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The BPO Transformation Journey

Business Process Outsourcing (BPO) has transformed into a true partnership where the clients and the BPO service provider take a deeper ownership of developing, transforming and driving changes with the supporting digital application tools. What can we expect in the future and how will the industry change? How will factors such as pricing and digitalization work in the future? We will share some real-life examples: a few case studies will be presented that describes the challenges our client faced and how they were resolved through partnership with Capgemini BPO.

The BPO Transformation Journey

  1. 1. The BPO Transformation Journey Mary Trevena, Vice President 5 November 2015
  2. 2. 2Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 What if there were a simple way to significantly enhance your business? Your BPO Transformation Journey Link: https://youtu.be/Osa78NzqKlE
  3. 3. 3 The BPO Transformation Journey | 5 November 2015 Copyright © Capgemini 2015. All Rights Reserved Leading businesses recognize the growth potential that innovation brings … Demand for End-to-end Transformation Growing demand for Automation and RPA Need for easier acquisition integration Growing demand for SaaS and BPaaS solutions SMACT (Social, Mobile, Analytics, Cloud, Internet of Things) is driving innovation Digital Transformation Increased focus on business outcomes and transformation capabilities Increased need for domain expertise Technology Integration Have you thought about the impact that these opportunities could have on your business?
  4. 4. 4Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 The journey to a new BPO vision – From cost reduction to business outcomes 1990’s Global Delivery Network BPOpen® BPO COMMAND CENTER GLOBAL PROCESS MODEL© IP AND TECHNOLOGY Global Enterprise Model VERTICAL EXPERTISE BPO as A Stack Transformation Transformation Cost of Service Lift and Shift 2010’s2000’s Today Clients praised Capgemini's deep industry knowledge, flexible customer orientation, commitment to client relationships and good service delivery. Gartner Research “ Providers understand they are at risk because customers are directly going to cloud. So many providers are thinking of adding cloud to their portfolio of services. (...) An example of a company that really gets it is Capgemini, which recently launched a global cloud brokerage service.” ISG “ Autonomics (RPA) Tomorrow
  5. 5. 5Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 Capgemini BPO: Accelerating the transformation of your business processes and the resulting business outcomes you can expect Supply Chain Procurement Finance & Accounting CPG, Retail & Distribution Utilities Manufacturing Financial Services Media & Entertainment Human Resources Analytics Services Processes Applications Infrastructure We deliver best-in-class industry expertise to your business with our service portfolio of integrated, technology-based solutions: Creating agility throughout your operations with a Cloud-based, Business-as-a-Service approach SECTOR OFFERS SMARTcare Demand Driven Insight / Supply Chain Enterprise Content Management Insurance Claims Processing Participations
  6. 6. 6Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 Capgemini BPO: How we do it People: Our BPO team comprises over 18,000 dedicated sector and function specialists who work 24 / 7 / 365 to exceed expectations Delivery Network: We provide world-class services through an integrated delivery network that utilizes right resources at right locations Methodology: Unique Global Enterprise Model (GEM) methodology and stack offerings enable us to build solutions tailored to your clients’ needs Technology and Partners: Innovative and cutting-edge technology combined with our partner portfolio guarantees successful outcomes
  7. 7. 7Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 Capgemini BPO and your business: All the right people in the right people in all the right places 18,000+ professionals 48%52% Training Curriculum:  Professionals Skills  Leadership Techniques Program  Blended Learning Programs  Process Capability • Process Trainers Academy • GEM Academy Engaging and Developing our Talent SOURCING CHANNELS INDUSTRIALIZED ON-BOARDING PROCESS LEARNING & DEVELOPMENT TALENT MANAGEMENT AND DEVELOPMENT ONGOING TALENT DEVELOPMENT Capgemini’s BPO employees are true professionals – they are the top talent available, dedicated to their work and continually improving through our talent development programs. E-learning Self -learning: on-the job training, assignments projects, Development Centers Academies Instructor- led courses Training Curricula Manager support, expert communities Capgemini University Blended Training & Development Approach Average age 30 years 70% of employees with certified business qualifications
