How Is Outsourcing Fueling the Oil & Gas Industry?

May 2011

HOW IS OUTSOURCING FUELING THE OIL & GAS INDUSTRY?

Authors
Esteban Herrera, COO, HfS Research Reetika Joshi, Contributing Analyst, BPO Strategies, HfS Research

Executive Summary
The oil and gas industry is, arguably, the most economically important sector in the world as it meets more than twothirds of the global energy demand. This industry has been facing challenges such as declining production, rising consumption, and low reserves. The focus of the industry is now on cost containment as the global economy emerges from the recent financial crisis. As a result of the current scenario, there are opportunities for service providers in this domain to offer industry-specific solutions across the entire oil and gas value chain. The major points of discussion related to outsourcing in the utilities industry, as discussed in this report, are mentioned below:

Key challenges facing the industry include high price volatility for oil products, a shortage of talent, aging
infrastructure, and constantly changing compliance requirements. Increased activity in the upstream segment is adding to the high capital costs of oil exploration projects. There is constant pressure to maintain profit margins and enhance shareholder value in the downstream segment.

Cost containment is the biggest driver for outsourcing. Other benefits include increased efficiency, fewer errors,
better relationships with suppliers and vendors, and a greater use of technology for exploration and refining, leading to lower costs.

Popular outsourced services include energy trading and risk management (ETRM), supply chain management,
enterprise asset management, ERP platform integration, IT Infrastructure, and retail automation solutions. Interspersed with these services are horizontal type offerings such as Finance and Accounting, and Human Resource outsourcing. An increased focus on engineering has entered the outsourcing space with services such as product design and automation for both upstream and downstream companies.

Major industry trends include companies moving towards a digitally integrated oilfield set-up which involves
collating all data from various sources onto a common platform, a slow changing focus towards alternative sources of energy such as bio-fuels, and a renewed interest in energy trading in order to reduce risks and increase efficiency in trading options.

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Table of contents
Oil and gas industry review
The global picture Key industry challenges

3
4 5

Building a case for outsourcing

Cost a driving factor Easing price volatility issues Meeting training needs for the new workforce Infrastructure upgrades Addressing policy compliance Key takeaways

6
6 6 6 7 7 7

Current outsourcing scenario in the energy industry

Types of oil and gas companies Popularly outsourced services in the oil and gas industry Latest deals

8
8 9 12

Key Service Providers

Major industry trends Moving toward the digital oilfield era Diversification into renewable sources of energy Energy trading is back in the limelight

13
14 14 14 14

Appendix About the authors About HfS Research

15 19 20

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Oil and gas industry review

The oil and gas industry is facing the challenges of rising demand, diminishing reserves, and controlling operating costs. More than two-thirds of the global energy demands are met by this industry. Worldwide, infrastructure and development projects depend on oil and gas, meaning that these two markets go hand in hand. The oil and gas industry has its origins in the late nineteenth century, with the first oil wells in Russia, Europe, and the United States. The discovery of oil in the Middle East and other parts of the developing world quickly transformed this sector into an internationally critical industry. This short report focuses on this industry, which still constitutes the bulk of the global energy market. Energy is a generic term for all industries involved in the production and sale of energy, including extraction of fuel, refining and manufacturing, and distribution. HfS Research divides the industry into five segments:

Upstream: The upstream segment involves the exploration and production of oil and natural gas, from the
geological aspects to the latest technologies involving offshore drilling techniques.

Downstream: The downstream segment includes the major refineries, which process barrels of crude oil, and the
transportation of the final products to service stations and retail outlets.

Pipeline: This segment covers the pipeline network, which moves crude oil and natural gas from exploration
points on land and platforms in the ocean to refineries, and then to distribution terminals.

Marine: The marine segment involves all aspects of transportation of petroleum and natural gas by water,
including port operations, oil tankers, and maritime fire fighting.

Service and supply: This segment covers the companies that provide equipment, services, supplies, and design
engineering support for exploration, drilling, refining and other operations. The pipeline, marine and service segments are also commonly referred to as the midstream segment, as the diagram below illustrates.

