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    [Closed Search] Head of Business Process Outsourcing


    Opportunity Overview

    Head of Business Process Outsourcing Products

    The Company

    Our client is a privately held venture backed test engineering firm.  The company provides three essential test-related offerings: test systems, engineering services, and software solutions which form the basis of its Quality Lifecycle Management (QLM) approach.  Our client is differentiated from its competitors by bundling together its value-added services and by its international presence: the company maintains operations in North America (including Mexico), Europe and Asia.  The firm’s customer base includes some of the most respected blue-chip companies in the world and continues to attract additional world class customers due to its unique ability to support their global operations.  Its most significant engagement includes the launch of Microsoft’s Xbox 360, wherein 30 people were deployed in China to develop the overall test strategy, design the test systems and manage the production of 1,200 test systems.

    The Company’s solutions are used primarily in the Automotive, Industrial, Computer, Telecommunications, Consumer, Medical and Military / Aerospace markets.  While the Company’s initial focus was on the Automotive vertical, the firm has diversified its customer base and now has a broad portfolio of customers in a wide variety of industries.  Our client has designed and deployed over 6,500 test systems across a range of industries and product groups.  Its engineering services cover all key engineering disciplines required for the design, manufacture, integration, delivery, installation and servicing of automated test equipment, including mechanical, electrical and software design, mechanical and electrical assembly and systems Support.  The company’s software solutions include Magellon a set is comprised of three major modules; Supplier Quality Management (SQM), Test Data Management (TDM) and Warranty Management (RMA). These modules can be deployed in either stand alone or fully integrated solutions.

    The testing services, whether provided individually or bundled as a solution, allow our client’s customers to improve product quality and increase production yields in an outsourced global manufacturing environment.  From the manufacturing of quality test solutions built to OEM standards and specifications, through to delivering real time visibility and predictive analytics, our client enables major electronic OEMs to reduce labor, material and warranty costs.  The firm’s customers have reported millions of dollars of cost savings, decreased time-to-market for new product introductions and improved product quality.

    The company’s US office (where most of the senior management team is based) is located in Needham, MA.  The company’s 36,000 square feet principal engineering and manufacturing facility is in Burlington, Ontario, Canada.

    The Market Opportunity

    Our client’s primary growth opportunity resides in its expertise in functional testing for the electronics manufacturing industry, and in particular consumer electronics.   The company’s testing solutions are targeted at two areas of the electronics manufacturing supply chain: EMS (electronics manufacturing services) and ODM (original design manufacturers) suppliers to the electronics OEMs (original equipment manufacturers).  By example, customized real-time functional testing solutions for Microsoft were provided, and its latest version of the Xbox product, manufactured entirely by contract manufacturers with this embedded testing equipment installed at the end of each Xbox assembly line.

    The contract electronics manufacturing market is slated to expand beyond $200 billion in 2006 according to iSuppli (www.isuppli.com).  ISuppli further states that the contract manufacturing industry overall has grown at an incredible rate over the past 30 years.  2004 was a pivotal year for contract manufacturers, as the industry returned to double-digit growth rates following the economic recession of 2001-2003.  Revenue results for the leading EMS and ODM providers indicate that the year-over-year growth rate surpassed 22% during 2004.
    However, despite revenue increases returning in 2004, margins continue to be squeezed by the OEM customers who use the EMS and ODM vendors.   One of the key tactics to boost flagging profit margins is “implementing operational improvement initiatives such as Six Sigma and lean manufacturing” (iSuppli).  This area is where the firm’s functional testing and quality assurance technologies play a major role.

    IDC has modeled the next few years in the EMS/ODM segment using the following Venn diagram, depicting what the future strategies for success might be [right].  At the center of the Venn,  all four sectors of the industry will rely on quality as a key driver to their success.

    Therefore, the company sits in a position of strategic strength regardless of which eventualities play out over the next few years.

    As a company itself, the firm offers a great platform for growth, bolstered by the following:

    • The company has positive operating cash flow and will make above market EBIT on current sales
    • Has a healthy balance sheet
    • Has no need for further immediate equity investment, although the investors are strong backers if strategic growth initiatives identified call for additional capital
    • The Company’s product solution is largely developed, and needs only to be “productized” and evangelized
    • Microsoft is a significant lever to additional new customer acquisition as a reference customer
    • All shareholders—investors and founders—are aligned to a common company harvesting strategy, with many categories of potential acquirers (EMS companies; test and measurement companies; Chinese electronics companies; private equity firms)

    Head of BPO Role and Responsibilities

    As the head of BPO business unit & initiative, this Executive will provide the following in serving in this capacity and demonstrate the below qualities:

    • Responsible for continued growth of the BPO value proposition with the key industries the company serves, including high-value electronics, medical device, and other related “test-intensive/high-cost-of-repair” segments
    • Acting as either/or/both the sales leader for BPO, or the client implementation expert
    • Experience and success with interacting with the CEO, VP Sales, and rest of executive team to refine the product offering, encompassing product definition, marketing and sales
    • Attain recognition as “thought leader,” and convert thought leadership position into reference-able clients who will serve as proof points for industry shift away from tradition ways/methods, and adoption of next-generation solutions to improve ROI.
    • External marketing experience including sponsoring/authoring white papers, conference speaking, and other business development oriented leadership responsibilities

    Other management & industry experience, philosophy and personal success characteristics:

    • In depth knowledge of Electronics Manufacturers Services (EMS) market
    • Complete understanding of Discrete Manufacturing Supply chain including historic and potential future issues
    • Deep knowledge of the evolution of Quality programs in manufacturing companies.
    • Understanding of SIX Sigma, Strategic Sourcing, Lean Manufacturing, etc.
    • Experience in Automotive, Medical Devices, Consumer Electronics, Aerospace and Defense
    • Strong background of success as an individual contributor and senior manager
    • Collaborative style-ability to influence cross disciplinary groups internally and externally to drive consistent, predictable results
    • Comfortable in a performance based environment
    • Team player
    • Adaptable
    • Charismatic leadership capabilities
    • Self-Starter…Independent thinker
    • Smartly challenges status quo
    • Winning is important…hates to lose
    • Embraces the role of “go to” person
    • Does not fear the customer.

    Staff & Culture

    Our client has a highly trained staff of over 80 individuals who work very well as a team.  While young, most employees are long-standing with academic training in the engineering and engineering technology disciplines; over 40% are degreed engineers.  The average length of service at the Company is five years.  The staff is capable of installing systems in ten languages.  Compensation includes profit sharing for all employees and common share options for key managers; giving each employee a personal stake in the Company’s success.  This co-operative work ethic has forged a stable, cohesive workforce with minimal turnover.  There is a strong sense of community and many of the key technical personnel have been with the Company since its inception.  The culture, which has been created by the founders, emphasizes openness, teamwork, and loyalty.

    Click here to apply. 

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    -by tkelleher on Jul 9, 2009 2:42:34 PM


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