Overview of Outsourcing
May 2005
Copyright © 2005 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
© 2005 Accenture All Rights Reserved.
2
INTRODUCTION
A Working Definition of Outsourcing
Services
COMPANY
OUTSOURCER
Organization Service
Level
Level
Agreement Agreement
Outsourcing denotes the continuous
procurement of services from a third party,
making use of highly integrated processes,
organization models and information
systems.
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3
INTRODUCTION
On the origins of Outsourcing
• 50 - 70
Vertical and Horizontal Integration
• 70 - 80
Foreign Direct Investment
• 80 - 90
Global Sourcing
• 90 -
Outsourcing
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4
INTRODUCTION
Very different level of acceptance
German car manufacturers:
degree of vertical integration
Banking industry worldwide:
cost share of outsourced
services 2003
100%
100%
80%
80%
62%
68%
60%
76%
20%
60%
Value Creation
Suppliers
40%
38%
32%
24%
1,4%: costs for
outsourcing
Value Creation
Producer
40%
98,6%
20%
0%
0%
1980
1990
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2000
5
INTRODUCTION
Types of Outsourcing
Outsourcing models:
BPO
Business
processes
Administrative
processes
AMO
SDO
Application Development
and Maintenance
IT-infrastructure
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BPO: Business Process Outsourcing
APO: Administrative Process Outsourcing
ASP: Application Service Provider
DBRO: Design, Build, Run & Operate
ADM: Application Develop. & Maintenance
ITO:
IT Infrastructure Outsourcing
ITS: IT Services, Managed Hosting
6
INTRODUCTION
BPO - Business Process Outsourcing
Industrialized
Customized
One-to-many
One-to-one
medium
low
high
Degree of industrialization
Custom designed services
leveraging know-how
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Similar services delivered
to multiple clients
Single service delivered
to multiple clients
simultaneously
7
INTRODUCTION
AMO - Application Management Outsourcing
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8
INTRODUCTION
SDO – Service Delivery Outsourcing
•
Security
- End-to-end security services
including firewall management,
intrusion detection, identity
management and security policy
•
Data Centers
- Remote and on-site managed server
hosting
- Data centers
•
Technical Support
- Help desk, desk-side and self-service
support
- Global hubs
•
Network Services
- Managing data and voice networks
Network Management
•
Desktop Management and Mobility
- PC, laptop, hand-held, distributed
Security Operations
•
Supplier Management
- Identifying, qualifying, contracting
and managing strategic suppliers
Client Operations Management
Delivery
capabilities
Security
Data Technical Network Desktop Supplier
Centers Support Services Mgmt.
Mgmt.
&
Mobility
Sales Support and Mobilization
Hosting
Technical Support
Services
Desktop Management & Mobility
Messaging & Collaboration
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9
INTRODUCTION
Sourcing of Outsourcing
• Off-Site –
Local service providers
• Near Shore – Proximity cross-border service
providers
• Off-Shore –
© 2005 Accenture All Rights Reserved.
Remote Cross-border service
providers
10
INTRODUCTION
Geographics of Outsourcing
Ireland (1)
London (1)
Montreal (1)
Chicago (1)
Cincinnati (1)
Houston (1)
Toronto (1)
Wilmington (1)
Atlanta (1)
Riga (1)
Prague (1)
Bratislava (1)
Budapest
Madrid (1)
Dalian (1)
Malaga (1)
Shanghai (1)
Mumbai (3)
Bangalore (3)
São Paulo (1)
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Hyderabad (1)
Chennai (1)
Manila (8)
Mauritius (1)
11
INTRODUCTION
Trend is clearly towards Off-Shore
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12
