services, Product Development, R&D, Software Testing Clinical Trial Philippines Call Center (English and some Spanish), Contact Center, F&A BPO, IT Services, LPO, Medical Transcription Vietnam Embedded Software IT Services, R&D Software Testing Malaysia Call Center (English, Mandarin), F&A BPO, IT Services, Technical Helpdesk India Software Development Product Development IT Services Engineering Services Embedded Software & Services Clinical Trial Medical Transcriptions
United States R&D Product Development Embedded Software Engineering Services ADM, IT Services etc Mexico Back Office Operations, Call Center (English, Spanish), Embedded Services, Engineering Services, IT Services, R&D, Software Testing
Romania Business Analytics, F&A BPO, HRO, Financial Analytics, IT Services, R&D Multilingual Contact Center, Procurement BPO,
Guatemala , Panama, Honduras, Costa Rica, Peru, Chile Call center (English & Spanish) Back Office Operation F&A BPO Financial Analytics Argentina Bi-lingual call center services F&A BPO IT Services
Egypt Embedded Software IT Services Medical Transcription Multilingual Call Center Product development Software Testing
Brazil IT Services R&D, ADM Software Development Engineering Services Call Center Back Office Operation
2011 Neo Group Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited
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Atul Vashistha
Chairman, Neo Group atul@neogroup.com
Second level
Third level Fourth level Fifth level
Amsterdam, Netherlands Austin, Texas Bogota, Colombia Bangalore, India London, UK Sao Paolo, Brazil www.NeoGroup.com www.GlobalSupplyRiskMonitor.com
Sydney, Australia
of this Group All rights reserved 2011 14 2011 Neo Group Inc. All rights reserved. Reproduction or anyNeo document or any portion thereof without prior written consent is prohibited www.NeoGroup.com Reproduction of this document portion thereof without prior written consent is prohibited