  8. 8. 8Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 What are the next steps in BPO Transformation? We’re already seeing impressive outcomes 19 Engagements Expected Savings 121 FTEs 136 Artefacts built 101 Artefacts in production via 33 Robots Savings Realized 36 FTEs Avg. of 500 transactions per robot per day 136K Transactions Processed Save costs Improve efficiency Unlock your investment in existing ERP systems Boost productivity Robotic Process Automation/Autonomics can Autonomics: Self-regulating, self-managing systematic processing
  9. 9. 9Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 A specific solution for your business: Three types of Stack for three business needs Versions of the Stack look different depending on the scope of the customer’s needs: Multiple Process (Broad) Stack • Each layer assembled to meet unique customer needs • Fulfills multiple processes FAQ MDM, SCMProcurement P2P, O2C, R2A BPOpen® App Hub ERP PRIVATE SAP Security BASICSAP Hosting Single Process (Thin) Stack • Each layer assembled to meet unique customer needs • Fulfills a single process PRIVATE C2C Collections Virtual Company Stack • Ready-to-use, standardized services based on Netsuite and Capgemini IP • Fulfills a specific set of processes for common business needs (e.g. start ups, M&A, new market entry) R2A Including joint venture accounting C2C Including royalties P2P BPOpen® App Hub ERP PRIVATE BPO Connect Mulesoft
  10. 10. Swedish client BPO transformation journeys
  11. 11. 11Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 Over 60% cost savings for Scania in the next five years Scania is a Swedish manufacturer of heavy trucks and buses headquartered in Sodertalje (Sweden). The company is present in more than 100 countries with production units located in Europe and Latin America (Brazil). Scania reported net sales of EUR 9.21 billion in 2014. Contract signed in May 2013 2013 GEM Implementation (GPM© Alignment) for one of the business areas started from Nov 2014 2014  Transparency and control: Improve transparency and control to enhance quality  Harmonization: Harmonize the Finance Group which has separate operating models for each unit/country  Cost reduction: Reduce the cost of delivering finance services  Quality and volume fluctuations: Improve and maintain quality of service. Develop a scalable delivery model to handle volume fluctuations  Decentralized Operations: Complex and non-standard operations spread across 24 countries in Europe The Challenge The Solution  Consolidated and standardized processes across 24 countries using our Rightshore® delivery model  Centralized shared services model with BPOpen® platform as a single point of contact for all suppliers  Technology: Command Center, Capgemini T-room, WebEx, MS Lync, BPOpen®, QMS and MDM modules  Delivery centers: Bangalore (India) and Krakow (Poland)  Scope of Work: AP, AR, Scanning and Indexing for supplier invoices  No. of resources: 160  No. of languages supported: 1 (English) The Outcome  Embedded controls/segregation of duties  Industrialized Payables/Receivables processes: Synergies across SBUs  60% cost savings projected over five years  Scalable F&A service offering/market-leading technology solutions  Flexible mechanism to fluctuate resources depending on business needs  SLA-based operating model with best-in-class reporting from GCC  Modularization with complete suite of offerings (People, Process and Technology)  Projected additional savings of approx. €5.5 million over next five years with GEM implementation
  12. 12. 12Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 Nine-million Euro in savings for SKF  Reduce cost and improve productivity  Increase transparency and authorization controls  Need for automation  Need for standardization and world class processes The Challenge The Solution  “Lift and shift” approach to transition operations to our delivery center  Phased transition was agreed targeting operations by BUs and Service Line  Work transferred in five transition waves  Implemented SWIM project  Implemented Audited Internal Control Standards for all countries in scope  Delivery centers: Guatemala, China, India and Poland  Scope of work: AP, T&E, AR, GL, MDM, AP helpdesk and Tax  No. of resources: 246  Languages: English, French, German, Italian, Spanish The Outcome  Reduced total cost by 9 million euros  Improved productivity by 30% during the contract  Increased transparency of Finance processes to key stakeholders  Automated Accounts Payable service delivery  Increase authorization controls  Implemented World Class F&A processes  Achieved standardization across all SKF Business Units  Named SKF’s Best Supplier of 2013 SKF is a Swedish bearing company founded in 1907. The company’s technology platforms include bearings and units, seals, mechatronics, services and lubrication systems. In 2014, SKF reported annual revenue of SEK 70.975 billion. Contract renewal for 7 years  Scope reorganization  AP Vendor Helpdesk  SKF Canada Contract sign off (90 FTEs) US Ext. (+22 FTEs) Command Center and T&E Germany added 2006 2007 2008 2009 2010 2011 2012 2013 Further extensions – MDM services SKF RFT SKF Poland, SKF RKS Avallon, SKF Lubrication, SKF Malaysia, SWIM - 1st Line Support, Transfer Price updates in ICSS, SKF Linear system (Movex), Sales Units (VAT reporting, ERP/IRP CPM reporting, Statutory reporting) GPM© alignment SWIM Project SKF Mexico Cash Collection SKF Brazil 2014
