Stuart Emanuel

1
Stuart Emanuel President, Worldwide
Operations Business Transformation IT
Staffing to End-to-End Solutions
2
Agenda

• Growth Expectations for IT Services
• Business Transformation
• Moving Up The Value Chain
• Staff Augmentation, Projects, Solutions
• The Evolution to Solutions
• Case Study Spherion
• QA

3
e-Business SolutionsHow big is it?

• Forrester Research projects the growth of global
  e-business revenues to each more than 1.3
  trillion by the year 2003.
• IDS Forecasts that the market for Internet
  Professional Services will move from 16.1
  billion in 1999 to 84.2 billion in 2003 an
  annual growth rate of 51.

4
Moving Up The Value Chain

• Staff Augmentation, Projects, Solutions

5
Moving Up the Value Chain

• Evolution of IT Industry Forces Companies to
  Migrate from Staff Augmentation to Solutions
• Forced to Re-think Business Processes and
  Strategies
• Clients Looking for End-to-End Solutions
• Front-end and Integration Expertise
• Market Segmentation
• High Value/ Low Margin vs. High Value/ High Margin

6
Moving Up the Value Chain Take One Day at a Time

• The Value Chain
• Staffing to Value-Added Staff Augmentation
• Staff Augmentation to Projects
• Projects to End-to-End Solutions
• Develop Metrics
• Value-Based Pricing
• Less is More Streamline Core Offerings
• Must Work with Sales, Recruiting and Service
  Delivery 100 Buy In

7
A Glance at the Value Chain

8
Moving Up the Value ChainStaffing




9
Moving Up the Value ChainStaffing, cont.



10
Staffing Organization Structure
11
Moving Up the Value ChainProjects
12
Moving Up the Value ChainProjects, cont.
13
Projects
14
Moving Up the Value ChainSolutions
15
Moving Up the Value ChainSolutions, cont.

16
Moving Up the Value ChainSolutions

• Evolutionary Approach
• Increases Quality
• Reduces Risk
• Increase Gross Margins
• Shifting from Price to Enhanced Value
• Name Recognition/ Positioning
• Commitment to understanding our clients business
  issues with respect to entire business
  transformation
• Vertical Industry Expertise
• Shift in Organization Culture
• Recruiting/ Retaining the Industrys Best and
  Brightest Talent

17
Solutions
18
Critical Success FactorThe Evolution of Your
Sales Organization

• Compensation
• Staffing vs. Solutions
• Ask Specific Questions/ Fact Finding
• Feel the Pain
• Understanding a Clients Business Industry
• Willing to Learn a lot!
• Training
• Selling Technology vs. Solutions
• Team Selling
• Selling the Bench

19
Critical Success FactorThe Evolution of Your
Recruiting Organization

• Sell the Company/ Not the Project
• Document the Process
• Career Development
• Promote from Within
• Revise Standard Policies
• Different Pool of Candidates
• Three Types of People in IT
• Compensation Plans
• p/Hour
• Bonus on Hire
• Hire to the Bench

20
Critical Success FactorThe Evolution of Your
Solutions Delivery Organization

• Differentiation
• Methodology, Tools, Processes
• Strategic Alliances
• Training
• Quality Process

21
The Evolution to Solutions

• Case Study Spherion

22
The Evolution to Solutions Case Study Spherion
Where We Were
Where We Are Today

• 1995
• Revenue 75M
• 25 GM
• 14 Branches, U.S. U.K.
• Services IT Staffing, SQM

• 2000
• Revenue 750M
• 34 GM
• 65 Branches, 10 Countries
• Services Three Solutions 1. End-to-End
  e-Business Solutions, 2. Projects, 3. Staff
  Augmentation. Core Offerings eSQM, EAI,
  e-Learning, IDS, Education

23
The Evolution to Solutions Case Study Spherion

• Create a Vision
• Educate Internal/ External Audiences
• Road Shows, Webcasts, e-Learning Calls
• Define a Client Value Proposition
• End-to-End Solutions, Breadth of Capabilities,
  Depth of Resources
• Forge Industry Leading Partnerships/ Alliances
• Xceed strategic marketing alliance equity
  investment
• Partnerships Plumtree, Versata, Southrock,
  Exodus joint PR, Web presence, events

24
The Evolution to Solutions Case Study Spherion

• Mergers Acquisitions
• Globalization
• Standardize Processes and Services
• Branding
• Introduce a New Company
• Client Value Proposition
• Vision, Values, Expertise

25
Where Are We Going?

• Focus on Technology Expertise and Vertical
  Industry Knowledge
• Transition to Larger Projects Larger Clients
• Increased Emphasis on back-End Integration
• New Technologies (wireless)
• Q1-Q2 2001
• First Strong Quarter for Traditional IT Services
  Firms in Nearly Two Years
• Potential Threat of Economic Slowdown in 2001
• End-to-End Solutions are a Must Have

(Source First Union, Legg Mason)
26
Questions Answers