Transcript Business Technology Orange Light Template

Off shoring – In shoring cosa conviene decentrare?
Giorgio Capellani HP EMEA
Technology for better business outcomes
© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Contents
•
Business Process Outsourcing
• Data Center Transformation
2
7 July 2015
Off shoring: BPO
Background
HP’s Business Process Outsourcing
 Heritage/ Background
•
•
•
•
Over 10 years F&A outsourcing
experience, starting with Strategic
Outsourcing
Over 15 years global shared services
experience in F&A
Commercialized shared service assets
Strategic outsourcer for various large
multinational/global enterprises from
multiple industries
 Service
•
Consulting: Strategic Business
Assessment, BPO and Shared Service
Center assessments and set-ups
•
BPO solutions:
− Finance & Administration
− Order-to-Cash
− Procure-to-Pay
− Acquire-to-Retire
− Record-to-Report
− Buy-Sell Services
− Decision Support/ Analytics
 Quick Facts
•
•
•
4
Global Delivery Operations:
− 10 Global Delivery Centers
− 56 Regional/ Local Centers
All operations ISO9000-2001 certified
World class Operations led by deep
domain experts
− Quality: ~100 Black Belts, ~3000
Green Belts
− 22 dedicated Industrial engineers
that lead process
standardization/re-engineering
− Team of 26 experts that design and
monitor Business Continuity &
Controls
 Customer Focus
•
•
Large, Global Enterprises
Core industry verticals:
− Consumer Packaged Goods
(CPG) / Retail
− Manufacturing / Automotive
− Financial Services
− Hi- Tech
HP Confidential-Subject to use restriction
F&A transformation delivered through HP
BPO’s transformation drivers
•
•
•
•
•
•
•
•
•
•
Co-location
Centralization
Labor Arbitrage
Languages
Disaster Recovery
Talent Pool
Lower per unit cost
Subject Matter Specialists
Better Labor Utilization
Investment Amortization
Economies
of scale
Economies
of location
1
2
• Standardization
• Business Process
Reengineering
• Six Sigma Plus
Operational
• Straight through
excellence
Processing
• Compliance/Busine
ss Controls
• Metrics/KPIs
•
•
•
•
•
•
5
HP BPO
3
Transformatio
n Levers
4
Paperless/Digitization Technology
Automation
enablement
Self Service
Data communication
Service Oriented Architecture
Innovative Apps
5
Value delivery
• Analytics/ Business
Intelligence
• Reporting
• Business consulting
HP Confidential-Subject to use restriction
Integrated
Financial
Supply
Chain
Our F&A BPO services Portfolio
Service
End-to-End
End to End Finance & Administration
•
•
Accounts Payable
Accounts Receivable
•
•
Order-to-Cash
CRM Support
Core Services
•
•
•
•
Customer
Administration
Order Processing
Billing
Invoicing
Order-to-Cash
Revenue Cycle
•
•
•
Extended Services
•
•
•
•
•
6
Capital Budgeting
Leasing
Purchasing
Administration
Fixed Assets
Physical Inventory
Project Accounting
•
•
•
•
•
•
•
•
•
•
General Ledger
Bank Operations
Treasury Accounting
Consolidations
Inter-Company
Accounting &
Oversight
Management
Reporting
•
•
General Ledger
Treasury Accounting
Tax Accounting
Supplier Administration
Requisition Creation
PO Processing
P-Card Administration
Error Correction
Procure-to-Pay
Payment Cycle
Master Data Maintenance
Invoice Processing and
Approval Routing
Goods and Services PO
Matching (Two & Three Way)
Payments Administration
GL Accounts Settlement
•
•
•
•
•
Record-to-Report
•
•
Procure-to-Pay
Procurement Support
Revenue Collections and
Dispute Resolution
Credit Analysis &
Approvals
Cash Application
Reconciliation &
Reporting
•
Acquire-to-Retire
•
Travel and Expense
Administration
Fixed Asset Management
Decision Support/
Analytics
Buy Sell
•
•
•
•
Price masking for
strategic commodities
Adherence to
contractual agreements
Allocation Management
during market shortages
Managing price volatility
HP Confidential-Subject to use restriction
•
•
•
•
Business research and
market intelligence
Modeling & optimization
Performance analysis and
reporting
Data and design support
HP BPO Global Delivery Footprint
Scale of Operations:
