Can Global Sourcing Be Commercially Viable and Socially Sustainable What is Your Legacy

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Can Global Sourcing Be CommerciallyViable and
Socially Sustainable? What is (Y)our Legacy?

• by
• David Kinnear Lisnagol Ventures

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A Word About Legacy

• And so it is with legacy. It is about
  consequences.
• Legacy is about what we did or did not do
  with the opportunities and resources we had. Who
  we learned to work with and what we learned to
  do. Legacy  is not the total measure of a person
  but it is an important measure of what we did
  with the particular opportunities and talents
  afforded us.
• Our future generations will reflect on this
  period in history and they will make judgments on
  our legacy whether this is flattering or not.

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Global Sourcing

• Irreversible trend not when but now
• Draws focus on geographic agnosticity and global
  inter-dependencies - with major social, economic
  and political implications
• Accentuates requirement of progress for all and
  the socio-political risks of dis-enfranchisement
• Accentuates high price of status quo strategy
  as competition, competitors and market risks
  increase
• Highlights role of education in socio-economic
  evolution

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Socio-Economics in Global Sourcing The
Balancing Act

• Do the right thing, but
• Competitive pressures cost reduction. Support
  of current workforce life needs but at what
  cost?
• Investment in workforce of tomorrow with skill
  sets not found in home market
• Implications of technology advances
• Implications of political economic conditions
  comparative regulatory requirements

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Global Sourcing Complex Business Issues Ahead

• Geo-political relationships fiscal
  inter-dependencies
• Revenues lost / revenues gained
• Global taxation / treaties
• Regulation currency / competition
• IP rights , data security privacy regulation
• Public sector economic sponsorship of private
  sector
• Operational standards measurements
• Labor standards

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Global Sourcing Business Drivers

• Geographical agnosticity outcome-driven
  transactions
• Following the path of business social
  evolution
• Productivity / cost reduction / labor arbitrage
• Access to skilled labor pool educational
  resources
• Follow-the-sun coverage for 24/7/365 environment
• Economic geo-political risk management
• Geographically advantageous operational footprint
• Right-sourcing

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Global Sourcing Social Downside

• Social impact on the individual and the economic
  impact of their taxable contribution / deficit
• Inability of the individual to secure employment
  and/or up-skill combined with ability of
  individual to support self, family and/or
  community impact on community development
  sustainability
• Dis-enfranchisement re access to / ownership in
  new inventions growth opportunities that can
  fuel economic growth

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Global Sourcing Social Upside

• Sustainable economic impetus in many otherwise
  employment-challenged environments
• Valid alternatives to less-advanced employment
  prospects providing individual ability to
  support self and contribute productively to
  community development
• Incentive and economic basis for ongoing
  infrastructure development

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Global Sourcing Merging Paths

• There is no guide that will tell us where the
  next Einstein will be born or what the impact
  would be of us not developing this resource in
  the world
• We do know the world faces serious challenges and
  fresh innovation may create the economic stimulus
  required to move things forward economically
• Global sourcing cannot be a quick-fix it must
  be used as a vehicle for creating sustainable
  change

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Global Sourcing Challenge of Change

• Change will cast aside those that stand in its
  way
• National rules seem increasingly archaic and have
  difficulty following global business.
• No country can afford to underestimate global
  sourcing or its impacts. There will be (relative)
  winners losers.
• Each must carefully consider and plan for its
  consequences (a) competitively, (b)
  opportunistically and (c) socially

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Global Sourcing Public/Private Sector Symbiosis

• There is an unparalleled opportunity for the
  Public Sector to engage the Private Sector in
  meaningful dialog on social change and required
  infrastructure enhancement domestically and
  globally
• There is a critical requirement of leadership in
  the Private Sector to address the implications of
  a geographically-agnostic marketplace where it is
  the outcome, not the location, that matters most.

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Global Sourcing Opportunity

• It is through healthy exploration, innovation and
  curiosity that so many critical advances have
  been made
• Beyond cost savings and process improvements, the
  global sourcing sector can take a bolder course
  of leadership
• Technology innovation
• Product development
• Job creation

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Global Sourcing v. Sustainable Sourcing or Money
versus Philosophy

• This is NOT an either/or proposition
• There can be cumulative benefit
• Public/private collaboration in critical areas
  that CREATE jobs, not just reduce them, such as
• Technology Invention Innovation
• Education
• Healthcare
• Infrastructure

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The Lofty Goal - Global Philosophy

• There is, fundamentally, a decision each company
  and each person makes about what defines them
• In a global marketplace, there is more visibility
  for our decision and actions
• There are, in short, fewer places to hide from
  the consequences of our choices

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The Twist - Global Visibility

• Our decisions on these issues will be visible
• To achieve both social success and economic
  success more must be done now
• The sourcing industry must take a lead and engage
  in a new dialog with public sector
• Future generations will judge us on our actions
  or failure to act

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Global Sourcing Tangible Change Demonstrating
Leadership

• Commitment to meaningful dialog
• Commitment to tangible socio-economic
  reinvestment, as demonstrated by
• Investment above and beyond job creation
• Investment in client and provider markets
• Quantifiable outcomes
• Tangible programs e.g. books, computers,
  healthcare

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Global Sourcing What is (Y)our Legacy?

• And so it is with legacy. It is about
  consequences.
• Legacy is about what we did or did not do
  with the opportunities and resources we had. Who
  we learned to work with and what we learned to
  do. Legacy  is not the total measure of a person
  but it is an important measure of what we did
  with the particular opportunities and talents
  afforded us.
• Our future generations will reflect on this
  period in history and they will make judgments on
  our legacy whether this is flattering or not.

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Bio David Kinnear

• David is a sought-after adviser, strategist
  speaker on global sourcing. He draws on 20 years
  of international management experience and a
  wealth of relationships in both the private and
  governmental sectors worldwide. David is a
  champion of global services sourcing and the
  "win-win" socio-economic philanthropic
  opportunities this can create for both clients
  destination countries. Lisnagol Ventures
  uniquely combines professional assistance in
  global relationship opportunity development
  with intentionally "disruptive" business
  thinking, global strategy input impactive
  management solutions in the area of services
  globalization. See www.lisnagol.com David is a
  co-Founder and Research Chair of The Global
  Sourcing Council (GSC). The GSC is a global
  business forum addressing both the emerging
  business issues and also the socio-economic
  implications of global sourcing. See
  www.gscouncil.org David is a Board member of
  the Philippine-American Chamber of Commerce
  (PACC) and a co-Founder of The BPO Council, a
  voluntary, public-private collaboration with the
  PACC focused on the Philippines outsourcing
  sector. See www.philamchamber.orgDavid is the
  US Race Liaison Officer for the Rona Trust
  Atlantic Challenge (2009).
• David lives in New York with his wife Dr.
  Katherine Sinsabaugh who is a professional
  violist and music educational consultant and
  their daughter, Mila Jing Lin Alexandra.

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Global Sourcing / Sustainable Sourcing -What is
(Y)our World View?

• by
• David T Kinnear Lisnagol Ventures
• Lisnagol Ventures
• 405 Lexington Avenue 26th Floor
• New York NY 10174
• Telephone [phone] [phone]
• www.lisnagol.com