Wednesday, February 22, 2012

Procurement Outsourcing Vendor Profile: Global eProcure

Company Profile: GEP is a procurement services firm dedicated to helping enterprises reduce their costs through procurement and supply chain transformation. Company offer comprehensive procurement consulting, technology and outsourcing solutions to Global 2000 companies. Over 12 years of experience in providing procurement services and is based in Clark, New Jersey, USA.  

Managed Spend: Manage more than  US$ 50 billion spend, processing over 6 Million transactions sourced, up to 250 events per client, per year.  and managed across multiple categories and has more than More than 700+ experienced professionals. Extensive library of RFP templates, toolkits and other resources. Multi-lingual phone support in over 20 languages. 

Sourcing & Category Management: The end-to-end sourcing & procurement solutions include strategic sourcing, spend analytics, category mgmt, contract management, sourcing support like spot buy, eAuction, Market intelligence, Low Cost Country Sourcing, supplier data, catalog content, RFPs, etc.  

Locations: Global eProcure PO delivery locations include Los Angeles, U.S., Costa Rica, Sao Paulo, Brazil, London, U.K., Prague, Czech Republic, Shanghai, China, Mumbai, and Hyderabad, India. 

Category Expertise: Management of all direct & indirect across industry verticals. MRO & Capex, Logistics, Packaging, HR , Facilities, Professional, Administration related expenses, Marketing, IT related Hardware, Software, Services, Telecom, etc. 

Direct expenses include Energy & Utilities, Natural gas, Packaging Equipment, Metals, Plastics, electric components, etc.

Key Clients: 120+ customers in 20 different industries including Fortune 500 companies. Clients include Bayer, Essilor, Kellogs, Saint-Gobain, Adobe, Estee Lauder, L'Oreal, Starwood, Triumph Group, Bissell, etc. 

Vertical & Geography Mix: Consumer goods, energy & utilities, financial services, industrial manufacturing, pharmaceuticals, technology, telecommunications, travel & hospitality, nonprofit, healthcare, education, public sector organizations. 

PO related Activities:
In January 2012, acquired Enporion that provides strategic sourcing and e-procurement applications and serves customers in the electric and gas utilities, manufacturing and distribution industries.

Fully integrated GEp Suite 5.0, SaaS based procurement technology suite supporting all source-to-pay functions. GEP technology suite tools include GEP Spend, GEP RFx/GEP Auction, GEP Contract, GEP Supplier, GEP Purchase.

Procurement Outsourcing Vendor Profile: Wipro Procurement BPO

Company Profile: Wipro limited is a global IT services and consulting company  and provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. Wipro PO services offer customized solutions across the source-to-pay cycle. PO contributes around US$100 million to total revenues.  

Managed Spend: Manage around US$ 9 billion spend and has more than More than 70+ experienced professionals who are certified procurement consultants, supply chain professionals and commodity managers from different industry verticals. More than 700+ professionals with P2P expertise. Lean and six sigma based delivery.  

Sourcing & Category Management: The end-to-end solutions include material master data management, spend analytics, category management, contract management, sourcing support and P2P cycle management.   

Locations: Wipro PO delivery locations include Romania, Mexico, India - Chennai, Bangalore, New Delhi, Gurgaon, Shanghai (China), San Diego (U.S.), Troy, Michigan (U.S.) and the U.K.  

Category Expertise: Management of all indirect across industry verticals. Indirect category expertise in IT Hardware & Software, Telecom, Temporary Labor & HR Services, Office supplies, etc. Global delivery model – ability to spread SME resources across onsite, near shore and offshore locations  

Key Clients: Sears, Bell Canada, GM, BP, Boeing,etc.  

Vertical & Geography Mix: Manufacturing is the dominant vertical followed by BFSI, Hi-tech, CPG, Utilities, etc. North America followed by Europe, Asia Pacific are the key geographies.  

PO related Activities:
Partnerships: Technology partnerships with IASTA and Ariba for spend management and sourcing management. SAP, Oracle are other technology partners.  

