Transcription
Paul SpenceCEO, Global OutsourcingBank of America Merrill LynchTMT Conference 2010London, June 9
2010: Three keys to a successful year Growth: accelerate the top line recovery by focusing on5 key market segments Competitiveness: increase further with Lean andoffshore Change: get ready for new technologies and businessmodelsTogether. Free your energies 2010 Capgemini2
Growth: detailed process to select the right prioritiesleading to 5 top line initiativesLow PotentialContenderStrong PotentialInvest NowSmart Energy ServicesStrongITS - Virtualization & CloudsITS - Unified CommsBusiness Info MgmtXTestingCompleteness of OfferALSXXCTPCrescentEnterprise MobilityGreen ITXWeakSecurityLarge bubbles indicate larger market sizeLow GrowthMarket MomentumTogether. Free your energiesHigh Growth 2010 Capgemini3
Growth: first five months highly encouraging for thetop line initiatives Financially Roughly 1/3 of bookings Roughly 1/4 of Revenue CM Several points above rest of business Operationally Several points better win rates in CC and TS businesses Faster way for OS to win new work Shifting of Alliance role and focus But Requiring intensified recruitment to optimise results Requiring increased reskilling of work forceShifting portfolio from geographic fragmentation to unified global capabilityTogether. Free your energies 2010 Capgemini4
Growth: a strong base to evolve business models andinnovate Application Lifecycle Services – Catch up with industry,then surpass with a twist Testing – Industry best processes w/ consolidated delivery Business Information Management – From data toinformation to sector solutions Infostructure Transformation Services – Technologychange of XaaS and unified communications Smart Energy Services – MBS with monitored investment andriskOn track for above market growth AND improved margins for the five GSL’sTogether. Free your energies 2010 Capgemini5
Competitiveness: industry process improvementmethods can be applied to servicesToyota ExamplesWaitingWaiting for previous processes to finish.Waiting for material to arrive.Service Examples Testing team waiting for code to arrive Unassigned capacity between projects Waiting for responses from offshore teamsOver ProductionProduction of parts without a customer order. Detailed reports that no-one reads Develop exceeding scope of contractReworkMotionOver ProcessingInventoryTransportationTime spent making defecting products that cannot be accepted by the customer. Poor trained peopleExcessive human / equipment effort – poorlayout and process design. Searching for filesAdding to a part something that is not requiredby the customer. Repeated data entry in different environmentsRaw Material / WIP / Finished goods – tied upcapital. Huge ticket backlogMoving parts from one location to anotherwithout adding value. Meeting in different sites Late test execution in development process Resources switched within different tasks Non-actionable supporting tools Large number of features waiting for batch release Multiple handoff in ticket managementTheThe identificationidentification andand eliminationelimination ofof wastewaste isis fundamentalfundamental toto LeanLean –– reducingreducingcostscosts andand increasingincreasing profit.profit. OtherOther benefitsbenefits areare derivedderived fromfrom wastewaste elimination elimination Together. Free your energies 2010 Capgemini6
Competitiveness: first pilots validate Lean benefitsand scalabilityFocusExample findingsInefficientresource onboarding10% productivity loss due to 23 days delay in on-boardingOffshore resourceutilization28% idle time for offshore resourcesLow use ofrightshoringOnly 19% FTEs offshoreManual testing70% of test steps could be automated for Regression andNegative testingMissed CRrevenueFocusExamplefindings36 CRs (worth 50K) unbilled to clientin currentphaseRoot CauseproactiveanalysisonmembersP3 and P4incidents 3 days spent0%by 30%of projectteamcreatingRe-use ofAnalysisstandard toolstemplates for project useIncidentManagement20% of tickets return to user for more informationChangemanagement14 duplicate entries of data across 4 systems for a client CRChangeManagement100% of non-financial data fixes require same approval as fullsystem deploymentTime Management 100% of support staff spend 1hr/week ensuring that data inClarity and DTX matchTransitionManagement6.5 days per month spent by Transition managers chasingproject managers for plans/documentationTogether. Free your energies Pilots proved that significantcapacity release is possiblethrough the Lean approach At December ASEs, SMEsconfirm that over 50% of pilotfindings are scalable Sustainability is achieved bychanging behaviours andinstalling robustperformance managementsystems 2010 Capgemini7
