welcome isg sic 2016

Welcome! 9:30 am STONEBRIAR FOYER REGISTRATION

10:00 -- 12:30 pm

CYPRESS 1:1 MEETINGS

2:00 -- 2:15 pmSTONEBRIAR BALLROOM WELCOME & INTRODUCTION

Todd Lavieri, President, Americas, Australia & New Zealand, ISG

2:15 -- 3:00 pm STONEBRIAR BALLROOM MARKET & INDUSTRY UPDATE: Harvey Gluckman, Partner, ISG

3:00 -- 3:30 pm STONEBRIAR FOYER NETWORKING BREAK 3:30 -- 5:00 pm CYPRESS 1:1 MEETINGS

3:30 -- 5:00 pm SIMULTANEOUS BREAKOUT SESSIONS

3:30 -- 4:15 pm

GARDENIA A1: Why the “A” in A-Game Stands for Agile

SILVERLEAF II A2: The Lost Art of Service Delivery

SILVERLEAF I A3: Game Changers: How SaaS, BPaaS, Automation and Other Disruptive Factors are Flipping the BPO Gameboard

AZALEA A4: Selling Solutions: Taking Advantage of the RFS

4:15 -- 5:00 pm

GARDENIA B5: Don’t Be a Settler. Get Ready for the Digital Workplace

SILVERLEAF II B6: Accelerating Your Success with ISG Provider Services

SILVERLEAF I B7: The People Side of Digital Transformation

AZALEA B8: Not-So-Secret Strategic Advice for Enterprise Sourcing Buyers

5:30 -- 7:00 pm GRADEN TERRACE RECEPTION 7:00 pm DEPART FOR TOP GOLF NETWORKING EVENT & THE DEBATE

Monday, September 26

Welcome, Day 2! Tuesday, September 277:30 -- 8:30 am TOWN & COUNTRY BREAKFAST

8:30 -- 9:40 am STONEBRIAR BALLROOM KEYNOTE PRESENTATION: Digital Transformation at Southwest Craig Maccubbin, Vice President and CTO, Southwest Airlines

9:40 -- 10:15 am STONEBRIAR BALLROOM PANEL: Rubber, Meet Road: How to Create Frictionless Transitions 10:15 -- 10:30 am STONEBRIAR BALLROOM ISG SMARTALK

10:30 -- 10:45 am STONEBRIAR FOYER NETWORKING BREAK

10:45 -- 12:15 pm CYPRESS 1:1 MEETINGS10:45 -- 12:15 pm SIMULTANEOUS BREAKOUT SESSIONS

10:45 -- 11:30 am

GARDENIA C1: Enabling Enterprise Agility: Optimizing the Use of GBS and TechnologyAZALEA C2: How to Keep the Customer: Retention as a Growth Strategy

SILVERLEAF I C3: Is Digital Transformation Changing Healthcare? SILVERLEAF II C4: The Unusual Suspects: Where Will New, Disruptive Service Providers Come From?

11:30 -- 12:15 pm

GARDENIA D5: The Evolving State of Advisor Relations Programs SILVERLEAF I D6: Selling Solutions: Taking Advantage of the RFS SILVERLEAF II D7: Not-So-Secret Strategic Advice for Enterprise Sourcing Buyers

AZALEA D8: Digital Transformation Opportunities Heat Up for Utilities 12:15 -- 1:15 pm TOWN & COUNTRY LUNCH NETWORKING1:15 -- 2:00 pm STONEBRIAR BALLROOM FIRESIDE CHAT: Saas and the Impact on the Future

2:00 -- 3:00 pm STONEBRIAR BALLROOM SQUAK PANEL: If I Had a Magic Wand, This is How I Would Address Delivery Challenges

3:00 -- 3:15 pm STONEBRIAR FOYER NETWORKING BREAK3:00 -- 5:00 pm AZALEA 1:1 MEETINGS3:00 -- 5:00 pm STONEBRIAR BALLROOM TECHNOLOGY BUSINESS MANAGEMENT STANDARDS WORKGROUP (By Invitation Only)

4:00 -- 5:30 pm STONEBRIAR FOYER CLOSING RECEPTION


Todd D. Lavieri, President, Americas, Australia & New Zealand

WelcomeThe Incumbent’s Dilemma

© 2016 Information Services Group, Inc. All Rights Reserved 55

Perspective on the past year:Quality is a growing issue for clients.Proactive innovation is missing.Neither the client nor the provider are eager to address the elephant in the room . . . and then, it’s too late!


What’s changed?Business owners are increasingly becoming influencers & customersof digital solutions.

Challenges: IT must deliver to increasingly

impatient customers. Providers often sell solutions or

ideas that are ahead of the delivery team.

The shift of project and solution proximity from IT to business owners has changed the dialog.

Client maturity in the mechanics of sourcing is as high as it has ever been; clients are unafraid of change.


Quality is critical.The perception of good quality is table stakes. The perception of bad quality is fatal.

Nearly half of all engagement renegotiations are going tonew providers.

Early transition failures linger throughout the relationship.

Delivery quality trumps nearly everything—and clients perceive people and talent issues.

The noise level is rising.

While overall client satisfactionis good:


Innovation is critical, too.Technology, service delivery, process improvement—if you don’t deliver them, someone else will.

Environment today: Clients want new insights, ideas

and approaches to their problems—from incumbents or others.

Asynchronous communication Sales team has their eye on the

future…but the day-to-day delivery teams are not delivering that vision today—or even aware/trained.

