Outsourcing Europe Journal f243 Preview
Outsourcing Europe Journal f243 Preview
org
OJ
EUROPA
Outsourcing von IT-Services und Geschftsprozessen in Europa - Ein unabhngiges Informationsangebot fr Deutschland, sterreich und die Schweiz. Auf mehr als 90 Seiten Wissen, Hintergrnde und Kontakte, inklusive der Themen:
INHALT / CONTENT
4 - Outsourcing - Division of labour gives competitive edge
Dr. Thomas Meyer, Florian Schler, Deutsche Bank Research, Germany
48 - Sourcing: Der Mittelstand und die Cloud - Hybridmodellen gehrt die Zukunft
Dr. Heiner Diefenbach, TDS AG, Germany
16 - Corporate and competition law - legal and contracting aspects of outsourcing in Romania
BPV Grigorescu Stefanica, Romania
25 - Assembling the Jigsaw - Service Integration and Management in a Multisourced IT-Operating Model
Hannah Patterson, Information Services Group (ISG), United Kingdom
29 - Germany - Lucrative sourcing market and top location for shared services and BPO delivery
Josefine Dutschmann, Germany Trade & Invest (GTAI), Germany
34 - Stop Shouting
Christopher Butler, USA
86 - Organizations
Corporate profiles and contacts
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EDITORIAL
Der Markt
In Deutschland, sterreich und der Schweiz blicken wir heute auf einen Markt fr Outsourcingleistungen von ca. 22 Mrd. EUR mit einem potenziellen Wachstum von ca. 7 Mrd. EUR bis 2015. (Lnendonck, Ende 2010). Zu der Frage welchen Stellenwert IT-Sourcing im Unternehmen einnimmt geben in einer aktuellen Studie (DACH) der ZHAW Zrich 56% der Befragten an, dass bestimmte Leistungen ausgelagert und weitere 14% geben an, dass IT-Dienste weitgehend ausgelagert seien. Im Pan-European IT Outsourcing Intelligence Report 2011, durchgefhrt von IT Sourcing Europe, geben mehr als 35% der Befragten in Deutschland an, Nearshore bzw. mehr als 20% Onshore auslagern zu wollen. Mit diesem Trend der Auslagerung von IT- und Geschftsprozessen in Deutsch-
land, sterreich und der Schweiz, erleben wir gleichzeitig einen wachsenden Bedarf an Fachwissen, Informationen zu Outsourcing-Standorten sowie an Kontakten zu qualifizierten Anbietern.
unabhngige Referenzen und Tipps fr die Evaluierung von Outsourcing-Projekten und -Providern sowie die Transformation von IT- und Geschftsprozessen innerhalb Europas.
Diese Ausgabe
Auf mehr als 90 Seiten geht diese unabhngige Sonderausgabe des Outsourcing Journals auf wichtige Aspekte der Auslagerung von IT- und Geschftsprozessen innerhalb Europas ein. Experten geben Einblicke in die europische OutsourcingIndustrie und liefern Informationen zu ausgewhlten Outsourcingstandorten, Lsungen, Zahlen und Fakten sowie zu rechtlichen und interkulturellen Aspekten. Nutzer von Outsourcingleistungen in Deutschland, sterreich und der Schweiz erhalten zum ersten Mal Stephan Fricke Herausgeber des Outsourcing Journals und Vorstand sowie Vorsitzender des Beirates des Deutschen Outsourcing Verbandes e.V.
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RESEARCH
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RESEARCH
that outsource services such as IT management, bookkeeping or call centres to other companies. tion technology, the lowering of tariffs (e.g. via GATT/WTO or bilateral trade agreements), better infrastructure (e.g. container shipping), as well as the increasing integration of the former Warsaw Pact countries and the aspiring emerging markets in the global economy. Companies in Germany have not ignored this trend. The figures clearly show how the German economy has stepped up export activity: up until the early 1980s the German export ratio was only minimally higher than the average of other rich countries, of late it has been almost twice as high (41% of GDP). The interesting thing is that this decoupling evidently did not commence until after the actual economic miracle. Only reunification was able to briefly slow the surge in exports. German imports have not quite managed to keep pace with this development (the reason for the current account surplus): they rose from 25% of GDP in 1980 to 35% in 2009. The increasingly integrated global economy corresponds to growing division of labour at the company level in Germany: between 1999 and 2008 the degree of vertical integration (measured in terms of value added relative to sales) fell for example by 22% in mechanical engineering, by 12% in the auto industry and by 8% in the chemicals industry (see chart 2). More recent figures are less meaningful as they are distorted by the financial and economic crisis. An ever smaller share of value added is generated in-house upstream and downstream companies are becoming more important in the production chain. Overall, German companies occupy a mid-table position in the European rankings (see chart 3).
