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Software Engineering Competence Center
The Global
Sourcing Standard
Towards Sourcing Excellence
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Agenda
Introduction
The Global sourcing standard overview
The Global sourcing standard lifecycle
The Global sourcing standard accreditation
The Global sourcing standard and others
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Introduction
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Sourcing
Global
Sourcing
Outsourcing
BPO
KPO
ITO
BUZZWORDS …
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IT Outsourcing Spend
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Revenue forecast
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Egypt: Where are we? - Regionally
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Egypt: Where are we? - Globally
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Be part of this business
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Outsourcing – The reasons
Reduce and control operating costs.
Improve company focus.
Gain access to exceptional capabilities.
Free internal resources for other purposes.
Resources are not available internally.
Function difficult to manage or out of control.
Make capital funds available.
Reduce Risk.
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Outsourcing – If …?
Assets required by the activity are highly
specialized and will be idle if that activity is
no longer performed.
The activity is infrequent or sporadic.
The activity is simple, routine and stable
over time with few changes.
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Outsourcing – If …?
It is not hard to measure good
performance.
It is not tightly coupled with other activities
in the business and separating it won’t
increase complexity and won’t cause
problems of coordination.
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Outsourcing – Top Risks
Some IT functions are not easily outsourced.
Control may be lost.
Employee morale may be affected.
You may get "locked in."
Possible loss of quality
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The Global Sourcing Standard
Overview
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GSA History
Previously known as NOA (The National Outsourcing
Association)
In 2016, the NOA rebranded itself as the Global Sourcing
Association (GSA) to reflect the international reach of the
group and to respond to growing requests from foreign
destinations for market support.
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The Global Sourcing Standard
A non-prescriptive model designed for sourcing
practitioners to validate/develop their own approaches to
sourcing strategy.
Developed to be used by outsourcing buyers and
suppliers.
Includes references to the requirements of the public sector
where particular regulatory procurement rules apply.
It is not only concerned with outsourcing. For example:
bringing back outsourced services in-house applies.
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Core Principles
Integrated Approach
Relationships
Alignment Governance
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Practical Guidance
1. Senior management accountability.
2. Oversight and control
3. Initial and ongoing due-diligence
4. Monitoring by supervising authorities
5. Exit strategies and BCP
6. Flexibility
7. Risk Management
8. Data protection
9. Contractual arrangements
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Structure of the standard
The standard adapts lifecycle
approach, starting from initial
strategic discussions to the final
termination of the sourcing
arrangement.
Sourcing process is not linear,
feedback loops are considered in
the lifecycle.
Standard covers both buyer and
supplier activities
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The Global Sourcing Standard
Lifecycle
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Sourcing lifecycle
Strategic leadership
Relationship
engagement
Transition and change
Relationship & service
management
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Strategic leadership phase
Strategic leadership phase doesn’t
only instigate the initiatives, it is
continuing process that drives and
directs the initiative from both
buyer\supplier sides.
It is not only buyer-side, supplier
also make strategic decisions
(whether to engage\continue
through a bid process)
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Strategic leadership phase
Feedback loops indicate that
senior managers direct and drive
the progress of other phases
based on inputs received from
lifecycle.
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Relationship Engagement phase
Concerned by the activities -
by all parties - to establish
and formalize the
relationship.
Instigated by the buyer,
referred to as
“vendor\supplier selection
process”
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Relationship Engagement phase
Suppliers have a stake to
decide whether to enter or
not.
Thinking of the phase as
“engagement” encourages
collaborative culture
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Transition and change phase
A service will move from one
party to another, this is called
“transition” and this requires
change.
Experienced suppliers shall
have effective\efficient
transition planning process and
skilled team to execute.
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Transition and change phase
Some transition projects will be
simpler than others.
Whatever the nature of
transition process, change
(process, platform, policies,
service & culture) must be
effectively managed.
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Relationship & service management phase
Concerned with managing the
service once it’s established. This
may last many years.
The benefits of the arrangement
are realized at this phase.
The term “relationship” is used to
emphasize the importance of
having successful relationship
between parties.
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Relationship & service management phase
Effective communication,
facilitation skills and issue
management are key
competencies.
Required skills include data
analysis, change control, exit
planning, contract management,
performance monitoring and
stakeholders management.
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The Global Sourcing Standard
Accreditation
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Steps for corporate accreditation
1. Sourcing Lifecycle
Assessment Level 01
2. Accreditation Readiness
Assessment
3. Performance Improvement
Program
4. GSA Accreditation Audit
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The global sourcing standard and
others
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Other related models\standards
CMMI-ACQ
CMMI-DEV
CMMI-SVC
COBITITILISO
37500
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