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Meet the Real McCoy of IT-BPS Sourcing Advisory

Feel free to talk to Sarthak Brahma, Day 2 Chair at IT Procurement & Sourcing Event Series Events Europe, about our multi-million IT Portfolio Optimization, IT Benchmarking, Global Capability Center, GCC Execution, and HEX Index mandates for Airlines, Healthcare, Energy, Automotive, Logistics, Manufacturing, and Banking clients in Europe, Nordics, USA, Australia, and India.

Also, feel free to stop by HEX Advisory Group’s Booth #7 to get acquainted with swift and smart consulting, not the long-drawn, self-serving, and shallow advisory cycles or theoretical Research that one fears. Cheers!

GCC LatAm Index

While India continues to be the hotbed for GCC setups, CostaRica is increasingly our favored location for nearshore GCC build-outs. CINDE – Experts in FDI and local partners like Feuji Inc continue to be invaluable for our CXO clients and us.

HEX Advisory Group is the leading hands-on advisor in the GCC space. Action NOT Analysis-paralysis. In fact, we – it is hygiene and implicit to our expedited GCC Solution-to-Build lifecycle.

Population Health Management

Navigating the intricate landscape of Population Health Management (PHM) pricing demands more than just numbers—it requires expertise. With over 60% of healthcare organizations already on the PHM journey and the market set for substantial growth, the stakes are high. Let us be your guide in unraveling the complexities of PHM investments.

Hi-Fidelity Sourcing Advisory

Anyone can run an RFP dog and pony show with multiple bidders. This is a lazy, long-drawn, expensive, and self-serving way of running a sourcing program. Instead, HEX Advisory Group has the chops to expeditiously secure contemporary solutions, modern contracts, and competitive commercials with any vendor/s by drawing upon its senior practitioners, recent transactions’ benchmarks, and clearly defined end-states.

To know more click here.

2023 Sourcing & Pricing Trends Manifesto (an Advisor’s PoV)

Avoid tacos at 7-Eleven and coffee at Taco Bell. Source matters in everything you consume and that applies to Sourcing and Price Benchmarking trends too.

Don’t ask an advisor what the size of ChatGPT in sourcing deals will be in 2025 and don’t ask a researcher how best to calibrate your multi-million-dollar contracts. You are bound to be misled in either case.

There’s so much broad stroking on IT-BPO Sourcing & Pricing trends going around that I decided not to write a blog post but a MANIFESTO! 🙂

Build Operate Transfer (BOT) Structure

In a BOT model, service provider runs operations in initial stages with an option to transfer back to buyer later. While the operational risk lies with the provider in a BOT model, buyer should staff its employees in all the relevant management layers.

  • The provider and client together implement a management oversight layer responsible for meeting deliverables and milestones for each phase.
  • The intermediate management layer consists of a blend of provider and buyer employees, allowing the buyer to have easier access to the provider’s knowledge base and expertise
  • Provider employees makes up the core workforce.

Could a ‘Virtual Captive’ be your Panacea

Virtual captives are increasingly becoming an acceptable solution as they occupy a median position in a spectrum that is occupied by third party outsourcing on one end and captives on the other. For the mid-market enterprises, who end up experiencing a ‘small-fish’ syndrome with large third-party providers and captive remains a pipedream due to lack of capital/appetite, virtual captive offers best of both worlds. It is essentially a hybrid model wherein a local provider will provide all the necessary infrastructure (managed facility, hardware, connectivity etc), talent (sourcing, recruitment & HR), compliance and support services (accounting, compliance, IT operations) while letting the client retain full control of the operations.

Some of the specific advantages this sourcing model offers

  • Higher degree of control: This model allows the enterprise to have full control of the business operations while the back-office set-up and processes are managed by the local provider. The enterprise leadership can practically walk-in and focus on business without having to worry about the ‘operational’ and ‘compliance’ overheads on Day 1.
  • Transparent and Flexible Pricing Model: The most common construct is a cost-plus structure wherein the provider charges a mark-up on costs i.e., Talent (typically 70-85% of the costs), Infrastructure and Support function costs. Numerous as-a-service pricing models (GCC-as-a-service, Talent-as-a-service, Compliance-as-a-service etc) are also available for enterprises who may want to a bundled price or specific services.
  • Reduced time to market: Mature providers are able to provide a significant jumpstart to the timeline leveraging their well tested operations templates and readily available workforce.
  • Low Capex: Unlike a captive that involves significant upfront investments in infrastructure set up, this is a fully variable ‘Pay as you grow’ model. This is extremely useful especially for mid-market enterprises who can test the concept without necessarily having to block large sums of capital.

The Curious Case of BOT

This may be a bit of memory jog as this is not about the automation BOT that has been the top of mind recall in recent times but rather the good old, Build-Operate-Transfer (BOT) that is making a quiet but definitive comeback to the boardroom discussions. During the pandemic and post ‘The Great Resignation’, firms have and are continuing to de-risk their alternate service delivery models. As part of this, enterprises are increasingly assessing and executing BOT transactions. The drivers for them to do this are multifold e.g., deleveraging third-party outsourced portfolio, managing sensitivities around product development, building digital talent inhouse etc. While the classic BOT remains intact, its close variant, Virtual Captive, is increasingly gaining traction as this model offers a good balance between ‘Control’ and ‘Risk’. The supply side is becoming increasingly mature and arming their portfolios with innovative and agile ‘as-a-Service’ solutions.

Next time, when you are looking beyond Managed Services but do not just have the appetite for own captive, definitely worth adding this to the list of options. Lets you ‘test-drive’ offshore on a ‘Pay-as-you-grow’ model.

