Northern Trust

Neil S. Hirshman, COP, Co-chair
Partner
Kirkland & Ellis LLP

Jay Desai, COP, Co-chair 
Senior Vice-President - Global Sourcing | Operations & Technology
Northern Trust Company


Dane F. Anderson, Co-chair
Senior Vice President
Deloitte


Dave Althoff, Co-chair 
Managing Client Partner
Cognizant

To bring together business persons, consultants and attorneys involved or interested in outsourcing and who share a common goal of enhancing the outsourcing profession.

Quarterly

Face-to-face (office, meeting room); social (restaurant); teleconference

All IAOP Chapters adhere to the non-solicitation policy. Click here to view the policy.

IAOP Member Forum: Use of Advanced Tools & Technologies in Outsourcing
IAOP invites you to join  its Chicago Chapter, Midwest Chapter, Cloud Computing Chapter and Tools & Technology Innovation Chapter for a one-day IAOP Member Forum at the Offices of Kirkland & Ellis in downtown Chicago, IL on November 10, 2011 where leading outsourcing customers, service providers and advisors will share their experiences and best practices in the use of advanced tools and technologies to improve the value from outsourcing and/or shared services. 
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Meeting held on July 21, 2011

A meeting of the IAOP Chicago Chapter, chaired by Kirkland & Ellis LLP, Kraft Foods and Northern Trust, was held on July 21, 2011  at the Kirkland & Ellis offices located at 300 N. LaSalle, Chicago, IL.

Agenda

“Managing the Risk of Stagnation and Regression in Outsourcing”
Dwayne Prosko, Director, Shared Services and Outsourcing Advisory Practice, KPMG LLP
Greg Handley, Director, Global Business Services, Panduit Inc.

We have seen the Shared Services and Outsourcing market evolve and mature from transaction processing centers-of-scale to knowledge processing centers-of-skill.  However, many internal captive Shared Service Centers run the risk of stagnation and regression. In some cases we have seen the following reasons for this stagnation: attrition fueled by uninteresting work, lack of process integration and end-to-end improvement due to limited scope, atrophy due to under-investment and sporadic management support. This session presented a case study and a lessons-learned discussion by Dwayne Prosko, Director in the Shared Services and Outsourcing Advisory practice within KPMG LLP and Greg Handley, a Chicago-based executive with Panduit Inc. who has direct management and oversight responsibilities for Panduit’s captive Shared Service Centers in Mexico and China. 

“Getting a Grip on Governance”
Alex Kozlov, Director of Marketing, Compass Management Consulting 

In a maturing sourcing market, client organizations are becoming increasingly adept at defining objectives, crafting contract terms, and negotiating agreements. But when it comes to governance and the blocking and tackling of managing daily operations – not so much.  Recent analyses by Compass and TPI indicate that clients typically bear the lion’s share of the blame for governance failures. This discussion examined the central role of effective governance to a successful sourcing relationship, and focused on the client’s roles and responsibilities in defining and implementing governance mechanisms.  

Specific points discussed included: 

• Why governance is essential 
• Common governance pitfalls – what goes wrong and why 
• The impact of poor governance 
• Steps client organizations can take to get governance on track

Networking Reception Sponsored by Cognizant 

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Meeting held on April 28, 2011

A meeting of the IAOP Chicago Chapter, chaired by Kirkland & Ellis LLP, Kraft Foods and Northern Trust, was held on April 28, 2011, at Xchanging at 8755 West Higgins Road, O'Hare Plaza, 11th Floor, Chicago, Illinois 60631.

Agenda

“Offshoring Benefits and Advantage, Still the Same in 2011 as they were in 2001?”
Curt Herge, Director Solutions Development, CDI  

Yes, the world got flat. Clearly many companies have transferred parts of their organization’s activities from their company’s home country to captive centers offshore or to offshore service providers in countries with lower labor rates. Now many are facing contract renewal decisions. This discussion acknowledges that following a decade of aggressive offshoring, many US companies are pausing to reconsider and refresh the decision making criteria of their sourcing strategies defined 5 or 10 years ago. The original offshoring benefits and advantages of 2001 may not be the same in 2011. Outsourcing may still be the correct decision … but the offshoring / onshoring decision may not. 