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Exhibit 1 Segments of the oil and gas industry

Source: HfS Research, 2011

The global picture

The Middle East dominates proven reserves of oil and gas, with more than two-thirds of the worlds current reserves, which results in significant geopolitical importance. The second largest producing region is North America, followed by Africa, and South America. Governments around the world own and control the majority of oil resources. The greatest exception is the US, where private landowners play an important role and receive the royalty payments that flow to governments elsewhere. In the US, oil production comes from a mix of land and offshore locations. The major offshore fields lie in the Gulf of Mexico, while land production is dominated by Alaska, Texas, New Mexico, Oklahoma, and California. Since peaking in the late 1980s, the US has seen gradually declining domestic oil production. This has led to increases in oil imports, and has fostered increasing concern about the security of energy suppliers. Major imports come from Canada, Mexico, Saudi Arabia, Nigeria, and Venezuela. In spite of all the imports, the USA remains the third largest producer of oil, after Russia and Saudi Arabia.

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Almost all of the UKs oil and gas production comes from offshore, with more than 350 oil fields in the North Sea region. Other fields have been discovered in the Irish Sea, west of the Shetland Islands, and in the English Channel. The UK is the fourteenth largest producer of oil in the world. Unlike, the USA, the UK oil and gas industry has been self-sufficient since the 1980s. It is expected to remain self-sufficient in oil until 2016, and in gas well into this century. The most recent major find, which occurred off the coast of Brazil in 2008, is possibly the third largest known oil reserve. The national oil and gas company, Petrobras, started pilot pumping in 2010 and is expected to reach full-scale extraction by 2013. This will eventually lead to Brazil joining the list of major oil exporters, and may even prompt them to join the Organization of the Petroleum Exporting Countries (OPEC). OPEC is an intergovernmental organization of twelve developing countries which constitute major oil exporters. As of 2010, the world production of crude oil, natural gas, and other hydrocarbons, was 87 million barrels a day. The production capacity is expected to reach its peak by 2014, and it is estimated that the worlds oil reserves are being depleted at a rate of 2.1 percent a year.

Key industry challenges

The global dependency on oil and gas, its increasing importance powering all levels of the economy, and the uncertainty regarding its future make this industry arguably the most influential market on a global scale. In recent years, the industry has been characterized by rising consumption of oil products, declining crude production, and low reserves. Adding the recent severe economic downturn to the picture, controlling costs has become a major challenge for the industry. Growing demand for oil and gas is leading to increased activity in the upstream segment, and this is resulting in larger and more complex projects such as oil wells, refineries, and processing plants, involving high capital costs. In the downstream segment, there is constant pressure to maintain profit margins and enhance shareholder value. Other challenges for the industry include:

Price volatility: Constantly fluctuating prices in the international energy market make it extremely difficult for
management in these companies to forecast sales figures and manage profitability targets. Some energy analysts say that oil price trends can no longer be explained simply through supply and demand. Increasingly speculative behaviour by influencers, such as investment banks and hedge funds outside the oil industry has made these trends harder to predict.

Talent shortage: The imminent retirement of close to half the industry workforce over the next decade has added
a new area of concern for oil and gas companies. Limited educational opportunities and a relatively unskilled labour supply are resulting in a huge skill gap in the human capital requirements for these companies. Companies are increasingly investing in training and knowledge management activities to help transfer knowledge to the younger generations entering the industry. Even more challenging though, is the younger workforces lack of interest in the industry.

Aging oil and gas infrastructure: The energy industry is heavily dependent on large amounts of physical assets,
such as refineries, drilling rigs, and IT systems. A large part of the infrastructure has not changed much for the last few decades, owing to the enormous asset size and complexity of the equipment in the field, both in oil wells onshore and offshore oil rigs. As the infrastructure wears down, there is an urgent need to retire and replace these components with newer assets.

Uncertain energy policy: Constantly changing government regulations and compliance requirements in
conducting overseas business complicate matters for energy companies. Processes in these companies are inflexible and still not fully automated, yet theres a need to be global in execution. Lack of documentation and

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

process repeatability, and an overall lack of agility can pose huge risks towards making operational changes at high costs.

Building a case for outsourcing

Weve outlined how oil and gas companies are facing serious challenges in gearing up for the next generation in their industry. Lets explore how outsourcing can ease the growing pains for a large section of the market. Major benefits include lower costs, increased efficiency, greater use of technology for exploration and refining, fewer errors, and better supplier/vendor relationships.

