Embed Size (px)
Citation preview
IS O
UTS
OU
RC
ING
RIG
HT
FOR
YO
UR
OR
GA
NIZ
ATI
ON
?
PRA
DEE
P A
NA
ND
SE
ETA
RE
SO
UR
CE
Sw
ww
.see
ta.c
ompa
@se
eta.
com
+1 2
81 2
65 9
301
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
012
Agen
da
•In
trodu
ctio
n•
Out
sour
cing
in th
e O
il In
dust
ry•
Val
ue O
f Out
sour
cing
•O
utso
urci
ng -
Get
ting
it R
ight
the
Firs
t Tim
e•
Con
clus
ions
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
013
INTR
OD
UC
TIO
NS
EET
A R
ES
OU
RC
ES
Turn
arou
nd, A
ccel
erat
e G
row
th
at E
ngin
eerin
g &
Tec
hnol
ogy
Com
pani
es
•O
IL &
GA
S :
Bak
er H
ughe
s, B
aroi
d C
orpo
ratio
n,
Dan
iel
Indu
strie
s,
Dre
sser
In
dust
ries,
La
ndm
ark
Gra
phic
s (H
allib
urto
n),
Num
ar
(Hal
libur
ton)
, O
FS
Por
tal,
Spe
rry-
Sun
(Hal
libur
ton)
, PG
S-T
igre
ss•
ENG
INEE
RIN
G/M
AN
UFA
CTU
RIN
G:
AirX
Cha
nger
s,
Fabs
co,
NL
Indu
strie
s, N
utte
r E
ngin
eerin
g, C
ompX
, G
undl
e/S
LT E
nviro
nmen
tal,
IKG
Ind
ustri
es,
Nat
iona
l C
abin
et L
ock,
Nut
ter
Eng
inee
ring,
Pat
ters
on-K
elle
y,
Wat
erlo
o C
ompo
nent
s•
IT/T
echn
olog
y:S
un M
icro
syst
ems,
Sci
com
, S
cand
ent,
Silic
us Prad
eep
Ana
nd
•P
resi
dent
, Co-
foun
der,
Poin
tCro
ss•
VP
Mar
ketin
g, L
andm
ark
Gra
phic
s•
Firs
t m
arke
ting
man
ager
for
LW
D/M
WD
at
Sper
ry-
Sun
•N
orth
Am
eric
an O
pera
tions
Man
ager
, a
divi
sion
of
Bak
er H
ughe
s
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
014
How
Offs
hore
Wor
k Af
fect
s Yo
ur In
dust
ry*
*And
rew
B. B
erna
rd, J
. Bra
dfor
d Je
nsen
, and
Pet
er K
. Sch
ott
Har
vard
Bus
ines
s R
evie
w, N
ovem
ber 2
004
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
015
Agen
da
•In
trodu
ctio
n•
Out
sour
cing
in th
e O
il In
dust
ry•
Val
ue O
f Out
sour
cing
•O
utso
urci
ng -
Get
ting
it R
ight
the
Firs
t tim
e•
Con
clus
ions
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
016
OIL
CO
MP
AN
IES
’ FO
CU
S1.
DIS
TIN
CTI
VE
FIN
AN
CIA
L PE
RFO
RM
ANC
E O
F AS
SET
S2.
ME
ETIN
G
ENVI
RO
NM
EN
TAL
& S
OC
IAL
OB
JEC
TIV
ES
–E
thic
al c
ondu
ct–
Sus
tain
able
dev
elop
men
t–
Empl
oyee
s –
Rel
atio
nshi
ps
–H
ealth
, Saf
ety
and
Env
ironm
enta
l–
Per
form
ance
con
trol a
nd fi
nanc
e
3.“T
HR
OU
GH
TH
E L
ENS
OF
PEO
PLE,
PR
OC
ESS
ES,
TEC
HN
OLO
GIE
S”
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
017
AS
SE
T LI
FEC
YC
LE D
RIV
EN
OVE
RA
RC
HIN
G P
RIO
RIT
IES
SO
CIA
L R
ESP
ON
SIB
ILIT
IES
, HSE
, Q
UA
LITY
, SC
HE
DU
LE, C
OST
•C
AP
EX
FOC
US
–N
ew A
sset
s: A
cqui
sitio
n,
Com
petit
ion,
“Bus
ines
s D
evel
opm
ent”,
NP
V G
row
th,
RO
CE
–D
evel
op A
sset
s: S
peed
, Tim
e to
Fi
rst C
ash,
NP
V G
row
th, R
OC
E
•O
PE
X FO
CU
S–
Pro
duce
: Net
Inco
me,
NP
V M
aint
enan
ce, C
ash
Flow
, RO
CE
–H
arve
st: N
et In
com
e, N
PV
Mai
nten
ance
, Cas
h Fl
ow, R
OC
E
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
018
PE
OP
LE, P
RO
CE
SS
, TE
CH
NO
LOG
Y
PR
OC
ES
SP
EO
PLE
TEC
HN
OLO
GY
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
019
PE
OP
LE•
Cha
lleng
e: E
xper
ienc
e E
xodu
s, B
rain
Dra
in.