This presentation will delve into what has changed and what you might think about as you face renewal. Issues will include:

• Formerly hidden but now known management costs of offshore relationships
  
• Macro currency exchange and labor inflation forces impacting the original business case
  
• Evolving macro US socio economic and individual buyer brand image trends
  
• Federal and State public policy political forces
  
• Business continuity risks
  
• Other business risks not considered 10 years ago
  

Case Study - “Duality of Outsourcing”
Patricia SJ Proshek, Senior Managing Director, CBRE
Margaret Guelzow, Associate Director, CBRE

CB Richard Ellis (CBRE) is the leading provider of property and facility management services to some of the largest investors and corporations around the globe. Over the past few years, CBRE itself has become a client in the outsourcing industry.  This has created a unique opportunity to enhance our service offerings to clients by leveraging partnerships with outsourcing providers for non-core business functions.  Through the four-year engagement CB Richard Ellis has had with Xchanging, we have learned how to better utilize transactional metrics, quantify benefits of improvement projects, and take a process-minded approach to our back office functions.    

Networking Reception Sponsored by Xchanging

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Meeting held January 27, 2011

A meeting of the IAOP Chicago Chapter, chaired by Kirkland & Ellis LLP, Kraft Foods and Northern Trust, was held on January 27, 2011 at the Kirkland & Ellis offices located at 300 N. LaSalle, Chicago, IL.

The theme was Corporate Social Responsibility.

Agenda

Shifting from Environmental Performance Management to Driving Business Performance
Michael Nicholus, Global GS Environment Director, Accenture

This session explored how companies increasingly report on Environmental Business Performance in response to customer demands, and should look to derive key business performance improvement from the effort.  Accenture described the methods used to prioritize investment areas to both improve environment performance and business performance.

Aligned Values - Client and Provider Collaborate on CSR Program 
Shuchita Singh, Vice President, Global Sourcing, Operations & Technology, Northern Trust 
Marcy Harman, Vice President, Global Sourcing, Northern Trust

ITO and BPO programs are often assumed to be at odds with a company's ethical responsibilities, but this should not be the case. Thanks to growing demand for corporate social responsibility, suppliers are now more than ever ready to answer buyers' inquiries regarding their environmental, social and philanthropic impact. This gives today's buy-side companies a healthy array of socially responsible outsourcing solutions and allows them to focus more on how to outsource ethically rather than whether to outsource at all.

This session gave a case study of one buyer company's efforts to build a Corporate Social Responsibility assessment and monitoring framework. The purpose of the framework is to provide a consistent and repeatable method for measuring supplier's alignment with the buyer's social responsibility objectives. The buyer may use it to identify and address problem areas with an existing supplier or to recognize a supplier for their achievements.  It may also be used as input to assess the fit of a new supplier.

Networking Reception sponsored by Accenture
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Meeting held October 21, 2010

A meeting of the IAOP Chicago Chapter, chaired by Kirkland & Ellis LLP, Kraft Foods and Northern Trust, was held on October 21, 2010 at 3:30 pm CDT at the Kirkland & Ellis offices located at 300 N. LaSalle, Chicago, IL.

Agenda

"Maximizing the Value of Your Outsourcing Relationships"
Ed Walsh, Senior Advisor, Financial Services, TPI
Brian D. Smith, Partner & Managing Director, TPI

Q&A Panel/Case Study - "Value Leakage and How to Prevent It"
Don Brilz, BPO, Wipro
Scott Gilbert, Divisional Vice President, Accounting Operations, Sears Holdings 

Wipro and Sears presented a case that takes into account how clients focus on revenue and cost avoidance, which is a key partnership outcome in any outsourcing relationship. The case study included significant examples, within Finance and Accounting outsourcing, where the partnership has been identified and action taken to tighten controls and optimize processes. The session emphasized opportunities, such as recoveries, as well as process change that prevent leakage going forward. 
 
