HfS Network

Category Archives: Procurement, Engineering & Supply Chain Outsourcing

The Game of Digital Clones Will have a Radical Impact on Engineering

June 30, 2016 | Pareekh Jain

Imagine if you have a clone which can do less interesting work for you, such as attending events, dialing conference calls, sitting in meetings, visiting doctors, meeting social obligations, etc. and can be present at different places while you are doing real work (for me, that’s reading a book or writing research in my study), how much productive you can be.  Well, we don’t know whether we will have such human clones in our lifetime, but in engineering industry, digital clones are definitely beginning to appear.

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Posted in: Procurement, Engineering & Supply Chain Outsourcing

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The dinosaur that is procurement: Get relevant to your business or become extinct

June 28, 2016 | Bram Weerts

Procurement’s very existence is in trouble. The function must be part of the whole negotiation process, not only to protect the company from making deals that do not benefit the firm but also ensure they are sensible, cordial and well-balanced - and both supplier and buyer realize the outcomes they both want to achieve. Sadly, this is so not the case with so many pivotal business deals today.

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Posted in: Design ThinkingOutsourcing HerosProcurement, Engineering & Supply Chain Outsourcing

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Meet the Dinamo driving TCS' business process services impressive growth

June 03, 2016 | Phil Fersht
Dinanath (Dina) Kholkar is Vice President and Global Head of BPS at Tata Consultancy Services

Dinanath (Dina) Kholkar is Global Head of Business Process Services at Tata Consultancy Services

As we endlessly debate the future of the global IT service delivery in the wake of advances in automation, digital disruption and the ability to maintain double digit growth rates, one area that has steadfastly kept to respectable growth and improved delivery confidence is our beloved business process outsourcing services.

In fact, we are about to reveal to all of you that the growth in Indian-heritage BPO has been consistently out-performing IT services over the last year.  Why?  Because BPO is several years behind IT in terms of widespread adoption, but is now coming to the forefront as processes can be better-enabled by cloud platforms and maturing global delivery models.

In this vein, I thought it timely to interview Dina Kholkar, TCS' global head of BPS, who has helped steer his division to $1.9 billion at a 6% growth clip... making BPS now represent 12% of the total TCS business...

Phil Fersht, CEO and Chief Analyst, HfS: Good evening, Dina. It's great to have you on HfS for the first time. You've been one of the best kept secrets behind the exciting growth in the Business Process Services (BPO) team at TCS. Maybe you can share a little bit about yourself, your own background and how you ended up leading the highest-growth division in TCS today.

Dinanath (Dina) Kholkar, Vice President and Global Head of BPS at Tata Consultancy Services:  Sure, Phil. I've been at TCS for a very long time. This is my 27th year in TCS! I started in 1990 as part of the IT business. I managed a few IT projects, went on to manage accounts across different geographies, different types of roles. The longest stint I had was in the capital markets area. I also spent a few years in TCS’ R&D unit, predominantly focusing on data warehousing and data mining. Those were the years when data had started becoming a focus in many organizations. I did have a stint in operations when I was managing customers, but I never really managed the business of running operations until I got the opportunity to manage e-Serve, which TCS had acquired from Citibank. After a few years, when it was integrated into TCS, I took on the role of the overall head of the TCS BPS business. So we’ve had quite an exciting and an interesting journey, a journey filled with lot of learning and a lot of customers we’ve been able to positively impact over the years. And I feel quite proud about the type of opportunities that I have gotten and the way I have delivered on the objectives that TCS has laid out for itself.

Phil: So what can you share with us then about the secret sauce at TCS? What is it that makes you guys really tick?

Dina: One thing which I have always seen probably over multiple generations—and all three CEO leaders of TCS—really strikes me is the customer centricity. We go the distance, which means we do whatever we need to do for the customer. We do the right things and ensure that we are taking care of the customer’s business, bringing all we have as an organization to solve problems that the customer has. I think that customer centricity is paramount in the organization. I think we also

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Posted in: Analytics and Big DataBusiness Process Outsourcing (BPO)Design Thinking

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Supply Chain Management clears the path to As-a-Service with Accenture, Havi, OnProcess, arvato and Brightstar leading

March 25, 2016 | Phil Fersht

HfS supply chain process expert (among other things), Charles Sutherland has finally done what no other analyst has done before him... define and develop the first comprehensive view of Supply Chain Management As-a-Service....