•R
efre
shed
Foc
us o
n D
evel
opin
g an
d A
ttrac
ting
New
Tal
ent
–“G
enX”
–P
repa
ring
for “
Gen
Y”
–G
loba
l Wor
kfor
ce–
Div
ersi
ty
•In
trodu
cing
New
Way
s of
W
orki
ng F
it fo
r "G
enX"
and
“G
enY”
•U
sing
Tec
hnol
ogy
to W
ork
With
a G
loba
l Wor
kfor
ce &
D
istri
bute
d O
rgan
izat
ions
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0110
PR
OC
ES
S/P
RO
GR
AM
MA
NA
GE
ME
NT
•B
P’s
CV
P, M
arat
hon’
s M
PM
P•
Che
vron
’s C
PD
EP
: Che
vron
Pro
ject
D
evel
opm
ent a
nd E
xecu
tion
Pro
cess
•5-
phas
e ap
proa
ch to
def
initi
on a
nd
exec
utio
n–
Iden
tify
and
Ass
ess
Opp
ortu
nitie
s –
Gen
erat
e an
d S
elec
t Alte
rnat
ives
–
Dev
elop
Pre
ferr
ed A
ltern
ativ
es
–E
xecu
te
–O
pera
te a
nd E
valu
ate
•A
t eac
h ph
ase,
pro
vide
s go
od
defin
ition
of:
–D
ecis
ion
Mak
ers,
Del
iver
able
s, W
ork
Team
, Foc
us It
ems,
Res
ourc
es, V
alue
, M
etric
s, R
ole
of O
wne
r's P
roje
ct S
uppo
rt Te
am
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0111
TEC
HN
OLO
GIE
S•
Asse
t/Fie
ld T
echn
olog
ies
–S
eism
ic Im
agin
g-D
iffic
ult
Sub
surfa
ce E
nviro
nmen
ts–
Dee
pwat
er E
ngin
eerin
g Te
chno
logi
es-r
iser
vib
ratio
n,
subs
ea p
roce
ssin
g, c
old
flow
–R
eal-T
ime
Man
agem
ent o
f Fie
lds
–O
ptim
izin
g M
atur
e Fi
elds
•O
rgan
izat
iona
l Tec
hnol
ogie
s–
Pro
cess
Man
agem
ent
–C
ompl
ianc
e–
Min
ing,
Man
agin
g, S
harin
g, a
nd
Usi
ng In
form
atio
n
•R
enew
ed e
mph
asis
on
tech
nolo
gy a
s a
savi
or–
Aut
onom
ous
busi
ness
uni
ts w
ere
tech
nolo
gy la
ggar
ds–
Inde
pend
ent t
echn
olog
y un
its a
re
not d
riven
by
busi
ness
goa
ls–
Am
alga
mat
ion
of b
oth,
sim
pler
de
cisi
on m
akin
g!