Networking Reception hosted by Hinduja Global Solutions

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Meeting held July 22, 2010

A meeting of the IAOP Chicago Chapter, chaired by Kirkland & Ellis LLP, Kraft Foods and Northern Trust, was held in conjunction with the Cloud Computing Chapter chaired by BeyondCore, Accenture, Infosys and Microsoft, on July 22, 2010 at the Kirkland & Ellis offices located at 300 N. LaSalle, Chicago, IL and will be broadcast by webinar as well. A networking reception sponsored by Microsoft followed.

The theme will be “Outsourcing Locations -- The Cloud.”  

Agenda

"The BPO Service Value Chain in a Cloud Context"
Arijit Sengupta, CEO, BeyondCore
Elliot Ichimura, Industry Manager, Microsoft

What is the business impact of Cloud Computing? How does it relate to outsourcing? How is it different from software as a service? How should we think about the business benefits of Cloud Computing?

Case Study:  "Maximizing Business Benefits via Cloud Computing in an Outsourced Invoice Process"
Joseph Tobolski, Accenture

The first Case Study will highlight how different business benefits were delivered and risks averted in a Microsoft invoice process outsourced to Accenture. This process and corresponding software solutions were first moved to the cloud and then cloud-computing capabilities were leveraged to seamlessly incorporate third-party cloud-enabled technology like BeyondCore’s to further enhance the business benefits. 

Case Study:  "Leverage the Cloud to Deliver Flexible Self-Service Solutions – A Hybrid Approach"  
Zor Gorelov, CEO, SpeechCycle 

Moving customer self-service interactions to the cloud offers a number of compelling benefits. In order to realize the benefits, IT organizations are tasked with making sure that the transition is executed seamlessly by addressing important considerations such as: integration with enterprise systems; transitions from self-service to agent assisted services; and service level. SpeechCycle will discuss how a “hybrid” approach to introducing cloud capabilities can provide time to firm up governance, build confidence, prove out the ROI and shorten the path to realizing the benefits.  Customers, providers and advisors may expect to obtain insight into “hybrid” cloud practices that may be applied more broadly in other outsourced and managed services scenarios.

Q&A Panel: "Everything You Wanted to Ask About Cloud Computing"
Panelists:
Phil Shelley, Vice President, Sears Holdings
Zor Gorelov, CEO, SpeechCycle 
Paul Hinds, Managing Director, PricewaterhouseCoopers
Joseph Tobolski, Accenture
Greg Shipley, CTO, Neohapsis
Moderator: Jay Desai, Northern Trust 

Networking Reception hosted by Microsoft

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Meeting held April 22, 2010

A meeting of the IAOP Chicago Chapter, chaired Kirkland & Ellis LLP, Kraft Foods and Northern Trust, was held Thursday, April 22, 2010 at the Kirkland & Ellis offices located at 300 N. LaSalle, Chicago, IL. A networking session sponsored by WNS followed.

Agenda

 "Outsourcing Risk versus Reward - Protecting Yourself with Insurance"
Pamela Rogers, Senior Vice President & Managing Consultant, Marsh USA, Inc.

This session provided an overview of the types of insurance coverages available to protect against risks inherent in both information technology and business process outsourcing transactions. Attendees left the session with a greater understanding of the use of insurance in protecting themselves against these risks, including factors to consider in determining types and amounts of coverage and deductibles, subrogration and use of named insureds.

“Regionalized Governance”
Val Munchez-van der Wagt, ACS, AALU, Chief Underwriter/Project Manager, Allstate Life Insurance Company

The usual model for governance of offshore work is to monitor progress from onshore and supplement with periodic offshore site-visits. An emerging consideration is to use a District Manager or Roving Ambassador model.  One or several individuals would be located offshore for one or two year periods and then manage relations on-site, build a stronger relationship, have a better understanding of offshore challenges and be available to provide feedback, critical input and advice to onshore managers.

Networking Reception hosted by WNS

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Meeting held January 21, 2010

A meeting of the IAOP Chicago Chapter, chaired by Founding Member Kirkland & Ellis LLP, was held Thursday, January 21, 2010 at their offices located at 300 N. LaSalle, Chicago, IL.

