Welcome to TPI’s debut edition of The Platform.

Each month, we will provide research-driven insight that cuts to the core of topical, relevant issues surrounding the delivery of business support services — the increasingly complex world of sourcing strategy. The Platform aims to be a knowledge base for strategic decisions, providing market data and industry insight.

Realizing that your time is limited, we intend to deliver “concise clarity” on the issues that matter most to you. Ultimately, we believe that this information knowledge will help eliminate boundaries, energize your organizations and aid you in making the quantum improvement leaps you are seeking.

I encourage your input in helping us address your most pressing concerns and challenges. To offer your feedback and suggestions or submit questions, please e-mail editor@tpi.net. Additionally, please feel free to pass on The Platform to associates who also will benefit from our research and expert sourcing advice.

I look forward to developing an ongoing exchange, as together we continue the journey in achieving competitive advantage in a changing global marketplace.

Regards,

Ed Glotzbach

Big Six consist of Accenture, ACS, CSC, EDS, HP, IBM;
Big Five Europe consist of Atos Origin, BT, Capgemini,
Siemens Business Services, T-Systems;
All Market Share is 2006 YTD through June 2006

A good move for EDS is TPI's opinion on the recent executive leadership appointments of John Ladaga, Tom Egan, and Steve Heidt to new roles in the EDS Executive Leadership team. John Ladaga assumes the role of vice president and general manager, Latin America, Tom Egan will now lead Global Service Delivery for the Americas, and Steve Heidt takes over the role of vice president of Operations, previously held by Tom Egan.

These changes had some domino effect caused by Ladaga filling the Latin American general manager role vacated by the retirement of Micael Ciment, Egan assuming a role that includes Ladaga's previous responsibilities, and Heidt assuming Egan's previous role. The result is three very strong and experienced leaders placed in key roles in the company, which should lead to a more integrated and effective executive team.

More retailers worldwide are initiating or expanding their use of Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) to control or reduce expenses, improve margins, deploy important new technologies, differentiate themselves and compete globally. As a result, the R&R market was the third most active sector in its overall use of outsourcing during the first quarter of 2006.

In this new white paper, TPI Partner and Retail Practice Leader Harvey Gluckman presents important R&R data, examines the key factors driving increased outsourcing utilization and outlines the value proposition for retailers that partner with expert sourcing advisors to maximize the benefits of this critical tool.

If you are looking for hype, skip this article — if you appreciate a viewpoint based on balanced insight, read on. A spate of recent articles, research papers and analyst reviews have sprung up in response to recent announcements by Hewitt of the departure of three of its senior executives – Dale Gifford, Chairman and Chief Executive Officer; Bryan Doyle, President HR Outsourcing; and Mike Salvino, HR Outsourcing Sales and Accounts leader. The fervor of these articles would be amusing if not for the nervousness that they have helped create in the outsourcing client community, particularly among current Hewitt clients. Some temperance is in order.

There’s a saying used in the outsourcing industry that outsourcing is popular in down economies and even more popular in improving economies. While economists are better positioned to opine on the world’s current economic markets, we offer a view from the vantage of strategic sourcing design.

It is an obvious truth that outsourcing is a tool for reducing operating costs for an enterprise. What may not be as apparent is the frequency with which other motives contribute to the design of an enterprise strategy for evaluating service delivery alternatives. Through our 16-year history of advising large organizations on their sourcing agendas, it has become clear that reductions in operating costs are necessary, but hardly a sufficient impetus for introducing organizational and operating model changes.

TPI surveyed more than 250 executives at approximately 200 companies directly involved with offshore outsourcing, or global service delivery (GSD).

Deep analysis of the research revealed that each company falls somewhere along the path of what we term, the “Global Service Delivery Maturity Curve” (GSDMC) — a trajectory in which organizations can not only assess their current GSD state, but also map their next steps toward achieving higher levels of global service delivery maturity and effectiveness.

Have a sourcing question you’d like answered? Human Resources, IT, Financial Services, you name it; we have an expert to field your question.

Ask Our Experts

Questions will be answered and displayed in the next issue of The Platform. If you need assistance in real-time, please contact TPI .

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