October1,2002OutsourcingFactBookExecutiveSummary©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingFactBookExecutiveSummary/Page2ExhibitmoredesiretobeprofitablethanadesiretowinbusinessAccuracyandconsistencyinunderstandingmarginperformancearemandatoryLeveragepartneringopportunitiesUnderstandthedynamicsofcompetition,valueandrelationshiplengthAdoptbestpracticesincontinuousperformancemanagementandmonitoringofmarginsacrossyourITservicesorganizationControlfixedcoststoprotectprofitsInvestinautomationwhereappropriateManagelabourpoolsandavailablefor-feeworkExecutiveSummary:OutsourcingBestPractices©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingFactBookExecutiveSummary/Page3Formultiyearoutsourcedengagements,managetheblendofservicestoensurethatthebundledservicescollectivelyprovideadequateprofitlevelsLonger-termITservicesengagementsmustbecarefullymanagedtoaccuratelyprojectmarginperformanceBeselectiveonthedealsthatyoupursueControlprojectlengthstocreateabalanceddeliveryscheduleBenchmarkcontinuouslyWorkcloselyandcontinuouslywiththeclient'sdecisionmakerstocommunicatevaluedeliveredforprofitreceivedManageserviceemployee'sbillingratesbasedonperformancelevels;billforvalue-thebestshouldcommandthepremiumfeesExecutiveSummary:OutsourcingBestPractices©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingFactBookExecutiveSummary/Page4ExecutiveSummary–Accounting/FinanceOutsourcingSource:GartnerDataQuest-2001Theworldwideaccountingandfinanceoutsourcingmarketwillgrowfrom$12billionin1999to$37.7billionby2004.Outsourcingopportunitieswillbestrongestinindustriescharacterizedbylargercompanysizes,intensecompetition,lowlevelsofregulation,rapidgrowth,widespreadrestructuringandmergerandacquisitionactivity,extensiveERPadoptionandprioroutsourcingexperience.FourimperativesintheFinanceandAccountingOutsourcingTheneedtodevelopcomprehensive,integratedserviceofferings.Thedevelopmentofmultiprocessandsharedservicecentres.TheneedtoestablishWeb-basedandInternet-baseddeliverycapabilities.Automationandutilitydeliverymodelsareclearlyseenasthefuture.©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingFactBookExecutiveSummary/Page5ExecutiveSummary:HR/Payroll•Fundamentally,processingserviceprovidersmustchooseeithertoplayinamarketthatisbecomingcommoditizedortoexpandintoBPO•Firmsshouldofferprocessingservicesforother,yetrelated,businesstransactions•Providersmustmodernizesystemsandstreamlineoperationstoensurescalable,flexibleandlowcostservicedelivery•IDCbelievescompanieswillmorecommonlyoutsourcespecifichumanresourceactivitiesresultinginadditionalprocessingservicesspendinginsteadofoutsourcingentirehumanresourceprocesses•Companieswanttocontinuetomanagehumanresourceprocessesalthoughletexternalprovidersexecutespecifictasks–particularlythosetasksthatareroutineandcommonacrosscompaniesSource:IDC-CanadianProcessingServicesForecast,2002-2006-April2002©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingFactBookExecutiveSummary/Page6ExecutiveSummary:HR/Payroll•IDCbelievesgrowingacceptanceofoutsourcingasgoodbusinesspracticeandincreasingebusinesstransactionvolumeswillfuelanotherC$810millioninprocessingservicesspendinginCanadabetween2002and2006,whilegrowinginterestinbusinessprocessoutsourcing(BPO)willinhibitfurtherspendinggrowth•Companiesshouldexpandwithbusinessserviceprovider(BSP...