3Q13 Global Sourcing Advisory Pulse Survey Results

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3Q13Global Sourcing Advisory

Pulse Survey Results

October 31, 2013

Stan Lepeak, Director, KPMG LLP in the U.S.

Cliff Justice, Principal, KPMG LLP in the U.S.

Ron Walker, Principal, KPMG LLP in the U.S.

Webcast participants

Stan Lepeak Cliff Justice Ron Walker

DirectorGlobal Research, KPMG LLP in the U.S.

PrincipalShared Services & Outsourcing Advisory,KPMG LLP in the U.S.

Principal Shared Services & Outsourcing Advisory, KPMG LLP in the U.S.

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG’s Shared Services and Outsourcing Advisory

KPMG has the ability to help member firms’ clients transform enterprise services to help improve value, increase agility, and create sustainable business performance.

Who we are What we do How we do it

Shared Services and Outsourcing Advisory brings a specialized global team of more than 400 professionals within KPMG’s global network of independent member firms operating in 156 countries. Our professionals help

We help clients align their business strategy, organization, and execution to enable them to manage the entire IT and business process life cycle, improving business performance, and laying the groundwork for

We apply focused research, automating tools, proprietary data, clear business acumen, and a forward-thinking mind-set to provide timely, objective, actionable advice and practical approaches for clients.


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p pclients design, build, and manage information technology (IT) and business processes across the enterprise.

y g ggenuine business transformation.

pp

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3Q13 Global Sourcing Advisory Pulse Survey Results

KPMG Pulse Surveys

The Global Sourcing Advisory Pulse Surveys

The surveys are quarterly review of global business services (GBS) market trends and individual observations from the “front lines.”

Input sources:

400+ KPMG sourcing advisors

20+ leading global business, IT, and cloud service providers

KPMG market research and outsourcing deal tracker

HfS Research

Topics evaluated:

Drivers for GBS usage

Demand and buying patterns

Deal attributes

Thematic topics by quarter

- Update of global shared services usage

- Outsourcing transition issues

Primary functional focus:

Call Center/Customer Care

Finance and Accounting

Human Resources

Information Technology

Procurement

Real Estate and Facilities Management


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Focus on performance, trends, and futures

and challenges Vertical Industry BPO

Emerging BPO/KPO functions

Launched in 2004 by EquaTerra

Part of a growing family of KPMG Pulse market research studies

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Agenda

Top approaches to improving global GBS delivery capabilities Demand levels and characteristics for different change programs

Market demand trends

Update on global shared services usage Outsourcing transition issues and challenges

Pricing pressure Contract profitability Ability to increase deal scope

Market conditions

Appendix: Market and deal characteristics


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The KPMG Shared Services and Outsourcing Institute KPMG Shared Services and Outsourcing Pulse Surveys White paper: 3rd Quarter 2013 KPMG Sourcing Advisory Global Pulse

Survey Results KPMG’s Advice Worth Keeping blog and podcast series

Learn more

Market overview

Macro trends Current market trends

Negative global economic conditions continue to weigh heavily on organizations’ decisions on how, where, and why they source services globally, though few firms are pulling back from global so rcing of ser ices’ globali ation

Shared services remain foundational to GBS efforts and a delivery model options whose popularity has rebounded and grown over the past few years. Shared services’

i i t iti th t t i t t ifrom global sourcing of services’ globalization.

Global business services (GBS), combining onshore, near, and offshore shared services and outsourcing, has become the predominant means through which organizations support global operations.

Many organizations’ GBS remain fragmented across functions, geographies, and business units, complicating governance and detracting from potential business benefits. Defined efforts to drive GBS maturity are the norm among more experienced and sophisticated GBS users.

Traditional generic and transactional outsourcing

resurgence is in part a recognition that certain more strategic services are better owned and performed in a shared services environment but also a result of organizations learning in the field the limitations of outsourcing in certain scenarios.

Outsourcing remains a growing and often a preferred model for labor intensive and transactional services, but shared services and outsourcing are a “both” rather than “either or” discussion. Relative demand for domestic shared services centers has increased over the past year, though buyers maintain an increasingly global shared services footprint.


