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Langham Hotel, London

30th October 2014


in association with
www.outsourcemagazine.co.uk

Platinum Sponsor

Silver Sponsor

Gold Sponsors

Ana Sokolovic 2014

About the organisers


About Alsbridge
Alsbridge plc is an award-winning international consultancy firm which helps clients get great
results from outsourcing, offshoring and shared services. We have the best current market data
and all our consultants are experienced specialists. We give direct, practical advice and support,
and help clients avoid the pitfalls whilst getting benefits quicker.
www.alsbridge.eu

About Outsource

Outsource delivers unrivalled content direct to 50,000 influencers and decision-makers at the
heart of the sourcing space. Our in-depth coverage of important events and trends, interviews
with both high-profile industry figures and unsung heroes, and commentary from the

Outsource network worldwide gives us an unparalleled perspective on outsourcing


across sectors, verticals and geographies.
www.outsourcemagazine.co.uk

Welcome

Rick Simmonds
Managing Partner
Alsbridge plc

I am delighted that Alsbridge plc, together with Outsource magazine, has been able to organise
this exciting event focussing on innovation through outsourcing. So much of what we see in
the outsourcing industry is worthy but dull cost and control focussed, and a little bit
backwards-looking. Today is all about creativity and a focus on the future. I fully believe in the
power and potential of the right kind of outsourcing partnership to deliver innovation and real
value to businesses. As our world changes and the connected digital environment becomes an
all-pervasive reality, the nature of what we expect from ITO and BPO is changing radically.
I hope that the examples and the thought leadership showcased here today helps to act as a
catalyst for both clients and suppliers to get more from their outsourcing relationships.
At Alsbridge plc we are dedicated to helping organisations make the most of their outsourcing
arrangements, and to leverage partnerships to generate value. I hope that this event contributes
to that vision, and I hope that you enjoy the experience.

With thanks to our Platinum Sponsor

Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Business Process
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Wipro helps customers do business better by leveraging our industry-wide experience, deep
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With thanks to our Gold Sponsor

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With thanks to our Silver Sponsor

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SPEAKERS
Rick Simmonds Alsbridge Managing Partner
Rick is an outsourcing industry veteran who worked on his first deal
(London Stock Exchange with Accenture) back in 1992 and at the time
that was an innovative deal!
He is now Managing Partner and Head of Financial Services at Alsbridge
plc, having previously held senior sourcing roles at EY and Capgemini.

Tony Adams Alsbridge Senior Manager


Tony has over 20 years experience in IT outsourcing working for a
supplier (Cap Gemini), an end-user (Pepsico) and most recently as an
advisor. Tony specialises in helping organisations get value from third
party relationships by defining sourcing strategies, supplier evaluation
and selection, negotiating contracts, designing and implementing
supplier management and SIAM models.
He has lead engagements with many companies including Atlas Copco,
Bombardier, Unilever and Covidien.
Paul Morrison Alsbridge Partner
Paul is an expert in sourcing strategy, deals and benchmarking. He has
18 years advisory experience, working across sectors with UK,
European and global clients. Paul leads Alsbridges BPO and Shared
Services team, as well as the Alsbridge Innovation Programme.
Paul is author of the Deal Doctor column for Outsource magazine.

John Sheridan Alsbridge Partner


John is a Partner at Alsbridge plc and leads the ITO Advisory Practice.
He has over 25 years experience taking leadership roles in major
sourcing programmes. Prior to joining Alsbridge seven years ago
he held a variety of senior roles in major organisations including
Hewlett Packard, Andersen Consulting (now Accenture) and PwC.

SPEAKERS
Geraldine Fox Alsbridge Senior Manager
Geraldine has almost 20 years global experience in IT outsourcing.
Geraldine has in-depth experience in all aspects of the Sourcing
Cycle: Strategy, tendering, contracting, negotiations, governance,
benchmarking, and repatriation. Recent client engagements include
Unilever, BBC, Atlas Copco and easyJet.

Parham Shibaie Nintendo Operation Manager (UK & Ireland)


Parham Shibaie has been an integral part of the Nintendo UK team for
over 8 years, during this time he has contributed and grown many
departments within the business. Parham is now head of operations
and continues to evolve the way the company manages their
Customer Support and Logistics.

