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Outsourcing Partnership Shared Perspectives. Introduction This is a presentation based around an...
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Transcript of Outsourcing Partnership Shared Perspectives. Introduction This is a presentation based around an...
Outsourcing Partnership
Shared Perspectives
IntroductionThis is a presentation based around an outsourcing project I have participated in within the last year. This isn’t a sales pitch for a vendor.This IS a talk about the challenges I have faced from inception through to the day to day running of the relationship.This will be useful for anyone who is about embark on their own outsourcing/ relationship journey
What are you looking forOutsourcing? Partnership?
•How much appetite/ capability do you possess for managing a day to day relationship?•How much appetite/ capability do you possess for managing a day to day relationship?
Why are we doing it Remove constraints on skill and FTE demand requirements to
address additional testing areas (e.g. non functional testing)
Gain a greater and more efficient access to tooling and automation
Gain greater and more efficient access to test consulting
Allow internal capability to focus on the Intellectual Property (IP) of running the NFUM core business and move their contribution up the value chain
To provide flexibility to address variable demand across a number of testing phases/requirements for additional testing areas
Achieve long term cost efficiencies for additional testing areas
What are we doing Assess
Tangible and measurable results of alternative approaches
Robustness and flexibility to stand the test of time
Measure
Performance of the testing model using KPIs (e.g. productivity, quality, timeliness, reporting, Others – downtime, support effectiveness, effectiveness of knowledge management, etc)
Ability to meet common or specific business need
Validate
Phased approach driven by maturity levels to minimize risk and disruption, but significant enough to deliver benefit (i.e. not a body shopping exercise)
How are we going to do it
Using all the work done to date formalise the activities to achieve an informed and tangible closure
Create a simple capability assessment document, this should also include details of POCs dates and potential size etc
Identify a specialist suppliers that could work in partnership to help develop the best strategy moving forward.
Use existing capability statements to help develop the understanding of viable models and help formulate an initial strategy
Formalise engagement with these specialist suppliers, and in collobration allow them to demonstrate their tangible capabilities evidenced by maturity in the models by using real life examples (in the insurance space)
An implementation plan for formalised POC(s) with a selected supplier
Verify the selection based on results of the POC(s)
Our Journey
The selection processQualifying your selectionLiving the relationship.
The Selection Process
A simple scoring matrix to gain hard and tangible results
A simple commercial assessment model to compare one partner with another etc.
Evaluation criteria should be developed prior to engagement to ensure honest and independent evaluation of partners
Set common challenges for suppliers to overcome via the capability statement, which can then be used for tangible evaluation
Suggestions of common challenges faced elsewhere.
Status
Oct 08Oct 08 Oct 15Oct 15 Oct 22Oct 22 Oct 29Oct 29 Nov 05Nov 05 Nov 12Nov 12 Nov 19Nov 19 Nov 26Nov 26 Dec 03Dec 03 Dec 10Dec 10 Dec 17Dec 17 Dec 24Dec 24
Overall GovernanceOverall GovernanceOverall GovernanceOverall Governance
Activity InitiationActivity Initiation
Capability StatementCapability Statement
Establish Contractual & Commercial FrameworkEstablish Contractual & Commercial Framework
Stakeholder Engagement
Stakeholder Engagement
Kick-off Meeting 25/10/07Kick-off Meeting 25/10/07
Pipeline DemandPipeline Demand
Selection Timeline
Supplier NDAsSupplier NDAsSupplier NDAsSupplier NDAs
Start to issue Supplier H/L CapabilitiesStart to issue Supplier H/L CapabilitiesStart to issue Supplier H/L CapabilitiesStart to issue Supplier H/L Capabilities
Supplier AssessmentsSupplier Assessments
Identify POCsIdentify POCs
Set Customer/Demand Makers ExpectationsSet Customer/Demand Makers Expectations
Collate Commercial InformationCollate Commercial Information
Selected Supplier & POCs
Selected Supplier & POCs
Detailed POCs Plans
Detailed POCs Plans
20072007
LOI/Heads LOI/Heads of Termsof TermsLOI/Heads LOI/Heads of Termsof Terms
Detailed Service DescriptionsDetailed Service Descriptions
Checkpoint Go/No Go 21/12/07
Checkpoint Go/No Go 21/12/07
CommunicationCommunication
Current and Future Business Risk ProfilingCurrent and Future Business Risk Profiling