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Traditional generic and transactional outsourcing continues to commoditize. Cloud and client maturity are major drivers for this, especially in IT. Buyers are seeking more platform solutions tailored to specific industry, geographic, and regulatory needs.

There is a growing bifurcation between “leaders” and “laggards” in the service provider market based on industry and business process experience and diversity of services mix, including cloud and analytics.

Polling leading third party business and IT service providers found that demand for third-party business and IT services, including outsourcing, remained solid though largely unchanged in the quarter. While good pipeline growth was cited, it remains to be seen how quickly this growth will result in signed deals though commentary from providers indicates that the pace of deal flow through the pipeline is quickening compared to a year ago.

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3Q13 Global Sourcing Advisory Pulse: Key Findings

Service Providers: Pipeline Growth Last QuarterAdvisors: Demand increase by Service Delivery ModelNext 1–2 Quarters

58%48%44% 61%55% 76% 61% 68% 61% 38% 78% 60% 76% 65%

Advisors: Top Functional Focus Areas for Service Delivery Improvement EffortsService Providers: Demand Next 1–2 Quarters

SharedServices

ITOBPO Internal ProcessImprovement

33% 67%0%54%

65%

F&AIT

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13


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Source: KPMG Quarterly Global GBS Pulse Survey 3Q13

Flat UpDown

5%

6%

9%

11%

12%

16%

23%

30%

30%

REFMSales & marketing

All business functionsVertical industry-specific bus. …

Customer careSupply chain

All areas, including ITHR

Procurement/source-to-pay

11% 42% 47%Likely to be deploying in 2‐3 years

Decentralized processes Centralized processes Global business services (GBS)

The (Continued) Rise of Global Business Services

19%

12%

51%

32%

30%

56%

Today

Aspiring to deploy in 2‐3 years


10Source: HfS Research in Conjunction with KPMG. Note: n=343

Source: HfS Research, KPMG, Global Business Services Market Study, October 2013

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Advisors: Top Approaches to Improve Service Delivery Capabilities

User focus remains on better managing and governing existing GBS investments over aggressively making new investments.

Insourcing and moving work onshore, or more so not

Internal process improvement/re-engineering efforts

Improve current SSC/outsourcing governance

Insourcing and moving work onshore, or more so not taking new work offshore, is a growing trend but on a small scale, primarily focused on niche or specialized work and not mainstream transactional services.

Overall services globalization continues, as does a push for more automation and virtualization, resulting in greater productivity and less staff.

Organizations continue to show relatively more interest in expanding shared services usage over traditional outsourcing, though interest in more specialized outsourcing for example focused on

Use/expansion of offshore captive SSCs

Investments into/improvements to enterprise software systems

Use/expansion of BPO

Investments into cloud computing services

Use/expansion of ITO

Use/expansion of SSCs


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specialized outsourcing, for example focused on specific vertical industry services, continues to grow.

Cloud is becoming more pervasive, for example via the Software as a Service model, as a complement and some cases alternative to traditional outsourcing, though buyers increasingly view it as part of a continuum of service delivery options.


0% 20% 40% 60% 80% 100%

Bringing work performed offshore back onshore*

Insourcing work previously outsourced*

captive SSCs

3Q13 3Q12 3Q11* New category 2Q13

Advisors: Demand Growth by Service Delivery Model

Demand Growth: Last 1-2 QuartersDown Flat Up

7% 58% 36%

O

BPO

Demand Growth: Next 1-2 Quarters

Down Flat Up

1%

6%

2%

41%

40%

53%

57%

54%

44%

Internal process improvement

Shared services/SSC

ITO

4% 52% 44%BPO


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Note: numbers may not total 100% due to rounding.Source: KPMG Quarterly Global GBS Pulse Survey 3Q13

2%

5%

5%

4%

37%

36%

48%

52%

61%

58%

48%

44%

Internal process improvement

Shared services/SSC

ITO

BPO

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Demand by Service Delivery Model: Net Change in Demand

50%

60%Internal process improvement

Shared services/SSC

Appetite for major change efforts continues to

i ll d li

20%

30%

40%

50%

ITO

BPO


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improve across all delivery models