INTRODUCTION
Typical Outsourcing Clients
Halliburton
RAG American Coal
02 (formerly BT Cellnet)
LASMO plc
Repsol YPF
Alcatel
Lyondell-Citgo Refining
Rhodia
Algar
MOL - Hungarian Oil & Gas
Siam Cement
AT&T
MidAmerican Energy
Sithe Energies
Avaya
Norsk Hydro
Slovnaft
BellSouth
Orange and Rockland Utilities
Southern Company GAS
Boston Scientific
PPL (Pennsylvania Power & Light)
Talisman Energy Ltd.
BT
Terasen Utility Services
Cegetel
Espirito Santo Sequros
Thames Water
Citrix
GE Consumer Finance
Ticona
Grupo Financiero BanCrecer
eBay
Morgan
Stanley TotalFinaElf)
Total E&P UK
plc (formerly
Guy Carpenter
Argentaria
EMC
Providian
Immobiliere 3F
Banca Italease
Sonera
ETS
Royal and SunAlliance
Infocaja
BBVA
Sun Microsystems
Sallie Mae
Banco Rio de la Plata
Edgars Consolidate Stores Limited ING Group
Tecnomen
Santander
Italian
Pension
Agency
Alcan
Bankiter
Exel plc
Telecom Argentina
SchmidtBank
Johannesburg
Securities
Exchange
Ardent
HCSC
Barclays Bank plc
Telecom Italia
JPMChase
SEC Padova
Health Alliance Plan
Bilbao Bizkaia Kutxa (BBK) Asahi Brewery
Telefonica Argentina
London Stock Exchange Losango
Impregilo Achieve
SEI
Astilleros Espanoles,
Caixa Catalunya
Texas Instruments
Mediolanum
Interstate Brands
now IZAR
UBS Life International
Caja Madrid
Thomson
Meridia
KLM Royal Dutch Airlines
AstraZeneca
CortalConsors
Universal Leven
VIA Networks
Levi Strauss
Neptune Orient Lines
Best Buy
Credit Lyonnais
Workers’ Compensation Board
XM
Satellite
Radio
LSG Sky Chefs Thomas Cook
New Look
Depository Trust & Clearing Brahma
Xelion
Marriott
Payless Shoe Source
Bristol Myers Squibb
Deutsche Bank
MDB Information Network
DnB NOR
Pfizer
Campofrio
Mecalux
Renault
Fujitsu Siemens Computers
Carrefour
Medicines Control Agency
Resort Condominiums
Infineon
Caterpillar
Milwaukee County Mental Health
International
Infostrada
Multibras Electrodomesticos Whirlpool
Delphi
(RCI)
JVC do Brasil Ltda. & Nokia Gradiente Industrial
Delta
Sainsbury’s
O Globo Empresa
Diageo
Sara Lee
Olivetti Tecnost
DSV Group
Solar Turbines
Omnitel2000
eLSG SkyChefs.com
Texas Medicaid
QinetiQ
Transnet Portnet
Siemens Mobile Communications Italy
UPS
SITA
Wärtsilä
Wyeth
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Ameren
BC Hydro
Borden Chemical
BP
Britannia Operator
Cogema
Dow Chemical
DuPont
Dynegy
Direct Energy Essential Home Services (DEEHS)
Enbridge Gas Distribution
Enbridge Gas New Brunswick
Freeport McMoRan
13
INTRODUCTION
Outsourcing Service Providers
Off-Site
One Stop
Near-Shore
Off-Shore
• IBM
• Accenture
• EDS
Locals
• Cap
• CSC
• Fujitsu
Pure Players
• Tata
• InfoSys
• Guja
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14
INTRODUCTION
Key drivers for Outsourcing (Survey Results)
Why do outsourcing? - Survey Results
•
•
•
•
•
•
•
•
Access best in class business processes
Harness leading technologies
Increase efficiencies
Enhance capabilities
Expand service
Enrich customer relations
Improve supplier relations
Free up management time
•
Decrease operating costs
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15
INTRODUCTION
Value Contribution of Outsourcing
© 2005 Accenture All Rights Reserved.
16
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
© 2005 Accenture All Rights Reserved.
17
PREPARING FOR OUTSOURCING
From Drivers to Strategic Options
Outsourcing
Change Drivers
Defining the Burning
Platform
Outsourcing
Options
In-House
Status Quo
Continuous
Improvement
Spin-off
Determine Scope
In-House
Transformation
Co-Sourcing
Captive
Understand Internal
Constraints
Joint Venture
Understand External
Constraints
External
Outsourcing
Lift-Out
Shoring
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18
PREPARING FOR OUTSOURCING
The Burning Platform
•