~10375 professionals
Global Delivery/
Support Centers
Presence:
10 Global Business Centers
56 Regional/Local Centers
Specialized Language
Transaction Processing
[Guadalajara,
Barcelona,
Bucharest,
Singapore, Dalian]
Language capabilities:
Expertise in 30 languages
America Centers
[Colorado Springs & Houston]
Global Delivery Hubs
Low-Cost, Transaction Processing Center
[Bangalore (2), Chennai, Costa Rica, Wroclaw]
Legends
Support Centers
Onshore Centers
Main Global Hub
7
HP Confidential-Subject to use restriction
HP’s Fifteen-Year Shared Services BPO
Journey
1990s
1990
1995s
2000
2005
1995
2000
Decentralized
Regional
Consolidation
Off-Shore Global
Consolidation
Commercialization
Digitization
Consolidated general
accounting
processes into
country-based
shared services
•
Consolidated regional
service centers into
four regional centers
•
•
Focused on improving,
standardizing
processes
Consolidated regional
centers into a global transaction processing model
with centers in low-wage
locations
Focus on improving
transaction
processing
automation and selfservice
•
Focus on taking
expertise to the
market
8
HP Confidential-Subject to use restriction
2005
About India
5
3 .3
4
2 .7
3
2
0 .8 0 .7
0 .4 0 .3 0 .2 0 .2
0 .1
1
Singapore
Hong
Malaysia
Philippines
Thailand
Indonesia
Korea
India
Real GDP growth rate
12
10
Japan
0
9 .1
8
6 .2 5 .9
6
4 .6 4 .4
3 .9
4
3 .2
2 .4 2 .1
1 .7
2
Germany
France
Canada
UK
Costa Rica
USA
0
South
•
6
Philippines
•
5 .7
India
•
PPP Adjusted GDP, US$trillion
7
China
•
Well functioning , vibrant
democracy; Largest in the
world (1.05 bn)
Second largest pool of scientists
and engineers in the world after
the U.S.
Third largest investor base in
the world
Well developed economic,
capital & legal framework; Over
6000 companies listed on the
stock exchange
Real GDP Growth over 6% for
last 4 years
China
•
PPP Adjusted GDP (USD trillion)
2004 estimates – SOURCE: CIA World FactBook
9
HP Confidential-Subject to use restriction
Indian Economy – some key numbers
•
•
Services, largest component of
GDP and growing
A growing working population
(500 million)
Shift in GDP Composition
FY05E
FY80
− Reduced dependant ratio
− Favorable Urbanization trends;
35% urban population by 2020
0%
20%
Agriculture
− Incomes increasing across the
board
•
40%
60%
80%
Manufacturing
100%
Services
SOURCE: India Economics Report, Citigroup
Demographic Shift
50%
Shift towards younger
population
30%
− Under 25 will go up as a percent
of total population
10%
-10%
<10
10-19
20-49
50-69
>69
Age group
SOURCE: Industry Sources
10
HP Confidential-Subject to use restriction
India continues to be an important
destination
Factors
India
China
Malaysia
Czech
Republic
Singapore
Philippines
Financial Structure (Scale: 1-4; 4 is the Best)
Compensation
3.19
3
2.5
2.24
0.91
3.14
Infrastructure cost
0.23
0.23
0.33
0.27
0.22
0.22
Tax and regulatory
0.3
0.09
0.26
0.13
0.34
0.23
Sub Total
3.72
3.32
3.09
2.64
1.47
3.59
People Skills and Availability (Scale: 1-3; 3 is the Best)
BPO experience
1.03
0.48
0.19
0.23
0.61
0.42
Size & availability of labour
0.47
0.6
0.02
0.01
-
0.08
Education
0.25
0.21
0.27
0.33
0.33
0.19
Language
0.21
0.07
0.14
0.17
0.25
0.14
Employee retention
0.13
-
0.11
0.18
0.17
0.11
Sub Total
2.09
1.36
0.73
0.92
1.36
0.94
Business Environment (Scale: 1-3; 3 is the Best)
Country risk
0.83
0.68
1.03
1.06
1.41
0.57
Country infrastructure
0.2
0.15
0.24
0.28
0.4
0.13
Culture adaptability
0.1
-
0.28
0.38
0.43
0.05
Security of Intellectual Property
0.18
0.1
0.22
0.3
0.39
0.17
Sub Total
1.31
0.93
1.77
2.02
2.63
0.92
Total
7.12
5.61
5.59
5.58
5.46
5.45
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SOUCRE: NASSCOM 2005
HP Confidential-Subject to use restriction
Bangalore, Capital of Karnataka
 Bangalore
Background
is located on the southern Deccan Plateau is India’s fifth largest
city
 The city is famed for its excellent climate with pleasant weather conditions
round the year
 Well connected by land and air
 With
