Our Global Outsourcing 100 “sublists” give us the tools to unearth the industry expertise of outsourcing providers. Here’s a look at the many specialists who orbit the outsourcing universe.

For Cybage Software, breaking into the Global Outsourcing 100’s Leaders category this year for the first time since its inception six years ago and being featured as a “climber” as one of the companies most improving its rank was a big achievement.

But while being recognized among outsourcing’s best is certainly an honor for the India-based offshore technology provider, being named over the years on shorter “sublists” compiled by the International Association of Outsourcing Professionals (IAOP) has proven to be just as important to this emerging company.

“Today, the outsourcing space is not just about general outsourcing work but client companies are looking at industry value-add from vendors,” said Gurvinder Singh Chhatwal, business development and engagement head.  “Often we are picked as the vendor of choice because of the dedicated vertical and practice groups we have formed within the organization.”

In 2011, Cybage was named best five by industry focus in hospitality; best 10 by industry focus as leaders in entertainment and media; best 20 by industry focus as leaders in retail and consumer goods; best 10 by service area as leaders in Research & Development; best 20 by service area as leaders in Customer Relationship Management; and best 20 by service area by companies in Research & Development.

Like Cybage, many providers offering a diverse range of services – from facility services and financial management to customer relationship management and corporate services – around the world are realizing the value of differentiating themselves as industry specialists in an increasingly crowded industry.

Deepthi Balasunder, external communications for HCL Technologies Ltd., an India-based global IT company, agrees.

“It is an increasingly competitive global market and with it comes the increasing challenge to stand out in the crowd,” he said. “Being listed on IAOP’s sublist as one of the best in the industry and as a leader in the space is of much strategic importance to HCL. The Global Outsourcing 100 listing supports and adds credibility to HCL in the industry, to our employees, customers and business partners.”

As a leader on the main list and top player in R&D and IT, VanceInfo Technologies Inc. of China also is focusing its expertise in providing IT consulting and solution services.

“The competition is becoming fiercer all the time,” says Ken Schulz, who heads the company’s marketing department.  “We differentiate ourselves not so much through marketing, but rather through employing industry experts who not only implement information and communication technology (ICT) solutions for our clients, but also provide true business value.”

Specialists Sought

Judges on the Global Outsourcing 100 panel say industry specialization is a growing trend in outsourcing.

“The outsourcing profession has grown to a stage where being a generalist is no longer acceptable for most customers,” said Jagdish Dalal, COP, president, JDalal Associates, LLC and IAOP’s managing director of thought leadership, who has been a judge every year since the program started and headed the panel for the first five years.

“Customers are demanding that their selected providers be proficient or even be a domain expert in their chosen field,” he said. “This has led providers to develop their knowledge and expertise in specific process areas and use that as a differentiator in the marketplace.”

Early on, IAOP recognized this trend and as a result developed the sublists selected from the Global Outsourcing 100 applicants. With more than 80 sublists by overall categories, industry focus, service area and region served as well as additional honors, all companies can earn their place on a list.

With the constant technology changes, specialization and flexibility to rapidly react is required of providers, said panelist Vera Marquez, IT regional director, Hoffman-La Roche – Latin America.

“Specialized providers who are market leaders in their sector are better positioned in terms of expertise and technology to promote shifts and to keep in track with the market movements providing new services or new ways of serving business in their area of specialization,” she said.

In more specialized markets or where a specialty service is required, this is even more of a requirement versus in commodity markets, Marquez noted. For example, an outsourcing provider with knowledge in captive or regulated markets such as the pharmaceutical industry would be more adaptive to meet service demands or to assume new services or new customers from this industry segment than others.

The value of the industry sublists from both the BPO and customer perspectives is increasing given the BPO market is sometimes perceived as commoditized, according to Kristin H. Weitz Rammer, vice president-technology of MAXIMUS, who served on the evaluation panel.

“This perception along with pricing pressure on the BPO’s creates a need for greater BPO specialization in order for them to compete effectively on factors other than ‘low cost,’” she said. “The BPO that is on a sublist has a greater chance of being viewed as a true partner that brings solutions to business problems that can enable that end user to be more competitive.

“Those BPO’s that specialize and build vertical industry solutions are positioned for securing a longer term relationship between the BPO and end user.  If successful, this sort of partnership offers the opportunity for continuity of operations and cost savings to both parties.”

Top Honors

Many companies are using inclusion on an IAOP sublist in marketing to their customers to show their credibility, gain recognition and get a leg up on the competition.