•
•
•
•

BUSINESS CONCERNS
Perceived low availability of services
Perceived low level of service quality
(accessibility, turn-around time etc.)
No clear service reporting and service
management
Roles & Responsibilities not clear. Processes
unclear, too slow, too many hand-offs
Slow and error-prone service introduction
Unsatisfactory support of remote sites &
subsidiaries
No service culture
Cost allocation & charges unclear and cannot be
influenced by business decisions
…
Change
Drivers
Management
Control
Service
Scope &
Level
Budget
Levels



•
•
•


Financial
Flexibility
IT CONCERNS
Unreasonable service level expectations from
business
No cost & resource awareness
Large number of non-standard work requests
Overlarge project portfolio, paired with spaghetti
development infrastructure
High-level of business applications
Inefficient / underutilized server platform, aging
central technology platforms and complex
networks
Large and divers skill pool required to support
infrastructure
…
Infrastructure
Quality
Skill &
Capability
Pool
Organizational
Impact
Time to
Benefit
Client
Rating
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19
PREPARING FOR OUTSOURCING
Outsourcing Options & Contribution
Time to Benefit
Organizational
Impact
Skill &
Capability Pool
Infrastructure
Quality
Financial
Flexibility
Budget Levels
Service Scope
& Level
Spin-off
Management
Control
Sourcing
Option
High
Limited
Limited
None
None
None
Limited
Short
Medium
Medium
Medium
Limited
Medium
Medium
Limited
Medium
High
Medium
Low
Low
Medium
Low
Medium
Long
Medium
Medium
Medium
Medium
Medium
Medium
Medium
Long
Lift-Out
Low
Strong
Strong
Medium
Medium
Medium
Strong
Medium
Shoring
Low
Strong
Strong
Strong
Strong
Strong
Strong
Short
Co-Sourcing
Captive
Joint Venture
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20
PREPARING FOR OUTSOURCING
Understand Internal Constraints
• Availability of Seed Money – I need to reduce cost,
this requires efficiency gains, efficiency gains require
investments…
• Structural Inflexibility – Your current business and
application architecture may not allow for simple and
low cost ICT changes
• Time to Benefit – Most “quick-wins” have already
been explored over the last couple of years. Major
initiatives have pay-backs seldom shorter than 24 –
36 months
• Business vs. IT Projects – Most projects are
invisible to the normal business users and do not
directly contribute to business revenue generation
• Capacity & Know-How – Are there sufficient internal
resources available to drive the change in a timely
fashion? Will heavy external resource usage kill the
business case?
• Change Capacity – Can the internal organization
absorb this change now (ex. Overall moral, unions,
etc.)
• Sustainability – Can initiatives be maintained in light
of business development?
© 2005 Accenture All Rights Reserved.
Procurement,
Financing &
Quick Wins
Head Count &
Infrastructure
Improvement
Reduce
External Services
€
Change
Application &
Technology
Architecture
ILLUSTRATIVE
6 Months
ICT
Budget
- Illustrative -
12 Months 18 Months 24 Months 30 Months 36 Months
Business Projects
20 %
SWR & NSWR
10 %
Discretionary
Maintenance
15 %
Operate &
Infrastructure
45%
Fixed
Manage & Support
10 %
21
PREPARING FOR OUTSOURCING
Understand Partner Constraints
Criteria
Assessment
Financials
• Service providers are mainly driven by volume, and to a lesser extend
by margin and margin composition
Duration of Contract
• 3 years is standard, but will not allow time for fundamental
transformations.
• 5 years gives more room for change
Scope of Technology &
Services
• In how far can the existing park be integrated into provider’s
infrastructure & skill pool
Demand Stability
• In how far can demand for service delivery be accurately assessed?
Scope of Control
• How much insight & governance control does the client want to exert?
Which service model will prevail?
Transformation Potential
• What are the potential synergies in terms of people, processes,
infrastructure etc. What are the hand-back constraints? How will
benefits be shared?
Follow-up Business
• What else might be offered to the client (ex. Business process
outsourcing?)
…
…
© 2005 Accenture All Rights Reserved.
22
PREPARING FOR OUTSOURCING
Approach to Outsourcing
Transformation
Decision

