Siemons Info

Outsourcing Professional Body of Knowledge (OPBOK)

Delivery plan

IT Domain

OutsourcingITO - Information Technology OutsourcingBPO - Business Process OutsourcingKPO - Knowledge Process Outsourcing

Onshore (home country)Near-shore (nearby country)O�shore (remote country)Best-shore

Outtasking

Tactical (single objective)Transitional (temporary)Transformational (reposition)

Bene�ts1. Costs (50%)2. Focus resources on core business3. Flexible cost structure

BOT -Built Operate Transfer

O�shoring

IdeaStage

AssessmentStage

ImplementationStage

TransitionStage

ManagementStage

Appropriate? Real? Deal (Contract)? Execute? Operate?

3-6 months 6-18 months

Gates

Decisionmaker

Decisioncriteria

Policy Policy &buss unit

Set Set Set

Businessunit

Processowner

5-7 years

OBP - Outsourcing Business Plan

Organizational Sourcing MaturityRegulatory/legal constraintsProcess stabilityDepency technology infrastructureKnowledge transferSocietal impact

Factors outsourcing

Cost/pricing structureRegulatory/tax implicationsLegal and arbitration adjudicationPolitical concernsData protection/securityIntellectual propertyComplexity governance

Factors o�shoring

ModelsSingle sourcingRural sourcing (near shore)Best-of breed (multi-sourcing)Consortium sourcingBundled sourcing

1. Segment the market place2. Project changes in each segment3. Assess size and growth4. Segment selection and how to dominate5. Sourcing6. Forecast business outcomes7. Invest in execution

Top Down Approach

1. If started from scratch, would the capability be build internally?2. Is the business so good, others would hire it?3. Will this activity bring the business’ future leaders?

Bottom Up Approach

Preparing to outcource StakeholderAnalysisOpposeAllowAssistPerformSponsor

IP OSISIPIP ISStrategic applications

Inno

vate

Des

ign

Build

Dep

loy

Run

Mai

ntai

n

IP OSISIPIP ISBusiness applications

IP OSIPIPSupport applications

O�ce automation

Infrastructure

In house/Outsourced Project /Service

OSOS

OS OSOS

OS OSOS

OP OPOP

OP OPOP

Outsourceability

RFI - Request for Information | RFQ- Request for Quotation | RFP - Request for Proposal

Selection Process

Research RFIRFQ RFP

EvaluateDue dilligenceScorecardSelect

ContractRollout

Ongoingsupport

Exhibit

Schedules

Masteragreement

Servicesagreement

Exhibit

Servicesagreement

Exhibit

Servicesagreement

Multi-processcontract

Outsourcing decisionOutsourceto focus

Keep in house

Outsourcefor costs

Partner(alliance)

Commodity Di�erentiator

Wea

kSt

rong

Perf

orm

ance

Di�erentiation

Change managementDecision making stageOutsourcing implement. stagePost implementation stage

1. Discovery2. Denial3. Passive resistance4. Active resistance5. Exploration6. Commitment7. Broadcast

7. Step Adoption Process

RisksStrategicOperationalResultTransactionalFinancial

Identi�cationQuanti�cationMitigation

Outsourcing messageNeed for changeCost of doing nothingChange techniquesRole of outsourcingBene�ts/implications organizationBene�ts/implications customersBene�ts/implications employeesTimelinesHow to measure success

Outsourcing teamsPolicy teamIdea teamAssessment teamImplem. & transition teamManagement teams

Business Domain Alignment Domain

IT Planning Architecture Sourcing

Finance Security Compliance

Requirement Project AcceptanceDesign

Build

Test

Service

Delivery

Project portfolio Procurement

Business case Contract

Service portfolio Cost

Service request Performance

Support Operation

Strategy & control

Innovation

Demand Supply

Run

Business plan

Process

Information

Functionality

Demand Supply Governance Framework (DSGF)

Projects

Changes

Std Svc.

GH-D GH-SGH-DS

In�uenceInvolvement

Contract structure

Master- Contract terms

Service agreement- Scope of services- Pricing- KPI