0%

10%

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

6%

24%

29%

76%

65%

2Q13

3Q13

Down About the same Up

Service Providers: Business and IT Service Pipeline Growth – Last Quarter

3%

3%

10%

4%

8%

36%

32%

36%

52%

19%

32%

24%

61%

68%

61%

38%

78%

60%

76%

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13


14

3%

45%

21%

55%

76%

2Q11

3Q11


8

Down About the same Up

Service Providers: Business and IT Service Pipeline Growth – Next 1-2 Quarters

10% 25%

33%

65%

67%

2Q13

3Q13

3%

13%

10%

52%

39%

49%

27%

41%

32%

25%

45%

61%

51%

59%

59%

68%

65%

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13


15


3%

7%

24%

35%

74%

59%

2Q11

3Q11

Service Providers: Demand by Function and Industry

Bundled business functions with IT

IT

CPG, food & bev., retail, wholesale

BFSI

Procurement/source-to-pay

Other

Bundled multiple business functions

F&A

Vertical industry-specific services*

Pharma/biotech

Energy/utilities, oil & gas

High tech

Gov't. (fed, state, local), edu., non-profit

Healthcare

Manufacturing


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* New category 2Q12


0% 20% 40% 60% 80% 100%

Customer care

HR

3Q13 3Q12 3Q11

0% 20% 40% 60% 80% 100%

Chemicals, minerals/nat. res.

Ent./media, hospitality/travel

3Q13 3Q12 3Q11

9

506

431

471430

516

Global Quarterly Outsourcing Deal TrendingKPMG Quarterly Global ITO/BPO Deal Tracking Analysis

Deal Value No. of deals3Q12

Year 2010

Total Deal Value

USD 207 billion

3Q131%

-41%Year 2011

Total Deal Value

USD 121 billion

+24%

Year 2012

Total Deal Value

USD 150.4 billion

54.949.3

37.7

65.0

32.4

21.3

39.1

28.222.7

36.5 35.3

55.9

20.3

43.9

53.3

397431

325

368341

292

354

428

299

426 422

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

3Q13

3Q12

-1%

51%


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2010 2011 2012 2013

Value (USD billion) No. of deals

• 3Q13 saw over 50 percent increase in total value of deals as compared to 3Q12 whilst the number of deals were almost the same.

• The average deal value has increased by around 53 percent as compared to 3Q12, indicating that larger deals been signed in this quarter.

* The term deals is interchangeably used with contracts throughout the analysis unless otherwise specified. Deals analyzed are global sourcing contracts of size USD 5.0 million and above only.

Source: KPMG Research & Analysis; IDC (www.idc.com), Contract Database, April 2013

Global Quarterly Outsourcing Deal Trending by GeographyKPMG Quarterly Global ITO/BPO Deal Tracking Analysis

EMA

AMERICAS ASPAC45.4

36.0

597

164

511

147

29.1

68.6

19.1

95.8

36.8

217

720

220

917

253

3Q11 2011 3Q12 2012 3Q13

Total Contract Value (USD billion) No. of Contracts

6.8

12.4 14.3

114 164 147

3Q11 2011 3Q12 2012 3Q13

3.2 7.0

3.9

18.7

2.2

37

147

44

162

32

3Q11 2011 3Q12 2012 3Q13


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• AMERICAS continues to be the major outsourcing region and the value of deals has nearly doubled in the AMERICAS as compared to 3Q12 with only a 15% increase in deal numbers

• EMA has also shown a growth of 16% in deal value as compared to 3Q12. However, ASPAC has shown a decrease of 44% during the same period.

• AMERICAS has the highest average total deal value in 3Q13 after an increase of 68% over 3Q12. The average deal value has fallen by 24% in ASPAC over the same period.