Wipro has ability to host S2P service as SaaS solution or on demand solution. Procurement Automation tools like Proprietary application Base™, which can extract spend data from multiple enterprise applications.  

Procurement Outsourcing Vendor Profile: Capgemini Procurement BPO

Company Profile: With more than 115,000 people in 40 countries, Capgemini provides consulting, technology and outsourcing services. Capgemini offers a wide range of procurement services and PO revenues contribute more than US$150 million to total revenues.  

Managed Spend: Manage over US$ 14 billion spend and has more than 10 years' expertise in sourcing and procurement. Capgemini has worked on sourcing and procurement programs worth more than US$20 billion in past five years and delivered US$1 billion in savings. More than 1500 S2P specialists.  

Sourcing & Category Management: Sourcing management, Compliance management, Order management, Purchase to Pay management, Reporting, Contract management, IBX Spend Cloud, etc. 

Locations: Capgemini PO delivery locations include U.S.,  Canada, India, Poland, Guatemala, Brazil, Germany, France, U.K., China, Sweden. 

Vertical & Geography Mix: Manufacturing is the dominant vertical followed by BFSI, Hi-tech, CPG, Utilities, etc. North America followed by Europe, Asia Pacific are the key geographies.  

Category Expertise: Management of all indirect & direct categories across industry verticals. Indirect category expertise in IT Hardware & Software, Telecom, Temporary Labor & HR Services, Office supplies, Fleet vehicles, Engineered  Procurement and construction services, etc. 

Direct Categories like raw materials like Rubber, Glass, etc. Equipment like Transformers, Transmission Lines, Composite poles, Operated equipment, Steel for cables for electricity distribution, etc. 

Key Clients: Kraft, Novozymes, Hydro One, Hilti Corporation, Ericsson, Skanska, Deutsche Lufthansa, Deutsche Post DHL, Saab Aerospace, SEB, Prysmian, Vodafone, JCB, EFH, Syngenta, Dairy Farm, Ontario Power and Gas, and Blue Scope Steel.  

PO related Activities:
Partnerships: Alliance with SAP to provide IBX Procurement  Cloud based offerings.

Ariba, Emptoris Oracle are other technology partners. 

Acquisitions: Capgemini acquired IBX in February 2010 and IBX offers cloud based procurement BPO offerings and is a on-demand eProcurement and eAuction technologies. 

Procurement Outsourcing Vendor Profile: Infosys Procurement BPO

Company Profile: Infosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries to build tomorrow's enterprise. Infosys BPO's Sourcing and Procurement solutions provide transformational benefits across the entire Source-to-Procure and Payment value cycle through a Global Operating Model.

Managed Spend: Manage over US$ 17 billion spend, conduct approx 2500 sourcing/e-sourcing events per annum and process 15million PO line items per years for the clients globally. more than 1000 Sourcing and Procurement professionals with over 1500+ man years experience. Procurement BPO contributes around US$100 million in revenues. 

Sourcing & Category Management: Spend Analytics, Evaluate, Negotiate & Buy,  Market/Demand Analysis, Supplier Adoption, Contract Compliance, Accounts Payable, catalog & content management, Supplier performance Management, Contract management, Validations, etc. 

Category Expertise: Management of all indirect & direct categories across industry verticals. Indirect category expertise in IT Hardware & Software, Telecom, Temporary Labour & HR Services, Freight & logistics, Marketing & Travel, Material Office Supplies, Utilities, etc.  
Direct Categories like Manufacturing consumables, repair and operations items, fabrication parts and equipment spares, industrial supplies, etc.

Locations: Infosys PO delivery locations include India (Bangalore, Jaipur, Pune, Gurgaon, Chennai), Brno (Czech Republic), Lodz (Poland), Manila (Philippines), Hangzhou (China), Bangkok (Thailand), Belo Horizontal (Brazil),  Monterrey (Mexico). 

Key Clients: BP, Rio Tinto, Caterpillar, Microsoft, Royal Phillips, etc. Recently Portland Group which has 40 odd clients in Australia.  