IT / ITES Destination
over 33% of the world’s SEI-CMM Level 5 companies having a
presence in Bangalore, it has gained the epithet of the ‘Silicon Valley’ of
India and was ranked 4th as a global hub of technological innovation by
the UN Human Development Report
 The presence of top-end technology institutions such as the IISc., IIIT and ISRO, coupled with a pleasing climate,
active policy incentives, and manpower availability are the other strengths of Bangalore
 Strong
Infrastructure
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educational infrastructure with 4 universities, 42 engineering
colleges, 64 science colleges, 209 pre-university schools and 1,177 high
schools
 Among the largest real estate market in the country for office space during
with over four million square feet of A-grade office space ready for
possession
HP Confidential-Subject to use restriction
Chennai, Capital of Tamil Nadu
Background
 Chennai
is located on the eastern coast of India
 It enjoys tropical maritime climate (warm, humid)
 Chennai city covers 172 sq km and has a population of over 6.4 million
 Chennai
IT / ITES Destination
has about 8.8% of the BPO-ITeS facilities operating in India employing around 30,000 people directly
 Based on success of remote IT services (largely for banks) , Chennai has attracted attention for back-office
processing support for companies in the financial services, healthcare and consumer goods sector
 The government of Tamil Nadu has now identified Chennai as the hub for the IT / ITeS industry in Chennai
 Chennai
Infrastructure
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has a population of approximately 6.4 million with over 100
colleges
 According to the UNIDO, Chennai has the highest density of software
professionals in India
 Chennai has a large concentration of Chartered Accountants required for
high-end finance and accounting work
HP Confidential-Subject to use restriction
HP’s Presence in India
IT Services
18,500
Global
Services
•India is HP’s 2nd
•
largest employee base
in the world
Product
Engineering
Services
2,500
BPO
Others
6,000+
9,200
•HP voted the
number 1 IT Company
in India*
•HP ranked as 3rd Best
Domestic
Employer in India*
HP India
1,500+
HP leverages over 28,000 people in India
*Source: NDTV Profit Leadership Awards, Business Today and Hewitt Associates Survey
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HP Confidential-Subject to use restriction
Overview of HP BPO in India
Wind Tunnel Center, Bangalore

Processes delivered – finance & administration

Key characteristics
−
Main finance & accounting processing center; end
to end finance & accounting processes
−
Key commercial client delivery center in India
−
First center to be BS7799 certified
2221
HP Prime, Bangalore

Processes delivered - supply chain management, sales
& marketing operations

Key characteristics
2005
− Handling
business critical processes
directly impacting company revenue
− Houses
the Language Center of Excellence
Business Center, Chennai

Processes delivered – HR services, Supply chain
management, Sales & marketing operations

Key characteristics
− Houses
HR Services
− Language
15
Center of Excellence
HP Confidential-Subject to use restriction
1862
Size and Scale of Operations
Accounts
Payable
Treasury
Accounting
7.5 M invoices processed
$56.2 B payout
$69B applied to Netting entries
Fixed Assets
Asset Base - $6 B
$ 6 B of claims processed
POs for 244,500 orders
Account
Receivables
Rebates mgmt
$600M rebates paid to channel partners
Order Fulfillment
Global Business
Centers India
$50.4 B applied
Customer Response
Center
487K queries handled
Orders entered - $30 B
Master Data
Maintenance
Channel Partner
Operations
150K accounts/locations updated
Contract
Admin
4M work units
per annum
16
1.8M invoices processed
Purchase Order
Administration
Claims mgmt
Maintain 32000
partner contracts and
profiles
Inventory & Revenue
Accounting
Payroll
/HR
96,000 pay-slips
per annum
Lead Gen.
