- 1. Business and Legal Structures for Outsourcing Success
February 19, 2006 Chas R. Mullins Managing Director, neoIT
2. Agenda
-
- Fundamentals in Structuring Outsourcing Engagements
-
- Factors that effect your successful Outsourcing Initiative
-
- Implementing a Successful Outsourcing Initiative
-
- Governance, what is it and why is it important
-
- Critical Success Factors and Key Take Aways
3. Offshore Strategy Framework/Alignment Company Culture
Affinity for outsourcing & globalization including past
experiences Quality Need for consistent quality and service levels
Risk Manage stability, security, privacy, volatility, etc. Control
Ownership preference as influenced by risk & culture factors
Cost Savings Need for reducing cost or fundamentally altering
business model Corporate Strategy Business plan, goals and results
expected-acquisition, cost structure, growth, flexibility, risk
aversion, profitability, cash etc. Social Responsibility Issues
related to job loss,globalization, employee upheaval, etc. Industry
Activity Offshore actions ofcompetitorsand industryplayers 4.
Strategic Globalization Process Analyze Portfolio Manage Acquire
Information Develop Strategy Select Geography, Partners
Source/Build/ Acquire/Partner Contract Transition Adopting Process
For Globalization Vital For Success 5.
- Knowledge > Plan > Source > Manage
- Optimizing Savings, Control, Quality and Risk
Lifecycle Approach: O4 SMMethodology Tasks Goals Source:neoIT O4
Methodology Phase 3: Source & Build Phase 4: Manage Phase 2:
Plan Phase 1: Knowledge
- Conduct scripted walk-through
- Conduct bidders conference
- neoQA-based Due Diligence
- Contract structuring and negotiation
- Alternatively for ownership options
- Determine performance impact of transition
- Define and implement processes for issue and risk
management
- Manage: performance, relationship, contract, resource and
financial management
- Offshoreability assessment of current portfolio
- Strategic evaluation of offshoring options
- Identification of candidates and locations
- Ensure senior level sponsorship
Understanding the Offshore Opportunity; Knowledge to help you
make the right decision and avoid the wrong ones A Strategic
Offshore Blueprint; Answer the Questions of What, Why, When and
Where Selection of vendor and negotiated contract specifying rules
of engagement Ongoing contract governance and program management to
ensure performance and the realization of the projected benefits 6.
O4 Methodology Source: neoIT 7. A Structured Approach
- Ensures a long term view of goals and objectives
- Allows for effective vendor rationalization and spend
allocation
- Ensures effective mapping of requirements to market/supplier
capabilities
- Allows for orderly transition and migration from staff aug to
project outsourcing
Portfolio Assessment MSA Review Vendor Strategy Sourcing
Strategy Governance Framework
- Links performance to pricing
- Incorporates productivity improvement
- Incorporates multi-geographic, multi-tier pricing
- Mitigates rate increases by negotiating long-term pricing
- Identifies domestic vendors by geography
- Identifies Tier 2 vendors by geography to ensure healthy
competition with Tier 1
- Determines ability of Tier 1 offshore vendors to deliver from
varying geographies
- Determines vendors that perform work across the company, for
individual SBUs
- Defines consistent sourcing process for SBUs, reducing sourcing
cycle
- Defines target supplier mix (Tier 1, Tier 2, MNC) for each
sourcing process to generate leverage
- Allows vendor visibility required to provide optimal
solutions
- Ensures consistent performance and quality tracking across the
organization
- Allows for effective knowledge and best practices transfer
among SBUs
- Ensures effective measurement of programs efficacy
Components of a Structured Approach 8. Agenda
-
- Fundamentals in Structuring Outsourcing Engagements
-
- Factors that effect your successful Outsourcing Initiative
-
- Implementing a Successful Outsourcing Initiative
-
- Governance, what is it and why is it important
-
- Critical Success Factors and Key Take Aways
9. Are You Ready for Globalization? Globalization Risk Tolerance
Index Indicates the organizations ability to prepare for, mitigate
and possibly withstand potential risk factors Globalization
Objectives Index Indicates clarity around the benefits of
offshoring and the factors that influence globalization decisions
Globalization Alignment Index Indicates the companys ability to
implement globalization best practices IT FINANCE OPERATIONS HR
LEGAL / COMPLIANCE CUSTOMER SERVICE Corporate Strategy Company
Culture Industry Activity Quality Control Cost Savings Risk Profile
Social Responsibility Source:neoITs Globalization Readiness Index
10.