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RESEARCH
A low value-added ratio is ultimately also an indicator of a disintegrated production chain. In light of the trend described above the question arises as to whether the degree of vertical integration has a systematic impact on corporate performance metrics, that is whether the degree of division of labour has a measurably positive or negative influence on productivity, returns or profits. parison we always use wage-adjusted labour productivity since a key factor for a company is that potentially higher productivity is not eaten up by higher wages. Chart 4 illustrates this relationship using the example of mechanical engineering in Europe. It would represent a clear contradiction to the prevailing view to date. This analysis comes to a similar conclusion as previously reached by Broedner et al. (2009) and Lay et al. (2009). The scientists at the Fraunhofer Institute analysed a random sample of nearly 500 German manufacturing firms in 2003 to identify instruments for boosting productivity This also . included testing the influence of the outsourcing ratio, which they define as the difference between the degree of vertical integration level and 100%: hence, the lower the level of vertical integration, the higher the outsourcing ratio. Contrary to their own hypothesis, the authors also found that less vertical integration is accompanied by lower productivity. In other words: the higher the outsourcing ratio, the more inefficiently that companies produce. According to the authors, the specialisation benefits must be outweighed by the growth in transaction costs. The important thing is that this view is not based on erroneous individual entrepreneurial decisions mistakes are made again and again but on a systematic negative correlation between division of labour and productivity. This would have major significance for economic policy and management consultancy. The findings of the Fraunhofer Institute are ultimately interpreted by the public as making a case for more in-house manufacturing and insourcing (outsourcing is a load of rubbish). Right calculation, wrong interpretation? In a first step, our own analysis does indeed serve to back up this conclusion (which we found surprising) with a new data set. However, this correlation could be distorted by other factors, which would alter the interpretation of the results. The level of vertical integration and labour productivity are influenced by many factors that are not directly related to outsourcing decisions. Profits play a pivotal role in this respect since profits make up a portion of value added. The average degree of vertical integration among European firms in 2003 was about 30%, while the average gross operating rate (i.e. operating surplus relative to sales) was around 11% (both unweighted). Variations in the gross operating ratio alone account for some 20-30% of the differences in degree of vertical integration (see chart 5). The probability is thus very high that the correlation between vertical integration and productivity is decisively influenced by other factors. The opposite effect applies to inputs: if prices rise for inputs, the degree of vertical integra-
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RESEARCH
tion falls all other things being equal. This is definitely a relevant factor; after all, material costs as a share of gross production value in the German manufacturing sector rose by 5.8 percentage points (to 48%) between 2003 and 2007. The rise in steel prices could, for example, partly explain why specifically the share of value added in engineering has fallen sharply. manufacturers often operate in lucrative niche markets in which correspondingly high margins are to be earned. The observable outcome at these manufacturers would thus be high productivity (on account of the margins) combined with a high degree of vertical integration (on account of the specialisation). This correlation would not, however, be the result of the outsourcing decision, but of the market positioning. The management recommendation derived from this observation would thus be completely different. static model with gross operating ratio as an explanatory variable. It serves as a direct indicator of market position. Thirdly, we use a two-stage statistical estimation method that helps to isolate the observation of the influence of other endogenous variables (IV method). The instrument used is the number of people worldwide that speak the respective language. This instrument is based on the premise that language has no direct influence on productivity (an English-speaking worker is just as productive as a Germanspeaking worker ceteris paribus). However, offshoring is made a lot easier if the local language is spoken worldwide (English, for example), since this enables straightforward communication with foreign suppliers. We were able to identify clear evidence of this effect specifically for the IT outsourcing field. Of course, only a fraction of outsourcing is international in nature. This fraction is, however, sufficient as a statistical instrument. Table 6 provides a summary of the results as well as a simple statistical analysis (model 1) as a reference point. The coefficients of degree of vertical integration (2003) are negative in all the other models (2-10). This means that the greater the vertical integration, the poorer the performance metrics the sectors achieve. None of these estimates is perfect, but they all point in a similar direction. The only exception is the model in the first column which replicates the simple
Market positioning also plays an important role. It could influence both productivity and degree of vertical integration. After all, with outsourcing the objective is not to achieve an absolute figure but to determine the optimum outsourcing ratio for each individual company: the more specific the production, the lower the optimum outsourcing ratio as a rule. Specific production is often associated with specialised products. It would therefore be normal to expect that for example a manufacturer of highly specialised products would tend to have a larger share of in-house production than other firms. At the same time such specialist