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0112
Oil
& G
as C
urre
nt S
ituat
ion
DR
IVER
S
Com
petit
ive
and
Pric
ing
Pre
ssur
esP
oor A
sset
Per
form
ance
Agi
ng, E
xpen
sive
Wor
kfor
ceM
argi
ns D
isap
pear
ing
Hig
h R
isk
Pro
posi
tions
CO
NSE
QU
ENC
ES
Cha
nge
Bus
ines
s D
esig
nIn
crea
se C
apac
ityAd
opt N
ew K
now
ledg
e&
Tech
nolo
gy
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0113
Out
sour
cing
Driv
er: W
orld
Oil
Pric
es
Cap
acity
Nee
dD
riven
Bus
ines
s M
odel
C
hang
e D
riven
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0114
Know
ledg
e D
riven
Out
sour
cing
Mon
itor
& C
ontro
l
Ope
ratio
ns
Exec
utio
n
Des
ign
E&P Outsourcing
Trend
Cor
e Kn
owle
dge
Non
-cor
eKn
owle
dge
Anal
ytic
al
Task
s
Adm
inis
trativ
e Ta
sksE&P Outsourcing Trend
Dat
a Ac
quis
ition
D
ata
Proc
essi
ng
Inte
rpre
tatio
n D
ecis
ion
Mak
ing
Actio
n
1930
’s
1970
’s
1990
’s
Bar
rier b
etw
een
Oil
Com
pany
Dom
ain
and
Ser
vice
Com
pany
Dom
ain
Exam
ple:
Sei
smic
Indu
stry
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0115
Pop
Qui
z!O
utso
urci
ng w
ill o
ccur
firs
t at w
hat p
hase
of t
he a
sset
life
cycl
e?
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0116
Agen
da
•In
trodu
ctio
n•
Out
sour
cing
in th
e O
il In
dust
ry•
Valu
e O
f Out
sour
cing
•O
utso
urci
ng -
Get
ting
it R
ight
the
Firs
t tim
e•
Con
clus
ions
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0117
Val
ue o
f Out
sour
cing
: D
ram
atic
Dec
line
in F
indi
ng C
osts
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0118
Val
ue o
f Out
sour
cing
: D
ram
atic
Dec
line
in E
&P
Exp
endi
ture
s
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0119
Val
ue o
f Out
sour
cing
TRIP
LE E
CO
NO
MIE
S O
F SC
ALE
, SC
OPE
, AN
D K
NO
WLE
DG
E
Econ
omie
s of
Sca
lear
e ob
tain
ed b
ecau
se a
vaila
ble
know
ledg
e is
sha
red
over
a n
umbe
r of u
ses
as ti
me
pass
es b
y, th
ereb
y re
duci
ng a
vera
ge c
osts
per
us
e
Econ
omie
s of
Sco
pear
e re
aliz
ed b
ecau
se e
xplic
it kn
owle
dge
can
be re
used
in
act
iviti
es a
nd p
roce
sses
acr
oss
diffe
rent
use
s or
use
rs
Econ
omie
s of
Kno
wle
dge
•Sha
ring
of e
xplic
it kn
owle
dge
that
lead
s to
kno
wle
dge
com
bina
tion,
not
m
ere
repl
icat
ion
•Cod
ifica
tion
in o
ne d
omai
n ra
ises
the
retu
rns
of m
ore
codi
ficat
ion
in
anot
her c
ompl
emen
tary
dom
ain
•Cod
ifica
tion
of k
now
ledg
e cr
eate
s re
dund
ancy
to im
prov
e co
ordi
natio
n at
in
terfa
ces
betw
een
activ
ities
.
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0120
Val
ue o
f Out
sour
cing
•M
agni
fy th
e Po
wer
of C
ash
•Tu
rn F
ixed
Ass
ets
into
Var
iabl
e Ex
pens
es
•M
ultip
ly P
rodu
ctiv
ity
•Im
prov
e C
usto
mer
Sat
isfa
ctio
n
•Sp
eed
Up
Inno
vatio
n–
“Com
pani
es th
at c
olla
bora
te w
ith o
utsi
ders
on
thei
r R&
D re
ap a
hi
gher
per
cent
age
of th
eir t
otal
sal
es fr
om n
ew p
rodu
cts
than
co
mpa
nies
that
don
’t co
llabo
rate
”*
* Dar
rell
Rig
by a
nd C
hris
Zoo
k, “O
pen
Mar
ket I
nnov
atio
n”, H
arva
rd B
usin
ess
Rev
iew
, Oct
ober
200
2
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0121
Agen
da
•In
trodu
ctio
n•
Out
sour
cing
in th
e O
il In
dust
ry•
Val
ue O
f Out
sour
cing
•O
utso
urci
ng -
Get
ting
it R
ight
the
Firs
t tim
e•
Con
clus
ions
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0122
Out
sour
cing
Com
petit
ive
Pres
sure
s
Agi
ngW
orkf
orce
Dec
linin
gE
cono
mic
s
Gro
wth
of OFS
Indu
stry
Focu
s on
C
ore
Com
pete
ncie
s
LEA
PFR
OG
:O
ffsho
reO
utso
urci
ng
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
Ext
erna
lV
alue
Exc
eeds
Inte
rnal
Sub
stan
tially
Fast
er: T
ime
Sub
stan
tially
Che
aper
: Cos
tS
ubst
antia
llyB
ette
r: Q
ualit
y
Cos
t P
ress
ures
Tele
com
Ban
dwid
thG
loba
lW
orkf
orce
Web
-bas
edTe
chno
logi
es
DRIVERS
ENABLERS
Com
mun
icat
ions
Cap
abili
ties
Cre
dibi
lity
Com
mer
cial
Te
rms
Sta
bilit
y
Sca
labi
lity
Peo
ple/
Pro
cess
/To
ols/
Tech
nolo
gy
Com
patib
ility
Tech
nica
l
Com
pany
/Sup
ply
Cha
in
Ser
vice
sS
uppo
rt
Fina
ncia
ls
Ser
vice
Del
iver
y
Inte
llect
ual P
rope
rty
Gov
erna
nce
Sen
ior
Cha
mpi
on
Suc
cess
Met
rics
Wha
tTo
Out
sour
ce?