Supply Chain Management BPO has, since its inception, been an enigma in the overall BPO industry. Combining both large-scale transactional order management contracts along with focused domain and analytic skill-enabled forecasting engagements, it has been both an outlier in the portfolio of many large service providers as well as a lucrative market for specialist pure play providers. Clients often considered these engagements as something more like prolonged consulting deals than actual outsourcing contracts, while service providers wondered where best to house the delivery teams inside the organization as a result.

Now, more than a decade into operations—and with total market ACV closing in on $2 billion—HfS is seeing that many of the characteristics of Supply Chain Management BPO that were once considered causes of its uniqueness (Design Thinking, Collaborative Engagement, Accessible and Actionable Data) are now traits sought for all BPO engagements as the market moves toward As-a-Service solutions.

Once ahead of its time, Supply Chain Management is now very much integral to the realization of As-a-Service and so it was time for HfS to look again at this market following our inaugural Blueprint in 2014 to describe how it is developing and which service providers are leading the way. So let’s get Charles' thoughts on this market and its leaders...

Click to Enlarge

Click to Enlarge

Charles, how would you describe the current state of Supply Chain Management As-a-Service?

We describe this market as one that is fast growing but still tiny against the backdrop of the entire BPO marketplace. But we believe the potential opportunity is massive—at potentially $300 billion-plus. So penetration today of this addressable market is less than 1% and we expect to see the current enthusiasm for participation by service providers to continue and only grow more in the next few years.

We covered 14 different service providers in this Blueprint (with 3 service providers covered for the first time) and what is striking, versus say the Finance & Accounting BPO marketplace, is how

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Posted in: HfS Blueprint ResultsHfSResearch.com HomepageProcurement, Engineering & Supply Chain Outsourcing

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There's a whole generation with a new explanation... in San Francisco

February 25, 2016 | Phil Fersht

Get ready! We're Coming to San Francisco!

sf-email-headerYou may have heard we just announced our first-ever Working Summit for Buyers in San Francisco at the St. Regis Hotel May 26th - 27th. The summit's theme—Vision 2020 for Intelligent Operations—brings together the IT and business process services industry's brightest minds and stakeholders. Seats are limited and available at no cost to well-qualified senior buyers. So, if you are interested, pencil us in your calendar and apply for a seat now.

Unvarnished Discussion Sessions

  • The State of the As-a-Service Economy and Intelligent Operations: Is It Here?
  • Evolution or Revolution: What does the Future really Look Like?
  • The Current State of Intelligent Automation – what’s working and what’s not for buyers
  • Service Automation: Robots and the Future of Work
  • The Digitization of the Finance Function
  • Co-inventing for the As-a-Service Economy
  • Hiring for As-a-Service Skills and the Role HR must play in the As-a-Service Economy
  • The evolution of Omni-Channel for CRM: What is it really, and does is exist?
  • Analytics and Big Data in the As-a-Service Economy… what’s really coming next?
  • Getting ahead of Trust and Security in the As-a-Service Economy
  • The C-Suite Advisor – Buyer Face/Off
  • The C-Suite Service Provider Shootout

Apply-Now-Button-Email

Featured Discussion Leaders

  • Mary Lacity, Curators’ Professor, University of Missouri
  • Lee Coulter, CEO Shared Services, Ascension Health
  • Allison Sagraves, Chief Data Officer, M&T Bank
  • Phil Fersht, CEO HfS Research
  • Carol Britton, CPO, Bank of New York Mellon
  • Charlie Aird, Global Leader, PwC Shared Services and Outsourcing advisory
  • Chip Wagner, CEO Alsbridge
  • Dave Brown, Global Lead, Shared Service & Outsourcing Advisory at KPMG
  • Dennis Howlett, Co-Founder, Diginomica
  • Dilip Vellodi, Chairman and CEO, Sutherland Global Services
  • Jay Desai, Senior Director, Enterprise Outsourcing, AbbVie
  • Gajen Kandiah, Executive Vice President and General Manager Cognizant Digital Works and Business Process Services
  • Harry Wallaesa, CEO, The W Group
  • Jesus Mantas, Head of Global Business Services, IBM
  • Joe Frampus, Partner, Avasant
  • Kevin McDonald, VP of BPO Governance, The E.W. Scripps Company
  • Leslie Willcocks, Professor, Workforce and Globalization, London School of Economics
  • Mark Voytek, Partner, Ernst and Young
  • Michael Corcoran, Head of Strategy, Accenture Operations
  • Pradip Khemani, Head of Global Business Services, Blue Shield of California
  • Scott Furlong, Partner, ISG
  • Shantanu Ghosh, SVP & Global Head – CFO & Transformation Services, Genpact
  • Srinidhi Rao, Head – Service Management and Process Excellence, Juniper Networks
  • Tony Filippone, Senior Vice President, Outsourcing Management, AXIS Capital
  • Robin Rasmussen, Partner, HR SSOA KPMG
  • Vishal Sikka, CEO Infosys
  • Wesley Bryan, Co-Founder, OneSource Virtual