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RESEARCH
static approach described above. The augmented models thus generate more differentiated outcomes than the static analysis. For example, model (6) shows that statistically speaking for each additional percentage point of vertical integration in 2003 earnings growth was 7 percentage points lower (cumulative for 2003-2007). This is obviously an economically relevant figure. The reaction is particularly sensitive in the glass industry; for plastics makers the degree of vertical integration has less of an influence (see chart 7). Not a fair-weather effect The generally positive business trend between 2003 and 2007 profits and productivity rose
for the majority of companies could arouse suspicions that it is a fair-weather effect: that outsourcing only helps when the economy is booming. Comparable results can, however, also be achieved if the sample is limited
to sectors where profits declined. Models (7) and (8) factor in not only the level of vertical integration in 2003, but also the change in vertical integration between 2003 and 2007. This ensures that the relationship is not based solely on the adjustment following a potential shock in some sectors. Although the effect is weaker in models (7) and (8) it retains its direction and statistical significance. The positive correlation between the change in degree of vertical integration and earnings growth in model (7) does not contradict the message. Rather, it reflects the fact already shown in chart 5 that earnings are part of added value. Rising profits thus also boost added value, all other things being equal. Overall, the results are robust when set against numerous difPage 8
RESEARCH
ferent specifications. The twostage estimations (IV, models 4 and 10) back up the findings and result in higher coefficients. the potential profits from specialisation. However, this is not necessarily the right interpretation in our opinion as the static relationship is biased by other factors. No hard-and-fast rules Our dynamic analysis shows the opposite: sectors which make stronger use of division of labour in the production process tend to boast better performance metrics. This also applies to static observation in cases where different market positions are taken into account. The basic idea of division of labour and specialisation thus still appears to have something going for it. There are, however, no hard-and-fast rules. Maximum outsourcing does not necessarily result in the optimum degree of vertical integration. The production depth must suit the corporate strategy, sector and market position.
1 Broedner, Peter; Steffen Kinkel and Gunter Lay (2009). Productivity effects of outsourcing: New evidence on the strategic importance of vertical integration decisions. International Journal of Operations & Production Management. Vol 29. No 2. pp. 127-150 and Lay, Gunter; Steffen Kinkel & Angela Jger (2009). Stellhebel fr mehr Produktivitt: Benchmarking identifiziert Potenziale zur Steigerung der Produktivitt. Mitteilungen aus der ISI-Erhebung zur Modernisierung der Produktion. Number 48. 2 Auer, Josef and Oliver Rakau (2011). Commodity boom: More than just risk for German industry. Current Issues. September 20, 2011. Deutsche Bank Research. Frankfurt am Main. 3 See Meyer, Thomas, 2007. Indias specialisation in IT exports: Offshoring cant defy gravity. Research Notes 27. Deutsche Bank Research. Frankfurt am Main.
Authors: Thomas Meyer and Florian Schler +49 69 910-46830 [email protected] Editor Antje Stobbe Technical Assistant Sabine Kaiser Deutsche Bank Research Frankfurt am Main Germany Internet: www.dbresearch.com E-mail: [email protected] Fax: +49 69 910-31877
Editors message
We like to thank all authors, companies and partners who contributed to this edition. If you would like to contribute to one of our next publications, please get in touch with us: [email protected]
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MANAGEMENT
der Service-Erbringung. Da man Dritte auerhalb des eigenen Unternehmens jedoch nicht disziplinarisch ber die unternehmenseigene AufbauOrganisation steuern kann, muss man Spielregeln und Gremien der Zusammenarbeit einrichten. Dabei liegt der primre Fokus darauf, die bedarfsgerechte Leistungserbringung zu steuern. Dies entbindet eine IT jedoch nicht von ihrer internen Verantwortung den Fachbereichen gegenber und davon, die interne
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MANAGEMENT
Akzeptanz der Dienstleister zu sichern. Insbesondere bei der Auswahl der Dienstleister ist der Cultural Fit zu bercksichtigen. In einem Multiprovider-Umfeld oder bei einem Provider-Wechsel hat Sourcing Governance die Harmonisierung bzw. Angleichung in Richtung aller Dienstleister zu gestalten. Elemente des Vertragsmanagements zu ergnzen. Analog einer IT-Governance wird eine Sourcing Governance in der Regel in drei Ebenen unterteilt. nities. Durch berlappende Wirkbereiche zwischen der strategischen, taktischen und operativen Ebene kann ein Unternehmen es verhindern, von einem Dienstleister ausgespielt zu werden. (vgl. Grafik 1, S.12: Wirkbereiche einer Sourcing Governance). Dabei kommt es insbesondere darauf an, wie die Dienstleister gesteuert werden. In der Vergangenheit wurde in Ermangelung geeigneter Governance-Strukturen und wegen eines eindimensionalen Verstndnisses der Zusammenarbeit allzu oft primr sanktionsorientiert gesteuert, whrend heute der erfolgsversprechendere, kooperative Ansatz berwiegt. Die Maxime Kooperation statt Konfrontation wird als Provider-Management-Stil immer beliebter und fhrt immer hufiger zu erfolgreichen IT-OutsourcingBeziehungen, in denen beide Partner aktiv die Kongruenz ihrer Interessenslagen abstimmen.