Continuing the “Lifecycle of a Deal” theme


Panel – "The Role of the Outsourcing Advisor"
Outsourcing advisors help organizations align the outsourcing strategy with strategic goals and objectives, providing guidance on the contracting process and thinking through governance, transition and overall supplier management leading practices. In addition, they provide assistance in structuring and negotiating outsourcing transactions for both customers and providers. This panel will discuss the role of the outsourcing advisor (both consultant and lawyer) from many different perspectives.

Panelists: 
Faisal Yousuf, Principal, Booz & Co 
Matt Smith, Client Executive, EquaTerra
Jay Desai, VP & Manager - Global Sourcing, Northern Trust
Jeremy Kloubec, Sr. Client Partner- Private Equity Practice, Infosys
Moderator: Neil Hirshman, Partner, Kirkland & Ellis LLP

Case Study: "Moving to a New Provider - A Paradigm Shift"
Ashwin Devnani, VP Operations, TransUnion Interactive
Anurag Bhatia, SVP, WNS Global Service

This presentation will focus on the transition from one provider to a new provider and the challenges such a transition creates. The speakers will discuss:

•     New vendor selection, ramp up, transition
•     Understanding the Customer
•     Why the Change
•     Managing the Change
•     Measuring the Change

Networking Reception hosted by Booz & Co

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Meeting held on September 22, 2009 at 4:30 pm during the Global Human Capital Forum in Chicago!

A meeting of the IAOP Chicago Chapter, chaired by Founding Member Kirkland & Ellis LLP, was held Tuesday, September 22, 2009 during the Global Human Capital Forum at the Marriott Chicago Downtown from 4:30-5:30 pm.

The presentation by Neil Hirshman, chapter chair, “Hard and Soft Sides of Managing Talent in Outsourcing” 

Closing comments by Michael Corbett, IAOP’s Chairman

6:00-7:00 pm:The networking reception hosted by the Chicago Chapter

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Meeting held July 23, 2009

This meeting of the IAOP Chicago Chapter, chaired by Founding Member Kirkland & Ellis LLP, was held Thursday, July 23, 2009 at the Chicago Yacht Club.

The program included a continuation of the lifecycle of a deal theme plus a discussion on ways to leverage IT and differentiate yourself in today’s market. Following the welcome and introductions delivered by chapter chair and founding member Neil Hirshman of Kirkland & Ellis LLP, Bill Fowler, Principal Consultant from Compass America, Inc, and Lee Coulter, former SVP of Shared Services at Kraft Foods, provided an overall understanding of what benchmarking is, issues to anticipate and critical aspects of the benchmarking clause during their presentation entitled “A Benchmarking Primer.” 

The program continued with an insightful presentation from Sharan Hildebrand, Executive Director from The Symbio Group, entitled “Innovative Ways to Leverage IT and Differentiate Yourself in Today’s Market.”  Participants heard about innovative and creative ways to advance their outsourcing message, product or service offerings and then had an opportunity to discuss and share ideas that resulted from the round table discussions that were conducted after Sharan’s presentation.

The meeting concluded with a networking reception hosted by The Symbio Group.

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Meeting held - April 30, 2009

A meeting of the IAOP Chicago Chapter, chaired by Founding Member Kirkland & Ellis LLP, was held on April 30, 2009 at their new offices located at 300 N. LaSalle, Chicago, IL. 

Following Chapter Chair Neil Hirshman’s welcome & introductions, David Benoit and Jeffrey Rathgeber, Partners at Pelorus Advisors, provided an overview of the hidden risks associated with outsourcing transactions that are unsupported by proper currency risk management controls entitled “Currency Risk Management 101: How to Identify Forex Exposure Lurking in Global Outsourcing Transactions.”   During this informative presentation, they provided a framework for outsourcing customers to help them identify gaps in their provider’s currency hedging programs

Next, Sara Enlow with Vantage Partners shared some of the preliminary results of their research on the topic of “Offshore Relationship Management.”  Recently, they surveyed over 400 outsourcing professionals with experience in managing offshore relationships.  Respondents shared their perspectives on the top challenges inherent in offshore relationships and the impact of those challenges.  Sara shared key information on what successful practitioners are doing to address the challenges and get the most out of their offshore relationships.