Johan Toll Executive Director of Transformations, IPsoft


Johan is making it his life ambition to evangelise and create
self-learning and self-healing expert systems that liberate talent and
imagination for a more efficient management of businesses. Johans
previous work experiences include both CIO and Management
Consultant roles with the establishment of support organisations
in high-tech companies as specialty.

Mike Donnellan HP BPS leader for sales & strategy across EMEA
Mike Donnellan is the HP BPS leader for sales & strategy across EMEA.
He is the author of three books focussed on the CFO and
enterprise-wide transformation. He was formerly EMEA VP for Xeroxs
BPO business, and is a former Accenture and PwC senior partner.
He is a hands-on innovator in BPO and BPS.

SPEAKERS
Sven Schrter Head of Connected Enterprise Services
Practice at Wipro across Europe, Wipro
Sven heads the Connected Enterprise Services division of Wipro for
Europe and Africa. His organization advises and supports global
enterprises on their transformational journey to become digital
businesses. In his past Sven has led large scale BPM, ECommerce
and Enterprise Portal engagements.

Arun Kurup Telecoms BPO Engagement Manager, Wipro


Arun is part of the Europe Client engagement team and manages
multiple customers in the telecom space. As part of his role, he is very
actively involved in analytics project rollouts with customers. He also
takes a keen interest in the space especially in the future of channel
dynamics and big data and how it is linking various domains which were
considered to be distinct.

Srini Krishna Director, Strategic Deals,


Finance Systems & Operations, Microsoft
Srinivas brings 24 years of professional experience at and, working
with, senior management and Boards giving him the breadth of
perspective and depth of detail in designing and managing global
businesses. He has held leadership positions specialising in Global
Sourcing Strategy, business and deal architecting, governance
and change management.

Suprio Sengupta Vice President & Global Delivery Head, Global


Infrastructure Services (GIS) & Integrated Service Delivery (ISD), Wipro
Suprio is responsible for service delivery of all large multi-year,
multi-line of business contracts of all Global Clients in the
Infrastructure Domain. He is also responsible for Service Delivery of
all large contracts in India and the Middle East. These include all Total
Outsourcing contracts and large contracts in the Government,
Banking and Enterprise vertical.

SPEAKERS
Ayan Mukerji Chief Executive, Media and Telecom
Strategic Business Unit & Product Engineering Services, Wipro
In an era of digital disruption, Ayan is responsible for helping clients
across the Telco Media value chain achieve their goals by delivering the
business and technology expertise that enables them to do business
better. Ayan also heads Wipros Product Engineering service line that
creates intelligent products and connected devices for customers
while enhancing engineering and manufacturing processes
across industry sectors.

David Wise Channel Director EMEA, LivePerson


He has 21 years experience working in channels. In his various roles
David has been involved in the innovation trends of Software-as-aService, evolution of the contact centre and growth in e-commerce.
During this time he has helped forward thinking customers embrace the
changes and establish new ways of doing business that enhance
customer experience while growing the bottom line. One such example
is the outsource relationship of web chat and major telcos. In his spare
time he loves to connect through driving on Formula 1 circuits and
trying to wrestle his iPad away from his 6-year-old son.

Jamie Liddell Editor, Outsource


Jamie Liddell is a journalist with extensive B2B and consumer
experience, particularly in the sourcing and international
property sectors.
A graduate of Cambridge University, Jamie worked as Chief Foreign
Correspondent for property media company Blendon Communications
before moving into full-time B2B journalism as launch editor of the
Shared Services & Outsourcing Network. He took over the helm of the
Outsource brand in April 2010 and has since overseen the redesign of
the magazine and the relaunch of the website.

Alsbridge is an award winning international consultancy


firm which helps clients get great results from
outsourcing, offshoring and shared services.
We have the best current market data and all our
consultants are experienced specialists.

We give direct, practical advice & support and help


clients avoid the pitfalls whilst getting benefits quicker.

