Delivering Value Through Re-negotiating, Re-solutioning, Re-sourcing, Retrofitting and Renewing Existing Sourcing Arrangements

Transcription

1 The Five R's: Delivering Value Through Re-negotiating, Re-solutioning, Re-sourcing, Retrofitting and Renewing Existing Sourcing Arrangements Mayer Brown, Dan Masur Mayer Brown, Peter Dickinson Alvarez & Marsal, Peter Allen Alsbridge, Paul Hardy

2 THE FIVE R s: Re-solutioning, Re-sourcing, Restructuring, Retrofitting, and Reconciling Existing Sourcing Arrangements Dan Masur, Moderator (Mayer Brown) Peter Dickinson, Moderator (Mayer Brown) Peter Allen (Alvarez & Marsal) Paul Hardy (Alsbridge)

3 Speakers Dan Masur is the partner-in-charge of our Washington, D.C. office and is recognized as one of the leading lawyers in the outsourcing field by Chambers Global, Chambers USA and Legal 500. Chambers has described Dan as phenomenal and the "expert of experts," noting clients say he "has incredible knowledge of outsourcing, inspires confidence in others and has great business intelligence. He has represented national and international clients in a broad range of on-shore, near-shore, and offshore information technology and business process sourcing transactions involving global and niche sourcing providers, offshore captives and various hybrid structures. Peter Dickinson is a partner in Mayer Brown's London office and a member of the Corporate & Securities practice. Peter's practice focuses on mergers and acquisitions, joint ventures and other significant commercial transactions including, in particular, large scale multi-jurisdictional outsourcing projects. He is a widely acknowledged leader in the telecommunications industry and is highly recommended in this field by both Chambers UK and the UK Legal 500. He is also recognized as a leading mergers and acquisitions lawyer and a leading outsourcing lawyer by both Chambers UK and the UK Legal 500. Peter Allen is a Managing Director with the consulting firm Alvarez & Marsal, based in New York. With extensive prior experience in outsourcing and shared services advisory, sales, and service delivery, Peter now leads A&M s Enterprise Services practice. His team focuses on reimagining the ways that technology-enabled business services can support the growth and efficiency objectives of corporations. Paul Hardy is a Managing Director with Alsbridge. He has led many of Alsbridge s most complex multi-tower ITO (both applications and infrastructure) and BPO engagements in insurance, banking, telecommunications, retail and manufacturing. He has over 23 years of business experience encompassing P&L and Management Consulting leadership roles, and over a decade of experience in outsourcing. He has led major people, process and technology transformation programs for Fortune 500 clients in multiple industries. 3

4 About Mayer Brown s Business & Technology Sourcing Practice They're very practical in terms of trying to identify solutions and giving very good advice on areas where it's reasonable for us to compromise or, alternatively, where to hold our ground. ~ Chambers USA 2015 "An excellent team of people for outsourcing agreements globally - pragmatic in their approach, with a wealth of experts they can call on. ~ Chambers Global 2014 Their knowledge in this area is tremendous. They know us so well they blend into our deal teams and become a natural extension to our in-house team. ~ Chambers USA 2014 Mayer Brown is universally regarded as a leading player in the technology and outsourcing arena, with market commentators commending the ease with which its lawyers integrate with clients, delivering business-focused advice and guidance. ~ Chambers Global 2013 More than 50 lawyers around the world focused on helping clients improve their business operations by sourcing services and technology Advised on more than 300 significant outsourcing transactions valued at an aggregate of more than $100 billion Band 1 ranking in IT/Outsourcing for 12 consecutive years (Chambers ) RECOGNIZED MARKET LEADER 4 Named MTT Outsourcing Team of the Year in 2014 and ranked in the top tier from 2010 thru 2015 Ranked as one of the top law firms in 2009 thru 2015 on The World s Best Outsourcing Advisors list for The Global Outsourcing 100

5 About Alsbridge Expense reduction Independent advisor Sustained agreements track record Zero Divorce Data-driven decisions Engagements address over More than $11B annual 300 market spend professionals with an average of 20 years experience 5

6 About Alvarez & Marsal A&M BRINGS OPERATING AND MANAGEMENT EXPERTISE COMBINED WITH TOP-TIER CONSULTING AND SPECIALIZED INDUSTRY EXPERIENCE TO MEET THE CHANGING NEEDS OF COMPANIES AND INVESTORS. Business Performance Improvement For three decades, Alvarez & Marsal has set the standard for working with organizations to tackle Growth and Revenue Enhancement Supply Chain Operations Finance and Accounting Information Technology Human Capital and Organizational Change Merger Integration Performance Improvement Enterprise Services complex business issues, boost operating performance and maximize stakeholder value. 4,000+ ENGAGEMENTS 140 INDUSTRIES 30 YEARS For three decades, Alvarez & Marsal has set the standard for working with organizations to tackle complex business issues, boost operating performance and maximize stakeholder value. Today s Market Realities Surviving 6 years of recession has eroded capacity to grow Agility is top of the agenda ability to detect and react quickly Balance sheet scrutiny is exceptionally high not a place to park risks Technology innovations are changing the game and fueling consumption economics Achieving growth without adding bulk to the enterprise is the new recipe for success 6

7 DEFINING THE OPPORTUNITY 7

8 Re-solutioning Incorporating new technologies / solutions / services e.g., cloud, as-aservice, autonomics/robotics, service utilities to reduce applicable charges, improve performance and/or add new or enhanced capabilities. 8

9 Re-sourcing Directing some or all of the services to alternative providers offering more attractive pricing, stronger capabilities, new product or service offerings, etc. 9

10 Restructuring Moving to a different outcome or business construct, such as buying an integrated unit of consumption that is meaningful to the client s business, not just discrete devices or other IT components used to perform the function. 10

11 Retrofitting Modifying an existing relationship to incorporate mobility, data analytics and/or other components of the company s digital strategy by altering the form of service provisioning. 11

12 Reconciling Renegotiating the existing terms to address areas of misalignment, including pricing that is no longer marketcompetitive, performance issues, evolving business requirements, etc. 12

13 STRATEGIC AND TACTICAL CONSIDERATIONS 13

14 Evaluating and structuring the value received and investment required Adopting a Services Architecture to provide for modular engagement of internal and external service providers in a seamless manner, with transition economics applied. 14

15 Process Defining the optimum process and services relationships, including timing (not just tied to renewal), the role of the incumbent provider, cost benefit analysis, change management considerations, creating negotiating leverage, etc. 15

16 Impediments Identifying and addressing impediments to change, including transition charges, termination charges, sunk costs, availability of internal talent, mindset/resistance to change, contract issues, etc. 16

17 Reimagining Technology Sourcing in the Digital Age QUESTIONS Dan Masur Partner, Mayer Brown Peter Allen Managing Director, Alvarez & Marsal Peter Dickinson Partner, Mayer Brown Paul Hardy Partner, Alsbridge

18 Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe-Brussels LLP both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC ); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

19 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#04) COMPLETE & SUBMIT EVAL

20 Session #04 The Five R's: Delivering Value Through Re-negotiating, Re-solutioning, Re-sourcing, Retrofitting and Renewing Existing Sourcing Arrangements Dan Masur Partner, Mayer Brown Peter Allen Managing Director, Alvarez & Marsal Peter Dickinson Partner, Mayer Brown Paul Hardy Partner, Alsbridge Download the App: bit.ly/sigcaapp Tweet: #SIGfall15

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