Apply-Now-Button-EmailHfS Analysts

As usual, we'll have a full contingent of HfS analysts on site to present the latest data and stimulate discussions. In San Francisco, we'll have Phil Fersht, Charles Sutherland, Barbra McGann, Fred McClimans, Melissa O’Brien and Reetika Joshi.

Apply-Now-Button-Email

Posted in: Business Process Outsourcing (BPO)Captives and Shared Services StrategiesCloud Computing

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Three very handsome CEOs take on three advisors... only on HfS

January 20, 2016 | Phil Fersht

Posted in: Analytics and Big DataBusiness Process Outsourcing (BPO)Buyers' Sourcing Best Practices

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Genpact makes a stealthy move up the procurement-as-a-service value chain with integration of SSE

January 19, 2016 | Phil Fersht
Charles Sutherland is Chief Research Officer for HfS. (click for bio)

Charles Sutherland is Chief Research Officer for HfS. (click for bio)

Amidst all the feverish talk of acquisitions and divestitures in the services industry of late, spare a thought for one dynamic service provider focusing its growth the organic way:  Genpact.  The business process service giant has been stealthily hiring talent left right and center in recent times - mainly from its competitors - as it sharpens its focus on operations services in the finance, procurement and supply chain business services markets.

And we're impressed with its latest deal - the absorption of respected procurement consulting firm Strategic Sourcing Excellence (SSE), which propels Genpact's procurement-as-a-service capability to the forefront of the market - at a time when procurement BPO decisions are increasingly being made by the CFO, which is where Genpact rules the roost.  Hence a timely move and a smart play to really get to grips on this market.  So who better than our own procurement guru, Charles Sutherland, to take a closer look at this integrative move and its impact on the global procurement-as-a-service market space...

Movin’ On Up In Procurement Outsourcing

In June of 2015, we published our HfS Blueprint on Procurement As-a-Service which the continued evolution of this market around end to end and modular solutions enabled by cloud technologies and supported by ever deeper category management expertise.   At that time, we placed Genpact as one of our “High Performers” with strengths in transactional procurement, process automation, geographic reach and a focus on continuous improvement. But we also felt that by comparison to the market leader Accenture, Genpact still had to further develop capabilities in category management, market intelligence and transformational procurement consulting to challenge for a leading position across the entire market.

Click to Enlarge

We thought that Genpact would likely combine an inorganic acquisition strategy with organic activities such as the aggressive recruitment of category managers and rolling out new technology investment to make a push to move into our Procurement “Winner’s Circle” in 2016. And while we

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Posted in: Business Process Outsourcing (BPO)Procurement, Engineering & Supply Chain OutsourcingTalent in Sourcing

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HfS is back in Cambridge University for another no-cheese bake off of services leaders

December 21, 2015 | Phil Fersht

The Event: The European HfS Service Leaders Summit

The Date: 21-22nd March 2016 (click for details)

The Venue: Gonville & Caius College Cambridge

The Theme:  Avoiding the Race to Irrelevance

To Apply for a Seat / lead a session (buyers only):  Email us here

This promises to be another UK style "throw the kitchen sink at everything crappy about our service industry"

We're back at Gonville & Caius College, Cambridge this Spring (Click to learn more)

We're back at Gonville & Caius College, Cambridge this Spring (Click to learn more)

Join these core discussions where we'll finally address these issues:

The Race to Irrelevance: Are we on a race to the bottom, or are we genuinely in the midst of change: Are service providers really selling what service buyers actually need?
Europeans v Americans: Who’s outsourcing smarter and where can we improve to get to the As-a-Service Enterprise?
Demystifying all that Robo Hype: What is the realistic place for a Robotic Process Automation strategy inside the enterprise - and what should Service providers be doing to support it?
Digital Transformation: It's really all about the business, stupid!
Beyond the Transition: How can service buyers and providers really share their risks to achieve longer-term gains?
Ending the Master/Slave Model: Can service buyers and providers leverage "Design Thinking" to fashion a collaborative relationship with a common purpose, common values and jointly desired outcomes?
Getting beyond the Paperwork: What does it really take, in today's environment, to execute and manage a meaningful, effective and lasting contract?
Getting past that "outsourcing career track" discussion: Is the outsourcing "profession" now part of a broader management capability?
The Message we have to Send Back to the Industry: How can we fix this industry to deliver the As-a-Service Enterprise?

