TPI Momentum 2009 Market Trends &
Insights Vertical Industries Report Now Available

Also in This Issue ...

TPI Momentum 2009 Market Trends & Insights Vertical Industries Report, which presents a comprehensive look at outsourcing activity in 26 key sectors of the economy, is now available for purchase. This detailed global report combines proprietary market data with commentary from TPI expert advisors and is designed to help service providers and market watchers identify the latest critical market trends and opportunities.

There are two primary factors that characterize market opportunity: the number of companies in the sector that have an active outsourcing contract (outsourcing penetration) and the degree to which they rely on outsourcing to drive their business objectives (average spending per company).


Among the findings:
  • Of the 26 industries studied, nine are identified as strong candidates for prospecting activities. Among these, the Media sector has recently seen strong adoption of outsourcing across mid-market companies as well as increasing spending levels among companies with active ITO / BPO contracts. This recent increase in outsourcing activity is likely to continue as Media companies face significant market pressure and seek opportunities for short-term cost savings.

  • In terms of the number of companies represented, the Aerospace & Defense sector is the smallest of the 26 sectors analyzed, yet it remains a strong market for outsourcing. In fact, 68 percent of the companies within this space have an active outsourcing contract with a total contract value (TCV) of $25 million or more — the highest percentage of all verticals studied. Outsourcing activity is likely to be affected in the coming months due to a variety of changes in the sector including acquisition reform, an expected labor shortage and forecasted 2010 U.S. government budget cuts.

  • TPI has observed that the larger companies in the Consumer Durables space tend to be experienced outsourcers. Because these companies have been hit particularly hard by the reduction in consumer spending, they are likely to seek outsourcing opportunities in areas they have not strongly considered in the past. When making outsourcing decisions, TPI has observed that Consumer Durables companies are increasingly focused on the long-term financial viability of the service providers considered, adding another layer of complexity to the selling process.
To learn more about the TPI Momentum Market Trends & Insights Vertical Industries Report and view a summary, contact Melany Williams at melany.williams@tpi.net or click here.

The first 10 companies to contact Melany Williams will receive a free report on the market opportunities for a select vertical. This report is an extract of the full report and will provide an excellent view into the powerful market intelligence found in this report.
Case Study: TPI Governance Services Provides Financial and Contract Management Capabilities for Silicon Valley Information Technology Leader

This Silicon Valley-based corporation is a leading global provider of information risk management software and services. As an industry leader, the company embarked on an ambitious innovation agenda by partnering with a global services provider to support growth by transforming its information technology (IT) service delivery model.

To secure its outsourcing value proposition, the company sought to establish a state-of-the-art outsourcing governance organization and capability to manage the current and future sourcing environments. For this, the company turned to TPI to design and implement services to perform Contract and Financial Management governance processes. The solution is based upon best practices designed to meet current needs and is scalable to accommodate future growth.


New Research Report from TPI and HROA Examines Trends, Practices in Human Resources Outsourcing

The research, conducted by TPI for HROA, examined the use of pricing methodologies, the depth and breadth of outsourced services, and the correlation of service level measurements and target levels with emerging industry standards. The subjects, a cross-industry sample of companies with multi-process HRO agreements in place and at least 15,000 employees, provided detailed information from existing contracts, including invoices, change orders, and statements of work, as well as real-life examples of performance targets and measurements.




Industry News


Industry Authority Frank Wolfsteiner to Lead TPI’s CFO and CHRO Services in EMEA

ISG Announces Agreements with Chinese Government
Outsourcing in the New World Order
ComputerWeekly

Information Services Group Announces First Quarter 2009 Financial Results

As states bid out massive tech projects, they want a lot for their money. Are they scaring off the vendors they need?
GOVERNING

The Good, the Bad and the Ugly: 10 Tips for Outsourcing Incentives and Penalties that Work
CIO

An Indian Outsourcing Hot Spot Chills Out
BusinessWeek





TPI Co-Chaired and Sponsored Events

Public Procurement Show
Earls Court, London,
United Kingdom
June 9 – 10, 2009

IT Outsourcing und Dienstleister Management
Cologne, Germany
June 16 – 17, 2009

The Exchange
Scott’s Restaurant,
London, United Kingdom
July 9, 2009

The Exchange
The Ivy restaurant,
London, United Kingdom
September 9, 2009





WARNING: Computer viruses can be transmitted via e-mail. The recipient should check this e-mail and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this e-mail.

  Case Study

TPI Helps Wyeth Make Sense of Spot Buying Via Customized Procurement Outsourcing Process


TPI teamed up with Wyeth Pharmaceuticals, a global leader in pharmaceuticals, consumer healthcare products and animal healthcare products, for a multi-function IT and BPO project that specifically addressed procurement outsourcing. While Wyeth’s strategic sourcing organization was highly centralized and competent, its decentralized transaction processing and spot-buying functions — conducted by requisition staff comparatively untrained in procurement — were less efficient and presented opportunities for savings.

With guidance from TPI, Wyeth pursued a solution that isolated spot buying from traditional procurement transactions, designating a new, cost-justified process to fill the niche between proactive strategic sourcing and transaction processing.

View full story

  TPI Point of View

An Outsourcing Strategy for the CFO
by Peter Allen, Partner and Managing Director, TPI

As corporate executives look for ways to deal with the recessionary pressures facing all businesses, the efficiency of Finance & Accounting (F&A) operations is increasingly being put under the microscope. This point of view by TPI’s Peter Allen describes the increasing interest in F&A Outsourcing and how the current economic environment is upending conventional wisdom about how sourcing engagements in this realm are structured, priced and implemented.

Read the Point of View
 
  Consider the Source Blog

Desktop Support While Outsourcing
by Lynn Alley, Director, TPI

Thanks to TPI Top 5 reader Ryan H. for suggesting our latest topic.

One of the most frequently outsourced business support functions is the desktop environment. Companies commonly combine desktop sourcing with their infrastructure services and service desk(s). Generally, the main cost drivers for outsourcing desktop support services revolve around the locations where people require support and receive services — whether it’s at the service desk, remote support or onsite. In a pure desktop environment, these five components tend to represent the highest costs on a per-seat, per-month basis:

Read the blog

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