Cost a driving factor

Cost containment remains the biggest challenge for most companies, mainly due to post-recessionary effects and rising capital costs. After implementing industry standard ERP platforms, companies are now looking at the second phase of streamlining their business processes. This involves collaboration with technology-led service providers to implement integrated digital field management systems, which will help improve production, reduce exploration costs and improve the safety of operations. Cost is managed very differently in the upstream vs. downstream businesses. Downstream, there is constant margin pressure and business units are usually happy to capture the natural savings from outsourcing, such as labor arbitrage and improved effectiveness/efficiency of business processes. Given the capital expenditure required in the upstream business, the entire back office budget is like a rounding error. Here, the value proposition of outsourcing has to be about speed, making fewer mistakes, and generally reducing risk in a business that is all about risk. The challenge is, of course, to find an outsourcing solution that meets the needs of both sides of the business.

Easing price volatility issues

To mitigate the effects of uncertain prices, companies are transferring some of their core business processes onto an online global model, whereby all the processes are aligned across all locations. This will allow various centers and departments across geographies to capture and disseminate information effectively. The global model will also allow companies to analyse and forecast trends in this volatile market. Global process design and implementation is a challenge for an industry that has been notoriously decentralized with vehemently independent business units, but it is a challenge that outsourcing providers can help address.

Meeting training needs for the new workforce

It is estimated that as much as 50% of the energy workforce will retire by 2017. To prepare for a possible shortage in quality talent, organizations have started to document existing business processes and tasks, understand and capture best practices from their retiring workforce, and automate them using process models. The result is an interesting new set of offerings that service providers are working on, to help the next generation of workers learn from past experience, shorten their learning curve, and share ideas and innovative methods to improve business. In mature areas such as IT, F&A, and HR, the outsourcing industry can ease the pain of the retirement crunch just by supplying competent professionals to replace the retiring boomers. These non-core functions such as human resources, finance and accounting services, and back office billing can be offset by outsourcing to low cost locations in partnership with trusted service providers, effectively mitigating some of the risk caused by the energy workforce shortage. The benefit of this offset will allow companies to concentrate their hiring and training needs on the core engineering and production workforce requirements.

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Infrastructure upgrades
Service providers are identifying areas within the current infrastructure setup to upgrade, replace, and expand components. These areas cover everything from system upgrades, to new equipment deployment, to customer delivery models. Enterprise architecture platforms are being developed to effectively maintain and protect valuable capital infrastructure, which forms the core foundation of this industry. Lean and agile operational methods are forcing companies to invest in sleeker and more efficient infrastructure setups, which will reduce process leakages, and increase profitability in the long run. While oil and gas companies retain ownership of all hardware, software and physical assets, service providers are responsible for running all infrastructures, including IT setup and managing third-party relationships. This model of collaboration helps energy companies increase their efficiency and lower maintenance costs.

Addressing policy compliance

The constant changes to the increasingly complex local and international energy policies can hamper growth for oil and gas companies. Regulations such as the Kyoto Protocol, the Clean Air Act, ISO 14064, and the EU IPPC Directive are some of the many regulatory issues that oil and gas companies are facing. Applying for permits and monitoring the progress of implementations can involve high costs. Service providers are increasingly helping the industry predict and prevent financial and environmental risks with services such as compliance management and permit management. Once implemented, the service provider will be responsible for managing processes across all locations for compliance tracking and regulations monitoring. They will also help optimize the application processes for obtaining various licences and permits needed as per local rules and regulations.

Key takeaways
The oil and gas industry is one of the most important sectors, as more than two-thirds of the worlds energy
demands are met by this industry.

There are five segments in this industry upstream, downstream, pipeline, marine, and service and supply. Production capacity of oil is expected to reach its peak by 2014 and it is estimated that the worlds oil reserves
are depleted at a rate of 2.1 percent a year.

Key industry challenges include high price volatility, talent shortage, aging infrastructure, and uncertain energy
policies.

Major benefits of outsourcing include lower costs, greater use of technology for exploration and refining, fewer
errors, and better supplier/vendor relationships.

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Current outsourcing scenario in the energy industry

This section discusses the various types of companies in the oil and gas space, popularly outsourced services, and a snapshot of the latest outsourcing deals signed in this market.

