Innovations in

Strategic Sourcing

Presenter: Larry Carlson

Marketing Manager Vangtel

A simple definition…

Strategic Sourcing is a process that matches your companies operational needs with your business goals.

Strategic Sourcing

Recommended elements…

Use Innovation… Clearly define your business processes and understand the role of information technology in your organization.

Strategic Sourcing

Sourcing Options

Sourcing Options

The “Shelter Model” as a Sourcing Solution:

• Effective Cost Reduction for Talent and Overhead • Managed Risk • Support Global Operations With Bilingual Talent • Management Control and Flexibility • Complete Focus on Core Competencies

Innovative Companies Always Face: • Recruiting Talent Challenges • Budget Challenges • Fierce Global Competition

Sourcing Challenges

Sourcing Solutions

CONTROL Proprietary Property and Data, as well as Processes

FOCUS on Core Business Operations

rather than Administrative Details MINIMIZE Risk by Utilizing the Shelter

Business Model SAVE Time and Money with a Full

Service Shelter Provider in Mexico

MAINTAIN The Flexibility Needed in Today’s Global Business Environment

Solving Your Sourcing Puzzle

Questions to ask yourself:

1. Is it critical to lower the cost of operations? 2. Is recruiting the right talent a major challenge? 3. Is it important for you to have operational control? 4. Is it important to protect your intellectual property? 5. Is establishing a nearshore operation an option? 6. Is there a need for bilingual language capabilities?

Shelter Model: A Good Fit?

If you answered “YES”….

The “Shelter Model” will reduce your overall costs by 50% with a nearshore operation in Mexico that you control.

Shelter Model: A Good Fit?

Facilities Management Recruiting &

Screening

Payroll and Benefits Administration

Regulatory Compliance

Tax and Accounting

Purchasing Services

Human Resources

Management

Facilities Setup

Your Company

Shelter Model Value Chain

The “Shelter Model” is an Ideal Sourcing Option…

• When you want a FAST and EASY way to establish your

own nearshore operation in Mexico that you control

• When you need an ONGOING operation such as:

Software Development, Dedicated Call Center, Tech

Support, Shared Services or ANY Back Office Support

• When you want full time bi-lingual talent recruited per

spec that are dedicated to your company

• When you need to reduce costs by 50%

The “Shelter Model” is not a Sourcing Option…

• If you DO NOT want to manage or have operational

control

• If you DO NOT want full time dedicated employees

• If you only have temporary or short term project based

needs

• If you are a start-up company without proper funding

• If you are testing a business idea/concept

Outsourcing Vendors as a Sourcing Option

• Call Center related temporary projects

• Short term IT Development related projects

• Back Office Support that you do not wish to manage

Example of a SHELTER MODEL Sourcing Partner

• VANGTEL Nearshoring Solutions with locations in

Hermosillo and Ciudad Obregon, Sonora and

Guadalajara, Jalisco in Mexico has over 1,000

employees.

• Set-up your own Nearshore operation in state-of-the-art

facilities for IT Development, Tech Support, Call Center

Shared Services and Back Office Functions

Illinois Based Company

Case Study

Client Situation: • Had an ongoing operation in India • Outsourcing partner claimed to have 15 dedicated programmers

however the client realized that was not true • Tired of the outsourcing headaches • Seeking five programmers in an operation that they control

Vangtel Solution: • Five programmers hired and operation was set up in two weeks • Client maintains control of their IT Development & Programming • Client utilizing shared space in “Vangtel Accelerator” • Client recently renewed their contract

California Based Company

Case Study

Client Situation: • Needed up to 50 PHP, Java & .Net programmers • Wanted to start an operation with ten people immediately • Talent was too expensive in California • Not large enough to establish operations in India on their own • Wanted travel to their operation to be convenient • Wants to maintain control of their Development & Intellectual Property

Vangtel Solution: • Client was operational within 30 days • Client realized a 60% savings compared to US operations • Recruiting pipeline in cooperation with local universities • Grants secured from the Mexican government to support growth • Operations expanded to include Call Center & Back Office Support • Client continues rapid growth establishing a second facility