{"id":1655,"date":"2010-06-28T16:55:00","date_gmt":"2010-06-28T16:55:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/event-krakow-capgemini-062810\/"},"modified":"2010-06-28T16:55:00","modified_gmt":"2010-06-28T16:55:00","slug":"event-krakow-capgemini-062810","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/event-krakow-capgemini-062810\/","title":{"rendered":"Event Alert: Capgemini differentiates its BPO services on global delivery, but can it compete on price?"},"content":{"rendered":"

\"\"<\/a>Capgemini has\u00a0emphasized its global delivery acumen, by showcasing its expanding European delivery center in Krakow, <\/strong>Poland<\/strong><\/a>, to industry analysts and advisors.<\/strong>\u00a0\u00a0<\/p>\n

This dovetails with\u00a0Capgemini’s strategy of positioning its\u00a0delivery centers in\u00a0Latin America\u00a0(see earlier post<\/a>), Guangzhou (China) and India,\u00a0to present a\u00a0compelling global delivery\u00a0capability,\u00a0based on\u00a0a network of\u00a0 proven locations, where educated, multilingual\u00a0talent is readily available to support its clients’ global General and Administrative (G&A) processes.\u00a0 However, while the firm is clearly focused on investing in quality nearshore\/offshore delivery resources, does this enable it to compete aggressively with low-cost offshore-centric providers for BPO\/ITO engagements?\u00a0<\/p>\n

Capgemini is one of the largest and most well-known European IT\/BPO service providers and consulting firms, with revenues of $10.3 billion, but has struggled\u00a0in the past\u00a0become a household name in the US.\u00a0 However, its recent aggression in the BPO market, resulting in notable client wins such as Bunge<\/a> and Coca-Cola Enterprises, has helped elevate\u00a0Capgemini as a\u00a0serious contender for global enterprise BPO engagements.<\/p>\n

Capgemini has been providing BPO services, primarily Finance and Accounting (F&A) and Procurement, for more than 6 years, and\u00a0boasts one of the few integrated global delivery networks, from which the firm supports enterprise its\u00a0customers, which include the likes of\u00a0Coca-Cola Enterprises, International Paper, Zurich Financial, and Hydro One. This support is provided by a global network of delivery centers in Guangzhou, Bangalore, Chennai, Guatemala City, Sao Paulo, and Dallas.<\/p>\n

The Polish cities of Krakow, and nearby Katowice, are the centers for\u00a0the majority\u00a0of its Pan-European operations. Similarly to its Latin center in Guatemala City,\u00a0Krakow\u00a0is marked by a youthful energetic staff, and acts as a control center for the entire European support operations,\u00a0similar to the function of\u00a0Guatemala for Latin America.<\/p>\n

The center, which opened 5 years ago, has grown to 3,500 employees, of which 2,100 provide dedicated support for Capgemini’s BPO operations. This growth has provided compelling career opportunities and contributed to the enthusiasm and energy that is apparent within the centers. Much of the staff have studied in universities across Europe, which allows this center to provide voice support in all European languages, as well as having the necessary understanding of local accounting and procurement\u00a0practices,\u00a0to support the F&A and procurement activities of its customers.<\/p>\n

Capgemini is working hard to provide differentiation for its offerings. In Krakow, it emphasized its \u201cGlobal Command Center\u201d, which is a concept based on a set of procedures and tracking programs, that allows \u00a0global customers to be managed as a single entity.\u00a0Capgemini can share work between centers to balance loads, or use\u00a0its global distributed work force to solve problems in a timelier, synergistic manner. This command center concept, combined with \u00a0its multi-lingual ability, is its greatest point of differentiation for delivering pan-European BPO operations for its clients.<\/p>\n

Moreover, Capgemini has also have developed approaches to try and get more customers to move to solutions whereby it can share resources and knowledge across customers, rather than setting up the \u201cvirtual captives\u201d that have become the de facto solutions for most BPO providers. \u00a0It\u2019s philosophies for a \u201cGlobal Process model\u201d and the release of its governance dashboard solution, BPOpen 2.0, are strong value enhancements for enterprises seeking global process improvements.<\/p>\n

Capgemini\u00a0has also recently purchased IBX, a procurement services and SaaS provider,\u00a0to provide a unique\u00a0enhancement to its overall\u00a0procurement BPO\u00a0capabilities. This gives\u00a0Capgemini a standardized technology platform\u00a0to SaaS-enable\u00a0procurement\u00a0clients and the ability to provide the technology cost in a variety of\u00a0ways, competing directly with the likes of Ariba, but also providing an alternative to other BPO\/Procurement partnerships, for example IBM\/Hubwoo and\u00a0Genpact\/ICG Commerce.\u00a0 Moreover, Capgemini can genuinely offer a one-stop procurement-as-a-service competency, whereby in the past it had to rely on subcontracting to other procurement software and services providers.\u00a0<\/p>\n

The HfS Viewpoint:\u00a0 Capgemini has global delivery quality in spades, but has to continue to develop cross-client\u00a0synergies and processes to be competitive<\/span><\/em><\/strong><\/p>\n

Capgemini’s Krakow\u00a0center provides the type of operation that will make a client feel comfortable in using it for\u00a0its\u00a0G&A\u00a0activities. What remains to be proven, is whether Capgemini can develop\u00a0common<\/em> offerings for G&A process that will be accepted by clients, which is the common challenge facing all of today\u2019s leading BPO providers.\u00a0 While Capgemini leverages offshore support from locations, such as India, to drive down the cost of its global delivery services, it has made investments in high-quality locations, such as Poland and Guatemala, which are costlier than those\u00a0of\u00a0several of Capgemini’s competitors, which focus more heavily on lower-cost locations to be more price competitive.<\/p>\n

Developing more\u00a0common processes will enable Capgemini to provide greater value in delivering process excellence and competitive pricing through efficienctly-leveraged staff, technology and processes. This will be necessary as Poland becomes a fully-fledged member of the EU and labor costs across Europe become equalized.<\/p>\n

All-in-all, while\u00a0the French- headquartered service provider is clearly investing in high-quality, but also costlier, locations, HfS believes these investments\u00a0should bear fruit\u00a0in the future when labor-based engagements further commodotize, and cost efficiencies increasingly come more from IT\/BPO synergies, common delivery platforms and Cloud Computing delivery,\u00a0as opposed to\u00a0primarily low-cost labor.<\/strong><\/p>\n

This post was co-written by HfS analysts Mike Atwood and Phil Fersht.\u00a0 You can upload a full copy of the HfS Rapid Insight by clicking <\/em>here<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Capgemini has\u00a0emphasized its global delivery acumen, by showcasing its expanding European delivery center in Krakow, Poland, to industry analysts and…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,835,81,87,836,91,95,1],"tags":[625],"organization":[],"ppma_author":[19],"class_list":["post-1655","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-f-a","category-it-outsourcing-it-services","category-outsourcing-events","category-procurement-engineering-supply-chain-outsourcing","category-saas","category-sourcing-locations","category-uncategorized","tag-poland"],"yoast_head":"\nEvent Alert: Capgemini differentiates its BPO services on global delivery, but can it compete on price? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/event-krakow-capgemini-062810\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Event Alert: Capgemini differentiates its BPO services on global delivery, but can it compete on price? 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