In Europe we have a
heritage and focus that
ensures that solutions are
tailored to the local market.
www.alsbridge.eu
@AlsbridgeEurope
020 7242 0666

Alsbridge plc, 22 24 Ely Place, London EC1N 6TE

INNOVATION

Keep your company at the


cutting edge

ADM

Steven Kirz investigates


outcomes-based pricing

Issue 37 Autumn 2014

CONTRACTS

David Wyer calls for a little


more Noble Intent

www.outsourcemagazine.co.uk

FOR FULL
ISIT
EDITION V rce
ou
www.outs
.co.uk/
magazine
ition/
digital-ed

The outsourcing
horror show

Nightmares from the front line and how to avoid them...


JEANNE
MACDONALD
Why RPO is
preparing for a
Golden Age and
how to capitalise...

ANDY PALFREY
Are you and your
organisation
succumbing to
the lure of the
Optimism Illusion?

ANDREW
BURGESS

We should
embrace, not
fear, the robotics
revolution...

EDITORS WELCOME
The Outsource editor enthuses about innovation, best practice
and an exciting future and, of course, about the latest issue of the
world's leading outsourcing publication...

nnovation is a prerequisite for survival and, beyond that,


long-term growth and the projects showcased in the
2014 Alsbridge Innovation Awards demonstrate in the
best possible manner the huge range of methods in
which outsourcing suppliers and buyers are partnering
to ensure that growth for both parties. Moreover, what better
testament could there be to the evolution which outsourcing
itself has experienced since its comparatively humble
origins all those (not many!) years ago nor to the scale of its
capabilities today and what it promises to offer tomorrow?
Outsource is delighted and proud to have partnered with
Alsbridge to showcase the winning entries both at this event
and within the magazine and its various other channels, and
we look forward to bringing these transformative projects even
further into the limelight over the next few quarters.
Over the next few pages, you can read an article by
Alsbridges Paul Morrison taken from the latest issue of
Outsource, out almost immediately following this event, to
give you a taste of what youll find in the magazine and on
our website.
For more, see www.outsourcemagazine.co.uk/digital-edition

JAMIE LIDDELL
EDITOR

outsource magazine

Total average net circulation: 11,483 | Jan - Dec 2013

outsource magazine
Published by EMP Media

www.outsourcemagazine.co.uk

NAVIGATING
INNOVATION: THE
FIRST THREE STEPS
Puzzled by how to ensure innovation or even how to define it?
What you need is an innovation blueprint.

Paul Morrison, Alsbridge


Paul Morrison is Partner and Head of BPO and Shared Services Practice at Alsbridge.
He has over 18 years consulting and sourcing advisory experience.

nnovation is the zeitgeist of


outsourcing today (as the Summer
2014 edition of Outsource made
clear). With budgets tight, and
technology bringing new options
and tools into play, everyone is trying
to succeed by doing things differently.
However, Alsbridges research in
this area has shown widespread
disappointment when it comes to
innovation in outsourcing: 71% of buyers
say they are not satisfied with the
level of innovation they get from their
outsourcing work (see Figure 1).
However there are grounds for
optimism. Alsbridge research shows
that at the root of this disappointment
are very often fundamental but
avoidable misunderstandings about
what innovation is and what it needs to

Figure 1
"We all have different timetables in reaching and realizing that being in healthy
partnership is better than being on our own." Hill Harper
www.outsourcemagazine.co.uk

INNOVATION BLUEPRINT
thrive. The Alsbridge Innovation Blueprint
aims to help orientate organisations and to
approach innovation constructively from the
start, and avoid these misunderstandings.
The Blueprint addresses three fundamental
questions:
Define: What is innovation?
Fund: How will the innovation be funded?
Enable: Are the right enablers in place?