- Misalignment of corporate and globalization strategy
- The internal battles and protection of turf
- No internal expertise in outsourcing or global sourcing
- Underestimating the hidden costs of globalization
- Inadequate evaluation of how to manage the potential risks
involved
Why its Important to be Prepared And these are only a few
examples 11. Globalization Strategy - Essential to Have a
Globalization Roadmap
- Third party supplier relationships
neoIT GSR Framework Application,Process PortfolioAssessments
Financial Assessments Goals, Objectives, Risk, Transformation needs
Supplier Landscape, Market Capabilities
12. Globalization Strategy - Defining the Roadmap
- Asking the right questions
-
- What: prioritizing the processes
-
- Where: understanding and choosing a global location (onshore,
offshore, nearshore)
-
- How: deciding on an ownership model
-
- When: building a migration plan
Globalization Strategy 13. What: Evaluating the Offshoreability
Offshoreable Processes will cut across each layer Migrate 14. What
Prioritizing the Processes Globalization Matrix Source:neoIT
Assessment Methodoloy 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 30.0
40.0 50.0 60.0 70.0 80.0 90.0 100.0 Qualitative Scores Quantitative
Scores Process 2 Process 1 Process 3 Process 4 Cluster N HIGH
[Identify Quick-Hits] LOW [Not Targeted] DISAGGREGATE [Long-Term
Planned Transformation] AGGREGATE [Selective Sourcing] 15. Where
Defining the Location LowMediumHighIndia Philippines China Hungary
English Proficiency Cultural Compatibility Quality Cost Advantage
Educational System Infrastructure Labor Pool Government Support
Poland Czech Republic Ireland Canada Russia BPO 16. Where: Global
Sourcing Location Strategy Onshore Nearshore Offshore On-site Team
Off-site Team Off-site Team Off-site Team PMO 17. How Making the
Ownership Decision Transition Time Short Long Upfront Investment
Limited High Build Operate Transfer (BOT) Third-Party Dedicated
Center Joint Venture Captive Requirements Control Limited Full
Value Capture Limited High Build Operate Transfer (BOT) Third-Party
Dedicated Center Joint Venture Captive Benefits 18. When Execution:
Transition Waves Time Start-up costs decline with maturity and
steady state is reached sooner Rate of Return Complexity of Process
Wave 1 Wave 2 Wave 3 19. Agenda
-
- Fundamentals in Structuring Outsourcing Engagements
-
- Factors that effect your successful Outsourcing Initiative
-
- Implementing a Successful Outsourcing Initiative
-
- Governance, what is it and why is it important
-
- Critical Success Factors and Key Take Aways
20. Process Flow The difference in Offshoring is the nature of
the dynamic variables that severely impact offshore sourcing
outcome Launch Project Finalize Requirements Develop and Issue RFP
Contract and Implement Conduct Due Diligence Select and Notify
Suppliers Evaluate RFP Responses Select Finalists and Conduct
Negotiations Manage Stakeholders (Internal and External) Sourcing
Process Source 21. Evaluating Vendor Options Carreker, TRW,
MasterCard Inautica, Sitel, Aviva, P&O Nedloyd GE, Amex,
Standard Chartered, AXA Pure Play OffshoreBPO Transaction Joint
Venture Captive CenterACS, Accenture, IBM, Convergys Convergys,
Hewitt Infosys, Satyam, Patni, HCL, Wipro EXL,WNS Spectramind,
Daksh, ICICI One Source, HTMT Competitive Landscape Pure Play
OffshoreBPO ContactGlobal Pure Play Process Global IT
servicesVendorsOffshore IT ServicesVendorsBOT/BTO 22. Align Key
Supplier Selection Criteria with Overall Strategy Sources:Gartner
,neoIT 23. Best Practices: Supplier Due Diligence Culture of
CompanyDomain Experience Performance History Human Resources /Labor
Pool Project Management Productivity History Company Culture Fit
Market Reputation Infrastructure Transition Process Onsite-Offshore
Mix Risk Control Approach KnowledgeManagement Tools Quality of
personnel Commitment of Company Overall Ability Deal Terms Service
Levels Geographic Profile Transition Success Strategic Economic
Impact ProcessImprovement Minimum Client Impact Risk Mitigation IP
Retention Reduce Cost Increase Capacity Maintain Quality Improve
Process StrategicObjectives Tactical Objectives Evaluation Criteria
Client Team fully engaged 24. Sample Decision Model Source 69.00
100 43 60 29.5 45 45 60 18.5 30 30 45 41 60 Supplier 5 67.33 100 47
60 27.5 45 40.5 60 17 30 26 45 44 60 Supplier 4 66.67 100 38 60 31
45 38.5 60 22.5 30 33 45 37 60 Supplier 3 72.33 100 33 60 29 45
43.5 60 26.5 30 37 45 48 60 Supplier 2 0.00 100 0 60 0 45 0 60 0 30
0 45 0 60 Supplier 1 Actual Scored Total Weight Actual Wt Total Wt
Actual Wt Total Wt Actual Wt Total Wt Actual Wt Total Wt Actual Wt
Total Wt Actual Wt Total Wt Total Components Experience in Similar
Projects Resource Capability Organizational & Business
Qualifications Performance & Risk Mitigation IT & Physical
Infrastructure Solution Proposed Parameters Scores 25.