Know more about our GCC Lifecycle Advisory Services

PERSPECTIVES

Meet the Real McCoy of IT-BPS Sourcing Advisory

Meet the Real McCoy of IT-BPS Sourcing Advisory

Feel free to talk to Sarthak Brahma, Day 2 Chair at IT Procurement & Sourcing Event Series Events Europe, about our multi-million IT Portfolio Optimization, IT Benchmarking, Global Capability Center, GCC Execution, and HEX Index mandates for Airlines, Healthcare, Energy, Automotive, Logistics, Manufacturing, and Banking clients in Europe, Nordics, USA, Australia, and India.

Also, feel free to stop by HEX Advisory Group’s Booth #7 to get acquainted with swift and smart consulting, not the long-drawn, self-serving, and shallow advisory cycles or theoretical Research that one fears. Cheers!

GCC LatAm Index

While India continues to be the hotbed for GCC setups, CostaRica is increasingly our favored location for nearshore GCC build-outs. CINDE – Experts in FDI and local partners like Feuji Inc continue to be invaluable for our CXO clients and us.

HEX Advisory Group is the leading hands-on advisor in the GCC space. Action NOT Analysis-paralysis. In fact, we – it is hygiene and implicit to our expedited GCC Solution-to-Build lifecycle.

Population Health Management

Navigating the intricate landscape of Population Health Management (PHM) pricing demands more than just numbers—it requires expertise. With over 60% of healthcare organizations already on the PHM journey and the market set for substantial growth, the stakes are high. Let us be your guide in unraveling the complexities of PHM investments.

Hi-Fidelity Sourcing Advisory

Anyone can run an RFP dog and pony show with multiple bidders. This is a lazy, long-drawn, expensive, and self-serving way of running a sourcing program. Instead, HEX Advisory Group has the chops to expeditiously secure contemporary solutions, modern contracts, and competitive commercials with any vendor/s by drawing upon its senior practitioners, recent transactions’ benchmarks, and clearly defined end-states.

To know more click here.

2023 Sourcing & Pricing Trends Manifesto (an Advisor’s PoV)

Avoid tacos at 7-Eleven and coffee at Taco Bell. Source matters in everything you consume and that applies to Sourcing and Price Benchmarking trends too.

Don’t ask an advisor what the size of ChatGPT in sourcing deals will be in 2025 and don’t ask a researcher how best to calibrate your multi-million-dollar contracts. You are bound to be misled in either case.

There’s so much broad stroking on IT-BPO Sourcing & Pricing trends going around that I decided not to write a blog post but a MANIFESTO! 🙂

Build Operate Transfer (BOT) Structure

In a BOT model, service provider runs operations in initial stages with an option to transfer back to buyer later. While the operational risk lies with the provider in a BOT model, buyer should staff its employees in all the relevant management layers.

  • The provider and client together implement a management oversight layer responsible for meeting deliverables and milestones for each phase.
  • The intermediate management layer consists of a blend of provider and buyer employees, allowing the buyer to have easier access to the provider’s knowledge base and expertise
  • Provider employees makes up the core workforce.

Could a ‘Virtual Captive’ be your Panacea

Virtual captives are increasingly becoming an acceptable solution as they occupy a median position in a spectrum that is occupied by third party outsourcing on one end and captives on the other. For the mid-market enterprises, who end up experiencing a ‘small-fish’ syndrome with large third-party providers and captive remains a pipedream due to lack of capital/appetite, virtual captive offers best of both worlds. It is essentially a hybrid model wherein a local provider will provide all the necessary infrastructure (managed facility, hardware, connectivity etc), talent (sourcing, recruitment & HR), compliance and support services (accounting, compliance, IT operations) while letting the client retain full control of the operations.

Some of the specific advantages this sourcing model offers

  • Higher degree of control: This model allows the enterprise to have full control of the business operations while the back-office set-up and processes are managed by the local provider. The enterprise leadership can practically walk-in and focus on business without having to worry about the ‘operational’ and ‘compliance’ overheads on Day 1.
  • Transparent and Flexible Pricing Model: The most common construct is a cost-plus structure wherein the provider charges a mark-up on costs i.e., Talent (typically 70-85% of the costs), Infrastructure and Support function costs. Numerous as-a-service pricing models (GCC-as-a-service, Talent-as-a-service, Compliance-as-a-service etc) are also available for enterprises who may want to a bundled price or specific services.
  • Reduced time to market: Mature providers are able to provide a significant jumpstart to the timeline leveraging their well tested operations templates and readily available workforce.
  • Low Capex: Unlike a captive that involves significant upfront investments in infrastructure set up, this is a fully variable ‘Pay as you grow’ model. This is extremely useful especially for mid-market enterprises who can test the concept without necessarily having to block large sums of capital.

The Curious Case of BOT

This may be a bit of memory jog as this is not about the automation BOT that has been the top of mind recall in recent times but rather the good old, Build-Operate-Transfer (BOT) that is making a quiet but definitive comeback to the boardroom discussions. During the pandemic and post ‘The Great Resignation’, firms have and are continuing to de-risk their alternate service delivery models. As part of this, enterprises are increasingly assessing and executing BOT transactions. The drivers for them to do this are multifold e.g., deleveraging third-party outsourced portfolio, managing sensitivities around product development, building digital talent inhouse etc. While the classic BOT remains intact, its close variant, Virtual Captive, is increasingly gaining traction as this model offers a good balance between ‘Control’ and ‘Risk’. The supply side is becoming increasingly mature and arming their portfolios with innovative and agile ‘as-a-Service’ solutions.

Next time, when you are looking beyond Managed Services but do not just have the appetite for own captive, definitely worth adding this to the list of options. Lets you ‘test-drive’ offshore on a ‘Pay-as-you-grow’ model.

Know more about our GCC Lifecycle Advisory Services

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