* Deals originating from the geography

Source: KPMG Research & Analysis; IDC (www.idc.com), Contract Database, April 2013

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Today’s Use of Outsourcing and Shared Services by Function

48%

52%

18%

21%

Human Resources

Finance and Accounting

Shared Services Outsourced

38%

40%

42%

42%

45%

46%

46%

47%

35%

21%

21%

23%

22%

39%

37%

14%

Facilities Management

Legal

Supply Chain and Logistics

Industry‐specific Process (i..e. claims processing)

Customer Service

IT and Network infrastructure support

IT application maintenance & development

Procurement


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35%

36%

37%

38%

13%

12%

42%

9%

0% 25% 50% 75% 100%

Marketing

Analytics

Print & Mail Operations

Sales

Average Proportion (%)

Source: HfS Research in Conjunction with KPMG. Note: n=343

Source: HfS Research, KPMG, Global Business Services Market Study, October 2013

Trends in global shared services usage

Relative demand for shared services compared to traditional outsourcing is growing, as is demand for domestic or onshore shared services centers. Nearshore outsourcing is shining more of late compared to use of nearshore shared services captive operations.

Drivers for this include changing economics, especially relative to labor arbitrage benefits; a desire for greater control over key strategic activities and sensitive data; and increased local market provider capabilities and resources. Protectionist efforts in the West and specifically in the U.S. have so far had little material impact.

Key attributes of mature shared services operations include strong commercial orientation and governance capabilities, and a focus on end-to-end process performance and cross-functional and geography coordination and integration.

Data and analytics is one of several more strategic activities more commonly


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Data and analytics is one of several more strategic activities more commonly being placed into a shared services environment, both to better manage shared services performance as well as deliver services back into business units.

More sophisticated organizations continue to take a more structured and formal approach to driving increased global business services maturity across all shared services efforts and between shared services and outsourcing.

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GBS maturity model


21

Buyer global sourcing preferences and demand

Significant Decrease No change Significant IncreaseSome IncreaseSome Decrease

Advisors & Service Providers: Demand Change by Service Delivery Model: Last 1-2 Quarters

1% 12% 46% 34% 8%Offshore outsourcing

Advisors: Demand Change by Shared Services Model: Past 12 Months

2%

9%

5%

1%

6%

14%

12%

15%

9%

45%

41%

52%

30%

32%

44%

31%

28%

48%

53%

4%

6%

3%

6%

6%

Domestic SSC

Nearshore captive SSC

Offshore captive SSC

Domestic outsourcing

Nearshore outsourcing

+12% Y/Y

+15% Y/Y


22

Down Flat Up


16%

11%

17%

36%

50%

50%

48%

39%

33%

Domestic shared services centers

Nearshore captive shared services centers

Offshore captive shared services centers

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F&A

IT

Advisors: Shared services demand by functionNow and in 12 months

Sourcing & procurement

Industry-specific svcs

Document svcs (print, mail)

Customer care

Administrative svcs

Data & analytics

HR


23

0% 20% 40% 60% 80% 100%

R&D

REFM

g p

In Place Expand Next 12 Months


Achieving greater economies of scale

Reduce operating costs (OpEx)

53%

72%

Advisors: Shared services goals/drivers and success levels

3.29

3.42

Goals/DriversSuccess

Increasing process automation

Accessing lower-cost offshore locations

Better enable use/exploitation of data & analytics

Enabling process redesign/re-engineering

Enabling continuous process improvement

Enabling IT systems/applications optimization

18%

24%

27%

28%

31%

34%

3 11

3.38

2.65

2.93

2.91


24

Supporting access to new markets

Accessing third-party talent/expertise

Reduce future investment costs (CapEx)

Increasing process automation

8%

16%

18%

18%


2.92

2.97

3.11

1=Not at all successful, 5=Highly successful

2.73

Room for improvement in achieving goals & drivers

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Service quality

Executive management support

Advisors: Shared services points of failure and success factors

Ability to use and leverage data & analytics

Talent management capabilities

Competitive with third party service provider alternatives

Overall governance capabilities

Customer centricity

Enabling IT systems

Run as a business


25

0% 20% 40% 60% 80% 100%

Charge back structure

Shared services "brand"

Ability to use and leverage data & analytics

Success Factor Point of Failure


Advisors: Shared Services and outsourcingDoes shared services usage drive more outsourcing success?