  13. 13. 13Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 75 million SEK savings for high-tech engineering group  Efficiency and quality – increase efficiency and achieve better quality within administrative processes  Operational Excellence – Drive businesses by rigorous focus on operational excellence by applying common methodologies  Standardization – Implement a common way of working across the business with consistent process outcomes  Cost reduction – Reduce the cost of delivering finance services The Challenge The Solution • Implementing GEM levers to achieve cost reduction targets • Methodology: Global Process Model© and Rightshore® • Delivery centers: Bangalore (India), Krakow (Poland), Blumenau (Brazil) and Nanhai (China) • Scope of work: AP, AR (inclusive collections), GA (inclusive Fixed Assets) • No. of resources: 579 • No. of languages supported: 21 The Outcome  Our client will see significant cost reductions in three areas: • Labour arbitrage • Committed productivity from Capgemini • Centralisation of retained finance activities  Application of a global process template for retained and outsourced finance processes  Transparency of the performance and outcomes of finance processes across businesses and countries  Acceleration of benefits could save our clients 75 million SEK when compared with a standard procurement process Our client is an international engineering group in tooling, materials technology, mining and construction. The Stockholm, Sweden-based company employs over 47,000 people and reported annual sales of over 89 billion SEK in 2014. Signed 5 year contract in March (+2 year extension option) 2013 Sign off of client’s Global Process Template 2014 First countries live in India, China and Poland 2014
  14. 14. 14Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 Mary Trevena Vice President BPO mary.trevenae@capgemini.com Your thoughts: An open discussion
  15. 15. 15Copyright © Capgemini 2015. All Rights Reserved The BPO Transformation Journey | 5 November 2015 We are recognized leaders in the marketplace Constant Market Recognition ‘Best Supplier in 2013’ and ‘Best Performance in Cost’ for outstanding performance as a partner and significant cost savings delivered through the transformation of SKF’s business processes 2013 ‘Prime Supplier of the Year’ for outstanding contribution to move business initiatives forward and championing supplier diversity Positioned in the leaders quadrant for Finance & Accounting BPO published in 2012, 2013, 2014 and 2015 Awarded as “Leader” in the 2013 and 2014 Everest Group FAO PEAK Matrix Positioned in HfS’s Winner’s Circle Blueprint for Finance & Accounting BPO for 2013 and 2015 as well as for Procurement in 2015 and Supply Chain in 2014 Recognized as Leader in Worldwide Business Analytics BPO 2014 MarketScape Capgemini has a good spread of F&A process activities across its delivery locations. It is well integrated across sites to deliver a view back to clients of both contract performance metrics and their financial performance.” – Gartner, Inc. “Magic Quadrant for Finance and Accounting BPO,” Capgemini’s flexible, platform-based GEM methodology has all the aspects of progressive delivery covered.” “All key Capgemini clients attest real value from the GEM methodology.” – HFS Blueprint Report Capgemini: the 'best of breed' provider of business as a service. Capgemini is the fastest to come to market with an interesting 'assemble to order' approach that exploits IaaS, SaaS, BPO assets and end-to-end service management. The approach positions Capgemini as a BPO innovator. – Research 451 In our view, Capgemini's Global Enterprise Model and proven ability to provide this service quality consistently sets it apart at the forefront of the F&A market." – HfS Research Blueprint report for Finance and Accounting BPO Clients praised Capgemini's deep industry knowledge, flexible customer orientation, commitment to client relationships and good service delivery. – Gartner Research
  16. 16. The information contained in this presentation is proprietary. © 2015 Capgemini. All rights reserved. www.capgemini.com About Capgemini Now with 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Rightshore® is a trademark belonging to Capgemini

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