Vertical & Geography Mix: Manufacturing is the dominant vertical followed by Pharma, BFSI, Hi-tech, Retail, Utilities, etc. North America followed by Europe, Asia Pacific are the key geographies. 

PO related Activities:
Partnerships: Alliance with SAP to provide Source to Pay Platform based on SAP(SRM). Ariba, Ketera, Oyster, BIQ, Infosys Proprietary tool (CPO Dashboard/SCV platform)  

India’s First Sourcing & Procurement Academy which provides deep domain knowledge in the BPO space and is aligned to International Purchasing & Supply Chain Management Institute. 

Acquisitions: Philips SSC in 2007 that added three delivery centers at Lodz, Poland; Bangkok, Thailand; and Chennai, India. 

In 2011 acquired Portland Group which is a provider of strategic sourcing and category management services in Australia.

Procurement Outsourcing Vendor Profile: Genpact Procurement BPO

Company Profile: Genpact, Indian BPO Vendor and it’s Procurement and Supply Chain practice delivers end-to-end supply chain solutions, enabled by its deep domain experience, best-in-class technology and strategic partnerships. Genpact has over 10 years experience in working with global companies to provide services that include Forecasting and Planning, Sourcing and Procurement, Fulfillment and Logistics and Aftermarket Services. PO contributes close to US$500 million to total revenue. 

Managed Spend: Manage over US$ 25 billion spend and 12,000+ supplier contracts implemented. Managed 2.5MM+ purchasing transactions and 15MM+ invoices annually. 35+ clients, 3000+ procurement professionals and global reach with support in over 11 languages. Process compliance levels of 4.37 Sigma - highest in the industry. Global delivery team - 25% of the delivery team located onshore or near shore.  
Experience in third party technology tools like Ariba, Oracle and SAP and proprietary tools and solutions

Sourcing & Category Management: Spend Analytics, Negotiation, Contracting, Sourcing Evaluation, Make/Buy Decision Support, Requisition to PO issue, Expediting, Ad Hoc Spot buys, PO to Receipt to Reconciliation, Accounts Payable, catalog management, Supplier profiling, Supplier Market Analysis,  etc. 

Locations: Genpact  PO delivery locations include 11 (centers) in 6 countries Bucharest, Cluj, Morocco, Guatemala, U.S., China, India (Hyderabad, Bangalore, Gurgaon, Jaipur, Kolkata ) 

Category Expertise: Management of all indirect & direct categories across all industry verticals. Indirect costs like IT/Telecom, Marketing, Logistics, MRO, Professional Services, Office Services, Utilities, Travel and Capital Equipment.  

Key Clients: GE, AstraZeneca, Symantec, Genworth Financial, GlaxoSmithKline, Delphi, Pfizer, Nissan, Carnation Auto, Serco, Yahoo, Walgreens, WellPoint/WellChoice, etc. 

Vertical & Geography Mix: Manufacturing is the dominant vertical followed by Pharma, BFSI, Hi-tech, Retail, Utilities, etc. North America followed by Europe, Asia Pacific are the key geographies. 

PO related Activities:
Partnerships: ICG Commerce has collaborative partnership with Genpact and offers clients Source to Pay solutions.

Genpact has partnered with IASTA to offer a Business Process as a Service (BPaaS) offering for eSourcing services based on IASTA's SmartSource platform.  

Genpact uses Smart Enterprise Processes methodology that  improves efficiencies and effectiveness that increase process performance between 2-5 times in terms of addressable spend visibility, working capital requirements and cost savings. 

Procurement Outsourcing Vendor Profile: ICG Commerce

Company Profile: ICG Commerce, the leading procurement solution provider has built a specialized infrastructure dedicated to helping companies optimize indirect spend and drive bottom line savings that strengthen their businesses. ICG Commerce is a privately held company and member of ICG’s (Nasdaq: ICGE) network of partner companies. Provide services and support to clients with global operations in over 47 countries and 21 languages.

