SourcingTalk

Data Privacy in Global Outsourcing

In this edition of SourcingTalk, Kevin M. Campbell, Group Chief Executive - Outsourcing, Accenture, and industry thought leader, joins Peter Allen to discuss how increased regulations by governments across the globe affect the global sourcing industry.  Specifically, Peter and Kevin explain government regulations surrounding the storage and processing of personal data, and whether the risks relating to protecting privacy are enablers or detractors for outsourcing. 

Show Highlights:
1:30 – The emphasis, importance and risks of data privacy   
3:22 – The increase in governmental involvement and its impact on the sourcing industry
4:37 – Are data privacy risks greater with off-shore data processing?
6:03 – How should companies weigh the responsibility for a data breach? 
7:30 – The most efficient way to convey privacy requirements contractually
9:13 – The importance of instituting an oversight strategy

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Procurement Outsourcing

In this edition of SourcingTalk, Bill Browning, a research analyst in the Global Supply Management Practice of Aberdeen Group, and Bill Huber, Director of Procurement Services for TPI, joined Peter to discuss the recent TPI-sponsored benchmark report Procurement Outsourcing: A Strategic Initiative?. Peter, Bill and Bill talk about the growth in procurement outsourcing, why companies have been hesitant to engage in procurement outsourcing and the success factors and maturity model that help companies strategically outsource procurement functions.

Show Highlights:
2:15 – Aberdeen's definitions of full and incremental procurement outsourcing 
3:52 – Aberdeen's top-line findings 
5:52 – Perceived challenges when considering procurement outsourcing
8:56 – Relationship between maturity with procurement outsourcing and driving performance improvement

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Trends in Outsourcing – TPI’s Fourth Quarter Index

In this edition of SourcingTalk, Andrew Moyle, London Office Managing Partner of Latham & Watkins, joined Peter to analyze the trends of global commercial outsourcing contracts as recently reported in TPI’s fourth quarter Index.  Peter and Andrew discussed the sourcing strategies in Europe vs. the Americas, BPO’s leap frog effect in Europe, how a recession could affect companies’ outsourcing strategies, and the surprising decline in the number of manufacturing outsourcing contracts awarded in 2007.

Show Highlights:
1:27 - Sourcing strategies in Europe vs. the Americas
3:16 - BPO leap frog effect
4:37 - Potential recession’s effect on outsourcing strategies
6:47 - Momentum of outsourcing in Europe and Americas
8:27 - Outsourcing in the manufacturing industry

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Creating and Sustaining Strategic Relationships

This edition of SourcingTalk was recorded last week at TPI’s 16^th Semi-Annual Sourcing Leadership Exchange (SLE) in Naples, Florida.  At the conference, Peter had the chance to sit down with Lynn Blodgett, President and CEO of Affiliated Computer Services (ACS), and Scott Gildner, Partner and President, North America, TPI, to discuss the development and value of strategic outsourcing relationships.

Show Highlights:
2:10 – Strategic outsourcers vs. lowest cost providers
3:53 – What constitutes a strategic relationship and how can providers develop one?
5:58 – Are outsourced services commodities?
7:23 – Do clients look for strategic relationships or lowest unit price in their providers?
9:24 – Clients’ evolving expectations over the life of a relationship
11:05 – The correlation between strategic relationships and innovation

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Innovation Agenda Part IV: Administrative Functions

This edition of SourcingTalk focuses on a current area of focus for the outsourcing industry – innovation.  Peter Allen, joined by Beth Sustin, global vice president of HR Operations for Quintiles and Bill Frech, partner and practice leader, Multi-Function Services Advisory Services, examine the role innovation plays in administrative functions, how the principles of shared services allow for innovation in regards to corporate administration activities, and finally, how innovation goes beyond more than simply cost savings.

Show Highlights:
1:23 - What Quintiles has done in response to their clients needs, and how Quintiles has incorporated these needs into HR strategies and technology to support strategies
2:39 - What is driving innovation today regarding HR, and how does innovation contribute to more than just cost savings?
4:30 - HR approach as a global view as oppose to regional, establishing a single database of information using a governance data model6:00 – Business considerations behind moving to an outsourcing model
7:48 – “Best of breed” solutions to support HR functions and concerns
11:10 – Management and service governance functions essential for effective shared services and innovation
12:58 – Final thoughts

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Innovation Agenda Part III: Benchmarking Techniques

This edition of SourcingTalk focuses on a fundamental element of the global outsourcing industry’s Innovation Agenda - benchmarking. Peter moderates a discussion between Stuart Harris, partner and data management Center of Excellence leader at TPI, and Ed Burns, IT alliance manager at DuPont, about benchmarking techniques to help the buy side and service provider side of outsourcing transactions improve the formation of relationships and delivery of value to both parties. This podcast will also address the techniques used contractually and operationally by clients in regards to benchmarking to periodically test pricing in outsourcing relationships.