Types of oil and gas companies

The global oil and gas market comprises two broad categories of companies:

National Oil Companies (NOC), fully or majority owned by a national government. Major NOCs include Saudi
Arabian Oil Company (ARAMCO) and Petrobras, in Brazil.

International Oil Companies (IOC), also called supermajors, are the six largest, non-state-owned energy
companies. The supermajors include BP (UK), Chevron Corp. (USA), ConocoPhillips Company (USA), ExxonMobil Corp. (USA), Royal Dutch Shell plc (Netherlands-UK), and Total SA (France).

Exhibit 2 Largest energy companies by crude oil output Company Country Output (barrels per day, million)
8.2 3.8 2.9 2.5 2.5 2.5 2.3 2.3

Saudi Aramco National Iranian Oil Company Petroleos Mexicanos Iraq National Oil Company ExxonMobil BP CNPC (PetroChina) ADNOC (Abu Dhabi National Oil Company) Kuwait Oil Company Petroleos de Venezuela
Source: HfS Research, 2011

Saudi Arabia Iran Mexico Iraq USA UK China UAE

Kuwait Venezuela

2.3 2.2

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Exhibit 2 shows that the largest companies are dominated by NOCs, with just ExxonMobil and BP representing the IOC category. Ironically, the moniker Big Oil refers to publicly listed IOCs, which account for only 23% of the worlds oil reserves. The remaining 77% lies in the hands of state owned National Oil Companies.

Popularly outsourced services in the oil and gas industry

Services outsourced in this industry mainly cater to all three segments upstream, midstream, and downstream. There is a strong element of engineering and product design mixed with ITO and BPO solutions. The increasing criticalities of price volatility and complexities of energy policies have added domain consulting services to the outsourcing landscape. Major providers are looking to service all components of the oil and gas industry value chain.

Exhibit 3 Popular outsourced services across the oil and gas value chain

Source: HfS Research, 2011

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Service providers are adopting a global delivery model to ensure an integrated end-to-end network of operation centers with a range of BPO and ITO services, in addition to business consulting support. The horizontal services include:

Finance and accounting Order to cash, working capital management, procure to pay. Back office services Clearance and settlements, operations support, order management. Human resources and learning Performance management, compensation and benefits, training development. IT applications and infrastructure outsourcing.
Among industry-specific services, an important emerging solution is Energy Trading and Risk Management (ETRM). The purpose of ETRM is to minimize risk in the entire energy trading process cycle. This is done by ensuring complete coordination between the decision makers and the trading process, and by integrating all trading related data with the companys enterprise and supply chain solutions. This reduces any error scope which may happen due to manual intervention, and speeds up the entire decision making process for energy trading activities. In the midstream segment, the management of pipelines for natural gas is gathering popularity among service providers. Companies involved in distribution are seeking help from service providers to select storage units, access efficient means of gas distribution, and help in procuring distributors for the companies. An increased focus on engineering has entered the outsourcing space with services such as product design and automation for both upstream and downstream companies. The need to upgrade and expand infrastructure has added services such as equipment design, piping and layout design, control and instrumentation, and design-automation support, as part of the overall product design services. The discussion on outsourcing in this industry would not be complete without mentioning the support offered by IT companies and the role they play as systems integrator. Oil and gas companies are looking to standardize and streamline their applications and processes across a single network globally rather than have multiple systems and services in different locations. The enormous scale and size of the oil and gas companies, and the increasing emphasis on technology and innovation, has created demand for services such as ERP installation and maintenance, application development, and data support.

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Case study: Infosys provides POM solutions to a leading Oil and Gas major
Business challenge The client, a leading Oil and Gas company wanted to revamp their purchase order management (POM) creation process for materials and services. Their existing system had multiple non value adding steps (e.g. duplication of quality checks) with inappropriate load balancing (idle time due to varied time requirement of process steps) leading to bottlenecks in productivity Infosys implemented lean technology to identify all the non value added steps in the process. These steps were then either automated or merged with other links to shorten the overall process. Group Allocation methodology was then used to reduce the service queue and avoid load imbalance in the POM process As a result of this partnership, the company cited the following as some of its benefits: 13 of the 20 steps were identified as non value added steps and eliminated Efficiency enhancement of over 100% leading to lower investment costs and order creation assets Savings of USD 791,000 per year

Solution

Benefits accrued

Source: HfS Research, 2011

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Latest deals
The following table captures some of the significant outsourcing deals in the oil and gas industry over the past five years.

