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Leading Business Services Firm |
Global 5000
HR Outsourcing Industry
Suppliers: 11 leading offshore suppliers
Scope of service: Provide consulting services
for strategy planning, due diligence, sourcing, contract negotiations and
governance for offshore application support and maintenance. |
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Background
An innovator and leading outsourcer in the HR-led BPO market. Meeting an
increasingly critical need for Global 500 companies and other large complex
corporations, our client provides comprehensive Human Resources outsourcing
solutions and expertise in high volume business processes, including related
Finance and Accounting and Procurement offerings.
Business Challenge
In 2001, our client’s IT organization consisted of mainly People-Soft and
SAP for 4 different clients; BP, Bank of America, Prudential and SAP. Each
client had customized their applications to various extents, and some included
various add-on applications such as AP, GL, resume management, etc. They were
faced with managing multiple client-centric IT maintenance and enhancement
processes versus managing overall process improvement for their clients. Adding
resources in the expensive US environment was not cost effective and as the
processes improved, often led to layoffs.
Our client needed a solution that would enable them to access savings, skill
and scale.
Savings. They wanted to meet or exceed the
45% savings margin they were gaining by offshoring IT services to India.
Skill. They wanted to tap into new sources of
expertise while replicating the level of skill that their customers had come to
know from its onshore facilities.
Scale. By being close to large pools of
low-cost talent, they wanted to be able to provide additional capacity to
accommodate their growing global business.
SolutionAfter mapping out a plan of
attack, the next step in their global sourcing strategy was to conduct due
diligence on the list of eleven suppliers. The due diligence used a structured
process to manage subjective and objective criteria. The companies were
evaluated on culture, domain experience, performance history, human resources,
project management skills, productivity history, market reputation,
infrastructure, transition processes, risk policies and procedures, knowledge
management processes and tools, as well as several other criteria.
The due diligence and subsequent analysis led to the recommendation of a
multi-source engagement. The choice of HCL as a key supplier was expected, but
the Hexaware choice, a tier-two supplier, was a surprise. Despite the brand
recognition of the other offshore suppliers, the tier-two supplier outperformed
on a number of areas. Leveraging a team of seasoned auditors to perform a
detailed assessment of each supplier’s domain, technical, and functional
knowledge, the neoQA evaluation criteria included:
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Past projects.
What kind of clients had each supplier worked with before? How successful were
these engagements? How did the suppliers reduce risks and improve ROI? |
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People.
How-and how well-did the suppliers manage their human resources? What
compensation and incentive policies were in place? How did they handle
performance reviews? |
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Pricing.
What pricing models did the suppliers offer (e.g., time-and-material, fixed
price, or risk-and-reward)? What were their service credit policies when an
issue occurs? |
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Performance.
How customer-focused was each supplier? Did they survey for customer
satisfaction? How much of their business was repeat business? What was the
overall financial viability of each organization? |
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Platform.
What equipment and expertise did the suppliers have in place? What were their
security and business continuance policies? |
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ResultsThe transfer of activities to
Hexaware and HCL has enabled our client to save over the original estimates of
45% to date. The due diligence on the suppliers empowered them with knowledge
not only with information on specific suppliers that met their requirements,
but also with knowledge about global markets that later allowed them to expand
their global plan even further.
Today our client operates fully-owned operations in Mumbai, India and Krakow,
Poland with supplier partnerships in India. |
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AMP
AXA
Bell South
Cardinal Health
Cendant
Chevron
Citigroup
D.B. Zwirn
DuPont
FTVentures
Gateway
Hartford Life
HCA
Hewitt Associates
JPMorgan Chase
Liberata
Menlo Worldwide
Mercury
Nomura
PPM Capital
Pyxis
Siemens
Sony Pictures
Sprint
Stanford University
Towers Perrin
Trustmark Insurance
TXU
Verisign
Visa
Warner Brothers
Wells Fargo Foothill
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For more information about
how your company can benefit from working with neoIT, please contact us. |
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