Show Highlights:
03:03 – Benchmark: How and Why
04:20 – Industry Approach to Benchmarking
05:18 – Process to Gain Alignment in Outsourcing Relationships
06:20 – Complexities and Realities of Benchmarking
11:20 – Remedy to Challenges in Benchmarking Standards
13:25 – Enhancements to Benchmarking Practice

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RPO: Essential Processes in Human Capital Management

In this edition of SourcingTalk, Peter Allen speaks with guests Hary Bottka, senior advisor and head of Recruitment Process Outsourcing (RPO) for TPI and Andy Teng, editor in chief of HRO Today regarding RPO – the form of BPO where an employer outsources or transfers all recruitment activities to an external service provider. Their discussion focuses on the process and definition of RPO, as it is in a nascent stage and it is important for organizations to define RPO for themselves. The podcast also focuses on the drivers for organizations to engage in RPO, the current state of RPO from the recently published HRO Today “2006/2007 Towers Perrin HR Outsourcing Effectiveness Survey” and trends seen with organizations participating in RPO functions, among other topics.

Show Highlights: 
2:03 – The definition of RPO, the confusion that exists, and the importance of organizations individually defining RPO
4:55 – What drives organizations to take part in RPO?
8:35 – State of RPO and HRO Today survey findings
12:30 – Trends seen with organizations engaged in RPO
15:00 – Final thoughts
Total Run Time – 16:33

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Andy Teng, Editor-in-Chief
Andy Teng has joined Outsourcing Today and HRO Today as the new Editor in Chief. He has more than 20 years of journalism experience, most recently as editor of Medical Product Outsourcing, a publication focused on outsourced manufacturing in the medical device industry. He has covered a variety of industries during that time, including consumer products, graphic arts, information technology, and healthcare. He also helped in the launch of numerous trade publications. A New Jersey resident, he holds a master’s from Columbia University.

Innovation Agenda Part II: Refreshing Outsourcing Contracting Terms and Conditions

This edition of SourcingTalk focuses on a cornerstone of TPI’s Innovation Agenda for the Global Outsourcing Industry. Peter moderates a discussion between Chris Kalnik, partner and chief knowledge officer at TPI, Richard Fogel, partner at TPI, and Paul Abel, lead business Negotiator at Accenture, about refreshing certain contracting terms and conditions.  The dialog includes TPI’s work with clients, service providers and law firms to outline the 10 core refreshed outsourcing contract terms and conditions which are available at Center Points for Essential Outsourcing Contracting Terms.

Show Highlights:

03:35 – Where are innovations in contracting terms still needed?

07:25 – Function of contracting terms

09:15 – TPI’s 10 refreshed contracting terms and conditions

11:05 – Selection criteria for TPI’s 10 refreshed contracting terms

12:05 – Using “in-scope services” as an example

17:40 – Purpose of the Innovation Agenda and TPI’s 10 refreshed contracting terms

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Outsourcing as the "Third Industrial Revolution"

In this edition of SourcingTalk, Peter talks with special guest Anand Giridharadas (pictured), South Asia correspondent for The International Herald Tribune, about his article, India Outsourcing Moves to Front Office.

In the article, Giridharadas quoted Alan Blinder, a former vice chairman of the U.S. Federal Reserve Board and former economic adviser to President Bill Clinton, as describing outsourcing as a “third Industrial Revolution.”  Peter and Anand discuss what the term "Third Industrial Revolution" means, its relevancy, the changing correlation between social class and outsourced jobs, how outsourcing and offshoring increases productivity, and what role outsourcing will play in the upcoming 2008 election, among other topics. 

Show Highlights:

00:00 – The Third Industrial Revolution
04:10 - What jobs are outsourceable?
08:30 – Is outsourcing continuous or discontinuous from past economic forces and trends in free trade?
11:00 - Productivity is the most cited reason in favor of outsourcing and offshoring, why?
15:10 – 2008 U.S. Presidential Election

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About Anand Giridharadas
Anand Giridharadas is a South Asia correspondent for The International Herald Tribune, reporting on six nations from a base in Mumbai. His subjects have included the rising influence of India in the world; the trickle-down effects of globalization in India’s small towns and an exploration of why Mumbai, formerly Bombay, will always answer to both of its two names.  Native of Washington, D.C., Anand was born of parents from Mumbai, to which he returned in 2003. He first worked for The New York Times, which owns The International Herald Tribune, writing about the role of money in the 2000 U.S. election campaign. He has also written for The New Republic magazine and is a co-author of ‘Afghanistan and 9/11: The Anatomy of a Conflict’ (Roli Books, 2002).

The Innovation Agenda for the Global Outsourcing Industry

Peter moderates a discussion between John Halvey of Milbank, Tweed, Hadley & McCloy LLP and Tony Candito, chief administrative officer and chief information officer of Towers Perrin. In this debut podcast, the three discuss why the global outsourcing industry needs an innovation agenda and debate the reasons why service providers and clients often struggle with their relationship. They also touch on business transformation and gainsharing, among others topics.

Show Highlights:

03:00 - Why Clients/Service Provider relationships are struggling
07:00 - Transformation
11:00 - Gainsharing

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