Crit
ical
ity
Ris
k
Cos
t
Sta
rt Lo
w
Wor
k P
ortfo
lioA
naly
sis
Sta
rt w
ithFa
ir S
ized
Pro
ject
With
E
xplic
it S
peci
ficat
ions
;Tr
ansi
tion
toTa
cit S
peci
ficat
ions
Who
toO
utso
urce
?
Res
ourc
eC
apab
ilitie
s
Tech
nica
l
Bus
ines
sA
naly
sis
Ser
vice
s/S
uppo
rtC
ompa
nyM
anag
erTe
amP
rinci
pals
Ref
eren
ces
How
toM
anag
e?
Dis
aste
rR
ecov
ery
Sec
urity
Qua
lity
Pro
ject
Mgm
t.
Ant
icip
ate
Miti
gate
Ris
ks
Focu
s on
Bus
ines
s G
oals
/Del
iver
able
s
Lega
l
Liab
ilitie
s
Inte
llect
ual P
rope
rty
Lang
uage
Tim
e Zo
nes
Cul
tura
l D
iffer
ence
s
Exc
hang
e R
ates
Gov
ernm
enta
l Reg
ulat
ions
BO
T
Long
Ter
m G
ame
Life
cycl
eC
osts
Pic
kP
artn
ers
RFI
RFP
RFQ
Like
Pro
cess
Ow
nS
ubsi
diar
y
Sub
Con
tract
Hyb
rid/J
V
Com
mun
icat
ions
PROCESS
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0123
Out
sour
cing
Com
petit
ive
Pres
sure
s
Agi
ngW
orkf
orce
Dec
linin
gE
cono
mic
s
Gro
wth
of OFS
Indu
stry
Focu
s on
C
ore
Com
pete
ncie
s
LEA
PFR
OG
:O
ffsho
reO
utso
urci
ng
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
Ext
erna
lV
alue
Exc
eeds
Inte
rnal
Sub
stan
tially
Fast
er: T
ime
Sub
stan
tially
Che
aper
: Cos
tS
ubst
antia
llyB
ette
r: Q
ualit
y
Cos
t P
ress
ures
Tele
com
Ban
dwid
thG
loba
lW
orkf
orce
Web
-bas
edTe
chno
logi
es
DRIVERS
ENABLERS
Com
mun
icat
ions
Cap
abili
ties
Cre
dibi
lity
Com
mer
cial
Te
rms
Sta
bilit
y
Sca
labi
lity
Peo
ple/
Pro
cess
/To
ols/
Tech
nolo
gy
Com
patib
ility
Tech
nica
l
Com
pany
/Sup
ply
Cha
in
Ser
vice
sS
uppo
rt
Fina
ncia
ls
Ser
vice
Del
iver
y
Inte
llect
ual P
rope
rty
Gov
erna
nce
Sen
ior
Cha
mpi
on
Suc
cess
Met
rics
Wha
tTo
Out
sour
ce?
Crit
ical
ity
Ris
k
Cos
t
Sta
rt Lo
w
Wor
k P
ortfo
lioA
naly
sis
Sta
rt w
ithFa
ir S
ized
Pro
ject
With
E
xplic
it S
peci
ficat
ions
;Tr
ansi
tion
toTa
cit S
peci
ficat
ions
Who
toO
utso
urce
?