Implementation Support Knowledge Acquisition Reverse Knowledge
Transfer Knowledge Transition Knowledge Acquisition Reverse
Knowledge Transfer Knowledge Transition Knowledge Acquisition
Reverse Knowledge Transfer Knowledge Transition Management
Checkpoint Management Checkpoint Management Checkpoint
StrategyPeopleOperationsTechnologyCompliance Complete Portfolio
Planning Time Achieve Steady State Stakeholders Involvement
Steering Committee Involvement Wave 1 : AccountingWave 2 :
MarketingWave 2 : Procurement
- Strategic Goals alignment
- Executive Sponsorship support
- Shared vision for objectives
- Team staff and skill allocation
- Onsite / offshore relationships
- Knowledge transferand documentation
- Governance processes effectiveness
- Work process flow documentation and effectiveness
- Retained organization processes effectiveness
- Network and bandwidth needs
- Redundancy and Latency requirements
- Regulatory Requirements compliance
- Existence of Controls, Checks and Balances
26. One Organizations Global Sourcing Story
- Case Example: A F500 Health & Life Insurance Company
-
- Very fragmented and inefficient life claims process. No
existing manuals or desktop procedures. Each examiner had their
version of the process and how the claim amount should be
calculated
-
- Organization bogged down in paper-based calculations full of
errors, and no audit trail
-
- Process output/productivity, accuracy and efficiency were not
tracked
-
- Unable to leverage systems and knowledge to compete in the
market against new players
Guaranteed CostReduction Guaranteed ServiceLevels &Proven
Technology Flexibility & Productivity &Strategic Role
Futurizethe BusinessCFO Value Bottom Line Impact 45% Reduction
Increased Performance 17.3% on SLAs Strategic Focus ManageFuture
Costs CIO CEO 27.
- Poor Transition/ Governance.
- Failure to achieve outsourcing process maturity
- Weak process/process mismatch between supplier &
client.
- Organization/internal customers-resistance to outsourcing.
- Low employee morale low productivity
- Internal staff project sabotage
- Lack of supplier understanding of client business
environment
- Inadequate performance management
- Incorrect/ no job profiling
Security Time zone differences Country infrastructure Management
challenges Cultural differences Distance to vendor Vendor stability
Geo-political concerns Internal Risks most overlooked External
Risks Internal Risks External Risks Challenge is Recognizing &
Managing the Various Globalization Risks 28. Assess Operational
Efficiency
- Understand business challenges
- Review and analyze operations
- Improve critical communications
- Compare current state with best practices
- Develop process improvements
- Align executives and corporate strategy
- Determine ROI and cost improvements
- Define a roadmap for the future
Healthcheck Framework Assessment of the key objectives will map
current and future performance levels, and to current and future
risks STRATEGY PEOPLE OPERATIONS TECHNOLOGY RISK & COMPLIANCE
and ensures you will avoid the common pitfalls in globalization 29.
Agenda
-
- Fundamentals in Structuring Outsourcing Engagements
-
- Factors that effect your successful Outsourcing Initiative
-
- Implementing a Successful Outsourcing Initiative
-
- Governance, what is it and why is it important
-
- Critical Success Factors and Key Take Aways
30. What is Governance?
- Includes active involvement offunctional managers and managers
from allied services like legal, finance, HR, Infrastructure etc
.