Mobilize and design

Implementation

Supplier selection

Transition

Transformation
IT Opportunity Assessment

Assess current environment

Define Target Model and
sourcing strategy

Create change program
Outsourcing
Assess Current
Environment
Define Target
Model and
sourcing strategy
“What needs to
change?”
“What must we
change to?”
Kickoff
Timeframe
High
Level
Activities
Half-day
Executive
Workshop
Create Programs
Executive
Meeting
•
Baseline the business and operating
direction and strategy as applicable
•
From workshop, identify and
build out “to-be” state
•
Benchmark expenses to similar
industry segments across
functions/processes
•
Define future sourcing strategy
•
Identify initial areas of cost
savings and prioritize based on
future direction
•
Identify 4-5 areas for focused
planning
•
Identify Infrastructure &
Operations management and
organization impacts and
corresponding risks
•
Interview key stakeholders
•
Understand key drivers of resource
utilization to set a baseline and
construct an economic model
•
Plan and develop material for
executive workshop
© 2005 Accenture All Rights Reserved.
“How will we
implement the
changes?”
Decision
•
Develop high-level implementation
roadmaps based on approved
target operating model and
sourcing strategy
•
Identify key stakeholders and
related action plan
•
Define economic model for the
integrated change program
23
PREPARING FOR OUTSOURCING
Assess Operating Model Impact
CLIENT EXAMPLE
Application Development Management (ADM): Split-up
of work steps
In-house / Off-shore
Outsourcing / On-shore
Outsourcing / Off-shore
In-house / On-shore
Maintanance
Development
10% Business Requirements
100%
Resources on-site
Concept
20% Functional Design
30%
Design
40% Requirements refinement/design control
25% Acceptance test
5%
Deployment
20%
30%
75%
40% Requirements, Functional Design and Acceptance
80%
Build
70%
Test
Deploy
30%
Detailed Design
Technical Design
70%
25%
Enhancements
Product test
Integration test and fixing
Deployment assistance
Offshore resources onshore
Build, test and implementation
70%
10% Acceptance and Implementation
20%
Technical Upgrades
80%
10% Acceptance and Implementation
20%
Performance Tuning
80%
40% Prioritization, Escalation
20%
Fix on Fail
80%
© 2005 Accenture All Rights Reserved.
Majority of build offshore
Technical changes, as
requested, assuming no new
functionality
Fixes and root cause analysis
2nd level support
24
PREPARING FOR OUTSOURCING
Do not forget TUPE
• TUPE stands for The Transfer of Undertakings (Protection of
Employment) Regulations 1981. The Regulations were introduced to
safeguard employees’ rights in the event of a transfer of an
undertaking, business or part of a business. This includes:
– The obligation to inform and consult all employees in scope
transfer
– Transferee inherits all claims and statutory rights
– Continuity of employment is preserved for employees
– Employees transfer on their existing terms and conditions of
employment
– Transfer connected dismissals are automatically unfair
© 2005 Accenture All Rights Reserved.
25
PREPARING FOR OUTSOURCING
Key Data Components
“How will we implement
the changes?”
Inadequate
Best
Practice
Fundamental issues in the partnership between IT and the
business
Strategy Development
& Planning
Inadequate
Best
Practice
Highly reactive organisation, unintegrated silos, limited
coherence of vision
Architecture
Management
Inadequate
Best
Practice
Beyond a few well-intentioned individuals, there is little
evidence of architecture leadership
Solutions
Development &
Planning
Inadequate
Best
Practice
Major issues recognised; but change is hugely challenging.
There is still a lack of partnership between SC and ISSM
Service Delivery
Inadequate
Best
Practice
Legacy is reasonably stable - but are we ready for “e”?
Resource
Management
Inadequate
Best
Practice
Some poor financial controls; cultural issues inhibit getting
best value from IT people.
Governance
Supports Allina Experience
Improve Internal Information
Improve Community Information
Improve Provider Information
L
M
M
H
L
M
L
L
M
L
H
H
H
L
M
M
M
M
L
Sell Products and Services
3.1 Enable electronic enrollment…
3.2 Assemble member-unique benefits…
3.3 Manage workflow electronically…