Managed Spend: Manage more than US$17 billion in annual spend (direct & indirect spend) for clients. More than 250 sourcing and procurement professionals with deep expertise in various sourcing and procurement categories. Over 20 active comprehensive outsourcing clients (managing multiple processes and categories on a multi-year basis 

Sourcing & Category Management: Strategic sourcing including supplier and contract implementation, operations management eSourcing technologies, RFI templates, supplier database, price benchmarks. Compliance Management, Order Assistance, Procurement Help Desk, Accounts Payable Support, Vendor Maintenance, Content Management/supplier catalogs, Supply-Market Monitoring and Reporting , Price Management, continuous cost improvement, etc. 

Locations: ICG Commerce PO delivery locations include King of Prussia, North America, London, U.K., Hyderabad, India, Shenzhen and Qingdao, China 

Category Expertise: Management of all indirect & direct categories across all industry verticals. Indirect costs like IT/Telecom, Marketing, Logistics, MRO, Professional Services, Financial Services, Utilities, Travel and Capital Equipment. Direct costs like packaging materials, metals, chemical and gases, fertilizers, capital equipment, etc. Sourcing expertise in more than 300 categories. 

Key Clients: Symantec, Kimberly-Clark, Whirlpool, Hertz, Goodyear, Greif, Cameron, Pinnacle Foods, Chiquita, TEVA Pharmaceuticals , Elizabeth Arden, Doosan, The Clorox Company etc. 

Vertical & Geography Mix: Manufacturing is the dominant vertical followed by CPG, Hi-tech, Retail, Telecom, Airlines, Pharmaceutical, Utilities, etc. North America followed by Europe, Asia Pacific are the key geographies. 

PO related Activities:
2011 ICG Commerce acquired,  Neuwing Energy Ventures, a provider of financially focused and environmentally responsible energy strategies.

Partnerships: ICG Commerce has collaborative partnership with Genpact and offers clients Source to Pay solutions. 

Procurement Outsourcing Vendor Profile: IBM Procurement BPO

Company Profile: IBM is a global technology & consulting company that manufactures and sells computer hardware and software, and offers infrastructure, hosting and consulting services to clients in areas ranging from mainframes to nanotech. The company has more than 426,000 employees worldwide & generated revenues of US$106.9 billion for the fiscal year 2011.

Managed Spend: Manage more than US$50 billion in annual spend (core & non-core spend) for clients. IBM offer end-to-end outsourced S2P services in the global market and has more than 1,200 procurement specialists. Close to 40% of Global Multi-Process PO market share. Close to 50 clients & PO contributes around US$800 million. Developed a joint FAO & PO offering and expanding it to related supply chain processes like logistics, asset management and supply chain visibility. 

Sourcing & Category Management: Complete procure-to-pay indirect & direct procurement outsourcing, market intelligence, sourcing strategy, supplier selection, spend analysis, category management, supplier performance management, compliance, tactical sourcing, catalog management, negotiations, supply base development, GERS Travel & Expense management, etc. 

Category Expertise: Management of all indirect & direct categories across all industry verticals. Marcom, IT related, Travel, business services, facilities/real estate, MRO, HR services, energy & utilities, etc. 

Key Clients: Telstra, Unilever, Sara Lee, Korea Exchange Bank, DTCC, Colgate-Palmolive, Sunoco, Solectron, etc.  

Vertical & Geography Mix: Hi-tech & Telecom vertical with more than 30% lead followed by CPG & Retail (25%+), Manufacturing (15%+), Financial Services( 5%) and rest other verticals. Asia-Pacific has more than 40% share followed by US (35%+), Continental Europe(10%), UK (5%). Strong presence in Asia Pacific and CPG & retail verticals is a major advantage. 

Locations: IBM PO delivery locations include Bangalore, Shanghai, Budapest, Hortolandia, Raleigh, Endicott, Manila. 

PO related Activities: Acquisitions:
2006 : Viacore (Business Tone) & Key MRO Maximo (Strategic Sourcing).
2008 : Acquired Cognos ( Decision Support).
2009 : Acquired Redpill Sol & SPSS for analytics,
2010 : Acquired OpenPages (Risk Management), CoreMetrics (Web Analytics), Clarity Systems, Cast Iron, Datacap for Technology capability, Sterling Commerce and Lombardi for B2B and workflow capabilities.