Exhibit 4 Latest oil and gas outsourcing deals

Date signed

Service provider
IBM, TCS, Infosys, Wipro

Client

Key processes

Core details

September, 2009

BP

IBM Manage enterprise applications and integrated service desk operations. TCS Manage energy trading operations. Infosys Manage and operate certain business systems. Wipro IT applications development and maintenance services.

Tenure: 5 years Value: NA

September, 2009

DCS

ExxonMobil

Manage overall invoice processing and accounts payable services.

Tenure: NA Value: NA Tenure: 5 years Value: $12 million Tenure: 5 years Value: $4 billion

September, 2008

PWC

Kuwait Petroleum Corporation Royal Dutch Shell

Manage supply chain and logistics support.

March, 2008

T-Systems, AT&T, EDS

AT&T Manage network and telecommunications. EDS Manage desktop and helpdesk support. T-Systems Manage data center support. Provide HR support for administrative and employee benefits. Manage finance and accounting services and back office finance operations.

July, 2007

HP-EDS

Total SA

Tenure: 4 years Value: $8 million Tenure: 10 years Value: $140 million

January, 2005

Accenture

Talisman Energy

Source: HfS Research, 2011

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Key Service Providers

The following table lists the key service providers in the oil and gas outsourcing market. A detailed version of this list is appended at the end of the report.

Exhibit 5 Key service providers in oil and gas outsourcing

Name of provider Accenture Aegis Capgemini Cognizant CSC HCL HP IBM Infosys TCS Wipro Source: HfS Research, 2011

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Major industry trends

Oil and gas companies are currently facing a combination of opportunities and challenges, including streamlining processes, automating design, containing costs, and increasing the focus on alternative sources of energy. There is also greater focus on managing end-to-end components along the industry value chain. Companies are moving towards a global model which will synchronize their business processes across diverse working environments, a radical departure from how most have operated previously. This section focuses on the current trends that are impacting the oil and gas industry.

Moving toward the digital oilfield era

A new concept, namely the Digital Oilfield, is becoming prominence in the industry. Oil and gas companies are struggling to manage the increasing amount of data that is being generated on a daily basis from all domains such as exploration, drilling, finance, operations, and reservoir management. This new digital information is created by real time data gathering systems, employees, and modelling/simulation tools. Management of this data is very important, as it not only leads to better decision-making, but it also involves a huge amount of investment in talent and capital. The essence of the digital oilfield is to integrate all the data from various sources onto a common platform, and to provide processed actionable information to the correct users in the company. Service providers are actively developing these solutions.

Diversification into renewable sources of energy

With uncertainty looming over the future of petroleum with depleting reserves and increasing demand, oil and gas companies are slowly shifting focus to alternative sources of energy such as bio-fuels and geo-thermal resources. Research is being done by the US federal government to bridge the gap between fossil fuels and renewable energy by tapping into low temperature geothermal resources in Americas oil and gas wells, and exploring the long -term viability of ethanol as a commercial fuel. Service providers are joining this effort by increasing research and service capabilities in this domain. Major players are opening laboratories and centers of excellence to promote inter-disciplinary studies in this area. This will allow the oil and gas sector to share ideas and information with clean technology sectors to offer cheaper and more eco-friendly options for fuel in the future. There is an element of skepticism though, as most of these companies do not believe that alternative sources can be a mainstream business, but can act as a support base for the oil and gas industry.

Energy trading is back in the limelight

The collapse of Enron and the ensuing energy crisis in the US forced many players in the industry to ramp down their trading operations in order to reduce exposure and risk in the financial markets. During this period, regulations became more stringent, and companies started to pay more attention to risk control and asset optimization. We are now experiencing a gradual increase in trading activity, often supported by leading IT service providers. Aspects such as regulatory compliance, data control, efficiency in trading options, and master data alignment are crucial for a company to minimize risk and make the right choices in this highly volatile market.

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Appendix
Key service providers in oil and gas outsourcing
Name of provider Accenture Headquarters Oil and gas service areas Key insights

Dublin, Ireland

Contact center Billing and payments Debt collection Back office billing Finance and accounting HR Learning and development Procurement

Founded the Accenture Global Energy Board, whose members comprise directors of leading energy companies, and whose purpose is to open a forum to discuss major energy issues. Has an extensive global delivery network with centers in five continents Asia, North America, South America, Europe and Africa.

