Sourcing Advisory

Shaping the Business Services model, in directional alignment with strategic business objectives and goals, is the first major step for successful redesigning of corporate and staff / support functions.

The sourcing strategy for each organization depends upon

Quite often, Centralization i.e. the staff functions are moved from decentralized locations to a centralized location, more often at the corporate, is projected as ‘Shared Services’. Centralization is not Shared Services - this is far from reality, since centralized corporate functions focus on ‘corporate control’ of that function and quite often, act as a mere ‘department’, without being able to measure their output and/ or their benefit/ impact on the organization.

Shared Services is a concept of a recent origin, and implemented since mid 1990s, and it brings the best of both worlds of Centralization & Decentralization. It focuses on ‘service with control’ and serves the Business Units & Head Quarters, and not just become a department reporting to Corporate Leaders!

RvaluE Leaders are pioneers in the Shared Services space and ‘architected’ the development and expansion of this ‘value generating model’ since it all started in mid 1990s! Given the expertise, exposure and experience of RvaluE in off shoring, on shoring and India to India strategies and operations, the team is well equipped to provide sourcing advisory services in a comprehensive manner. The services include:

RvaluE is a pioneer, in a way, in setting up India Shared Services across Manufacturing and Services sectors and is a unique organization that combines the expertise for India Onshore as well as offshore Centre operations.

Dedicated Captive: Having set up 15+ Captive Shared Service Centers (with 32 to 400+ Headcounts) in India in Tier 1 and Tier 2 cities and overseas, and 130+ transformational assignments (with 20 to 20000 Headcounts), RvaluE Leadership Team identified a ‘unique and unfulfilled demand’ from client companies, with low scale consolidation potential, say 50 to 500 Headcounts. These client / parent companies are keen to have their ‘exclusive captive centers with external Business Services expertise for operations but did not want pure outsourcing’.

Drawing upon RvaluE experience of similar such operations, this interesting new age combination of ‘exclusive centre and external expertise’ led the RvaluE Group to ‘innovate a differentiated operating model’ i.e. Dedicated Captive^TM (D-Cap^TM).

The RvaluE Team has gained full understanding of such client parent companies (having captive consolidation potential from 50 to 500 FTEs), along with their stated/ unstated strategic context, needs, challenges, capability limitations and requirements to ‘operate and transform’ their consolidated business services operations and business. This operating model can be well implemented not only for India but also for Overseas corporations, including low scale offshore centers already set up in India.

With this, now there are THREE operating models – In-house Captive Shared Services, Third Party Outsourcing and Dedicated Captive^TM.

We have our proprietary techniques and frameworks to carry out the discovery assessment or a due diligence to

• ‘shape the strategy’ for corporate or staff/ support functions on the key strategic drivers - Core/ Non-Core, Process Assessment Matrix (PAM), Process Consolidation Plan, Work Distribution assessment, Opportunity Identification, etc.,
• ‘evaluate the best suited operating model’ In-house vs Outsource or the differentiated Dedicated Captive Model depending on scale, process value chain, strategic fit and transformation orientation, and
• ‘prepare a blueprint’ with high level business case, the art of possible, Phasing of Implementation including functions/ processes. The business case varies from 20% to 40% of the current cost, based on the function, processes, mix of offshoring and domestic headcounts, technology enablement etc.

From an India to India point of view, it is essential or recommended to create an organizational level blueprint beyond one corporate, staff or service function (like F&A, HR, Procurement, IT, etc.) across process value chain, to have a phased execution plan while ensuring critical mass to adopt the best suited business process management strategy, implementation and transformation.