C - Outsourcing Margins and Market Trends - final Oct1-02.pptVIP免费

October1,2002OutsourcingMarginsandMarketTrendsFactBook©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingMarginsandMarketTrendsFactBook/Page2OutsourcingMarginsAnalysisPage3OutsourcingMarketTrends/CompetitiveAnalysisPage19AppendicesAppendixA:OffShoreServicesMarketTrendsPage45AppendixB:CanadianProcessingServicesIndustryPage50AppendixC:HowtoBuildanSourcingStrategyPage54AppendixD:AbbreviationsPage61TableofContents©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingMarginsandMarketTrendsFactBook/Page3ExecutiveSummary:OutsourcingMarginAnalysisControlGeneralandAdministrativecosts(Gartnerrecommendsto7%ofrevenuesorless)Adopt‘life-cycle-profitability’targetsforlong-termdeals;acceptthatthecompetitivemarketmeanslong-termdealswilloftenoperatewiththinornomarginsinearlyyearsFocusonnichesandapplicationsthathavenotbeencommoditizedandwhereCGEYhasuniqueinsights,allowingnichepricing‘Pickandchoose’pursuitswithahighchanceofsuccess,fewbiddersandnothird-partyconsultantsrunningthebidprocessConcentrateontransformationaloutsourcingratherthancost-reductionvaluepropositionsBuildscaleinexistingoutsourcingcentresbyselectiveproposalstootherclientswithsimilarapplication/serviceneeds©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingMarginsandMarketTrendsFactBook/Page4MarginAnalysis–Asmoresuppliersenteranoutsourcingmarket,prices,costsandmarginsusuallydropOutsourcingMaturityLifeCycleTimeInfancyAdolescenceMidlifeMaturityComplexityPriceforvaluedeliveredServiceperformance•Lackofunderstanding•Bleeding-edgetechnology•Onesizefitsalloroverlycustomized•Pricepressure•Customerdisillusionment•Vendorinvestments•Methodologiesemerge•Economiesofscale•Improvedcustomerknowledge•Improvedtechnologyormethodology•Bestpractices•Seriouspricecompetition•Lowermargins•Vendorconsolidation•CommoditizationCycleCharacteristicsInfancyAdolescenceMidlifeMaturityCreationAccessOptimizationManagementSource:Gartner“TheFutureofOutsourcing”May9,2001©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingMarginsandMarketTrendsFactBook/Page5MarginAnalysis–PricingpressurehasforcedoutsourcingcompaniestocutbackonR&DandmarginsinrecentyearsR&Dasapercentageofrevenue00.511.522.519941995199619971998199920002001R&D•R&DCostshavebeenflatandlowerthantheyshouldbe•Needtobeincreased,notdecreasedNetIncomeBeforeTaxesasapercentageofrevenue02468101219941995199619971998199920002001NetIncomeBeforeTaxes•NetIncomeBeforeTaxesisdeclining,andhasbeenlowerthanneededtosupportre-investment•NeedstogrowifnewopportunitiesaretobeaddressedSource:Gartner“ITServices:GrossMarginBenchmarkingandProfitabilityReport”(Aug2002),Gartner“FinanceandAdministrationPerformanceMetrics,ITOutsourcing,1998”(Dec1999),SEC10Qand10Kfilings©2001CapGeminiErnst&Young-AllrightsreservedOutsourcingMarginsandMarketTrendsFactBook/Page6Interestasapercentageofrevenue-1-0.500.511.522.5319941995199619971998199920002001Interest•Administrativecostshavedropped•Interestcostshavebeenflat,droppinginrecentyearsasrateshavedropped•Depreciationcostsaredecliningasequipmentcostdrops•ThesearenottheproblemDepreciationasapercentageofrevenue0.02.04.06.08.010.019941995199619971998199920002001DepreciationMarginAnalysis–OperatingcostshavebeenkeptundercontrolAdministrativeCostsasapercentageofrevenue024681019941995199619971998199920002001AdministrativeSource:Gartn...