In 2011 IBM acquired Emptoris, a specialist in supply chain and contract management analytics.  

IBM also has partnerships with Ariba, SAP and Hubwoo. 

IBM PO is based on the Enterprise Process Innovation Continuum (EPIC) methodology and technology tools based on this methodology automate and standardize the processes. 

Procurement Outsourcing Vendor Profile: Accenture Procurement BPO

Company Profile: Accenture is a global management consulting, technology services and outsourcing company, with more than 244,000 people serving clients in more than 120 countries. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011 and it included outsourcing revenues of US$ 10.6 billion. Close to 30% of Global Multi-Process Procurement Outsourcing market share

Managed Spend: Manage more than US$35 billion in annual spend (non-core spend) for clients and transact more than US$38 billion. Offer end-to-end outsourced S2P services in the global market and has more than 4,000 procurement resources and 1000+ PO specialists. PO contributes more than US$ 750 million and strong 10 year track record in Procurement Outsourcing (PO).

Sourcing & Category Management: strategic sourcing, e-Auctions and spot buy; Procurement services: buying support, PO and invoice processing, T&E processing, contract services, supplier services, supplier enablement and control, event management services, and application management; and business insights—compliance reporting, reporting and analytics, SLA reporting.

Key Clients: Deutsche Bank, DHL, Unilever, HOCHTIEF, ING Bank, Microsoft, Washington Gas Light, City of London, Erste Bank, Bank of Ireland, National Australia Bank, Miami University, UK Ministry of Justice, Consip Spa, Comerica, etc.

Category Expertise: IT/telecom, contingent labor, marketing, facilities/real estate, MRO, HR services, travel services, professional services, and utilities/energy, etc.

Vertical & Geography Mix: BFSI(60%) is where Accenture dominates followed by Manufacturing, Energy & Utilities, Telecom & Technology, CPG & Retail and Public Sector. Looking to expand into Professional Services, Travel & logistics space.
Geography wise US dominated with 55% share followed by Continental Europe (35%), UK(5%) and Asia Pacific(5%).

Locations: Accenture provides procurement BPO services from locations including Bangalore, Dalian, Bratislava, San Antonio, Warsaw, Toronto, Dublin, Frankfurt, Milan, Paris, London, Madrid, Rome, Sao Paulo,  Munich, etc. Expanded delivery capabilities in Philippines in 2010.

PO related Activities: Acquisitions:
In 2006, acquired AdvantiumInc. and Meridian Informed Purchasing Ltd. (MIP) –two companies specializing in profit recovery and analytics. 

In 2010, acquired sourcing and BPO services assets of Ariba which strengthened the sourcing capabilities. Moving beyond financial services to manufacturing, Energy & Utilities, etc. 

Since 2006 Accenture Invested in a source-to-pay solution based on SAP and Emptoris and still continues to invest on these technologies to develop more Source to Pay solutions. 

Accenture marketing efforts are based on "high performance. delivered" campaign. Developed FAO and PO specific marketing literature with several books, case studies, etc.  

Sunday, February 19, 2012

India IT-BPO Industry 2012 – Slow growth in 2013 & Outlook 2020

NASSCOM predicts slow growth for India IT-BPO Industry in FY 2012-2013 with a lesser growth rate of around 14% with revenues of around US$115 billion in FY 2012-13 compared to revenues of around US$ 101 billion at 15% growth it expects for FY 2011-12. For the first time India IT-BPO revenues will cross US$100 billion mark in FY 2011-12 and exports contribute US$69 billion (16.3%YoY) and domestic IT services contribute revenues of US$32 billion (16.7%YoY). In FY13, the IT and BPO export revenues is expected to grow at 11-14% (US$78 billion), while the domestic revenues are slated to grow by 13-16 %( US$37 billion) and reach a total of US$115 billion. Growth is primarily driven by new business models and disruptive technologies like such as cloud, mobility, analytics, social media, and vertical specific solutions. NASSCOM expects a 4.5% growth in the Global Technology spending in 2012 and further predicts that industry can meet the vision 2020 target of touching $225 billion by 2020.

