outsourcing engagement and management

Monarch Supply Chain Management

Outsourcing Success

Outsource Partner Engagement and Management

Align, Transform and Optimize Business Solutions


Agenda

Outsourcing StrategyOutsourcing Strategy

Selecting a PartnerSelecting a Partner

Selecting a PilotSelecting a Pilot

Managing the RelationshipManaging the Relationship



Outsourcing Strategy


A successful strategy must take into account not only the appropriate activities to outsource, it must also take into account the internal requirements to make it successful!



Clearly define the mission and objectives Clarify the requirements in selecting a

partner Define internal staff considerations Define internal career path and

objectives Build internal support




Understand the business to effectively outsource Develop the business process diagrams

and system diagrams Identify applications’ investment

status Disinvest – application to be

decommissioned Maintain – Application to be maintained

and enhanced Invest – Strategy in place to replace

application




In order to be successful the strategy must take into account both internal and external organization requirements. Internal organization must be aligned to

take advantage of the outsourcing benefits External organization must be aligned to

minimize the outsourcing limitations Focus on delivering competitive

advantage for the business




Define the internal organization capabilities and limitations

Develop a career path for your internal staff that considers the strategic growth of the organization Promote ‘value add’ activities Provide a clear direction Provide support and training Promote staff retention




Develop a delivery factory process Identify resource capabilities and

availability Identify roles and responsibilities for

both internal and partner resources Supports the application life cycle

management Supports the career path defined in the

strategy



Selecting a Partner


There are many considerations to take into account when selecting an outsourcing partner; from size, to skills, to culture. You must fit the outsourcing partner to your organization and strategy.


Selecting a Partner

If all you’re paying for is someone’s time to build something and you make no consideration for productivity, quality, process, tools, expertise and culture, then that’s probably all you’ll get – a lot of time spent with very little to show for it!



Selecting a Partner

Focus on your outsourcing mission and objectives defined in your strategy

Total cost of ownership is paramount in selecting an outsourcing partner Only the right partner will save you

money in the long run Take the time for due diligence to

ensure partner is stable and credible



Selecting a Partner

Find the partner that fits your culture and will be responsive to your needs Match the partner skills and specialties

to your objectives Size matters in this relationship

Select a partner whose strengths compliment your limitations

Be aware of the partner’s culture



Selecting a Partner

Should you utilize multiple partners? Pro’s -

▪ Take advantage of strengths of each partner▪ Reduces risk of impact to business in case of

partner failure Con’s –

▪ Reduces leverage with partner▪ Increases management and coordination

requirements▪ Increased complication from methodologies and

culture Validate compatibility with pilot



Selecting a Pilot


The pilot project is critical to validating the partner, strategy and service levels.


Selecting a Pilot

Identify opportunities for the partnership to be successful Full project delivery that allows partner

to own deliverables Opportunities that can develop into a

long term relationship based on success▪ Partner to deliver objectives based on

requirements▪ Partner then maintains application▪ Provides cradle to grave support



Selecting a Pilot

Define pilot success metrics On-time delivery Quality of delivery Management overhead Cost Culture fit

Make final selection of partner(s) based on pre-determined metrics



Managing the Relationship


A successful outsourcing relationship requires clear deliverables and service level expectations outlined in the contract. After developing the contractual requirements you must identify a process and methodology to manage these expectations.



Contract should foster a performance improvement culture

Identify key performance metrics for contract service level agreements

Define SLA review time periods including timely and reliable reporting based on SLA’s

Define partner support model with on-site support requirements clearly defined




Define problem management process to ensure issues are addressed to your satisfaction in a timely manner

Identify internal key contacts to manage contract terms

Develop strategy for exit or transition to reduce the impact of partner acquisition or failure




MSCM is the logical choice!

Contact us to discuss your needs.

Tom [email protected]

404-693-2334www.monarchscm.com

Monarch Supply Chain Management, Inc.

mailto:[email protected]

http://www.monarchscm.com/

outsourcing engagement and management

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