Presentation 1 - Mark Hillary - NOA | Offshoring | Outsourcing

Mark KobayashiHillary An Outsourcing and Offshoring Decision Making Check-List and how the Philippines Business Forum

in Philippines fares

London London: Nov 16, 2009

What’s the NOA?
•Not-for-profit trade association •350+ corporate members •Buy/Sell/Advisors/SME •Promotes best practice •Independent research •Networking events •NOA Pathway (Middlesex Uni)

Who am I?
• Author of several books focused on globalisation, outsourcing, offshoring such as ‘Who Moved My Job?’, ‘Global Services’, and ‘Talking Outsourcing’ • Director, National Outsourcing Association • Founder, BCS Working Party on Offshoring • Board UN African Outsourcing Association • Blogger for Computing • Lecture MBA and MSc students at LSBU • Founder of peerpex.com – SME exchange

Talking Outsourcing

What’s my talk about?
• Checklist
– Going offshore? – How do you decide where? – Should you even go?

• Philippines
– How does the Philippines fare?

Remember…
• Most analysts are focused on city, not country, because countries are too large to compare fairly • Contracts are written from one company to another, not a company to a country • You can work offshore through partners or by setting up your own subsidiary

Decisions, decisions…
• Which processes might work better when outsourced? • Are there experts in the market offering those services? • Should you go it alone? • Or work with an expert? • Either way, is there a region with that particular expertise?

Apples with apples
• You need a standard framework to compare and contrast regions or companies • Easiest way to contrast regions for offshoring is to think of location and people attractiveness:
• LOCATION; the infrastructure • PEOPLE; the available resource

Location
• • • • • • • • Telecoms Power Quality Transport Data Security Intellectual Property Protection Political Stability Government Support

People
• • • • • Labour pool Education Cost Cultural compatibility Industry exposure and experience

Philippines
• Half of all new graduates are from a business, engineering, or technology background • Extremely high level of government support • No issues of cultural compatibility or use of English language • Low cost combined with extremely high quality of service • Known for contact centres, but now developing niche areas and SME IT services

Summary
• Think first about what you really want to outsource and how to measure it • Consider if outsourcing or offshoring is the best solution for you • Remember that, regardless of region, you are contracting from your company to another • Explore the benefits of each region by using a standard framework • Remember, the Philippines scores well in most areas, especially BPO and SME ITO

Thank you…
Mark Kobayashi-Hillary mail@markhillary.com National Outsourcing Association www.noa.co.uk

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