Shared Services Contribution to Outsourcing Success

7%

23%27% Inhibitor

Neutral/no material impact

3 37

3.40

Ability to manage service levels

Ability to adopt low-cost location model

Improvements when Outsourcing Replaces Shared Services

43%

Neutral/no material impact

Moderately helpful

Strong enabler


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2.95

3.04

3.22

3.37

1.00 2.00 3.00 4.00 5.00

Ability to improve risk and control environment

Ability to drive process redesign

Ability to scale to changes in business conditions

Ability to manage service levels

1= Improvements not at all achieved 3=Improvements somewhat achieved 5=Improvements fully achieved


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Outsourcing transition challenges

Transition is a critical first step in making outsourcing efforts succeed, but buyers continue to face transition challenges often hampered by both a lack of adequate and skilled resources, and ineffective and inadequate planning and processesprocesses.

While some amount of transition “pain” is inevitable, buyer and service providers must seek to minimize it, as poor transitions have a direct, negative impact on ongoing outsourcing success and satisfaction.

Buyers must not under-invest in transition resources and must take a structured and thorough approach to transitions, just as they should to post-transition outsourcing governance.


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Service providers must ensure they have adequate and skilled resources to support transition efforts, recognizing these investments directly correlate to a greater likelihood of a long-term positive relationship with the client.

Outsourcing transition: (Often not) getting off on the right foot

% of Transitions Completed On Time/Budget & to Requirements

7%14%50%29%Service providers

Almost all (>90%) Most (70%-90%) Many (40%-70%) Few (10%-40%) Almost none (<10%)

Frequency That Transitions Negatively Affect Buyer/SP Relationship

2%

52%

7%

30%

14%

15%

50%

1%

29%

Advisors

Service providers

7% 14% 36% 21% 21%Service providers

Almost always (>90%) Frequently (70%-90%) Moderately(40%-70%) Sometimes (10%-40%) Rarely (<10%)


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13% 32% 41% 15%Advisors

15

The causes of problem transitions…..Root causes for “failure”

Inadequate transition project planning and due diligence

Ineffective relationship & program governance during transition

Poor transition deliverable quality

Transition teams not ready at cutover

Poor personnel on-boarding/transfer process between the client & SP

Insufficient knowledge transfer and testing

Lack of understanding of the deal/scope by transition teams/bus. units

Insufficient transition management by both parties


29


0% 20% 40% 60% 80% 100%

Missed transition deadlines

Poor transition deliverable quality

Advisors Service providers

…And solutions for problem transitionsMost frequently ignored aspects of outsourcing transition by buyers

Adequately resourcing the transition project

Effectively managing the change

Ensuring checks and balances are in place to validate go-li di

Focusing on the process transformation required for the parties to effectively work together

Establishing an effective project oversight committee & joint gov. framework

Ensuring adequate involvement of the client bus. units in the transition

Re-aligning the retained organization


30


0% 20% 40% 60% 80% 100%

Validating the contract scope of services

live readiness

Advisors Service providers

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Learn More

Learn More

KPMG Shared Services and Outsourcing Institute(http://www.kpmginstitutes.com/shared-services-outsourcing-institute/)

Global Sourcing Advisor Pulse Surveys (http://www.kpmginstitutes.com/shared-services-outsourcing-institute/insights/2012/ssoa-pulse-surveys.aspx)

GBS Maturity Research Program (http://www.kpmginstitutes.com/shared-services-outsourcing-institute/insights/2013/global-business-services.aspx)

KPMG Advisory Institute Home (http://www.kpmginstitutes.com/advisory-institute/)

KPMG Institutes Home (http://www.kpmginstitutes.com/)

Blog: Advice Worth Keeping (http://blog.equaterra.com)


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Blog: Advice Worth Keeping (http://blog.equaterra.com)

Podcasts: Advice Worth Keeping (http://www.kpmginstitutes.com/shared-services-outsourcing-institute/events/podcast_series/advice-worth-keeping-podcast-series.aspx)

KPMG RSS Feeds

HfS Research: (http://www.hfsresearch.com/)

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The KPMG Shared Services & Outsourcing Institute


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The KPMG Advisory Institute


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18

Q & A

Appendix

19

Service Providers’ Perspective on Market Deal Characteristics

Pricing pressure on deals is growing in the market. Progress is being made in the elusive pursuit of more standardized and platform-based offerings as more cloud and vertical solutions are introduced into the mix, but success in this is very mixed across providers Favorable exchange rate trending is benefittingvery mixed across providers. Favorable exchange rate trending is benefitting some providers.