3.4 Reinvent broker value chain…
3.5 Improve automation of buyer contracts…
3.6 Enhance underwriting capability…
3.7 Improve SSS functionality…
3.8 Enhance employer group reporting…
0.5 - 2
1 - 2
1
1 - 3
0.25 - 0.5
0.5 - 1
0.5 - 1
0.25 - 0.5
12
18
9
18
9
9
6
6
H
H
L
H
L
L
L
L
M
H
M
H
L
M
M
L
M
M
L
H
M
H
L
L
H
H
H
H
H
M
M
H
L
L
L
L
L
L
L
L
M
L
H
M
M
M
H
H
H
H
H
M
M
L
L
L
0.1 - 0.3
0.1 - 0.3
1 - 3
0.1 - 0.3
0.5 - 1
0.5 - 1.5
0.5 - 1.5
0.5 - 1.5
3
6
18
6
9
12
12
18
L
L
M
H
H
L
M
M
L
M
H
L
M
M
H
H
M
M
H
L
M
H
L
H
L
M
L
L
M
M
H
M
M
M
H
H
M
M
L
H
M
M
M
M
H
L
M
M
H
H
M
M
H
M
H
M
0.5 - 1
0.5 - 2
1 - 3
0.5 - 1.5
0.5 - 1
0.25 - 0.5
0.1 - 0.3
12
12
18
12
9
6
6
L
L
L
M
L
L
L
H
L
H
M
M
L
L
M
L
M
M
H
M
L
L
M
M
M
L
H
L
L
L
L
L
L
L
L
L
H
H
H
M
L
H
L
L
H
L
L
H
L
Support Relationship Building and Management
6.1 Automate appeal/complaint process…
6.3 Create proactive intervention facility…
6.5 Develop life care plans for members…
6.6 Improve information distribution…
6.7 Improve access to compliance data…
6.8 Improve performance reporting capabilities…
6.9 Improve Q-Star stability…
6.10 Roll out HealthVillage…
6.11 Develop common call center infrastructure…
0.1 - 0.2
0.5 - 1
1 - 2
0.1 - 1.5
0.1 - 0.2
0.1 - 0.5
0.1 - 0.3
1
1 - 1.5
9
12
18
9
6
6
6
12
12
L
M
H
L
L
L
L
L
L
L
M
H
M
L
M
L
L
L
L
M
M
L
L
L
L
L
M
M
H
H
M
L
M
H
H
M
L
M
H
L
L
L
L
L
L
L
H
M
H
H
H
M
H
L
M
H
H
L
L
L
M
H
M
Manage Infrastructure
7.5 Enhance communication through entire system…
7.6 Turn our data into revenue…
7.7 Solve help desk responsiveness issues…
0.1 - 0.1
0.5 - 1
0.1 - 0.3
3
6
6
L
M
L
L
M
M
L
H
L
L
L
H
L
L
L
H
L
M
L
M
L
2001
2003
913
As Is SD Budget Baseline
(B)
Adjustments due to
Price/Performance evolution
(C)
Potential savings from infrastructure
3
28
(D)
Other savings opportunities
0
10
934
875
(E)=
(A)-(B)-(C)(D)
To Be Operational costs
Improve Clinical Quality
Revenue Generation
2002
937
(A)
2004
925
Match with Allina IT Focus
H
L
L
H
M
L
L
L
L
L
L
L
2005
940
940
85
129
129
40
50
50
800
761
761
Included in (A)
35
74
70
40
19
(G)=(E)+(F)
Total Costs
969
949
870
801
780
(H) = (A) (G)
Cash Flow
-32
-36
55
139
160
(H) = (A) (G)
Cumulative Cash Flow
-32
-68
-13
126
286
Total Revenue
937
903
903
894
894
Cash Flow
-32
-46
33
93
114
Cumulative Cash Flow
-32
-78
-46
48
162
(F)
(I)
(J)=(I)-(G)
(K)
© 2005 Accenture All Rights Reserved.
Improve Customer Information
L
L
L
M
L
M
L
H
H
M
M
H
Improve Health Outcomes
L
M
L
M
L
M
M
L
L
H
H
L
Improve Provider Service
M
M
H
H
L
M
L
L
M
H
M
L
Medical Cost Mgmt.
L
L
L
H
L
M
M
M
M
H
H
L
Administrative Cost Mgmt.
L
L
M
H
L
6
3
9
9
12
12
6
(M $)
Current
Infrastructure
and
Operations
Balanced Membership Growth
12
12
6
6
3
0.3 - 0.5
0.1 - 0.2
0.2 - 0.5
0.5 - 1
1 - 1.5
0.5 - 1
0.3 - 0.5
Deliver Administrative Products and Services
5.1 Create reimbursement modeling system…
5.4 Stabilize key system availability and performance…
5.5 Create business-specific data warehouses…
5.6 Increase electronic claims submission…
5.7 Implement utilization management tools…
5.8 Improve referral/authorization/precerts…
5.10 Improve COSMOS management reporting…
External
Point-of-View
Executive
Review
0.1 - 0.2
0.1 - 0.2
0.5 - 1
0.5 - 1
0
Manage Delivery Capacity
2.1 Support pull-through strategy…
2.2 Better manage provider contract terms…
2.3 Model provider locations…
2.4 Track contracts more closely…
2.5 Innovate new reimbursement models…
2.6 Roll out provider profiling…
2.7 Enhance Q-Star to support providers
Deliver Health Care Products and Services
4.1 Coordinate health improvement initiatives…
4.2 Triage members and channel them…
4.3 Develop outcomes management strategy…
4.4 Enable doctors to perform HRAs…
4.5 Develop Proactive Interventions…
4.6 Improve case management capability…
4.7 Better match transitions and transactions across Allina…
4.8 Improve disease management capability…
Gap Analysis
Allina
Barriers to Change
Summary of Issues
Information
Length of Project (months)
Operations
Maturity
Model™
Performance
Health
Project Cost Range
(Early estimate in Millions)
IT Capability
Service
Develop Products and Services
1.1 Predict local market changes…
1.2 Assess internal execution capabilities…
1.3 Design more flexible products…
1.4 Segment population better…
1.5 Communicate during product development…
