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Market Data and Trends
PREVIEW of Global
Outsourcing Marketplace Q3
Facts
Softness in new contract awards
continues.
- Commercial contract awards valued at
greater than US$50 million for 2007 are down more than
15 percent based on number of contracts compared to
the same point in time in 2006
- The total contract value (TCV) of
those YTD agreements is also down more than 15 percent
compared to the same point last year
TPI Index Save the Date:
Wednesday, October 17, 2007, 11:00 a.m.
(Eastern)
TPI, the most informed
resource for market data on the global sourcing
industry, invites you to participate in the Third
Quarter (Q3) 2007 TPI Index conference call.
The
TPI Index provides deep insight into the global
outsourcing marketplace for those monitoring industry
trends. Our commentary is based on facts accumulated
through our industry interactions represents 25 percent
of the industrywide total contract value (TCV) awarded
globally since 2000. The record shows TPI is one of the
better indicators of market trends in this important
segment.
Conference Dial-in / WebEx
Information: Released Friday, October 12, 2007
Presentation Slides: Released five
minutes before the call
Replay:
Released two hours after the call
This quarter’s
TPI Index is hosted by Morgan Stanley and led by Peter
Allen, Partner and Managing Director, Market
Development, TPI.
Please contact us if you
would like to receive an invitation. For more
information on the TPI Index, please visit TPI’s
Knowledge Center
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Featured Paper
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Dynamics
of Price Adjustments in a Globalized Sourcing World
By Dinesh Goel, Project
Director, TPI
Thomas Sebastian, Project Director,
TPI
Kashyap Kompella, Advisor, TPI
Guru
Krishnamurthy, Senior Advisor, TPI
The
onshore-offshore debate is quickly giving way to a
global services delivery model that unifies the many
diverse delivery destinations into a coherent and
seamless whole.
This paper analyzes the
implications of the global sourcing trend for three
select price adjustment factors — inflation, foreign
exchange (forex) fluctuations and taxes; these features
can potentially lead to price adjustments over the term
of the contract. Without being prescriptive, this paper
identifies how to provide such adjustments and discusses
the underlying principles typically driving such
contract negotiations.
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| Upcoming TPI Events |
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TPI’s 16th semiannual Americas
Sourcing Leadership Exchange
(SLE) conference is less than one month away!
Sign up today for this knowledge-packed, premier
sourcing industry event. Only representatives
from the buy-side of outsourcing relationships
may attend.
Increasing Value
Through Strategic Multi-Sourcing
November 5 – 7, 2007
Ritz-Carlton Golf Resort,
Naples,
Florida
“Without a doubt, the TPI
Sourcing Leadership Exchange delivers relevant,
practical information and practices for sourcing
professionals. There is a great blend of
expertise that can be applied 'here and now'
combined with a focus toward future innovation
and anticipating 'what's next.' It's also a
top-notch opportunity to network with peers from
other companies to share best practices and
lessons learned. All in all, a fantastic event!”
— Nate Carlson, Director -
Sourcing PMO, Aetna
Register
here at the conference rate of US$995 per
attendee. This rate includes pre-conference
sessions.
Browse
the Agenda
For More Information
Contact TPI's Stephanie
Darkoch for more information about the
conference, including a full agenda,
post-conference golf and tennis event, and
registration details.
* TPI clients with active
engagements or who will engage with TPI by
February 1, 2008 will receive complimentary
attendance for up to five participants.
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| Case Study |
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Cincinnati-based Comair, a
wholly owned subsidiary of Delta Air Lines asked
TPI to assist with plans to improve its
infrastructure services reliability and
controls, allow for improved business continuity
options and to position for future business
growth.
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| Perspectives |
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How
the U.S. Subprime Crisis will Affect Indian
Service Providers
by Kashyap
Kompella, Advisor, TPI; and Thomas J. Sebastian,
Project Director, TPI
The fallout from
the U.S. subprime mortgage crisis is crossing
oceans, and some of it has already landed on
India’s shores. This paper describes, among
other topics, TPI’s view on how this will affect
the smaller service providers, what a slowdown
in discretionary spending on IT projects in
India will mean to the service provider
community, and how the market will be affected
if the U.S. economy weakens the dollar against
the Indian rupee.
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| Podcasts |
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Innovation
Agenda Part III: Benchmarking
Techniques
The most recent edition of
SourcingTalk
focuses on a fundamental element of the global
outsourcing industry’s Innovation Agenda -
benchmarking. Peter Allen, TPI’s Partner and
Managing Director, Market Development, moderates
a discussion between Stuart Harris, partner and
data management Center of Excellence leader at
TPI, and Ed Burns, IT alliance manager at
DuPont, about benchmarking techniques to help
the buy side and service provider side of
outsourcing transactions improve the formation
of relationships and delivery of value to both
parties. This Podcast also addresses the
techniques used contractually and operationally
by clients in regards to benchmarking to
periodically test pricing in outsourcing
relationships.
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Also in this
issue...2007 TPI India
Sourcing Industry Conference Recap
More than
80 industry leaders, representing nearly 30 prominent
outsourcing service provider firms, convened in Bangalore in
September for TPI's Sourcing Industry Conference (SIC) in
India. Each year TPI hosts the industry’s provider-side
leaders at conferences in the Americas, Europe, Asia-Pacific
and India to review the state of our global outsourcing
industry through the lens of achieving long-term value
creation for clients and providers alike.
The
Bangalore conference revolved around the theme of “Continuous
Innovation.” The event was hosted by two of TPI’s leaders:
Arno Franz, Managing Partner for Asia-Pacific, and Sid Pai,
Partner & Managing Director for TPI India.
Please
click
here for copies of the presentation
materials.
TPI’s SIC for EMEA is planned for October 10
– 11, 2007 in London. For more information, please contact Denise
Colgan
Building a Successful Captive Services Centre in
the Financial Services Sector
Click
here
by David Howie, Ph.D., Senior
Advisor, Global Financial Services Advisory Services Practice,
TPI
Captive facilities can be excellent tools for
helping financial services companies improve their services
and access new pools of talent while preserving flexibility
and cutting costs. But the hurdles to setting them up so that
they may perform effectively cannot be underestimated. Learn
about various approaches that an increasing number of
financial services companies are taking when building and
operating captives, along with the advantages, disadvantages
and risks that must be weighed when considering these
ventures.
TPI News
Information
Services Group Sets New Record Date of October 5, 2007 For
Special Meeting of Stockholders
Outsourcing
Works, so India is Exporting Jobs
TPI Speaks
Please join TPI as we
speak at SIG
Sourcing Leadership 2007, October
9 – 12, 2007, in Weston, Florida.
Dennis McGuire,
Chairman, TPI, will participate in a panel discussion. The
Outsourcing Classics – Where Are They Now. The session will
review the histories of the big/landmark outsourcing
transactions over the past 20 years beginning with Kodak and
including JP Morgan, DuPont, BP, GM and others.
Shawn
McCray, Partner and Practice Leader, Service Management &
Governance Advisory Services, TPI, will co-present with Zurich
Financial at the SIG Sourcing Leadership 2007 conference. The
presentation After the Honeymoon – Making the Relationship
Work will discuss offshore components of an application
development and maintenance outsourcing
agreement.
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