Aegis

Mumbai, India

Finance and accounting Supply chain management Sales management Receivables and collections Meter operations and billing Customer surveys and email support

Operations in three countries USA, South Africa, Australia. Strong near-shore/onshore capabilities for traditional BPO services.

Capgemini

Paris, France

Asset lifecycle management Supply chain optimization Finance and accounting Retail and distribution support IT support Operational performance improvement

Capgemini has over 200 oil and gas clients in more than 30 countries. Provides an oil and gas Center of Excellence to offer consulting, technology and outsourcing services. Has over 20 years of experience in this sector.

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Name of provider Cognizant

Headquarters

Oil and gas service areas

Key insights

Teaneck, New Jersey

Supply chain management CRM ERP support Data management

Offers high value ITO services such as data warehousing and business intelligence solutions, in addition to traditional BPO services.

CSC

Falls Church, Virginia

Systems integration Application management Data center operations IT infrastructure support Carbon managed service

Offers a unique solution for oil and gas companies to reduce their carbon footprint and ensure regulation to the EPA 40 CFR Greenhouse Gas reporting compliance.

HCL

Noida, India

Customer care and billing Work and asset management Content management Engineering and automation Supply chain management

Strong capabilities in ERP services since acquiring Axon, a UK based transformation consultancy in 2008. Has over ten years of industry experience. Robust background in engineering design and automation services. Focuses on next generation business intelligence solutions with an emphasis on cloud computing modeling.

HP

Palo Alto, USA

Business intelligence Procurement Finance and accounting ERP support

IBM

Armonk, New York, India

Business process management IT support Workflow management Business intelligence Regulatory compliance support Application management

Offers a vast range of industry specific IT tools and services for all segments of the Oil and gas value chain. Has opened a dedicated Centre of Excellence in Norway for the oil and gas industry.

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Name of provider Infosys

Headquarters

Oil and gas service areas

Key insights

Bangalore, India

Finance and accounting HR support Order management Procurement Digitization and document control Data quality and master data management Knowledge services

Offers a robust end-to-end data management framework. Strong delivery model consisting of on-site, offshore and nearshore support across twelve delivery centers in eight countries.

TCS

Mumbai, India

ERP support Risk management Supply chain management Design automation

TCS has over 2,000 consultants and has completed over 100 engagements in the oil and gas industry.

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Name of provider Wipro

Headquarters

Oil and gas service areas

Key insights

Bangalore, India

Upstream Consulting Digital Oil Fields Upstream Data Management Collaboration Downstream Fleet Card Management Retail Automation

Recently acquired SAICs global oil and gas IT services business which brings with it new domain capabilities in the upstream Oil & Gas space, especially in the areas of Digital Oil Field, Petro-technical Global Data Management and Petroleum Application Services. Wipro will use its new positioning for making further inroads in the Upstream space and to offer end to end O&G services. Wipro and SAIC combined have 40+ O&G customers, including all of the Top 6 Majors.

Corporate Functions HSE/Green IT Security Learning SoX Compliance Support/ Maintenance Trading End to end automated test suite for ETRM systems System Support and Maintenance for mission critical ETRM apps Investment Analytics
Source: HfS Research, 2011

Serving O&G majors in 25+ countries including US, UK, Canada, France, Russia, Brazil, Australia, China, Netherlands, Poland, South Africa, Kazakhstan, Uganda, Nigeria, Tunisia, Morocco, Qatar, etc.

