powerpoint · ppt file · web view · 2013-01-28the offshore outsourcing...
TRANSCRIPT
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Introduction
Industry trends
Engagement models
Governance
Innovation
Case Study
Summary & Wrap Up
Agenda
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Industry Trends
Project-based Outtasking SUPPLIER
Project-based Outsourcing VENDOR
Programmatic Outsourcing BUSINESS PARTNER
Strategic Sourcing STRATEGIC
PARTNERSHIP
1980s 1990s early 2000s 2010s
Evolution of Outsourcing Vendors
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The offshore outsourcing trend and practice is due for a transformation.Client concerns about changing business objectives, the proliferation of “as-a-service” offerings, and demand for deep industry specialization suggest that only the most collaborative, innovative, and trusted vendors will succeed.
Forrester
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• The number of external IT service providers that buyers use, on average, is already too high.
• Organizations continue to show a wider interest in outsourcing.• Organizations are looking for better ways to manage strategic
providers. • Clients are less tolerant of finger pointing in a cost-focused
market. • Alliance offerings from outsourcers are gaining traction.
Outsourcing Trends - Gartner
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Key ThemeEngagement Models
• Time and materials (still the most common). • Portfolio-based pricing based on SLAs. • Managed Services (Volume-based). • Managed Services (Metrics-based). • Co-Innovation.• Hybrid.
Engagement Models
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This allows the client IT to engage with the organization better, as an enabler of business results, going beyond the traditional role as a procurer of services
Areas which can provide high
returns in terms of business
alignment for time & effort
invested
Activities which can be
competently performed by
mature vendors with some
oversight by the Client IT
Organization
Typical Split of IT Organization focus in Staff-augmentation
Typical Split of IT Organization focus in managed services
IT Direction Setting
Vendor Performance Management
Business Liaison
IT Project Management
IT Direction Setting
PartnerPerformanceManagement
IT Project Management
10%
15%
25%
50%
35%
20%
35%
10%
Technology visioning, Architecture direction
Relationship metrics, Value monitoring and management
Business value monitoring and management
Day-to-day monitoring of project progress
Business Liaison
Enables the IT organization to focus on areas where it can add value vs. primarily monitoring
Managed Services
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LOB 1
Consolidation is the natural evolution of most outsourcing strategies
Pre-Outsourcing
In House
Arbitrary Outsourcing Logical Outsourcing
Outsourcing adoption timeline80’s/90’s 2000’s 2010’s
• Minimal use of contractors
• Local work• High cost• Lower
productivity, e.g. no global delivery
• Widespread use of contractors
• Adoption of global delivery
• Contract awards largely driven by hourly rates
• Ad hoc selection of vendors
• Peak benefits achieved within several years
• Focus on handful of key “strategic vendors” to do vast majority of work
• Adoption of new commercial models focused on results, not inputs
• Contracts awarded based on work history, capabilities and synergies with existing work
In -House
In House
In House
LOB 2 LOB 3 LOB 1
LOB 2
LOB 3
In -House In -House
Vendor A
Vendor B
LOB 1
LOB 2
LOB 3
In -House In -House In -House
Vendor A
Vendor C
Vendor Consolidation
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Key ThemeGovernance
• An ability to adapt effectively in a rapidly-evolving high-pressured environment
• Effective management of program scope
• Effective management of program stakeholders
• Efficient resolution of problems and addressing the “gray areas” of the contract
• Ability to review and provide approval to explore new avenues for innovation and improvement
• Reduced coordination costs
• Less time wasted due to poorly-managed conflict
Effective governance leads to both value creation and reduced cost of coordination for the Client and Sourcing Partner
Value of Governance
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Poor transition deliverable quality
Transition teams not ready at cutover
Missed transition deadlines
Insufficient knowledge transfer and testing (unit, system, service, process) prior to go-live
Poor personnel on-boarding/transfer process between the client and service provider
Insufficient transition management (skills,tools, knowledge) by both parties
Inadequate transition project planning and due diligence
Ineffective relationship and programme governance during transition
Lack of understanding of the deal/scope by transition teams and client business units
0% 20% 40% 60% 80%
4%7%9%9%
15%33%
40%58%
73%
Source - EquaTerra
Governance - Root causes of Transition Failure
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Key ThemeInnovation
Improved cost savings, customer service, revenue, and productivity, require innovation
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MOBILE WALLET
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DIAGNOSTICS ON MOBILE
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Case Study
THANK YOU
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