Providers are struggling to improve profits in new contracts, and there are concerns on margins on deals still in the pipeline and providers are also facing headwinds with margins on deals in flight. It will remain a challenge to maintain much less improve margins, especially in existing contracts, as buyers more seriously assess alternatives to traditional outsourcing and consume less, or at least not more, higher margin services.


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Providers continue to push hard to expand business in existing accounts,especially when profitability gains exist, but for many providers margins are being squeezed and buyers are pushing back against some higher margin offeringsthat don’t have a very strong business case.

Service Providers: Pricing Pressure

More competitive/aggressive About the same as last quarter Less competitive/aggressive

33%

44%

67%

56%

2Q13

3Q13

45%

54%

39%

33%

37%

36%

33%

52%

46%

61%

67%

63%

60%

67%

3%

4%

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13


38


36%

37%

64%

63%

2Q11

3Q11

20

Service providers: New Contract Profitability

Declining About the same Improving

5%

6%

80%

69%

15%

25%

2Q13

3Q13

4%

7%

6%

5%

8%

4%

5%

61%

63%

61%

62%

62%

58%

80%

36%

30%

33%

33%

31%

38%

15%

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13


39


11%

%

68%

80%

%

21%

20%

%

2Q11

3Q11

Q

10%

13%

50%

50%

40%

38%

2Q13

3Q13

Service providers: Existing Contract Profitability

Declining About the same Improving

7%

15%

16%

10%

4%

8%

10%

48%

56%

44%

62%

42%

71%

50%

45%

30%

41%

29%

54%

21%

40%

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13


40

11%

8%

43%

46%

46%

46%

2Q11

3Q11


21

Service providers: Ability to Increase Scope in Current Deals

Will decline Will remain the same Will increase

5% 25%

13%

70%

88%

2Q13

3Q13

5%

17%

11%

21%

19%

15%

29%

25%

83%

89%

79%

81%

85%

71%

70%

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13


41


8%

11%

92%

89%

2Q11

3Q11

Panelists

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Stan Lepeak, Director, Global Research, Management Consulting

Professional and Industry Experience

Stan leads research efforts globally for KPMG’s Management Consulting service line, focused on trends, issues, and futures in global business services, enterprise services transformation and enhancement, and their enablers and drivers, such as cloud, big data, social media, and consumerization of IT.

Areas of Specialization

Gl b l b i i d d l i l di h d i b i d Global business services usage and models including shared services, business process, and information technology (IT) services and outsourcing and their leading practices and maturity models

Business and IT services and cloud provider market trends, buying patterns, and performance levels

The drivers and enablers of globalization and global business services and their ramifications on business

Global business services management and governance processes, tools, and leading practices

Business and IT mega trends: cloud, big data and analytics, social media and its corporate usage and value proposition, consumerization of IT, and the evolution and control business services acquisition and consumption in organizations

Vertical industry and geographic trends relative to the use of global business services

Stan has 25 years of experience in the business and IT services markets. He led global research for leading boutique sourcing advisory firm EquaTerra (acquired by KPMG in 2011) for seven years. Previous to that Stan worked for the META Group (acquired by Gartner in 2004) as VP and Research

Stan LepeakDirector, Global Research, Management Consulting

KPMG LLP3001 Summer StreetStamford, CT 06905

Tel 203 458 [email protected]


43

Previous to that, Stan worked for the META Group (acquired by Gartner in 2004) as VP and Research Lead for buy-side and sell-side business and IT services. Additional roles on the vendor and provider side were in the software and services industries as well as positions in finance, accounting, and operations across several industries.

Stan is a noted commentator and frequent speaker on GBS and globalization and IT megatrends.

Function and specializationStan leads research efforts globally for KPMG’s Management Consulting service line, focused on trends, issues, and futures in global business services, enterprise services transformation, and enhancement.

Cliff Justice, Principal and U.S. Leader, Shared Services and Outsourcing Advisory

Professional and industry experience

Cliff is an established industry leader in shared services and outsourcing with over 20 years of operational and advisory experience. His primary area of focus is the planning and execution of outsourcing and shared service strategies for Finance, Procurement, Human Resources, and IT functions. His industry experience includes: Utilities, Energy, Financial Services, Healthcare & Pharmaceuticals, Manufacturing, Human Resources, Transportation, Consumer Products, Agribusiness, g p gand Technology.

