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Managing Services Spend

Managing Services Spend. Oracle’s BPO Program. Definition: Business Process Outsourcing (BPO) is the outsourcing of a related set of business processes to an organization other than your own. Not just IT or apps management services. BPO Powered by Oracle. Strategy.

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Managing Services Spend

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  1. Managing Services Spend

  2. Oracle’s BPO Program Definition: Business Process Outsourcing (BPO) is the outsourcing of a related set of business processes to an organization other than your own. • Not just IT or apps management services

  3. BPO Powered by Oracle Strategy “BPO Powered by Oracle” places Oracle applications, technology and ancillary services “under the hood” of BPO Provider service offerings Objective To help BPO providers reduce risk, lower cost and improve flexibility in the services offered to their customers and provide “BPO Powered by Oracle” choices to our customers.

  4. Service Provider Software Matters Look for a service provider that delivers BPO Powered by Oracle: • Protect your investment – now and future • Reduce process transition risk • Improve time-to-deployment • Mitigate change management disruption • Improve process continuity • Increase end-user adoption Oracle solutions deliver: • Lower operational TCO • Tools/templates enable standardized deployments • Proven upgrade track record

  5. e-Procurement and Services ProcurementPowerful Combo to Manage Goods and Services Spend • 5

  6. Specific Benefits • ** Not illustrated – headcount optimization / increased capacity • 6

  7. About Provade • Mission: To enable companies to gain the maximize spend under management while leveraging current investments in Oracle Technology & Infrastructure • HQ in Silicon Valley with global presence (Sydney, Singapore, UK, Hong Kong, India) • Oracle Tier 1 Procurement SaaS Partner • Largest sPro customer for Oracle • MASSIVE spend volume • No single instance under $100M in annual spend under management (throughput) • Over $1.6 billion in spend in 2007 alone Sample Customers

  8. Provade delivery model Procurement • Strategic Sourcing • Benchmarking • Category Management • Content Management • Supplier Management • Contract Management Candidate Sourcing • Requisition Management • Candidate Management • On-Boarding / Off-Boarding • Non-Panel Sourcing • Compliance Management • Timesheet / Approvals Payment • Invoice Management • Exceptions Management • Payroll (Direct) • Compliance Reporting Analytics • Benefits Tracking • Compliance Reporting • Time to Recruit and Fulfilment ratio • Candidate and Supplier Performance • Spend Analytics Global Managed Services Provider Global Managed Services Provider Global Managed Services Provider & • Implementation • Help Desk • Change Management • Support Services • Oracle/PeopleSoft Service Procurement Provade Enhanced (Provade CSM) • Technology Foundation • SAS70 Level II Certified • (24/7 Availability, Security, Integrity) • Infrastructure Services

  9. Case Study: Regional Subsidiary of a Global Financial Services Firm • Profile • Regional division of a large global financial institution • 9,000+ employees • Background • Division growing rapidly • Lack of visibility into • Services spend • Contractors onsite • Management of intellectual property by contractors • Inconsistent process to request and manage services across operating units • Increasing number of exceptions from invoicing errors Project Scope • Drive spend for contingent labor, professional recruitment, legal and consulting towards preferred suppliers with renegotiated rates • Automate the procure-to-pay process to facilitate compliance and increase visibility Approach • Phased program to address contingent labor and professional recruitment spend first, with legal and consulting spend thereafter • Utilize Provade Managed Services to manage these categories of spend • Strategic Sourcing to select preferred suppliers, as well as negotiate rates and contract terms • Ongoing Category Management services to monitor and report on program status, savings and supplier performance • Implementation and rollout of Provade Category Spend Manager™ (Provade CSM), an on-demand procure-to-pay system based on Oracle/PeopleSoft procurement applications Results-to-Date • Renegotiated and standardized bill rates for each service that resulted in a 16% rate reduction • Savings of 10-15% in each category • Eliminated the manual entry of 10,000+ invoices/year • 75%+ reduction in supply base • Increased quality of contractors and services provided

  10. Services Case Study: Global Enterprise Solutions Company • Profile • 60,000+ employees • 7,000+ contractors • 250+ suppliers • Background • $250M+ in annual contingent labor and subcontracted services spend in the US, Europe and Asia-Pac • Lacking full visibility into global contingent labor spend • Centralized procurement with resource constraints • Oracle eBusiness Suite for Procure-to-Pay • Project Scope • $250M in spend for North America and Asia-Pacific • Address other global areas in following phases • Approach • Complete Managed Services • On-site resources to manage procure-to-pay process • Supplier management, including contracting, monitoring and management • Consolidated invoicing to simplify settlement • Program management to help organization drive ongoing savings and additional opportunities • Provade Category Spend Manager • Self-service online requisitioning • Transactional sourcing • Timesheet and Expenses • Integration with Oracle iProcurement and Financials • Results-to-Date • Mitigation of risk from co-employment • Consolidation of supplier contracting terms into a standardized MSA • Improved compliance to procurement policies • Process efficiencies from consolidated invoicing • Improved visibility for department managers

  11. Migration Case Study: Fortune 500 Financial Institution • Profile • 38,000 employees • 30,000+ contractors • 90+ suppliers • 600 active users • Background • Currently doing $700M+ in annual contingent labor and professional services spend, which is growing rapidly due to M&A • Issues with their second point solution to manage services spend • Lacked the promised integration • Viability concerns – owner of solution has changed twice • Support and stability issues • PeopleSoft Enterprise ERP • Project Scope • Transition of niche provider solution to Provade • Go-live with $400M of contingent labor and professional services spend in first phase • Second phase to integrate with on-boarding/off-boarding systems and have Provade be the system-of-record for all contingent workers • Approach • Provade Category Spend Manager™ to manage contingent labor and professional services spend • Conversion of all contractor and supplier data over to new system • Full integration with PeopleSoft Financials • Training • Level 2 Technical Support and Data Maintenance Services

  12. Summary • Obtain highest value of spend under management • Provide enterprise procure to pay solution for all categories possible on a single stack • Obtain highest throughput possible • Achieve best-in-class savings on total spend • Conservatively recognizing cost savings of 6% with no assistance and up to 15% within months of “go-live” with Provade’s Managed Services offering • Drive compliance, reduce overhead • Provade’s “same technology stack” solution provides full transactional audit trail while integrating to Oracle • Improve ‘effectiveness’ of spend management • By providing req-to-check processing and tying into Oracle, spend is now clear and actionable • Deploy a ‘storefront’ model to enable easy, self-service spend management processes • Provade solution seamlessly directs users through e-procurement technology and leverages future Oracle investments

  13. Questions

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