| Despite the recent frenzy around the boom in | | | | said Shiraz Patel, president of Kanbay Managed |
| outsourcing, this "trend" isn't a new phenomenon. The | | | | Solutions Inc. |
| concept of U.S. firms outsourcing various functions to | | | | How to find clients |
| low-cost, high-talent labor pools has existed for more | | | | Patel leads the Kanbay subsidiary that provides |
| than 20 years. | | | | financial services clients with global delivery options and |
| Until recently, large corporations dominated the | | | | a mature governance model for application |
| outsourcing landscape, often engaging the services of | | | | management outsourcing (AMO) and business |
| major players like IBM (NYSE: IBM) and Accenture | | | | process outsourcing (BPO). He offers the following |
| (NYSE: ACN) for information technology projects. | | | | advice to IT services/software and professional |
| What is new is that small to mid-sized companies are | | | | service firms looking to enter the outsourcing market. |
| beginning to recognize the value of outsourcing, not | | | | Kanbay has successfully employed a number of these |
| only for technology services, but also for business | | | | venues in its own marketing approach: |
| processes. Researchers at Gartner Group predict that | | | | 1. Seek objective analyst opinions. Meet at least |
| 80 percent of U.S. companies will have engaged in | | | | quarterly with industry analysts such as Gartner, |
| high-level outsourcing discussions by 2004, with the | | | | Aberdeen and IDC, who cover outsourcing industry |
| greatest interest in applications and business process | | | | and managed solutions companies. Schedule in-person |
| outsourcing. Also of increasing interest and demand is | | | | visits to brief these groups on your firm's history, client |
| the use of offshore delivery centers in an outsourcing | | | | experience and vision. Likewise, analysts can help |
| strategy. | | | | validate your marketing approach, serving as |
| Often used interchangeably with "offshoring," the term | | | | third-party, unbiased advisers that in turn educate |
| "outsourcing" has much broader-reaching implications. | | | | potential customers, partners and investors. |
| Whereas offshoring typically refers to hiring | | | | Many analysts host conferences and publish |
| supplemental manpower (usually from countries like | | | | newsletters and special reports on outsourcing topics |
| India) on a per-head-count hourly rate, the practice of | | | | in which you can participate. |
| outsourcing exceeds this staff augmentation mentality. | | | | 2. Participate in industry/educational forums. |
| Today's sophisticated outsourcing paradigm embraces | | | | Outsourcing conferences enable companies like |
| a global delivery model, risk management/governance | | | | Kanbay to showcase their clients' success stories and |
| contingencies, and long-term service level agreements | | | | achievements. This interactive, peer-to-peer format |
| (SLAs) that span both technology and business | | | | allows business prospects in a similar industry to |
| process services. | | | | address common challenges, learn by example, and to |
| Just as the market definition and scope for outsourcing | | | | meet the outsourcing partners behind customer |
| services has evolved over the past decade, so too | | | | achievements. |
| has the purchasing audience. Historically, IT executives | | | | 3. Host seminars and Webinars. In a market saturated |
| have been the primary buyers of outsourcing services, | | | | with hundreds of seminar offerings, companies like |
| largely due to the technology intensive nature of early | | | | Kanbay have the most success with brief (two hours |
| outsourcing arrangements. While the CIO's role is still | | | | or less), highly targeted programs that demonstrate |
| integral to the decision-making process, financial and | | | | solutions geared to business challenges within a |
| business-line executives and CEOs are now driving the | | | | specific industry. Webinars are also attractive to |
| need for more business process-focused outsourcing | | | | sponsors and clients alike because they are |
| solutions and therefore have emerged as a new | | | | cost-effective, require no travel and contain similar |
| buyer. | | | | content to live seminars. |
| Mid-sized professional services firms like Kanbay | | | | 4. Leverage the media. The media is a powerful and |
| International Inc. ( that specialize in a particular market | | | | influential source for educating potential customers on |
| niche (e.g. financial services) are in a strong position to | | | | outsourcing trends and solutions. Consider contributing |
| reach today's newer, middle-tier market with global | | | | to publications that feature customer case studies, |
| application management and business process | | | | quote industry experts and publish opinion articles |
| outsourcing solutions. Kanbay engages a number of | | | | authored by outsourcing company experts. |
| innovative strategies to differentiate itself and educate | | | | 5. Evaluate your partnership strategy. Many smaller |
| this vertical market on the value of outsourcing. | | | | and mid-sized firms are attracted to the deep |
| "The rise of the outsourced economy is creating a | | | | expertise and capabilities of the large outsourcing |
| new set of management challenges -- and | | | | companies, yet often find their services cost-prohibitive. |
| opportunities. While the industry's top players have | | | | When targeting this market segment, companies like |
| created the demand for global outsourced solutions, | | | | Kanbay offer a blended model for the financial |
| more mid-tier companies are getting into the game. | | | | services industry, engaging with clients and managing |
| This has opened up a viable market for managed | | | | risk-similar to larger outsourcers with whom Kanbay |
| solutions providers to serve this customer segment," | | | | partners -- but at competitive rates. |