Cliff has extensive experience with most global and offshore service providers including: IBM, HP, Accenture, Genpact, Capgemini, EDS, TCS, WNS, Wipro, Cognizant, Infosys, and HCL.

Areas of specialization

Cliff has played an advisory role and had involvement in more than 53 large-scale shared services, outsourcing, and offshoring transformations for Global 1000 companies, including the following:

Led a global healthcare products firm in its consolidation and outsourcing of Finance and Accounting services in the U.S. and EMEA, to Eastern Europe and India

Assisted a large aerospace and defense manufacturer in a global shared services integration strategy representing over $10 billion in spend

Led a large clothing retailer in a $1.2 billion multitower IT outsourcing deal to U.S. and Latin American service providers

Cliff JusticePrincipal & U.S. Leader, Shared Services and Outsourcing Advisory

KPMG LLPHouston, TX

[email protected]

Function and Specialization


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Led the transaction team of a major utility through a $3.5 billion, comprehensive global IT & BPO outsourcing relationship

Prior to joining KPMG, Cliff was a Managing Director with EquaTerra, leading their globalization advisory practice. Prior to EquaTerra, Cliff was one of the founding members and Managing Director of neoIT.

Cliff speaks regularly at industry events and conferences, contributes thought leadership papers and articles, and is often quoted in leading sourcing publications. In 2006, Cliff addressed the United Nations sponsored World Summit on Innovation and Entrepreneurship in Muscat, Oman on the social impacts of global sourcing. In 2010, Cliff was elected by industry peers to Shared Services Week’s G8 panel to discuss the future of Shared Services and Outsourcing.

Cliff is responsible for KPMG’s U.S. Shared Services and Outsourcing Advisory business. He specializes in service delivery model strategy, planning, and outsourcing transactions.

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Ron Walker, Partner, Shared Services and Outsourcing Advisory

Professional and Industry Experience

Ron has led hundreds of improvement initiatives over the course of his career including more than 80 shared services and/or new outsourcing relationships. He has led multiple outsourcing transactions from $1.5M to $1.5B across many functional areas including IT, HR, F&A, Supply Chain, Customer Care and RE & FM. Ron is an early practitioner in the business process outsourcing (BPO) industry and was a founding member of an F&A BPO service provider. The service provider community recognizes Ron as a thought leader in the industry and frequently seeks his input on new strategies and offerings.

Representative Experience

Led strategic sourcing assessment for a global 1000 financial services institute in their efforts to develop a new service delivery model for their back office general and administrative functions. Compared outsourcing and insourcing options and ultimately settled on a near shore shared services delivery solution. Assisted FORTUNE 500 brokerage firm in their efforts to analyze back office support performance. Assessment led to a service delivery change including F&A and HR business process outsourcing to an offshore service provider. Provided the account leadership for FORTUNE100 Telecommunications Company in its process of outsourcing real estate and facilities management functions in North America. Led strategic engagement to evaluate and implement service delivery model options for a leading software provider in the healthcare industry. Evaluated software development delivery options including onshore and offshore captive outsourced joint venture build operate transfer and various hybrid strategies

Ron WalkerPartnerShared Services and Outsourcing Advisory

KPMG LLP4747 Executive DriveSan Diego, CA 92191

Tel 858 750 [email protected]


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offshore captive, outsourced, joint venture, build operate transfer and various hybrid strategies. Provided account leadership for a large retailer in evaluating HR and F&A delivery capabilities and transitioning to a hybrid insource/outsource service delivery model. Led initial evaluation and assessment for a large natural resources company as it evaluated internal and external G&A cost optimization strategies. Client ultimately selected a $1.2B multi tower outsourcing relationship that included IT, HR, F&A and parts of customer care. Assisted a FORTUNE 100 Technology and Entertainment company in evaluating G&A shared services solution options and selecting a European delivery center location.

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Function and specializationRon is a member of the SSOA practice, specializing in transformation, shared services, outsourcing and G&A processes.

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Documents

3Q13 Global Sourcing Advisory Pulse Survey Results