Team Supplier MeetingsTeam Supplier Meetings
Relevant Client Case StudiesRelevant Client Case Studies
Identify Relevant Clients 29/11/07
Identify Relevant Clients 29/11/07
Team Client ReferencesTeam Client References
Request For Process (RFP)Project ScopeProcedureBenefit RealisationSupplier History & CapabilityRequirementsRelationshipCommercial ConsiderationsExit StrategyContractual RequirementsAdd Value And InnovationFormat And Presentation Of ResponsesAudit And Control
RFP From The Vendors Perspective
• Understanding the needs of the Client
• Technology
• Domain
• Testing requirements
• Value addition
• Relevant prior experience
• Key personnel
• Key differentiators that the client can take away
• Understanding the needs of the Client
• Technology
• Domain
• Testing requirements
• Value addition
• Relevant prior experience
• Key personnel
• Key differentiators that the client can take away
Proof Of Concept (POC)ObjectiveOutcomeScopeBackground InformationMethodologyTimelinesMetricsSLAsSuccess Criteria
POC – Vendors Perspective
• First impression is the best impression
•Delivery
• On Schedule
• On Budget
• To the required standards/ quality
• Showcase
• Understanding
• Talent
• Experience
• Knowledge
• Go beyond stated client needs
• First impression is the best impression
•Delivery
• On Schedule
• On Budget
• To the required standards/ quality
• Showcase
• Understanding
• Talent
• Experience
• Knowledge
• Go beyond stated client needs
POC Scoring Matrix
Microsoft Excel Worksheet
Governance
• Effective framework to manage the relationship
• Key personnel
• Escalation mechanisms
• Conflict resolutions
• Identifying key metrics
• Account review mechanisms
• Reporting mechanism
• Change management
• Effective framework to manage the relationship
• Key personnel
• Escalation mechanisms
• Conflict resolutions
• Identifying key metrics
• Account review mechanisms
• Reporting mechanism
• Change management
Governance – Vendors Perspective
Onsite Account Manager Receiving all sourcing requirements from NFUMCoordinating to get the right fit resourcesCoordinating with NFUM Group IT Testing team to seek clarity on exact skill requirements, etc. and organize any interview that needs to be doneEnsuring agreed SLAs are met for resourcing
Relationship managementowns the business case
Program managementDrives the vision and strategic intent to a project level
Project Management
ensuring the management of project delivery on everyday basis
Operational managementensuring the technical and quality compliance during delivery of the project
key principles Transparency at all levels and forums
Periodic checkpoints, timely escalation and quick decision making
Living The Relationship
Procedures Ensuring that you have your own procedures documentedEnsuring the procedures are explained and understood PRIOR to a piece of work starting.The vendors needs to know of any unique conditions of employment.
SLAsAgreeing the terms of the SLAWhich of the SLAs will have the biggest impact on the businessWhich of the SLAs will you deal with most commonly?Have the SLAs been communicated to all the major stakeholders?
Living The Relationship
Integrating the teams Moving away from us and them Team buildingGoing as far as MT staff managing NFUM staffKnowledge retention/transfer
Between MT and NFUM Between MT staff
Moving up the value chain and away from pure staff augmentation Moving beyond Testing Service
Living The Relationship
Issue ResolutionTimely raising of issuesWillingness to work together
Confidence BuildingMetricsReviewing of work
Impact on other relationships (e.g. contractors/agencies)
Communicating potential change to other parties
Living The Relationship
Management overhead The need for a relationship owner to deal with day to day issuesEscalation pointsJuggling business as usual with vendor management
Management liberation The ability to hand over a piece of work with confidence.
GovernanceEnsuring you follow the disciplines set down in the governance documents.Being able to work to the spirit of the document rather than relying on it to resolve issues.
Living The Relationship
Moving offshoreStaff may worry about their jobsConnectivity IssuesEnsuring communication procedures are in place.Quality reviewsMetricsReporting structure agreed.
Living the relationship - measurement
Microsoft Office Excel Worksheet
The Vendors Perspective
Key Objectives To Takeaway
Honest addressing of both teams questions will give you a far more productive environmentAgreeing which metrics both companies use ensures expectations are understood and agreed, and it allows you to implement SLAs.Communication is the key to any engagement. By initially having some tough talking it allows both sides to work within agreed parameters.
Questions ?