Evolving Landscape of SSO: Organisations to Benefit from a Vertical Outsourcing Ecosystem Says Frost & Sullivan
Frost & Sullivan to host the 2nd Annual Global Shared Services and
Offshoring Executive MindXchange Summit from June 5-6, 2008, at Grand
Copthorne Waterfront, Singapore
SINGAPORE--(Business Wire)--
In 2006, the global shared services and outsourcing (SSO) market
was valued at approximately US$930 billion and is projected to reach a
market size of US$1.43 trillion by end-2009, at a compound annual
growth rate (CAGR) of 15 percent, according to Frost & Sullivan
estimates. Offshoring, which accounts for a tiny fraction of the total
pie, is expected to grow at twice that rate.
SSO has been employed by companies worldwide as cost saving
solution that streamlines processes in an effort to improve overall
business efficiency.
While the cost benefits and other value proposition appear
compelling, concerns with outsourcing include loss of control; risk of
breach of confidentiality and intellectual property; service quality
levels; and shortage of skilled workforce due to high attrition
resulting in escalating costs.
Kam Soon Siew, ICT consulting director, Frost & Sullivan feels
that as the SSO industry matures beyond cost arbitrage, offshoring is
increasingly expected to enhance regional and global business
competitiveness. He adds that moving from low-cost functions like
applications development and back-office processing, more Fortune
Global 500 companies are offshoring high-end functions such as
research and development, and increasingly demand greater integration
between functions to best derive value from offshoring.
"This has given rise to vertical integration requirements that
places greater emphasis on the ability of a location or hub to
complete the eco-system for specific verticals. We believe that SSO by
vertical concentration or focus is the next big thing in offshoring,"
says Mr. Siew.
In its second year, the Frost & Sullivan 2008 Global Shared
Services And Offshoring Summit, to be held from 5 - 6 June 2008 at the
Grand Copthorne Waterfront, Singapore, will see industry veterans and
prominent industry leaders share their thoughts and experience on the
growing trend of vertical-based SSO operations. The two-day executive
MindXchange summit will provide a unique blend of perspectives on the
current and future state of the SSO landscape including key drivers
and constraints, spending trends, location selection criteria and
top-of-mind locations for different industries. Approximately 200
delegates from five major industries across Asia Pacific will converge
at this knowledge-sharing session.
In addition to an engaging MindXchange program, the delegates will
experience the operational process of Trusted Hub processing - a SSO
centre for the Ministry of Defence (MINDEF) Singapore, ST Electronics'
e-Services centre, and Siemens Pte Ltd Service Centre, on the second
day of the summit.
These site tours will offer a first-hand look at the workings and
daily operations of established shared services centres, insights into
the workings of global shared services operations, and an exclusive
tour of home-grown shared services organisations in Singapore. Besides
a combination of presentations and on-site facility tour, delegates
will be able to meet with key department staff members as well.
The summit emphasises on the increasing vertical approach of SSO,
instead of the functional approach. The trend of setting up Vertical
Centres of Excellence (VCE) is growing and the summit aims to discuss
the value proposition offered by locations like Singapore, Manila,
Shenzhen and Bangalore.
iDA Singapore is a strategic partner for the summit and Business
Today and ZDNet Asia are the official media partners.
For more information/registration details, please visit
www.frost-gss.com. Media passes are available to the press. To
register for the summit, you may also send an email to Neethiya
Sadagopal, Corporate Communications at neethiya.sadagopal@frost.com
with your full name, media/company name, title, telephone number, fax
number and email.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, partners with
clients to accelerate their growth. The company's TEAM Research,
Growth Consulting and Growth Team Membership empower clients to create
a growth-focused culture that generates, evaluates and implements
effective growth strategies. Frost & Sullivan employs over 45 years of
experience in partnering with Global 1000 companies, emerging
businesses and the investment community from more than 30 offices on
six continents. For more information about Frost & Sullivan's Growth
Partnerships, visit http://www.frost.com.
Frost & Sullivan
Corporate Communications - Asia Pacific
Surbhi Dedhia, +65-6890-0926
surbhi.dedhia@frost.com
or
Corporate Communications - Asia Pacific
Neethiya Sadagopal, +65-6890-0966
neethiya.sadagopal@frost.com
Copyright Business Wire 2008
