Global Sourcing – Future ShiftNASSCOM India Leadership Forum 2016Bob RosettaManaging Director, Global Head of Citi’s Resource & Location Strategy

• Evolution of Global Sourcing• Future Shift

• GIC (Global In-house Centers)• Robotic Process Automation• Regulatory Focus

• Take aways

Agenda

Evolution of Global Sourcing

The right outcomes with the right person in the right place at the right time with the right skills and at the right price! -Too much to ask?

Evolution of Global Sourcing From Cost Arbitrage to Innovation and Sustainability

Location Strategy based on Talent Availability, Cultural Fit, Capabilities & Productivity

Proactive, risk based Governance focused on delivering value with metrics, feedback loop and culture of shared objectives

Large outsourcing deals (e.g. 5 year contracts for ADM) are likely in the past. The future will demand shorter, flexible deals that play to the needs of the customer and strengths of the supplier

Less is often more

Global In-house Centers

Building Sustainable Competitive Advantage for the company

GICs – Back in the limelight Transformation from ‘just another service provider’ to Innovation centers

Talent is the key. ‘What success looks like’

Targeted approach to work that is ‘Core’ to the company’s success– Competitive Advantage– Intellectual Property– Regulatory Sensitive– Complex and Iterative

Creation of Global Delivery Networks with GICs and Suppliers each playing to their strengths – ‘Sign on the Door’

Ownership and Accountability drives growth and sustainability

Robotic Process Automation

The robots are coming!

RPA – The Game changing Efficiency Driver Enhanced scalability, greater accuracy, improved compliance and reduced cycle times to

deploy

Commercial models will need to incorporate more than just ‘Gain Share’ to incent disruption and value creation

‘Human only’ processes will reduce as machine learning evolves further

BPO engagements will need to come up with value propositions to make it worthwhile for customers to not simply automate their own.

All sustainable Sourcing Contracts should have RPA as an integral clause

RPA is not a question of “if” anymore but a question of “when”

Regulatory Focus

The New Normal

Regulatory Focus – The New Normal Regulators have strong opinions and high expectations on data protection and access

Increased frequency of scrutiny and deeper level of review

Need for a strong ‘Third Party Management’ process

Expense of Regulatory Oversight should drive Supplier Consolidation – More cost effective to have fewer suppliers with scale

Quality of compliance to customer’s regulatory needs will be a key factor during supplier selection

Highest level of compliance to regulations has to be a shared goal

Take aways

Successful delivery is the best salesman

Take awaysEnablers

▲ Innovation rather than cost

▲ Demonstrate strategic thinking rather than ‘order taking’

▲ Leverage business and industry knowledge to add value

▲ Partner with GICs to share knowledge

▲ Build capabilities to effectively partner us in new initiatives like RPA

Derailers

▼ Focus on lowering cost by lowering talent quality

▼ Focus on sales rather than delivery

▼ Rigid contracts

▼ Lack of alignment with customer objectives

Tomorrow (noun): a mystical land where 99% of all human productivity, motivation and achievement is stored.