Intra Company
Accounting
$ 210M of lead 360 K transactions annually
value
HP Confidential-Subject to use restriction
Our people - “ Making a Difference”
Talent
HP culture
orientation
Learning &
Development
Performance
Driven Culture
90% of hires
have recent
accounting or
finance degrees
New Employee
Orientation
“Metamorphosis”
Buddy System
Social
Committee
E-Learning
Stretch
assignments
BPO University
Rewards &
Recognition
Perf. Incentives
Leadership
Advancement
Program
Fun @ Work
Motivated
Workplace
Personal Growth
And
A Learning
Organization
Solution recruitment
Result
17
More than 100%
growth every
year, lowest
attrition rate in
the industry –
20%
HP Confidential-Subject to use restriction
Key employee
attrition rate is
less than 5%
BPO is a strategic component of
the Adaptive Enterprise vision
Adaptive Enterprise
Rationale
Driving operational efficiencies
Business Processes
Finance
Human
&
Resources
Admin
Demand
Mgmt
Applications
Infrastructure
Supply
Mgmt
Driving business process innovation
Transformation Strategy
• Customers who want to optimize
business processes require
increasingly tight integration with
applications and infrastructure
• Leverage all of HP’s capabilities, from
infrastructure through transformation
strategy
• Business process level serves as
strategic control point for applications
and infrastructure levels
Network
18
HP Confidential-Subject to use restriction
Economies
of sca le
Operations Excellence…
Economies
of loca tion
1
2
World class operations
O pera tiona l
effectiveness
HP BPO
3
Transformation
Levers
4
Technology
ena blement
5
Va lue a dded
service
Operational Excellence Program
Quality
•
All Global Business Centers ISO
certified
Six Sigma philosophy fully embraced
(in most centers 75%+ employees
are trained in Six Sigma)
–4 out of 5 managers quality
trained
–Black belt trained and certified 110, Green belt trained and
certified - 3882
Recipient of several quality awards(1)
Over $20 M USD in preventive
savings
~99% first pass accuracy
•
•
•
•
Statutory Compliance
(1)
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Information Security & Privacy
•
•
•
•
•
Confidentiality agreements
to protect information
Dedicated area with
separate access control
Dedicated IT network with
firewall
Regular 3rd party audit
Dedicated resources to
maintain and update
Business Continuity
•
•
•
•
•
Intellectual Property
Industry standard, tested
BCPs
Strategies plan for different
risks (fire, war, SARS,
earthquake, computer
viruses, etc.)
Maximum allowable
downtimes
Maintain business critical
operations during crisis
ISO 17779 Certification
Fortified Infrastructure
National Institute of Quality & Reliability, India: “Best Six Sigma Project Award” in 2002, 2003; International Quality & Productivity Center:
“European Six Sigma Excellence Award” in 2004
HP Confidential-Subject to use restriction
Economies
of sca le
Operations Excellence…
Economies
of loca tion
1
2
World class operations
O pera tiona l
effectiveness
HP BPO
3
Transformation
Levers
4
Technology
ena blement
5
Va lue a dded
service
Operational Excellence Program
Business Controls & Compliance
Industrial Engineering
•
Manage operational, branding and
financial risks due to both external &
internal factors
•
Optimal scheduling of resources to standardize
processes & optimize costs
– Over USD 2 million annualized saving
•
External regulatory requirements
– Sarbanes-Oxley
– Basel II
– SAS 70 certification
•
Uses various techniques like process mapping,
volumetric studies, efficiency and utilization
tracking etc.