“Being part of the sublists is great as it is a testimony of our focus to the specific industry,” said Chhatwal. “While being in the Top 100 does help us establish credentials with the client, the mention of a Top 5 or Top 10 in an industry vertical sublist helps us to stand out within the Top 100 and establish our credentials on the importance and focus to an industry.”

In fact, the approach has changed the way Cybage markets itself. While just three to five years ago, 90 percent of its marketing efforts were around being a provider of general technology outsourcing services and 10 percent was focused on its industry expertise, today it is the reverse.

A smaller “rising star” on the Global Outsourcing 100 list, China-based IT services provider Bleum also is setting itself apart with its focus on zero-defect systems development and services to the high-tech, financial services, telecommunications and retail industries for American and European companies.

“The IAOP sublists recognize Bleum and our specialized services,” said William Stancer, vice president for business development. “When a potential client is seeking an outsourcing provider, they want the assurance that whoever they choose intimately understands their business. Being ranked within an industry sublist, as Bleum has been within the financial, retail and technology sectors, provides this assurance more so than a non-descript ranking among 100 other firms.”

Diversity of Outsourcing

While many people think only of information and communication technology or manufacturing when it comes to outsourcing, many processes are effectively being outsourced as the Global Outsourcing 100 sublists show.

“There is an incredible diversity of services and service offerings,” said Dalal. “When you really look underneath it, many different services are being offered and there’s a lot of diversity in the marketplace.”

Indeed, IT/communication technology was the largest service area among Global Outsourcing 100 applicants and total revenue among providers indicating this was a top service area continued to increase by providers in this category to $112 billion, up from $940 million in the prior year’s list.

Customer Relationship Management (CRM), research and development, real estate and capital asset management, and transaction processing were cited by a growing number of companies as major service focus area.

Other service delivery areas companies on the Global Outsourcing 100 are focusing on include administrative, corporate services, document management, facility services, financial management, HR management, legal, marketing and manufacturing.

Double Impact

Service providers are leveraging both their Global Outsourcing 100 numerical rankings with inclusion on top sublists to make the most impact with current and potential customers, companies said.

“A Global Outsourcing 100 ranking shows that Bleum is a major player within the outsourcing industry, while the sublists build our credibility in specific areas of focus,” said Stancer. “When combined, these rankings prove Bleum to be a firm of choice for companies seeking an outsourcing provider.”

Says HCL’s Balasunder: “Industry recognitions have grown to be an indispensible sales and marketing tool that aids in the close of business. While the IAOP main list gives an overall picture of the company – the sublists are quintessential with all regard. Primarily when the business focus caters to specific industries or services, industry or service-specific recognition helps to strongly position the company to the client.”

ITC Infotech also has seen the benefit of being ranked as a Leader on the Global Outsourcing 100 main list and on IT/communication technology and customer relationship management sublists among others over the past five years.

“The sublists take a deeper look at select capabilities and features the Top 20 companies globally,” said Khem Aithani, Senior VP & Head Strategic Relationship, ITC Infotech. “As a result,  IAOP’s sublists for the Global Outsourcing 100 companies serves as a ready reckoner for our prospects to short-list/select services providers.

“ITC Infotech prides itself in providing services to select industries based on our strong domain expertise in such industries. Therefore, being featured in the sublists adds immense value for us as a demonstration of our differentiators,” he said. “However, the main list carries a holistic listing of companies across a number of critical parameters. Thus, both lists work in conjunction, and being featured prominently in both is important for us.”

Opening Doors and Closing Deals

Since its inception in 2006, the Global Outsourcing 100 lists have become a go-to resource to many customers when making purchasing decisions.

“Over the last six years since we have been producing this list, we have found that it is reviewed quite frequently by customers when selecting their potential providers.” Dalal said. “It is also viewed carefully by the providers to see their potential competition in the marketplace and determine their position in comparison to them.”

Says Schulz of VanceInfo, “There are very few sources where a potential customer can find authoritative information about the relative strengths of outsourcing firms. The IAOP sublists are one of the most comprehensive resources at their disposal.”

Of course, after opening the door, providers need to close the deal.

“While the lists do provide a basis for potential customers to choose from, their buying decisions are ultimately influenced by the process and quality of the work coming from the outsourcing providing firms,” said Stancer of Bleum. “Even within the IAOP list, there are varying degrees of expertise in delivery.”

[!] Report this post

Processing your request, Please wait....

Report as:	Invalid Contents Other
Write in Words: (Optional)