DEFINE: WHAT IS
INNOVATION?
The first problem is one of
definition: any conversation about
innovation in outsourcing begins with
tangle of inconsistent ideas. Thats not
innovation, that is transformation/continuous
improvement/process improvement [delete
as appropriate]!; To be innovative, you
need to be creating a world first One
mans innovation is anothers business as
usual.
It sounds banal, but the consequence
is that the outsourcing market lacks
a common frame of reference; when
suppliers and clients meet to talk
innovation, they talk past each other; and
even within a single organisation, Finance,
Operations, Procurement and Legal lack a
common language when it comes to talking
innovation. It seems innovation doesnt
happen much because we cant agree on
what it is.
This seems absurd, as on a basic level
the definition of innovation is incredibly
obvious. At Alsbridge we define it simply as
creating value by doing things differently.
Dig a little deeper, and it is possible to
find further common strands. In May 2014
we announced 18 awards to recognise
what was possible through innovation in
outsourcing. Our analysis of the awards
showed that all the cases:
Solved a business problem (like
improving C-SAT or reducing churn)
Harnessed an idea or combination of
ideas (such analytics, automation or a
customer channel)
Were viewed as innovative by the

ONE OF THE MAIN


PATTERNS
WE HAVE

OBSERVED IS THAT
INNOVATION IN
OUTSOURCING
APPEARS MOST
OFTEN TO TAKE
ONE OF FOUR BASIC
FORMS: CONTINUOUS
IMPROVEMENT,
PROJECT INNOVATION,
RADICAL INNOVATION,
AND BUSINESS
INNOVATION

organisation (all created a strong feeling


on the part of the client).
So far, so simple. The problem is that
beyond these basics, and the picture
becomes really complex:
Does innovation in outsourcing relate
just to deals, or does it really live at a

relationship level which develops over a


very long term?
Does innovation require you to change
your industry or the world, or does changing
your business or your team qualify?
Does innovation need to be spontaneous
(a new idea taking flight part way through

"Even the lamest page can be saved by collaboration." Philip Greenspun


www.outsourcemagazine.co.uk

INNOVATION BLUEPRINT
INNOVATION IN OUTSOURCING DOES NOT
HAPPEN
BY ITSELF. IT REQUIRES EFFORT TO

PLAN, DELIVER AND RUN; EFFORT REQUIRES


INVESTMENT; INVESTMENT ENTAILS RISK; AND
HOPEFULLY IT SHOULD RESULT IN BENEFITS,
SOFT OR HARD OR BOTH. ALL OF THESE REQUIRE
CAREFUL CONSIDERATION

an established relationship), or can it be


specified at the start of a contract?
Does innovation in outsourcing rely
on new technology, or can it draw on old
ideas in new ways?
Can innovation really be described
because by definition it is always
changing?
One of the main patterns we have
observed is that innovation in outsourcing
appears most often to take one of four
basic forms: Continuous Improvement,
Project Innovation, Radical Innovation, and
Business Innovation (see Figure 2). Each
operates at a different level of impact, and
is regulated by a different mechanism:
Continuous Improvement relates typically
to small-scale changes that are committed

Figure 2

to in the initial contract; Project Innovation


is at a larger scale, regulated by change
control; Radical Innovation typically requires
a new contract because the change is so
profound; and finally Business Innovation,
typically through consulting or analytics,
seeks to change the client business overall,
not the service that is outsourced.
In reality, these patterns may well not
fit exactly every case of innovation in
outsourcing, and we are relaxed about this.
The key is to recognise that innovation in
outsourcing is not one thing: it is a family
of opportunities, and one recipe alone will
not suffice. Our approach is embrace this
variety, and to take a broad church view of
innovation. Definition will get you only so far,
and beyond that an open mind is essential.

FUND: HOW WILL THE


INNOVATION BE FUNDED?
Once you have clarity on
definitions, the next challenge comes into
focus quickly: MONEY. In short, innovation
in outsourcing does not happen by itself.
It requires effort to plan, deliver and run;
effort requires investment; investment
entails risk; and hopefully it should result
in benefits, soft or hard or both. All of these
require careful consideration.
The importance of our first question on
definitions is immediately apparent: not all
innovation is of the same type, and different
flavours of innovation will require different
funding approaches. Take a process
improvement for an HR self-service tool,
versus the roll-out of a major new SaaSbased HR system like Workday. Both might
be cited by a buyer of outsourcing as
innovative, but the funding questions and
answers and mechanisms will be entirely
different.
Taking our four forms for reference, it
is clear that each type of innovation faces a
different set of challenges (see Figure 3).
The examples provided here are
indicative; but the main point of the