Res
ourc
eC
apab
ilitie
s
Tech
nica
l
Bus
ines
sA
naly
sis
Ser
vice
s/S
uppo
rtC
ompa
nyM
anag
erTe
amP
rinci
pals
Ref
eren
ces
How
toM
anag
e?
Dis
aste
rR
ecov
ery
Sec
urity
Qua
lity
Pro
ject
Mgm
t.
Ant
icip
ate
Miti
gate
Ris
ks
Focu
s on
Bus
ines
s G
oals
/Del
iver
able
s
Lega
l
Liab
ilitie
s
Inte
llect
ual P
rope
rty
Lang
uage
Tim
e Zo
nes
Cul
tura
l D
iffer
ence
s
Exc
hang
e R
ates
Gov
ernm
enta
l Reg
ulat
ions
BO
T
Long
Ter
m G
ame
Life
cycl
eC
osts
Pic
kP
artn
ers
RFI
RFP
RFQ
Like
Pro
cess
Ow
nS
ubsi
diar
y
Sub
Con
tract
Hyb
rid/J
V
Com
mun
icat
ions
PROCESS
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0124
Out
sour
cing
Com
petit
ive
Pres
sure
s
Agin
gW
orkf
orce
Dec
linin
gEc
onom
ics
Gro
wth
of OFS
Indu
stry
Focu
s on
C
ore
Com
pete
ncie
s
LEAP
FRO
G:
Offs
hore
Out
sour
cing
Exte
rnal
Valu
eEx
ceed
sIn
tern
al
Subs
tant
ially
Fast
er: T
ime
Subs
tant
ially
Che
aper
: Cos
tSu
bsta
ntia
llyBe
tter:
Qua
lity
Cos
t Pr
essu
res
Tele
com
Band
wid
thG
loba
lW
orkf
orce
Web
-bas
edTe
chno
logi
es
DRIVERS
ENABLERS
Pick
Partn
ers
RFI
RFP
RFQ
Like
Proc
ess
Ow
nSu
bsid
iary
Sub
Con
tract
Hyb
rid/J
V
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
PROCESS
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0125
Alte
rnat
e M
odel
s
Bui
ldO
pera
teO
wn
T ran
sfer
Con
trac
tor/
Vend
orSu
bsid
iary
Mig
rate
Bui
ldO
pera
teO
wn
T ran
sfer
Buy
er
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0126
Out
sour
cing
Com
petit
ive
Pres
sure
s
Agi
ngW
orkf
orce
Dec
linin
gE
cono
mic
s
Gro
wth
of OFS
Indu
stry
Focu
s on
C
ore
Com
pete
ncie
s
LEA
PFR
OG
:O
ffsho
reO
utso
urci
ng
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
Ext
erna
lV
alue
Exc
eeds
Inte
rnal
Sub
stan
tially
Fast
er: T
ime
Sub
stan
tially
Che
aper
: Cos
tS
ubst
antia
llyB
ette
r: Q
ualit
y
Cos
t P
ress
ures
Tele
com
Ban
dwid
thG
loba
lW
orkf
orce
Web
-bas
edTe
chno
logi
es
DRIVERS
ENABLERS
Com
mun
icat
ions
Cap
abili
ties
Cre
dibi
lity
Com
mer
cial
Te
rms
Sta
bilit
y
Sca
labi
lity
Peo
ple/
Pro
cess
/To
ols/
Tech
nolo
gy
Com
patib
ility
Tech
nica
l
Com
pany
/Sup
ply
Cha
in
Ser
vice
sS
uppo
rt
Fina
ncia
ls
Ser
vice
Del
iver
y
Inte
llect
ual P
rope
rty
Gov
erna
nce
Sen
ior
Cha
mpi
on
Suc
cess
Met
rics
Wha
tTo
Out
sour
ce?
Crit
ical
ity
Ris
k
Cos
t
Sta
rt Lo
w
Wor
k P
ortfo
lioA
naly
sis
Sta
rt w
ithFa
ir S
ized
Pro
ject
With
E
xplic
it S
peci
ficat
ions
;Tr
ansi
tion
toTa
cit S
peci
ficat
ions
Who
toO
utso
urce
?