Governance is not mere contract management but is a business
process and structure to continuously ensure that the
organizational objectives are realized 31. Need For Governance
- Often heard statements from client side:
- Not happy with quality of delivery
- Why is there so much turnover?
- Lack of visibility into resource availability
- Not convinced of productivity and performance levels
- What is the delivery process?
- Miscommunications due to differences in culture
- Not sure of value of outsourcing
32. Need For Governance
-
- Often heard statements from the supply side:
-
- Not honoring small commitments which lead to failure in larger
ones as well e.g Monday deliverable slips to Tuesday etc.
-
- Buffer resources not maintained according to contract
-
- High attrition rate in the vendor team
-
- Contract Service levels are no longer relevant in current
operating model
-
- Holiday in India and onsite is unaware!
-
- Applications footprint not updated over time
33. Governance Model/Framework Expect to invest 5-8% of total
spend in governance
- Service levels monitoring, reporting
- Offshore workload management
- Process flow for onsite/offshore delivery
Performance Management
- Change management to base model
Financial Management Contract Management
- Reformulate service levels for relevancy
Resource Management
- Conserveknowledge transfer
Relationship Management
- Client of choice initiatives
34. Establishing a PMO Contract Management
- Reformulate service levels for relevancy
Financial Management
- Change management tobase model
Performance Management
- Service levels monitoring, reporting
- Offshore workload management
- Process flow for onsite/offshore delivery
Relationship Management
- Client of choice initiatives
Program Management Office (PMO)
- Ensure Offshoring Program Success
- Set Strategic Direction for the Program
- Manage Vendor Relationships
Resource Management
- Conserve knowledge transfer
35. Need For Governance
- Most common reasons for failure to achieve full potential in
offshoring
-
- Lack of executive focus after contract signing
-
-
- Change of guard at client executive team
-
-
- Change of client business drivers
-
- Lack of monitoring of performance and deliverables
-
-
- Other performance criteria besides service levels
-
-
- Quality of service maysuffer
-
-
- Lack of enforcement leads to complaisance
-
- Objectives morphi.e, lose track of original objectives for
offshoring
-
-
- Other than financial quality improvements, process
reengineering
36. A Framework for Managing RiskTime Readiness Start-up Ramp-up
Steady-state Stage 1 Geo-political Country Socio-economic Internal
Due diligence Stage 2 CulturalLanguage CommunicationsHuman Capital
Legal/Contractual Stage 3 Infrastructure Knowledge Xfer Change
Management Portfolio Mgmt Scope Change Project/Process Risk Stage 4
BCP/DRP SecurityPrivacy Pricing Treasury Stage 5 Exit Plan
Resources Exit* * may be by design or on contingency 0% 100% T T-6
T+6 T+12 T+18 37. Program Governance Area:Performance Management -
Focus on Day-to-Day Operations Key Issues Addressed:Proper QA
process, Workload scheduling, Compliance to terms, Process
improvementsKey Activities Benefits
- Analyze trends in Service Levels
- Reorganize work process flow for offshore delivery
- Monitor QAprocess improvements
- Review workload distribution across resources
- Recommend productivity enhancements
- Perform monthly operations review
- Early indications of problems
- Forecast of shift scheduling
- Maintain focus on quality improvements
- Consistent level of performance levels
- Optimal utilization of resources
- Implementation of global delivery model
Engagement Model
- Frequency:Weekly status calls and monthly operations
review
-
- Supplier: Provide reports covering service levels and analysis
of key trends / improvement areas
-
- neoIT: Review progress, analyze results and suggest areas of
improvement
-
- Client: Ensure Supplier has proper support to plan for
necessary process improvements
Governance: Performance Management 38. Key Activities Benefits
Engagement Model Program Governance Area:Resource Management
Ensures appropriate staff and skill-sets are utilized properly Key
Issues Addressed:Workload scheduling, Compliance to terms
- Review resource profiles for recruitment
- Monitor on-boarding process
- Ensure smooth transition of key resources
- Review attrition figures and retention strategies
- Monitor skills/new process training
- Assist in employee recognition programs
- Right resource for the right job
- Early on the job productivity
- Process specific delivery not people specific
- Knowledge management built for future transitions, if any
- Prepare offshore for growth and moving up the value chain
- Increase individual productivity
- Loyalty to the engagement
-
- Supplier: Provide reports on resources including profiles,
attrition and future staffing plans
-
- neoIT: Review staffing plans and ensure it meets
objectives
-