Service buyers email us here to apply for your seat...

None of that famous Cambridge cheese, honest!

None of that famous Cambridge cheese, honest!

Posted in: Buyers' Sourcing Best PracticesCaptives and Shared Services StrategiesDesign Thinking

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HCL, Cognizant, HARMAN, TCS and EPAM make the Software Engineering Winner's Circle

December 18, 2015 | Phil Fersht

While the benefits of the cloud and the pervasiveness of new digital technology impact our professional and personal lives - more than at any point in history - the need for the tech skills to make this all work has never been under so much intense pressure.

Not every firm can drop $200K a year on whizkid programmers who can actually handle this stuff, so the focus moves to those firms which can do this effectively and affordably. The industry's only dedicated engineering services analyst, Pareekh Jain, has been micro-focused on the emerging engineering service industry over the past couple of years and today unveils the industry's first unvarnished view of software product engineering capability of the leading service providers.

This is our second engineering services Blueprint. In the first one, we focused on the provision of engineering services for physical products. In this Blueprint, we look at Software Product Engineering (SPE) services in detail. So let's turn to Pareekh to learn more about his Blueprint experience in this emerging space:

HfS Blueprint, ISV Engineering Services

Click to Enlarge

Pareekh, how do you see this market evolving and what are the key drivers for software product engineering services?

This market is very dynamic today. A few years ago there were only a few specialized and small service providers who strategically focused on this market. Large service providers generally treated this market and clients more opportunistically. Their product engineering service capability was relatively small and often sat inside a larger ADM practice. Overall the attractiveness of ISV market was not high enough for large service providers to make investments to serve this market in detail. Now the market attractiveness has increased because of two reasons. First, as ISVs (Independent Software Vendor) are moving to As-a-Service, they need help. Second, as more and more products are software driven in IoT world, enterprises need help too. Traditional software product engineering outsourcers were ISVs. Later internet companies who faced similar challenges of scalability, reliability as ISVs also became a major customer segment. What we are now witnessing is an emerging trend with the rise of IoT that all products and industries are becoming smart and will need software solutions for scalability, reliability and connectivity. The traditional ISV market had limited potential and was driven by the R&D spend of ISVs but this much greater market for software products beyond ISVs has huge potential. Consequently, service providers both large and specialized are increasing their attention on and capabilities to serve this market. We have observed new specialized service providers have also emerged in this space in the last few years.

And how did the Blueprint analysis turn out?

Pareekh Jain is Research Director, HfS (Click for Bio)

Pareekh Jain is Research Director, HfS (Click for Bio)

This Blueprint analysis was interesting. First we researched how service providers are making investments in helping ISVs transition to As-a-Service economy and used these criteria also in evaluating service provider capabilities.

The scope of this Blueprint was software product engineering services for ISVs and internet companies. We excluded software product engineering work for enterprises because it is still an emerging area and there is a lack of a common understanding among service providers of what enterprise work will qualify as ADM versus SPE.

We evaluated 13 service providers for this study. These service providers include providers which are China centric, Eastern Europe centric, Latin America centric, and 100% domestic US sourcing centric in addition to India centric service providers. This is much geographically dispersed than most other outsourcing markets we research.

There are five service providers in our Winner's Circle - Cognizant, HARMAN, HCL, EPAM, and TCS (in

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Posted in: Buyers' Sourcing Best PracticesCloud ComputingDigital Transformation

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Save the dates for our 2016 HfS Buyers Summits

December 06, 2015 | Phil Fersht

After the brilliant "back to reality" conversations at our Harvard Summit last week, where we crammed 53 senior enterprise buyers into a fantastic room with the HfS team and some very "game" sponsors, we are thrilled to unveil our 2016 Summit Agenda, starting with a return to Cambridge University in March, a debut Summit in San Francisco in the Spring, and a major industry gathering in September.  We'll be rolling out themes, speakers, crazy new ideas and lots of associated buzz in the coming days and weeks...  click here to learn more and apply for your places.

Next stop in the HfS quest for operational perfection... Gonville and Caius College, Cambridge

Next stop in the HfS quest for operational perfection... Gonville and Caius College, Cambridge

Click here to learn more and apply for your places.

Posted in: Business Process Outsourcing (BPO)Buyers' Sourcing Best PracticesCognitive Computing

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