Res
ourc
eC
apab
ilitie
s
Tech
nica
l
Bus
ines
sA
naly
sis
Ser
vice
s/S
uppo
rtC
ompa
nyM
anag
erTe
amP
rinci
pals
Ref
eren
ces
How
toM
anag
e?
Dis
aste
rR
ecov
ery
Sec
urity
Qua
lity
Pro
ject
Mgm
t.
Ant
icip
ate
Miti
gate
Ris
ks
Focu
s on
Bus
ines
s G
oals
/Del
iver
able
s
Lega
l
Liab
ilitie
s
Inte
llect
ual P
rope
rty
Lang
uage
Tim
e Zo
nes
Cul
tura
l D
iffer
ence
s
Exc
hang
e R
ates
Gov
ernm
enta
l Reg
ulat
ions
BO
T
Long
Ter
m G
ame
Life
cycl
eC
osts
Pic
kP
artn
ers
RFI
RFP
RFQ
Like
Pro
cess
Ow
nS
ubsi
diar
y
Sub
Con
tract
Hyb
rid/J
V
Com
mun
icat
ions
PROCESS
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0127
Wha
tTo
Out
sour
ce?
Crit
ical
ity
Ris
k
Cos
t
Star
t Low
Wor
k Po
rtfol
ioAn
alys
is
Star
t with
Fair
Size
d Pr
ojec
tW
ith
Expl
icit
Spec
ifica
tions
;Tr
ansi
tion
toTa
cit S
peci
ficat
ions
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0128
Pha
ses
in O
utso
urci
ngPH
ASE
ON
E: E
XPLI
CIT
LY D
EFIN
ED T
ASK
S –
Proj
ect M
anag
emen
t and
Pro
duct
Man
agem
ent
cont
rolle
d by
clie
nt
–Tr
ust i
n th
e re
latio
nshi
p is
low
–Ve
ndor
doe
s no
t hav
e as
sets
ded
icat
ed to
the
clie
nt
–Es
timat
ed s
avin
gs a
re a
bout
20%
to 3
0%
PHA
SE T
WO
: TA
CIT
LY D
EFIN
ED T
ASK
S –
Prod
uct m
anag
emen
t is
clea
rly in
clie
nt’s
dom
ain
–C
lient
and
Ven
dor s
hare
Pro
ject
Man
agem
ent a
nd
Proc
esse
s–
Vend
or h
as s
ome
asse
ts d
edic
ated
to c
lient
–Tr
ust a
nd c
omm
unic
atio
ns b
egin
to g
el;
know
ledg
e sh
arin
g be
gins
–Es
timat
ed s
avin
gs a
re a
bout
30%
to 4
5%
PHA
SE T
HR
EE: G
OA
L-D
RIV
EN
–C
lient
and
the
vend
or s
hare
resp
onsi
bilit
ies
for p
roje
ct m
anag
emen
t an
d pr
oces
ses
–Pr
oduc
t man
agem
ent i
s st
ill c
lear
ly in
clie
nt’s
dom
ain.
–
Com
mun
icat
ions
and
pro
cess
es b
ecom
e in
tegr
ated
–Ve
ndor
firm
has
sig
nific
ant a
sset
s de
dica
ted
to y
our p
roje
cts,
–Tr
ust i
n th
e re
latio
nshi
p an
d kn
owle
dge
shar
ing
betw
een
the
two
entit
ies
are
high
. –
Estim
ated
sav
ings
are
abo
ut 4
5% to
65%
.