- Client: Identify skill-set changes due to process re-design or
enhancements
Governance: Resource Management 39. Key Activities Benefits
Engagement Model Program Governance Area:Contract Management
Enforces Terms & Conditions which agreed to by all parties and
suggests updates contract when necessary Key Issues
Addressed:Proper QA process, Compliance to terms, Business
Continuity Assessment
- Track adherence to Service Levels
- Redefine Service Levels for relevance
- Review Disaster Recovery/Business Continuity planning /
testing
- Review compliance to insurance requirements
- Ensure HIPAA compliance/data security
- Track volume levels for pricing model triggers
- Monitor sufficiency of connectivity/infrastructure
- Ensuring Service Levels are a true reflection of vendor
performance
- Recommend new Service Levels for raising the bar
- Ensure planning for 24/7 365 days operations
- Achieve next level of economy of scale of outsourcing
- Ensure offshore center availability
- Frequency:Monthly review as needed; Quarterly on most
occasions
-
- Supplier: Ensure contractual commitments are met
-
- neoIT: Provide oversight and periodically review operations to
ensure contract compliance
-
- Client: Redefine Service Levels in case of system or process
changes, if needed
Governance: Contract Management 40. Key Activities Benefits
Engagement Model Program Governance Area:Financial Management
provides a proper checks and balance system as well as assurance
that financial goals are being met Key Issues Addressed:Compliance
to terms, Growth planning
- Facilitate renegotiation of pricing model when triggered by
volumes
- Validate one-time expense allocations
- Help modify pricing model for moving up the value chain
- Track financial results to base case
- Value for money, quality, flexibility
- Industry benchmarking of market rates
- Proper utilization of allotted one-time costs
- Understand if financial goals are being realized
- Frequency:Monthly review, Quarterly for financial results
-
- Supplier: Ensure proper invoicing based on rate table
-
- neoIT: Ensure pricing structure is adhered to based on
agreement, quarterly financial results benchmarked to base
case
-
- Client: Provide timely delivery of payments; provide quarterly
financial reports
Governance: Financial Management 41. Key Activities Benefits
Engagement Model Program Governance Area:Relationship Management -
Allows for Alignment of Goals and Objectives for All Stakeholders
Key Issues Addressed:Issue resolution, Process improvements, Growth
planning
- Maintain vendors focus on client as Client of Choice
- Ensure continuity ofclear organization escalation path on both
sides
- Track issue logs and days to closure
- Clear up any cultural miscommunications
- Facilitate offshore-onsite interactions
- Executive level of vendor remains involved on engagement
- Avoid issue accumulation due to executive level changes
- Seamless integration of client and supplier
-
- Supplier: Ensure continuous delivery of value to Client
-
- neoIT: Promote one team culture across all stakeholders
-
- Client: Include all parties in key decisions impacting
operations (where applicable and necessary)
Governance: Relationship Management 42. Inaction leads to course
corrections and reassessments midway through initiatives
- Service Providers We need to reduce time on managing Service
Providers
- Ensuring Best Practices are applied
- Providing similar internal relationship management
structure
- Slippage in Project Deadlines
- High amount of re-work arising from quality issues or from
output alignment
- Lack of proper work estimation How can we minimize the
iterations on our work estimates?
- Poor Quality Assurance & Control
- Communication styles There always seems to be misinterpretation
on what the output looks like
- Work styles They never question us on things
- Lack of visibility I dont know if the resources I have can do
more work within the contracted time
- Limited reporting capability
- Minimal oversight at the service provider location
We need to improve our credibility to deliver Potential
Challenges Process Sharing andEfficiency Delivery Issues Cultural
Differences Resource Utilization 43. Key Governance Activities
-
- Personal interaction/email/phone calls
-
- Weekly scheduled conference calls with vendor
-
- Regular conference calls with client management
-
- Monthly Operational reviews at vendor delivery location
-
- Facilitate quarterly client audits
-
- Client visits to vendor delivery location
-
- Annual performance and contract reviews
-
- Issue resolution ongoing basis
44. The Results
-
- Improved Quality and Service
-
-
- Faster cycle times were achieved and claims arenow resolved
more quickly via a "follow-the-sun"time-zone approach to work
shifts
-
-
- Improved quality of internal processes and service levels
-
-
- Improved business continuity by desegregating the work across
global physical centers
-
-
- Dramatic cost savings, breakeven by 7 months and 37 % by month
15.