Neil wrapped up the meeting with a review of upcoming IAOP events and as well as meeting dates for the Chicago chapter.  The meeting concluded with a networking reception hosted by Kirkland & Ellis, LLP.

 

Meeting held – January 22, 2009

A meeting of the IAOP Chicago Chapter, chaired by Founding Member Kirkland & Ellis LLP, was held on January 22, 2009 from 3:30 -7:00 p.m. at DePaul University, 1 E. Jackson, 11^thfloor, DePaul Center North Café.  The meeting continued with the themes lifecycle of a deal and outsourcing locations and the agenda consisted of the following: 

Effects of the Economy on Outsourcing - Mathew Smith, EquaTerra and Sri Tanjore, Director Shared Services and Outsourcing Advisory Services, PricewaterhouseCoopers

With the economic crisis impacting businesses across the globe, it likely will have a major impact on the outsourcing industry.  This presentation addressed how customers and providers alike are addressing challenging issues including, protectionism, benefits evaluation with a sliding value of US dollar, and the new US government’s laws and regulations.

Achieving Outsourcing Success Using Imaging, Business Process Management, Portals and Collaboration Technologies – Jeetu Patel, Executive Vice President,Doculabs, Inc. and Sharon Richey, Head of Global Resourcing, Royal Bank of Canada (Case Study)

Organizations are finding it increasingly difficult to manage the transition and transformation process in their outsourcing efforts.  Defining transformation processes is tedious, manual transitions are hard to manage, and service providers have difficulty living up to their service level agreements.  One area that shows promise is strategic investment in content – and process-related technologies such as imaging, business process management, portals, and collaboration.  Whether your effort involves pure IT outsourcing, BPO or KPO related activities, effectively planning your use of content- and process-related technologies can pay big dividends.  In this session, we learned industry best practices, with a case study that detailed framework for incorporating content- and process-related technologies within outsourcing efforts.

Outsourcing to the Ukraine – Alex Golod, Managing Partner, Intetics Co. and Doug Grimsted, CEO, Aginity (Case Study)

We learned about the social and economic development of the Ukraine,  why the Ukraine is becoming a hot outsourcing destination based on its industry growth, its access to skilled well educated talent pools, and how the Ukrainian government supports outsourcing and in what regions, and then heard a case study from Aginity on how they have effectively outsourced work to the Ukraine.

Networking Reception was hosted by Doculabs.
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Meeting held - Tuesday, Sept. 9, 2008 

This fall’s meeting was held as part of IAOP’s 2008 Governance Forum on September 9 at the Marriott Downtown Magnificent Mile. 

The meeting was a huge success and the program consisted of:
-The joint presentation by Neil Hirshman, chapter chair and Jag Dalal, IAOP’s managing director of thought leadership on “Contracts and Governance: Oil and Water or Oil and Vinegar?”
 -Closing comments by Neil Hirshman and Michael Corbett, IAOP’s    Chairman
 -The networking reception hosted by the Chicago Chapter

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Meeting Held Thursday, July 24, 2008

The July 24 meeting program continued with the “Lifecycle of a Deal” theme, focusing on transition issues.  A networking reception was hosted by Bridge Strategy Group.
 
The meeting agenda included: 
IAOP and the Chicago Chapter: Let’s Take a Look at Progress!
Michael Corbett, IAOP Chairman

The Transition Challenge-- Managing the Successful Transition to Outsourced Services - Panel
Getting to contract is only half the work. The real challenge for organizations is transitioning services to an outsourcing provider. The effectiveness of the transition will in large part determine the ultimate success of the outsourcing relationship as it sets the stage for positive working relationships and achievable expectations. The panel will focus on the key challenges with transitioning services to an outsourcing provider. The challenges range from determining the client’s role in transition and planning to the people and organizational change issues.
 