Business Process Area /
Change Initiatives
Summary of IT Capabilities (Summer 2000)
Risk of Ability to Implement
Margin/Growth
Target
Operating
Model
Improve Employee Service
Financial
Analysis
“What must we change to?”
Improve Customer Service
“What needs to change?”
Organization and One-Time Costs
26
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
© 2005 Accenture All Rights Reserved.
27
RUNNING OUTSOURCING
Framework
Key Principles
Common Objectives & Goals
• Delivery Model is based on
several key components
Governance
• Common objectives & goals
• End-to-End governance structure
Contract, SLA, OLA, KPI, MBO
Methods, Standards, and Tools
LOCAL
Common Processes
Projects Reporting & Status Tracking
• Multi-level team organisation
SPOC
NEAR-SHORE
SPOC
OFF-SHORE
• Leveraged core competencies
and skills
• Formalised SLAs, OLAs, KPIs
• Forum for engaging multiple
sources in the key processes of
communication, coordination and
integration
• Optimize global resources
• Encourage collaborative working
• Leverage technology to enable
business strategy
Client
Accenture
Skill Pool
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AMP
+…
• Establishes a single point of
responsibility for entire
relationship.
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RUNNING OUTSOURCING
Common Objectives & Goals
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29
RUNNING OUTSOURCING
Standard Methodology & Tools
PLAN
SUPPORT TOOLS
ANALYZE
DESIGN
AAB IT & Security Policies & Standards
SDM Estimator
Deliverables Library & Template
SBP Standards & Methods
Project Deliverables Repository
SBP Configuration Manual
Accenture Knowledge Exchange
© 2005 Accenture All Rights Reserved.
BUILD
TEST
DEPLOY
30
RUNNING OUTSOURCING
Common Organization Model
Joint
Management
Sample
Local Deployment Teams
Local Deployment Team
Development Center
Service Mgt &
Support Office
Local Project
Manager
Off-Site Coordinator
Business Lead
(Change Manager)
Unit Manager
Staff Functions
Deployment Support
Team
Solution Delivery Team
Functional Architect
Technical Architect & Associate Manager
Configuration
Specialists
Table Management & Application Customization
Gap Management
Mercator Application Integration Team
Local Design &
Acceptance Team
Conversion Lead
Operational
Readiness Lead
Data Migration Team
Conversion Support Team
Documentation
Vendors
Near
Off
Other
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Data Migration & Deployment Tools
Service Delivery
Partner
Application
Management
Partner
Test & Release Team
Test Team
Release
Management
Development Support
Team
Environment & Dev
Tool Mgt.
Configuration
Management
Client
IT Security, Audit
& Compliance
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RUNNING OUTSOURCING
Common Processes
Local
Near-Shore
Off-Shore
Scope Work-Stream
Config. Components
Configuration Workshops
& Detailed Specification
Management Sign Off
Support & QA
Specifications
TP
Perform Detailed
Configuration Design &
Prepare Work Package
Functional
Design
Check List
TP
Technical Review &
Interface Impact Analysis
Technical
Design
Check List
Build
(Configure & Code)
Support Build Process
Prepare UAT
Product & User
Acceptance Test
Support Build & Validate
Test
TP
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Component Test &
Documentation
Work
Package
Check List
Product
Delivery
Check List
QA Solution
Prepare Assembly & NonRegression Test
TP
TP
Component &
Quality
Check Lists
Execute Assembly & NonRegression Test
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Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
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33
Next Steps in Outsourcing
• Outsourcing will continue to grow, mainly for BPO…
• Services will become more standardized, creating new
norms
• New service providers will appear in Eastern Europe and
China
• Asian players will move on-shore and compete head-on
with traditional local players
• Local regulations will continue to be opened up to
support cross-border services
• Politics will start to address increasing social issues and
concerns
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34
Questions
?
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35