-
- Access to Global Resources
-
-
- Access to the best talent in the world
-
-
- Additional flexibility to scale up and down based on market
demands
-
-
- Access to global markets:many clients are multinational in
nature and an in-country presence is often required to sell
products and services
45. The Challenges Along the Way
-
-
- Integrating onshore and offshore teams
-
-
- High levels of end user contact required
-
-
- Data Privacy and Security
-
-
- Location infrastructure immaturity
46. Steady State Activities
Program Management AreasClosure review SL trend analysis SL
measurement Quality issues Workload distribution Timekeeping/
reporting Performance Management Benchmarking reviews Annual
performance reviews Issue resolution as needed Quarterly contract
reviews Monthly operation reviews Weekly calls Emails/phone calls
Teaming between client and vendor Bridge the communication gap
Educate both on missed nonverbal cues Review invoices Changes to
base case Budget vs actual spend Productivity improvements
Contractual impact Key personnel Updating application footprint
Physical and data security DR/BCP testing, site review Productivity
On-boarding process Buffer, retention rates Training and experience
level Skills forecast and update Personal interaction Relationship
Management Financial Management Contract Management Resource
Management 47. Agenda
-
- Fundamentals in Structuring Outsourcing Engagements
-
- Factors that effect your successful Outsourcing Initiative
-
- Implementing a Successful Outsourcing Initiative
-
- Governance, what is it and why is it important
-
- Critical Success Factors and Key Take Aways
48. Best Practices - Defining the Business Case Company Culture
Affinity for outsourcing & globalization including past
experiences Quality Need for consistent quality andservice levels
Risk Manage stability, security, privacy, volatility, etc. Control
Ownership preference as influenced by risk & culture factors
Cost Savings Need for reducing cost or fundamentally altering
business model Corporate Strategy Business plan, goals and results
expected-acquisition, cost structure, growth, flexibility, risk
aversion, profitability, cash etc. Social Responsibility Issues
related to job loss,globalization, employee upheaval, etc. Industry
Activity Offshore actions ofcompetitorsand industryplayers
Globalization Strategy & Readiness Framework Source:neoIT
-
- Ensure that business strategy drives services
globalization
-
- Why are you looking at globalization?
-
- What part of your business strategy does it help you
execute?
-
- Is the organization ready for this?
49. Best Practices - Striving for Optimum Balance Risk Cost
Savings Quality Control Sourcing Objectives 50. Best Practices -
Envisioning the End State F&A IT Customer Service Marketing
Supplier B Supplier A HR IT Customer Service Supplier C Customer
Service China? Marketing Supplier D Supplier E Captive 3
rdParty
- Process/sub process allocation
- Market/Supplier expertise
Internal 51.
-
- Share a belief that planning and lifecycle management is
important to long term success
-
- Believe that a rigorous process, models and data should drive
decision-making
-
- Develop a long term road-map and governance ensures adherence
to plan
Best Practices - Adopting a Rigorous Lifecycle Approach 52. How
to Best Leverage Global Sourcing!
-
- Ensure internal alignment and support at the executive
management layer is obtained to seriously evaluate offshoring
-
- Develop a strong project team made up of A players
-
- Get organized up-front and begin with the end in mind
-
- Focus on the real business objectives and how sourcing
(outsourcing and offshoring) can help address them
-
- Develop the approach and process to survey the market and
execute
-
- Build a Business Case through an assessment
-
- Dont approach the marketplace until you are prepared
-
- Manage risks and culture on ALL sides of the ocean
53. Critical Success Factors
-
-
- Organization needs to undertake a realistic internal assessment
of their ability and readiness to pursue and scale-up complex
initiatives
-
-
- PMO Owner is ultimately accountable for success of offshore
initiative
-
-
-
- Ensures accountable resources are identified for project
management and execution
-
-
-
- Ensures execution synchronization of schedules and plans for
all project constituents
-
-
-
- Ensures synchronization and linkage with the Client Business
and Operations groups
-
-
- Program Leadership has responsibility for communicating
aggregate project reporting, risk and issue escalation
-
-
-
- LOB IT must determine what technology related measures must be
tracked, measured and communicated regarding progress on off
shoring
-
- Leverage Role of Influencers
-
-
- While nominating manager/individuals to staff appropriate
-
-
-
- Partnership developed through clear definition of roles and
responsibilities at project level
-
-
- Senior level involvement and attention dwindles over time,