Competitiveness: Offshore is close to a third of ourheadcountEASTERN 026025,000CHINA1,0001,2001,200PHILIPPINESNEW!LATIN AMERICA1,2001,8502,300RedBlackBlue Serve 900 clientsfrom offshore Deploy 32,000professionals in lowcost delivery centers Growing at 32%offshore penetration2008 headcount2009 headcount2010 headcount (est.)Together. Free your energies 2010 Capgemini8
Competitiveness: offshore is key to pricing butincreasingly also to value addedPOSITION COMPETITIVELYIf the price isright then, if wedemonstrate aworld-beatingsolution PRICEPOINTDEPTH OF DOMAIN EXPERTISE AS CRITICAL AS SCALEBeyond price, we are managing customer-focusedinnovation in three ways:COMMUNITIESCLOUDCOMPUTINGSOLUTION AREASLEANCOMPELLINGSOLUTIONAGILE we earn theopportunity tooffer a winningdealCoEsVALUE& DEALVIRTUALREALITYVISUALISATIONTogether. Free your energies 2010 Capgemini9
Competitiveness: some of our key repositories arenow in IndiaOFFSHORE AS ‘PIVOT POINT’FOR INNOVATIONOFFSHORE GROWSOffshore serves as the coordination pointfor gathering leading solutions from one BUand launching them into all.! Single project. Early stages of offshore usage. 20m across multiple projects during last threeyears and extended for additional three years.!! Services unit of a large French telcoTHIS IS NOW (2010)!!THAT WAS THEN (2007) Offshore leverage over 80% across multipleprojects. Some projects at 100% offshore leverage.! End to end delivery managed offshoreOUR APPROACHInnovation in Cloud services, SaaS, BIM,SmartX and others will continue to make uspopular as an expert provider of leadingsolutions. Focus on understanding business requirements. Mutualized team and flexible staffing across multipleprojects. End to end responsibility of customer relationshipTogether. Free your energies 2010 Capgemini10
Competitiveness: offshore now contributes to allaspects of business improvementWe are growing .through bringing newinnovation to our customersWe are stretching margins We are unifying delivery bringing more offshorecapability into our propositions by cross-fertilizing capabilitythrough transversal offeringsCUSTOMER MARKETSGROWTHINDIA & OFFSHOREMARGINSKEY INITIATIVESKEY INITIATIVESKEY INITIATIVES Joint account management Low-cost deployment Centres of excellence Framework penetration Fixed-price delivery OneTeam delivery Rapid lead generation Competitive pricing Customer visit experience Large deal teamsTogether. Free your energies 2010 Capgemini11
Change: back office industrialization will progressivelyshare the stage with technology smaintenance and BOindustrializationTipping pointSystemsSystemsofofsystemssystems2010/2011 ?TimeTogether. Free your energies 2010 Capgemini12
Change: clients are progressively starting to adoptthese new driversShared resourcesInteraction platformInfrastructureService platformIPSaas esTogether. Free your energies 2010 Capgemini13
Change: in each sector specific factors are drivingchangeManufacturing RetailLevel lCustomeranalyticsEUCFSSmart meters& smart gridOnline 2.0Networkengineering ks ®ulationRail networkmanagementSecuritysystemsNew entrantsDiversificationEmergingmarketsGOVBilling ationConsolidationCapgemini has some strong positions andconsulting favors business alignmentTogether. Free your energiesTax systemsE-borderDigital mediaSmartphonesBillingLong term growth 2010 Capgemini14
Change: we’ll progressively have to rethink our roleand our whole ecosystemBusinessTechnologyBundling BPO Software platformAggregatedCloud servicesSector ng asA serviceIntegrator andOperatorComplex customsoftwaresOwn resourcesServiceSecurity SLAsIntelligenceTogether. Free your energies 2010 Capgemini15
Summary Growth: our five top line initiatives accelerate our returnto growth, still our preferred scenario Competitiveness: we continue our journey to ablended delivery model and Lean opens door to asignificant cost decrease Change: new technologies offer new opportunities butwe must also rethink our roleTogether. Free your energies 2010 Capgemini16
Paul SpenceCEO, Global OutsourcingBank of America Merrill LynchTMT Conference 2010London, June 9
TMT Conference 2010 London, June 9 CEO, Global Outsourcing Paul Spence. 2 . maintenance and BO industrialization New custom softwares New custom softwares Dispersed device systems Dispersed . Software platform Business Technology Integrator and Operator Complex custom softwares Security SLAs