Contribution of IT-BPO Industry to India's gross domestic product has gone up to 7.5% from 6.4% in 2008. SME sector contributed US$5 billion in revenues in current fiscal. Salary hikes could be in the range of 8-10% in 2012-13 as compared to 10-14% in 2011-12. IT Services segment grew by a CAGR of 16% in the last four years to grow to $40 billion from $22 billion in 2008 despite the economic problems in US and Europe. Indian BPO industry has a share of 36% in the global BPO outsourcing market, and significant revenues contributed by customer interaction business at $6.7 billion. Research and development exports went up by a CAGR of 12% to $10 billion ($7 billion in 2008), taking a 15% pie in the overall IT-BPO exports. NASSCOM also projected that the IT-BPO industry will add 200,000 jobs in 2012-13, down from 230,000 jobs in 2011-12 and 240,000 in 2010-11.

Challenges for the India IT-BPO industry in FY2012-13 include elections in the US, leadership changes in euro zone and the ongoing sovereign debt crisis and India's own policy paralysis like no road map on direct taxes code, goods and services tax, SEZ issues and increased tax activism. NASSCOM will relook at its forecast in October 2012 as the global macro economic scenario is still uncertain. Indian IT companies too have sounded cautious in their outlooks and hope that the market condition will improve from the latter part of this year. Source: NASSCOM & News Articles 

Monday, February 13, 2012

Global Data Center Market - 2011 & Future Outlook

According to Gartner, Worldwide spending on servers, storage and enterprise data center networking equipment is expected to return to pre-recession levels and grow significantly in the coming years and reach to nearly $99 billion by 2011 and past $126 billion in 2015. In 2010, 2 percent of data centers contained approximately half of all data center floor space. In 2015, that same 2 percent of data centers will account for more than 70 percent of data center spending and contain 60 percent of total floor space.

After a three-year hiatus, the data center construction is coming back to its pre-recession levels, with construction worldwide expected to reach $45bn in 2011, by some estimates. Industry veteran Christian Belady of Microsoft has done an analysis, and projects that annual global spending on data center construction will increase from about $50 billion today to about $78 billion by 2020. The U.S. market for data center construction, currently about $15 billion a year, will likely grow to about $18 billion.

TechNavio's analysts forecast that the Global Data Center Outsourcing market will reach $163 billion in 2014. One of the key factors contributing to this market growth is decreasing data center outsourcing cost. The Data Center Outsourcing market has also been witnessing integration of cloud computing facilities. According to a new report from Pike Research, the investment in greener data centers will experience rapid growth over the next five years, increasing from $7.5 billion in global revenue to $41.4 billion by 2015, representing 28% of the total data center market.

According to Datacenter Dynamics, Industry Census 2011, the US rules, with $9.3bn in data center construction investment, followed by the UK, with $3.35bn, China ranked third, with $3.1bn in spending expected in 2012, followed by Germany, with $2.6bn, Australia with $2.45bn, and Brazil with $2.15bn. France, Italy, and Canada are close behind.

Most of the telecom companies, IT players like IBM, Dell, HP etc, Internet companies like yahoo, Google, Amazon etc, pure players like Equinox, DRT, Savvis etc all have data centers across the globe. Apart from these companies all governments both national as well as regional are also setting up their own data centers to store citizen data and provide better services to their citizens. Data centers building and Data Centers Outsourcing are driving growth in Global IT spending. The rise of internet and data is also driving significant growth in data center market.

Numbers highlight growth of the Data Center Market in the near future. With explosion of data and its storage, growing number of internet users and more businesses moving to the cloud computing the demand form more data centers and technologies will increase. The data center market provides good job opportunities and with development of new technologies and their adoption more jobs will be created. Data centers provide opportunities in System Administration, Networking, Hardware Equipment Maintenance, Software Application Development, Security Software Specialists, Electrical Engineers, Mechanical Engineers, Cooling Specialists, Fire Specialists and Security Services.