typically in the 2 ndyear (known as the the steady state)
-
-
- Despite comprehensive plans, contractual clauses for service
provider to enhance productivity and to provide additional value,
such obligations are neither proactively monitored for positive
results nor are they pursued
-
- Definition of Roles & Staffing of Governance Team
-
-
- Role definition needs to permeate beyond the three layers of
governance (Organizational, Functional, Operational)
-
-
-
- Each team member has a defined role and set of responsibilities
that outlines their contribution to ensure effective relationship
controls and performance
-
- Investment in time and effort
-
-
- Operating staff and management should allocate approximately
15% to 28% of time and effort
-
-
- Management Level (CXO) should allocate approximately 5% of time
and effort
-
- Adequate Governance Budget
-
-
- In addition to time and budget, organizations should budget
approximately 5% to 8% of their overall initiative expenditure on
governance
54. 4 Key Take Aways
-
- Lack of attention can lead to costly setbacks for globalization
initiatives
-
- The globalization industry is constantly changing
-
- Adopt a rigorous Globalization Lifecycle
-
- A healthy globalization initiative requires a strategic check
that accounts for strategy, people, operational, technology and
compliance components
1 1 1 2 1 3 1 4 55. Contact Information Chas R. Mullins Managing
Director [email_address] 816.213.1171 neoIT Global Headquarters
2603 Camino Ramon, 2nd Floor San Ramon, CA 94583 USA neoIT Asia
Headquarters 210, Bellary RoadUpper Palace Orchards Bangalore - 560
080 India neoIT Philippines 8/F Pacific Star Building Senator Gil
Puyat Ave. cor Makati Ave. Makati City, Metro Manila, 1200,
Philippines 56. Key Assessment Questions - HR
-
- Expatriate policy (process checklists/ agreements/service
delivery)
-
- Expatriate pay (compensation, benefits, allowances, contracts
?
-
- Foreign national staffing/ search
-
- Foreign national compensation & benefits
-
- Foreign national orientation, training, communication
-
- Foreign national performance management
-
- Foreign national succession/human resource planning
-
- International Travel Policy & Security
Does the company have international HR capabilities or vendors
to manage the following areas? Source:Foote Partners Q Q 57. Key
Assessment Questions - Support
What is the level of support for offshore outsourcing from the
following? (none very high) Is this plan to offshore outsource
sponsored by top management in conjunction with middle management?
Source:Foote Partners Q Q Q Q 58. Key Assessment Questions -
History
-
- Lack of user buy-in/acceptance
-
- Lack of executive sponsorship
-
- Vendor issues: insufficient resources, inexperienced
planning
-
- Poor planning / change management
-
- Deficiencies in coordination between team organization and
task(s) execution
-
- Role confusion or ambiguity on project teams
-
- Unclear definition of client / supplier roles
-
- Resources pitched in a contract are not same working in
deal
-
- Training program mismanagement
-
- Transition resources not hired
Is there evidence of any of the following in the history of
significant projects, transitions, or change efforts in your
company?Source:Foote Partners Q Q 59. Key Assessment Questions -
Offshoring Competency
-
- Does your company have an extremely lean staff?
-
- Has your companysuccessfullymanaged an offshore project?
-
- Has your companysuccessfullymanaged an outsourcing
project?
-
- Has your companysuccessfullylaunched an international
subsidiary?
-
- Does your company have existing operations in offshore target
countries?
-
- Does your company have access to an experienced and
competent:
-
-
- Internal organizational development staff?
-
-
- Employee communications staff?
-
- Does your company have global management experience in:
-
-
- Intercultural training and teambuilding?
-
-
- Managing distance/distributed functions?
Have any of the following occurred in your company?Do any of the
following represent accurate depictions? Source:Foote Partners Q Q
60. Key Assessment Questions
-
- Comprehensive HR strategy for offshore outsourcing
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- HR risk assessment for offshore outsourcing
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- International Human Resources assessment for offshore
outsourcing
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- Change readiness assessment for offshore outsourcing
-
- Organizational change management assessment for offshore
outsourcing
-
- Organizational risk assessment for offshore outsourcing
-
- Comprehensive organization strategy for offshore
outsourcing
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- Communication strategy and management for offshore
outsourcing
-
- Communication risk assessment for offshore outsourcing
Has your company accomplished the following? Source:Foote
Partners Q Q