Do you know the top 3-5 innovations your clients are shopping for right now?


Together, this createsthe Incumbent’s Dilemma.

Clients may look for solutions in new places.

Are you investing enough in your

clients?

$


Incumbency Success: 2nd & 3rd+ Generation

Top 3 reasons for moving away from incumbent: 1. Better commercials 2. Improved performance 3. Deteriorating relationship

Sole-Sourced

Competitive Incumbent witnessed increased scope

32%66%

34%

47% Incumbent lost entire scope

7% Incumbent lost a portion of scope (to new provider)

14%

Incumbent retained 100% scope


Are you facing the Incumbent’s Dilemma?Get back to basics and focus on the future.


Bring quality every day, business insights every quarter and innovation every year.

Perform quality and relationship reviews and a detailed customer satisfaction analysis.

Be integrated internally. Don’t forget: there is no substitute

for value and results.

www.isg-one.com

imagine your future™let’s connect…

http://www.isg-one.com/


http://www.isg-one.com/connect/


Harvey Gluckman

Market Update


Recapping Past SIC Market Updates

Digital Disruption

Service IntegrationPivot to Industry Solutions

Changing Provider Landscape

2014

Automation

2013

Changing Sourcing StrategiesGlobal Business ServicesHybrid Data Center

2015

Think Like The Jetsons!

Rise of Bimodal ITOperating Model Changes

Impact of Digital EnablementDigital Services & Provider Maturity


Recapping Past SIC Market Updates


Digital Adoption is Accelerating

SaaS

IaaS

Legacy $26.1

$23.7

$22.3

$3.1 $3.6 $4.1

$3.5 $4.9 $6.9

2014 2015 2016E

95%

‘14-’16E

33%

-15%

% ChangeGlobal ACV $B

113%

Americas

34%

5%

51%

APAC

33%

-35%

90%

EMEA

31%

-25%


Digital Adoption is Accelerating

Legacy 80% 74% 67%

SaaS 9% 11% 12%

IaaS 11% 15% 21%

2014 2015 2016E

Market Percentage Mix(ACV Based)

Market Observations

New skills are needed to manage As-a-Service adoption and digital transformation.

Clients lack capital to move entirely to new service architectures for adopting broader As-a-Service solutions.

Incumbents are often challenged to transition from labor-based to outcome-based models.

Incumbents are not proactively redesigning “out with the old, in with the new.”


As-a-Service Market

The ISG IaaSMarket Basket

30

carriercloud firms

co-location firms public cloud

infra providers

leading IaaS/PaaSproviders

550+$100M+Co Revs

17% with

< $100MCo Revs 83% with

Across Functional Domains

The ISG SaaS

Market Basket

leading SaaS providers


23%

19%

11%

11%

9%

8%

10%

7%

Vertical Industry Insights: SAAS Solutions

0%

Banking, Financial Services

& Insurance

Manufacturing

Telco & Media

Energy

Retail & CPG

Health & Pharm

Business Services

10%

20%

30%

40%

50%

Travel & Transportation

28%

28%

13%

20%

21%

28%

17%

10%

550+ SaaS Providers

Industry Market Share (based on ACV ’15-’16 1H)

49%

35%

23%

28%

14%

49%

38%

23%

SaaS Providers > $50m


Market Direction

Platform EconomyPlatform-based business models will be a predominant core growth strategy within the next three years.

Service Provider Competitive Positioning Pure Play vs. As-a-Service Provider? Clients will be indifferent when they want to buy outcomes and industry solutions.

Client RelationshipsEthics and trust will be heavily relied upon as digital enablement matures. As digital adoption continues to expand, clients will continuously be in transition.Managing relationships will become more complex.

PREDICTIONS


ISG Digital Enablement Framework

65% of ISG’s transaction engagements are RFS-led versus RFP-led.

Companies in their 1st or 2nd generation of Managed Services relationships are aggressively seeking digital enablement solutions.

Enterprise

Processes Cloud

CustomerAnalytics

Collaborative Product

Innovation

BusinessInsights

Customer Experience

Product Analytics IoT

Automation

Platforms

Access Channel

Social MediaCollaboration

@@Customers

Suppliers

Partners

Employees


ISG Survey Results

1st Generation 2nd Generation 3rd Generation0%10%20%30%40%50%60%70%80%

Transactions including a digital component


ISG Clients: Digital Solution CompositionCloud 72%

58%Analytics/Social 31%

3%Robotics

19%

3%

Automation

Mobility/Social

IOT

8%Other

Internet of Things

Analytics & Big Data

Social Media

Cloud

Mobility

Automation


What is Weighing Down Our Clients’ Success?

Digital TransformationDigital Enablement Provider experience

Legacy complexity Solution complexity Operating model Transition disparity


Transition Performance

Delayed 4 or more months:

0%

36%

14%

50%

0%

33%

17%

All Lift & Shift Digital Projects

57%

14%

29%

0%

3%

33%

12%

* ISG Survey Response: 40% L&S, 40% Digital, 20% Projects

50%52%On Time:

Ahead of Schedule:

Delayed 1-3 months:


Top Reasons for Transition Delays

1-3 Month Delay• Client experience• Provider experience• Client dedication• Legacy complexity

4+ Month Delay• Provider experience• Client experience• Legacy complexity• Governance


Technology Led Consulting Led

Industry Solutions

Horizontal Solutions

Positioning for the Digital Economy

www.isg-one.com

imagine your future™let’s connect…



http://www.isg-one.com/connect/