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0129
Pha
ses
in O
utso
urci
ng
Ded
icat
ed A
sset
s
Phas
eO
ne20
%
Savi
ngs
Long
Ter
m R
elat
ions
hip
Know
ledg
e Sh
arin
g
Pha
se T
hree
45 to
65%
Sav
ings
Ded
icat
ed A
sset
s
Phas
eO
ne20
%
Savi
ngs
Long
Ter
m R
elat
ions
hip
Know
ledg
e Sh
arin
g
Pha
se T
hree
45 to
65%
Sav
ings
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0130
Out
sour
cing
Com
petit
ive
Pres
sure
s
Agi
ngW
orkf
orce
Dec
linin
gE
cono
mic
s
Gro
wth
of OFS
Indu
stry
Focu
s on
C
ore
Com
pete
ncie
s
LEA
PFR
OG
:O
ffsho
reO
utso
urci
ng
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
Ext
erna
lV
alue
Exc
eeds
Inte
rnal
Sub
stan
tially
Fast
er: T
ime
Sub
stan
tially
Che
aper
: Cos
tS
ubst
antia
llyB
ette
r: Q
ualit
y
Cos
t P
ress
ures
Tele
com
Ban
dwid
thG
loba
lW
orkf
orce
Web
-bas
edTe
chno
logi
es
DRIVERS
ENABLERS
Com
mun
icat
ions
Cap
abili
ties
Cre
dibi
lity
Com
mer
cial
Te
rms
Sta
bilit
y
Sca
labi
lity
Peo
ple/
Pro
cess
/To
ols/
Tech
nolo
gy
Com
patib
ility
Tech
nica
l
Com
pany
/Sup
ply
Cha
in
Ser
vice
sS
uppo
rt
Fina
ncia
ls
Ser
vice
Del
iver
y
Inte
llect
ual P
rope
rty
Gov
erna
nce
Sen
ior
Cha
mpi
on
Suc
cess
Met
rics
Wha
tTo
Out
sour
ce?
Crit
ical
ity
Ris
k
Cos
t
Sta
rt Lo
w
Wor
k P
ortfo
lioA
naly
sis
Sta
rt w
ithFa
ir S
ized
Pro
ject
With
E
xplic
it S
peci
ficat
ions
;Tr
ansi
tion
toTa
cit S
peci
ficat
ions
Who
toO
utso
urce
?
Res
ourc
eC
apab
ilitie
s
Tech
nica
l
Bus
ines
sA
naly
sis
Ser
vice
s/S
uppo
rtC
ompa
nyM
anag
erTe
amP
rinci
pals
Ref
eren
ces
How
toM
anag
e?
Dis
aste
rR
ecov
ery
Sec
urity
Qua
lity
Pro
ject
Mgm
t.
Ant
icip
ate
Miti
gate
Ris
ks
Focu
s on
Bus
ines
s G
oals
/Del
iver
able
s
Lega
l
Liab
ilitie
s
Inte
llect
ual P
rope
rty
Lang
uage
Tim
e Zo
nes
Cul
tura
l D
iffer
ence
s
Exc
hang
e R
ates
Gov
ernm
enta
l Reg
ulat
ions
BO
T
Long
Ter
m G
ame
Life
cycl
eC
osts
Pic
kP
artn
ers
RFI
RFP
RFQ
Like
Pro
cess
Ow
nS
ubsi
diar
y
Sub
Con
tract
Hyb
rid/J
V
Com
mun
icat
ions
PROCESS
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0131
Com
mun
icat
ions
Cap
abili
ties
Cre
dibi
lity
Com
mer
cial
Te
rms
Stab
ility
Scal
abili
ty
Peop
le/
Proc
ess/
Tool
s/Te
chno
logy
Com
patib
ility
Tech
nica
l
Com
pany
/Sup
ply
Cha
in
Serv
ices
Supp
ort
Fina
ncia
ls
Gov
erna
nce
Who
toO
utso
urce
?
Res
ourc
eC
apab
ilitie
s
Tech
nica
l
Busi
ness
Anal
ysis
Serv
ices
/Su
ppor
tC
ompa
nyM
anag
erTe
amPr
inci
pals
Ref
eren
ces
Proj
ect M
gmt.,
Sec
urity
, Qua
lity
Dis
aste
r Rec
over
y, S
ervi
ce D
eliv
ery
Inte
llect
ual P
rope
rty
Antic
ipat
eM
itiga
te R
isks
Liab
ilitie
s. L
egal
, Int
elle
ctua
l Pro
perty
, Lan
guag
e,Ti
me
Zone
s, E
xcha
nge
Rat
es, C
ultu
ral D
iffer
ence
s,G
over
nmen
t reg
ulat
ions
BOT
Life
cycl
e C
osts
A Fr
amew
ork
for S
ucce
ssfu
l O
utso
urci
ng
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0132
Out
sour
cing
Com
petit
ive
Pres
sure
s
Agi
ngW
orkf
orce
Dec
linin
gE
cono
mic
s
Gro
wth
of OFS
Indu
stry
Focu
s on
C
ore
Com
pete
ncie
s
LEA
PFR
OG
:O
ffsho
reO
utso
urci
ng
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
Ext
erna
lV
alue
Exc
eeds
Inte
rnal
Sub
stan
tially
Fast
er: T
ime
Sub
stan
tially
Che
aper
: Cos
tS
ubst
antia
llyB
ette
r: Q
ualit
y
Cos
t P
ress
ures
Tele
com
Ban
dwid
thG
loba
lW
orkf
orce
Web
-bas
edTe
chno
logi
es
DRIVERS
ENABLERS
Com
mun
icat
ions
Cap
abili
ties
Cre
dibi
lity
Com
mer
cial
Te
rms
Sta
bilit
y
Sca
labi
lity
Peo
ple/
Pro
cess
/To
ols/
Tech
nolo
gy
Com
patib
ility
Tech
nica
l
Com
pany
/Sup
ply
Cha
in
Ser
vice
sS
uppo
rt
Fina
ncia
ls
Ser
vice
Del
iver
y
Inte
llect
ual P
rope
rty
Gov
erna
nce
Sen
ior
Cha
mpi
on
Suc
cess
Met
rics
Wha
tTo
Out
sour
ce?