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About the authors

Esteban Herrera
Esteban Herrera is COO at HfS Research, where his prime focus is developing and delivering compelling and rapid research, data, insight and practical advice for our buy-side enterprise clients. He also over sees the company's commercial operations. Esteban focuses on the issues and challenges of outsourcing buyers, ensuring they have the best insight to create and manage their outsourcing relationships. His responsibilities include providing outsourcing buyers with solid research that leverages both deep expertise and the power of social media. A committed globalist, Esteban is an outsourcing thought leader who is passionate about the opportunities of globalization and specialization in the industry. A popular speaker and author, he advises organizations on issues of business process and IT outsourcing on- and offshore. Through his involvement in hundreds of enterprise outsourcing initiatives, he has developed unique insight and the ability to ask the right questions to set an organization on the correct outsourcing path. A respected practitioner, adviser and researcher, Esteban has worked with Global 2000 companies in the United States, Asia, Latin America and Europe, helping them manage the entire lifecycle of back office transformations. He has lived and worked on four continents and is fluent in Spanish and Portuguese. He has run outsourcing delivery organizations in India, North America, Latin America and Europe, and has advised on over 100 ITO and BPO transactions. Esteban started his career at Accenture, delivering offshore enterprise solutions before that w as a common term. At Infosys, he was responsible for delivery of services to major Fortune 100 clients. He has spent the last decade as an outsourcing advisor to global enterprises, founding and managing The Concours Groups Outsourcing Advisory practice and most recently as a Managing Director with Alsbridge. Estebans work has appeared in publications such as MWorld and Directorship. He is a co -author of the influential book Outsourcing: The Definitive Point of View, Applications and Implications published by Wiley & Sons in 2006. In 2003 he led the landmark Research Life after Outsourcing, which was the first to comprehensively focus on the behaviors and processes that can make or break outsourcing success. Esteban is a graduate of Babson College, where he majored in Entrepreneurial Studies and Marketing. Esteban Herrera can be reached at esteban.herrera@hfsresearch.com. He can also be found on Twitter: @eherrerahfs.

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Reetika Joshi
Reetika Joshi contributes regularly to HfS Research's BPO research coverage, in areas such as analytics and vertical processes. Reetika is a Senior Research Analyst at ValueNotes Sourcing Practice, based in Pune, India. She currently tracks the outsourcing industry, with a special research focus on the fastgrowing technology-enabled learning segment. Based in India, she has undertaken several research assignments across the outsourcing spectrum, including market studies in niche BPO and KPO areas such as medical transcription, research and analytics and e-learning. Over the last few years at ValueNotes, she has had the opportunity to work on multiple bespoke research services for outsourcing providers, including in-depth competitive intelligence, investment opportunity assessment and custom publishing. Reetikas work has appeared in many industry-relevant publications and websites, including Outsourcing magazine, Global Services Media and the Horses for Sources blog. She has presented her views on the state of the outsourcing at various conferences. A strong believer in the power of communities, she manages ValueNotes Sourcing Practices corporate blog, as well as an e-learning industry knowledge-sharing group on Linkedin. Reetika has completed her Masters in Marketing Management with distinction from Aston University, UK, receiving Beta Gamma Sigma honors. She was awarded the Accenture prize for Best Student on her course. Her final year dissertation was titled Learning from Management Mistakes: Are Todays Top Business Students Prepared for the Flawed Realities of the Business World?. Prior to this, she received her Bachelors in Business Administration with distinction from Symbiosis International University, India. You can contact Reetika at reetika@hfsresearch.com.

About HfS Research

HfS Research (www.HfSResearch.com) is the foremost research analyst firm and social networking community, focused on helping enterprises make complex decisions with their business process operations, IT outsourcing and shared services strategies. It has the largest audience and regular following in todays global sourcing industry. With 50,000 subscribers, HfS Research provides the most impactful and frequently-visited global collaborative community platform in the global services industry, providing rapid and insightful commentary, analysis and debate of enterprise outsourcing and shared services dynamics. The organization is unique in the fact that it integrates personable social networking with market research and expert advisory services. The HfS Research mission is to provide a unique environment for collective research, opinion, experience and knowledge across the global outsourcing industry to help enterprises explore new performance thresholds. Led by industry expert Phil Fersht, the HfS Research team is a multi-disciplinary group of analysts across North America, Europe and Asia/Pacific regions, with deep domain knowledge in business process outsourcing, information technology services and cloud business services. Launched in 2007, HfS Research's acclaimed blog Horses for Sources has more than 120,000 monthly visitors across the global outsourcing industry, and is widely recognized as the leading destination for collective insight, research and open debate of industry issues and developments. The HfS LinkedIn community, The BPO and Offshoring Best Practices Forum, is thriving with over 12,000 industry professionals sharing views and information daily. You can access information about HfS at HfSResearch.com and on Twitter at www.twitter.com/horses4sources. To learn more about HfS Research, please email research@HfSResearch.com.

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