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Major Concerns of Europeans in
Associating with Outsourcing
Companies: Facts & Solutions
Kochi
March 5th, 2016
Hans
Trends
Europe
Challenges
Trust
Cologne, Germany
Brussels, Belgium
H
A
N
S
G
Ä
R
T
N
E
R
Bank, Frankfurt
Project management, HR
Development
H
A
N
S
G
Ä
R
T
N
E
R
Shipbuilding, Bremen
Human Resource
Actually, the
outsourcing
future looks
bright…
Potential is huge: Still most services inhouse
IT services most readily outsourced and
logical starting point
Top candidates:
Facility-, Payroll
services, Procurement
Business Process
Outsourcing is
second step
Least candidates:
Sales, Finance, HR,
Offshore
outsourcing
from Europe:
The overall
trend picture
There is
good news
and bad news
The Good
News:
Chances in second generation outsourcing: more
intelligent services
The Bad
News:
• Trend to insource
• Trend to onshore outsourcing
• Clients in fast changing industries want
to keep their competitive advantage as
first movers
Onshore,
Nearshore,
Offshore
The decision is always a balance
between the objectives an
organization tries to achieve and
the risks perceived.
The European Union
Discussion in Europe
• Data security, privacy
• Job security, Globalization
• Trend to national tendencies –
return to national state
interests (Brexit, EU Problems
refugees, EU-Balkan states)
„Kinder statt Inder“
(Children instead of Indians)
Typical European Client
Family owned international company , Medical Devices
Typical European Client
Family owned international company , Audio Devices
Believes of a “SME” European Client
No risk
Data security
Own staff deserves loyalty
Quality of service and relationship
• Number one, two, or three in the global market, or number one on the company's continent
determined by market share
• Revenue below 4 Billion Euros
• Low level of public awareness.
SMEs are well organized
http://www.ihk.de/#ihk-finder
Brax
Falke
Miele
Pflei-
derer
Topics that create concerns:
Punctuality
Language
Quality
Communication preference
Punctuality
German
punctuality
When is 12.00 PM
Belgium: 12.15 PM
France: 12.30 PM
Spain: 01.00 PM
Perception of Indian
punctuality:
„You newer know“
Language
Irish, British,
Scottish
German Accent,
French Accent,
Spanish Accent,
Italian Accent
Indian Accent
„We don‘t understand their English“
Quality
International
Standardization
organization
European
Foundation for
Quality
Management
Quality
At start of a
relationship:
Focus on
process quality
Content Quality Process Quality
Communication Preferences
• Participation in
meetings
• Hierarchy
• Yes and No
Building a trusting
relationship
Self- orientation
Doctor’s visit
Credibility Reliability Intimacy
You cannot learn everything
about every culture you are
doing business with:
Measures required also on corporate level
Client/
Retaining
Organization
Outsourcing
Service
Provider
• Constant review of outsourcing
strategy
• New people manage the
outsourcing relationship
• Communication: tools and
processes
• Attitude of staff: Everybody is a
relationship manager
• Manage multiple stakeholders
• More qualified staff and dealing
with staff changes
• Communication: tools and
processes
Expectations change over time and
go beyond the individual contract
Find/develop a
SPOC
Single Point of Contact
Develop your
“Business Model” for
your future
outsourcing offer
Customer
Relationships
Customer
Segments
Revenue
StreamsDistribution
Channels
Key
Resources
Cost
Structure
Key
Partners
Key
Activities
Value
Proposition
Key
Appendix
Establishing and maintaining a healthy relationship
between client and provider parties
Retaining
organization
Service
provider
Establishing and maintaining a healthy relationship
between client and provider parties

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I/O: Intelligent Outsourcing 2016 | Hans Gaertner

Notes de l'éditeur

  1. Top 3 reasons:
  2. Top 3 reasons:
  3. Top 3 reasons:
  4. Top 3 reasons:
  5. Top 3 reasons:
  6. Top 3 reasons:
  7. Trends are one thing: They provide a background information, they are important for big companies who have a considerable market share, who are producing mass output. For smaller companies, they can always find their markets: they have to find specific clients in a specific country. So let me tell you a little bit about Europe in a nutshell and what seems to be important to know, if you want to do business with European clients.
  8. When we talk about business then we usually don’t talk about Europe as geographical region but we tlak of the European Union, founded in the late 50s of the 20th century. The European Union has-in the meantime 28 member states,From Finnland to Sweden, Denmark, the Scandinavian countries, to central Europe wirh Germany, France, Belgioum the Netherlands to Southern Europe like Italy, Spain and Greece, to the new member states of the EU, The Baltic states, Croatia, the Chez Republic, to name just a few Roughly 500 Million people and with the size compared to India They speak more than 20 different languages and they have no language in common, except for bad English They have a long history of fighting against each other and a rather short history of peace. Unlike members of most international organisations, the member states of the EU are subjected to binding laws in exchange for representation within the common legislative and judicial institutions. The nations with the biggest GDP , economic power Germany UK France Italy Spain The Netherlands The so called Euro Zone has the Euro currency So much for a few facts and figures
  9. Microsoft – Deutsche Telekom: Hosting for Microsoft Data – to avoid access to customer data by US state authorities Skype, flowdock, slack, google suite: not possible, Today, 11.11.2015, Microsoft announced plans to make Deutsche Telekom the German Data Trustee for its new Microsoft Cloud offer in Germany. Microsoft will offer Azure, Office 365 and Dynamics CRM Online from two datacenters in Germany under a unique model that uses a Data Trustee to control access to customer data. Customer data will only be stored in Germany. The Data Trustee will be T-Systems, Deutsche Telekom’s corporate customer unit. For Deutsche Telekom, expanding the partnership with Microsoft is the next vital step in growing with cloud services for SMEs and enterprise customers.
  10. Top 3 reasons:
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  23. Problem is that we have stereotypes and they tend to be negative. We don‘t see the whole picture anymore but we focus on the problem at hand. (not: We likle the food and look at the cultural achievement of these people, but they are not punctual.
  24. Perception is more important than reality
  25. I remember a conference of the Italien association of electical power quite a few yewars ago but it is still on my mind: The start of the conference was set for 10 (which as a German, I found rather late). Since my presentation was second. I thought I should go there by 9 to set up techniligy and talk to the organizers. No one was there, At 10 the first people came and had coffe and a convefrsatiuon. At 11.30 the conference started. The schedule was not important at all. The has an impact on the perception of relaibility on the deliverables. When one is not pinctgual in a meeting, he is not working properly.
  26. Tje story of a beldgum telfefin company and Internet provider in Belgium: They had outsourced some basic IT function to Indai and we now had w workshop to organizie the second phase of outsourcing. I knew this would be a difficult situation but I was still surprised how little they participated. …. First we do
  27. Quality seen differently:
  28. Process quality: Include escalation procedure in your communication agreement
  29. Is not fluent in English Has a heavy accent Does not like to use Email for complex conversations (problems…) Does not like chat
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  31. Credibility: German – Konzept; French is overwelmed Denominator Credibility: Someone has suggested to you that there is atrustworthy person or an organization. This is all the information you have and then you go there and you turn to this person. Reliability: You experience the first contact and it all runs as you expected, things run smooth. So you are happy. The next element of Trust is initmacy: You feel close to the person, you feel that the person understands your needs, even beyond the normal way of communication. All these points add up to the degree of trust. It is as if you gave points, lets say from 1-10 for whatever you experience. Then there is the deviding line.
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  35. A Person that speaks the language of the client
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