Moderator: Scott Lever, PA Consulting
Panelist: Lori Blackman, President, DNL Global
Panelist: Robert Thomas, North American Foundational Services Leader| HRO Benefits Operations-Foundational Services Group, Hewitt Associate
Panelist: Tom Turci, Director – Offshore Engineering, Pitney Bowes Software Incorporated

Building Momentum and Change Management - Transition Case Study
Niel Simon, Partner, Bridge Strategy Group
Michael Wisner, VP Global Operations, Arthur J. Gallagher
Mr. Wisner directs Gallagher's multi-year transition of insurance processes to both captive and outsource providers in India and has navigated many of the classic phases of globalization including the tides of resistance. Mr. Wisner will share many of the lessons Gallagher has learned in recasting itself as a global organization including building organizational momentum and overcoming resistance.
 
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Meeting Held Thursday, April 24, 2008

The Chicago Chapter of IAOP, bringing together business persons, consultants and attorneys involved or interested in outsourcing and working or living in the greater Chicago region, held its twelfth meeting on April 24 at the IBM Training Facility in the Hyatt Center. Kirkland & Ellis LLP partner and Chapter Chair Neil Hirshman opened the meeting and welcomed the attendees.

The twelfth meeting continued with the theme of the lifecycle of a deal. Chadd Parker, Legal Counsel - Resources from Accenture and Matthew Lovell, an attorney at Kirkland & Ellis began the presentations with a lively discussion about the key elements of an outsourcing contract and some do's and don'ts about the contracting process.
 
Next, Bud Mathaisel, CIO of Achievo drew upon his extensive industry experience in presenting on IT security and its impact on outsourcing. In particular, Bud explained the importance of ISO 27001 certification and the process for certification. The attendees actively engaged with Bud during his presentation and there was a great discussion about how different companies were addressing IT security issues.
 
Neil closed the meeting by requesting volunteers to host future meetings and to sponsor networking receptions. The next meeting is scheduled for July 24 at the Chicago Yacht Club with a networking reception sponsored by Bridge Strategy. The next meeting with continue with the lifecycle of a deal theme. 
 
A networking reception sponsored by Achievo followed the formal meeting.
 
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Meeting Held Thursday, January 24, 2008

The Chicago Chapter of IAOP, bringing together business persons, consultants and attorneys involved or interested in outsourcing and working or living in the greater Chicago region, held its eleventh quarterly meeting on January 24 at the South African Consulate. Kirkland partner and Chapter Chair Neil Hirshman opened the meeting and introduced South Africa Consul General Yusuf Omar, who welcomed the attendees and offered some preliminary remarks on South Africa.

The eleventh meeting continued with the themes of lifecycle of a deal as well as outsourcing destinations. The presentations began with a lively discussion on the best processes for selecting a provider, including the advantages and disadvantages of the RFP process. The panel was moderated by Matt Smith of EquaTerra and he was joined by panelists Elliot Bruns, Infosys, Walt Wojcik, former CIO and CFO of Northwestern Mutual and Ravin Asar, ABN Amro.

Building on that panel discussion, Praful Mittal of Booz Allen Hamilton provided a case study on a company with revenues of over $25B. Praful described the imperatives for them to transform and seek a comprehensive outsourcing strategy and how they went about seeking strategic partners to help in that journey.

The meeting then shifted to focus on another outsourcing destination -- South Africa (previous meetings had focused on Poland, India, China, Latin America, Philippines, Canada and Russia). After a brief introduction by Charles Manuel, Consul Economic, Yolande Smit from the Department of Trade and Industry of BPO in South Africa moderated a panel that consisted of Sandile Gwala, Deloitte, Andrew McNair, Merchants UK and Gary Bennett, Virgin Mobile. Each of them shared their insights on the outsourcing industry in South Africa in general and their personal deal experiences in particular.

Jeni Stamas, Managing Director, Membership then gave a brief update on the success of IAOP and its growth.
 
Neil closed the meeting by requesting volunteers to host future meetings and to sponsor networking receptions. The next meeting was scheduled for April 24, location TBA. The next meeting with continue with the two themes -- lifecycle of a deal and outsourcing destinations (destination to be determined). 
 
A networking reception that included South African wine and delicacies, sponsored by The South African Consulate General, followed the formal meeting.