MANAGEMENT
cherstellung der Leistungsberwachung und fr die IT-Security. lenverteilung auf Kunden- und Dienstleisterseite in Form von Gremien institutionalisiert werden. Dies hat im Zusammenhang mit dem Umfang der internen Retained Organization zu erfolgen und sollte die neuen Skillprofile bercksichtigen. Den Gremien sind hierbei klare Aufgaben und Ziele zuzuordnen, deren Erreichung durch entsprechende Steuerungswerkzeuge nachgehalten wird. (Vgl. Grafik 2 : Steuerungsmechanismen in einer Sourcing Beziehung)
Institutionalisierung in Gremien
In Ausschreibungs- bzw. Transitionsprojekten muss die Rol-
Grafik 1
unmittelbar auf die Gestaltungsmglichkeiten einer Sourcing Governance aus. So bestimmt die Wahl einer Multi-, Dual- oder Single-Provider-Strategie unmittelbar die
Skalierung der Sourcing Governance. Ebenso beeinflussen die Shoring-Konzepte unmittelbar die Ausgestaltung der Sourcing Governance. Aus einer aktiv gelebten Outsourcing Governance resultieren fr Unterneh-
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MANAGEMENT
men gleich drei zentrale Vorteile: die Geschftsanforderungen knnen auch in Zusammenarbeit mit externen Partnern schneller und besser bedient werden, die stetige Kontrolle von Prozessen und ComplianceRichtlinien fhrt zu mehr Qualitt und damit zur Risikominimierung und schlielich erfolgen die operative Zusammenarbeit und mgliche Anpassungen gesteuert und nicht eskalationsgetrieben.
Grafik 2
Der Autor: Branimir Brodnik ist Grnder und geschftsfhrender Gesellschafter der microfin Unternehmensberatung GmbH, die sich seit 2002 erfolgreich am Markt positioniert hat. Der Diplom-Informatiker, der im Nebenfach Medizin studierte, weist eine ber 20-jhrige Berufserfahrung in den Bereichen Financial Services und Consulting auf. Seine Kompetenzen liegen vor allem in den Themen IT-Sourcing, IT-Kostenoptimierung sowie Projektmanagement. Als zertifizierter Projektmanager und Management Coach beriet Branimir Brodnik in den letzten Jahren nicht nur zahlreiche Unternehmen und Manager, sondern gab sein Wissen und seine Erfahrung auch in vielfltigen Verffentlichungen weiter. Kontakt: Tel: +49 (0) 6172-17763 0 - E-Mail: [email protected] - Web: www.microfin.de
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Advert
micron Unternehmensberatung:
micron Unternehmensberatung GmbH Kaiser-Friedrich-Promenade 59a 61348 Bad Homburg T: +49 (6172) 17763 0 E: [email protected] www.micron.de
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NETWORK
Deutscher Outsourcing Verband e.V.
Independent knowledge and business network for the DACH-region and Europe - An introduction
This is a limited preview. You can order the full 95 pages issue for free via:
It is available for free online as well as in regular PDF/print editions.
Open Network
Knowledge-Partnership
The association offers knowledge carrieres such as universities, consultants, providers and other organizations to share their knowledge and best practices as knowledgepartnters.
The association maintains and grows a regional and international community of outsouricng professionals using open network groups on Xing and LinkedIn
As the leading news and in- Business- & IT-Services In return the Knowledge Partformation service about BPO, nership includes unique publiITO & SSC the journal provides Eubis is a free and independ- cation, presentation and cominsights in the business- & IT- ent corporate and knowledge munication opportunities. service industry, solutions You directory. Global service pro& will receive your electronic issue organizations. The Journal is viders present 48 hours infor- www.outsourcing-verband.org within corporate independent and focusing on mation and expertise - entirely www.outsourcing-journal.org non-commercialinformation. free of charge. Service buyers www.eubis.org
Members - corporates and professionals from (excerpt): TSystems International, Hewlett Packard, Infosys, Cognizant, Unisys Outsourcing, Tata Consultancy Services, Deloitte, Northgate Arinso, Oracle, SAP, Wiener Stdtische, ZHAW Zrich, Swiss IT bridge, Safira, BulPros, BUW, Siemens AG und mehr
www.outsourcing-verband.org
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IMPRINT
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Editorial office
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