"Collaboration is the best way to work. It's the only way to work, really." Antony Starr
www.outsourcemagazine.co.uk

INNOVATION BLUEPRINT
Alsbridge framework is to recognise variety
in innovation. Make sure you find a funding
mechanism, and a share of risk/reward, that
fits the types of innovation you are seeking,
not a one-size-fits-all approach.
Our 2014 Innovation Awards showed a
wide range of commercial models, but the
majority were variations on two themes: either
a fixed price (a long-term bet by the supplier
that they can deliver the innovation, typically
focused on cost reduction innovations) or
gainshare (a mechanism for apportioning the
benefits of the innovation between client and
supplier when they reach a target level, which
is suited to both cost reduction and revenue
growth innovations).
There are further funding related
questions that need to be aired and
addressed such as finding a sufficient level
and duration of payback for a supplier whose
existing service revenues may fall as a result
of innovation (clients are often too mean and
supplier incentives are often far too low);
finding a means of quantifying the impact
and avoid endless arguments over causation;
and factoring in the value of the IP assets that
the parties bring to innovation.

THE KEY IS TO

RECOGNISE THAT

INNOVATION IN
OUTSOURCING IS
NOT ONE THING:
IT IS A FAMILY OF
OPPORTUNITIES, AND
ONE RECIPE ALONE
WILL NOT SUFFICE

ENABLE: ARE THE RIGHT


ENABLERS IN PLACE?
Having addressed definition and
funding, two of the fundamentals are in
place and you are in a good position to
tackle the third challenge the simple
matter of putting in place the right enablers
to make innovation happen. Do you
just need a few beanbags and a pinball
machine in the canteen, or is something
more radical required?
Having interviewed dozens of
organisations as to what they do to make
innovation happen, our shopping list has
grown from a few to a few dozen items (see
Figure 4).
We recognise that our enablers list
has something of a kitchen sink flavour
to it and we dont apologise for this.
Because there are many different types of
innovation, not all elements will apply to
Figure 3
"As you move outside of your comfort zone, what was once the unknown
and frightening becomes your new normal." Robin S. Sharma
www.outsourcemagazine.co.uk

INNOVATION BLUEPRINT
THE FIRST PROBLEM

IS ONE OF DEFINITION:

ANY CONVERSATION
ABOUT INNOVATION IN
OUTSOURCING BEGINS
WITH A TANGLE OF
INCONSISTENT IDEAS

all organisations. But beyond the noise, all


enablers fit into one of three buckets:
Right framework.
Does the organisation have the right
infrastructure to get innovation from its
outsourcing relationships? Does it have
clear but workable contractuals? Does it
have capable and creative suppliers? Does
it have the right roles and meeting places
for the parties to come together to talk
innovation?
Right ideas.
Does the organisation, and its partners,
create sufficient and sufficiently good
ideas about what can be improved?
Does it generate insights about what
customers and stakeholders want? Does
it gather information from the market and
benchmarking about what is possible?
Right implementation.
Does the organisation have the ability to
take new outsourcing ideas forward? Is it
able to focus attention solely on the best
ideas or does it get swamped by the dross?
Does the organisation have the expertise,
flexibility and sponsorship to drive major
change?
Stepping back from these three
challenges, we feel that the overall picture
is positive and empowering. It is that
innovation in outsourcing is the product
of many separate but reinforcing steps
and decisions. Innovation in outsourcing
is the result of putting in place a welldesigned process, and constantly tending
and improving this over time. Every day
more organisations are discovering what is
possible.

Figure 4

"Partnership is the way. Dictatorial win-lose is so old-school." Alanis Morissette


www.outsourcemagazine.co.uk

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AGENDA
13:00 Coffee
14:00 Welcome
14:15 Keynote: The Future of Innovation
14:45 Panel 1: Automation & Robotics
15:00 Panel 1: Q&A
15:30 Coffee Break
16:15 Panel 2: Analytics
16:45 Panel 2: Q&A
17:00 Panel 3: Multi-Channel Engagement
17:30 Panel 3: Q&A
17:45 Closing Remarks
18:00 Networking Drinks
19:30 Close

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