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Global Delivery Model (GDM)

The Issues

Whether you are sourcing for private label or branded merchandizes, your customers are relentlessly pushing for lower costs and shorter lead times. You have to find the right vendor at the best price, oversee production, manage quality and make sure the factories are compliant to your customers' requirements. On top of all this, your customers are pushing for more frequent but smaller orders, all in all translating to significantly more work for the same margin. Lastly, your customers want to know what's happening across the supply chain. With thousands of orders to handle, hundreds (maybe thousands) of suppliers to manage across multiple countries, languages and time-zones, it is amazing how today's largely manual procedures hold everything together. Telephone, paper/fax, spreadsheet and email are still the tools of the trade. At a time when retailers are rapidly changing product mixes, pushing for more private label products on the shelf and aiming for higher inventory turns, how do you keep up?

The Solutions

The utilization of internationally based human resources has become a standard business practice among many industries within the United States and Europe. Pursuant to more than a decade of progressive outsourcing of services in the financial and technological communities, such terms as BPO, back office and call center have become part of our everyday vocabulary. While several aspects of the outsourcing paradigm are subject to discourse and conflicting statistics, the fact that well implemented offshore programs have resulted in tremendous savings for a large number of companies is quite unassailable. As such, the question is no longer whether outsourcing is an effective business tool, but rather how quickly industries will be able to leverage this competitive advantage. Respected analysts who have studied the development of outsourcing as a viable business model agree that the legal field is the next major billion-dollar industry to embrace outsourcing as a candidate model for doing business. In fact, a large number of firms are already assigning tasks such as patent searches, legal research, and document review and document production to offshore units. Analysts at Forrester Research, Inc. and The National Association of Software and Services Companies (NASSCOM) have predicted that the legal outsourcing industry will grow to five hundred times its current size within less than ten years. The catalog of LPO services that are currently being offered is quite extensive and continues to grow on a daily basis. While particular services, such as patent searches and legal research, have been quicker to find a foothold than others, the category of services that may be performed by non-domestic units is very broad. The American Bar Association (ABA Formal Op. 08-451) and several regional bar authorities have implicitly authorized legal outsourcing. The clear economic drivers, coupled with the removal of previous barriers have increased the rate of law firm adoption of offshore services.

The Globalization of Business Services

The use of remote, lower cost or offshore resources is nothing new in the information technology and business process outsourcing (ITO/BPO) industry. What continues to change is the diversity and breadth of services that Western buyers are now getting from non-local markets. Global outsourcing has expanded far beyond application development, maintenance and call center work. It now encompasses all dimensions of ITO and a much broader array of back-office. LPO and front-office BPO, including strategic “knowledge process” services. The outsourcing service provider landscape has also changed significantly over the past 10 years. India-based service providers have moved up the services stack in ITO and expanded offerings to include many types of BPO. They have also established significant operations in Western countries as well as non-Indian, lower cost markets. Simultaneously, legacy multinational service providers have rapidly expanded their remote, low-cost delivery capabilities in India and other geographies. Finally, niche and specialized outsourcing service providers continue to enter the market in functional and process-specific areas of BPO & LPO in emerging geographies like India, and through the extension of software and software as a service (SAAS) offerings into full-fledged outsourcing. Overall, these collective trends highlight the ongoing evolution and globalization of the business and IT services market. This is the same trend occurring in all other major industries, such as financial services, manufacturing, consumer product goods and pharmaceuticals. BPO and ITO, as well as related consulting and systems-integration services, are now typically delivered to Western buyers through a network of local, regional and remote/low cost locations.

Global Services Governance

Planning and executing global outsourcing efforts is just the start of the process. Transition and ongoing outsourcing management and governance efforts determine the ultimate success a buyer will have in achieving its outsourcing goals. Leading organizations are moving toward managing and governing their outsourcing efforts – local or global – more as an integrated portfolio, rather than as a set of discrete transactions and relationships. This is necessary not only because of the growing pervasiveness of outsourcing, but also because of the complexities of supporting a global services footprint. This is an evolution from the historically more soloed approach to managing outsourcing efforts (e.g., the IT group manages ITO, HR manages HRO on a business unit and regional basis). This requires changes to the operating models of buyers’ retained organizations, as well as outsourcing management and governance groups. It also typically requires greater investments in governance resources, processes, policies and procedures, and supporting software systems and tools. Another best practice for global services governance is that it operates more on a regional than a home office/external delivery location model, as was more common with earlier offshore outsourcing efforts. A buyer organization, for example, might develop a global governance model and team with centralized and standardized financial management and contract administration capabilities. This centralized group would be responsible for strategic/executive level client and services provider facing responsibilities. It would also interface with a variety of captive centers that would exist on a regional level based on where the organization operates (e.g., Europe, the Americas or Asia Pacific). Operating under this regional model provides the outsourcing buyer with greater consistency and economies of scale, and more efficient management operations than handling each relationship with each remote location and service provider from the “home office.” Strong regional centers can also help protect buyer organizations against geopolitical, economic and natural risks that can have a greater impact on the country or sub-country, as compared to the regional level.

  • "We are always looking to recruit the best and most diverse talent we can find and Nomosots fills a nice niche for us. They are a well-rounded organization with skillful team of professionals. Nomosots's team is leveraged with excellent drafting and research skills. I am using Nomosots for my operations and will gladly recommend their services to anyone. Thank you Nomosots for such a great experience."

    Tanya Gendelman, Esq.

  • "Nomosots currently provides services to our firm in the areas of Legal Operation Management, Marketing and Technology services. I would like to thank and their entire team for their excellent quality of work and for making our office more profitable. Nomosots provide very effective services that significantly reduce our operational expenses and help us meets our clients' deadlines."

  • "In spite of setbacks, the LPO industry has seen growth of about 40-60% in the last year.Although some areas of practice, such as real estate, have drastically collapsed due to the recession, some areas such as litigation, document review, and corporate compliance have gained ground, resulting in business directed to Nomosots and its associates