– Covered over 80% processes within BPO
•
Internal process standards
requirements
– Business ethics
– Periodic audits and reviews
– Self assessments
•
Experienced team of industrial engineers at
each center
– 24 dedicated Industrial engineers across
delivery centers
Minimized Risk
20
Business Agility
HP Confidential-Subject to use restriction
In shoring: Data Center
Transformation
The IT Challenge
32 Million
2006 worldwide IT labor force
65%
of IT budgets to operations
Not enough investment in innovation ;
too much in maintaining legacy infrastructure
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7 July 2015
The HP IT mission
•
Provide good information to
enable better business
decisions
•
Significantly reduce the cost of
IT while delivering more to the
business
•
Lower risk to the enterprise with
better control of the
infrastructure
•
Be a showcase for enterprise
customers
23
7 July 2015
HP IT 2005:
Large scale and scattered
100+ HP
IT sites
in 53
countries
IT 4+%
of
revenue
<50% of
resources
time
dedicated
to
innovation
Undermanaged
network
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7 July 2015
750+
data
marts
85+ data
centers in
29
countries
5,700
applications
30% IT
manage
d by IT
>1,240
active IT
projects
~19,000 IT
professional
s
including
contingent
workforce
HP top 5 IT initiatives
Data
Centers
Portfolio
Management
IT Transformation
Enterprise
Data
Warehouse
IT
Workforce
Effectiveness
World-Class
IT
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7 July 2015
HP data center transformation strategy
•
•
•
•
•
•
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Enable IT to be more nimble and provide better information
Provide more dependable, simplified operations
Enable faster delivery of new technologies, services, and information
Accommodate growth
Provide for improved business continuity
Significantly reduce IT costs
7 July 2015
HP data center transformation
includes…
•
•
•
•
Technology refresh
Standardized technology
environment
Retirement of legacy
applications
Next-generation data center
build out
− State-of-the-art infrastructure for
today and tomorrow
− Automated monitoring and control
•
HP Dynamic Smart Cooling
•
Real business
continuity/disaster recovery
27
7 July 2015
HP IT mission:
Streamlined and focused
% of
revenue cut
in half
80% of
resources’
time
dedicated to
innovation
6 NGDCs in
3 zones
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7 July 2015
< 30 HP IT core
collaboration
sites WW
1 EDW
~1500
applications
100% IT
managed by
IT
Optimized,
costeffective &
secure
network
~500 active
business
projects at any
given time
90% HP
employees
10% CWF
HP IT steps to success
•
•
•
•
•
•
•
29
Simplify through standardization: Standard & consistent data center
architecture and design; standard hardware, tools, and infrastructure
Establish PMO for governance: Provides framework for how effort will
be structured, who will make decisions
Go modular: Allows for fast build, flexibility, scalability, and
efficiencies; isolates and separates risk
Break plan into bite-size chunks: Divide into cycles, engage proper
expertise, identify clear goals & deliverables by quarter
Synchronize—timing is everything: Facilities must be ready to receive
servers; servers must be ready to receive applications
Define one set of processes: A properly documented single set of
processes aligned to ITIL V3 model ensures desired outcomes,
allows for automation
Actively manage and communicate change: Change management
and well-executed communication strategy critical for success
7 July 2015
Can HP’s experiences help you?
•
What percentage of your resources are spent on
innovation vs. support?
•
How many IT sites and data centers do you have?
How many next generation switches are you running?
How many applications do you support?
•
•
•
•
•
What is the availability of your business critical
applications?
Are your IT sites VOIP-enabled?
How much does your IT cost?
We can help. Let’s get started.
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7 July 2015