Crit
ical
ity
Ris
k
Cos
t
Sta
rt Lo
w
Wor
k P
ortfo
lioA
naly
sis
Sta
rt w
ithFa
ir S
ized
Pro
ject
With
E
xplic
it S
peci
ficat
ions
;Tr
ansi
tion
toTa
cit S
peci
ficat
ions
Who
toO
utso
urce
?
Res
ourc
eC
apab
ilitie
s
Tech
nica
l
Bus
ines
sA
naly
sis
Ser
vice
s/S
uppo
rtC
ompa
nyM
anag
erTe
amP
rinci
pals
Ref
eren
ces
How
toM
anag
e?
Dis
aste
rR
ecov
ery
Sec
urity
Qua
lity
Pro
ject
Mgm
t.
Ant
icip
ate
Miti
gate
Ris
ks
Focu
s on
Bus
ines
s G
oals
/Del
iver
able
s
Lega
l
Liab
ilitie
s
Inte
llect
ual P
rope
rty
Lang
uage
Tim
e Zo
nes
Cul
tura
l D
iffer
ence
s
Exc
hang
e R
ates
Gov
ernm
enta
l Reg
ulat
ions
BO
T
Long
Ter
m G
ame
Life
cycl
eC
osts
Pic
kP
artn
ers
RFI
RFP
RFQ
Like
Pro
cess
Ow
nS
ubsi
diar
y
Sub
Con
tract
Hyb
rid/J
V
Com
mun
icat
ions
PROCESS
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0133
Peop
le/
Proc
ess/
Tool
s/Te
chno
logy
Serv
ice
Del
iver
y
Inte
llect
ual P
rope
rty
Seni
or C
ham
pion
On
Both
Sid
es
Succ
ess
Met
rics
How
toM
anag
e?
Dis
aste
rR
ecov
ery
Secu
rity
Qua
lity
Proj
ect M
gmt.
Focu
s on
Bus
ines
s G
oals
/Del
iver
able
s
Long
Ter
m G
ame
Com
mun
icat
ions
A F
ram
ewor
k fo
r Suc
cess
ful
Out
sour
cing
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0134
Con
clus
ions •
The
glob
al o
il &
gas
indu
stry
ou
tsou
rces
to o
ilfie
ld s
ervi
ce
com
pani
es•
The
resu
lts a
re s
tunn
ing!
•In
gred
ient
s to
Suc
cess
ful
Out
sour
cing
–
Con
stan
tly V
erify
Bus
ines
s D
river
s fo
r Out
sour
cing
–C
hoos
e R
ight
Pro
ject
s,
Pha
sed
–D
evel
op D
eep
Pro
ject
M
anag
emen
t Ski
lls–
Cho
ose
Rig
ht P
artn
ers
–P
ick
Rig
ht P
eopl
e–
You
Can
not O
ver-
Com
mun
icat
e–
“Tru
st b
ut V
erify
” Par
tner
s
© P
rade
ep A
nand
, See
ta R
esou
rces
, pa@
seet
a.co
m; +
1 28
1 26
5 93
0135
Than
k Y
ou
PRA
DEE
P A
NA
ND
SE
ETA
RE
SO
UR
CE
Sw
ww
.see
ta.c
ompa
@se
eta.
com
+1 2
81 2
65 9
301
