Business-Aligned Outsourcing: Are You Prepared?

© 2012 Avanade Inc. All Rights Reserved.The Avanade name and logo are registered trademarks in the US and other countries.

Business-aligned outsourcing:Are you prepared?

Ken Ramoutar VP, Global Service Line Marketing Sept. 12, 2012

100+ active Outsourcing engagements

4,000 Outsourcing professionals

$US1 billion+ revenue

20% average growth year over year

60 locations in 20 countries

95% customer satisfaction

2

Avanade: #1 Microsoft partner, with most recognitions

&Founded by

Global reach and expertise

© 2012 Avanade Inc. All Rights Reserved. 2

© 2012 Avanade Inc. All Rights Reserved.

Business volatility

Geopolitical uncertainty

Why now?

Global economic climate

3


“We’ve mandated outsourcing to cut costs. Procurement reviews the outsourcing bids and selects the low-cost provider.”

Finance

“My IT organization isn’t providing me the systems and tools that I need to meet our growth projections.”

Operations

“Our business objectives continually change. As a result, our sourcing decisions are not in alignment with those goals.”

Does this sound familiar?

IT

Misaligned sourcing strategy

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Are you prepared?Manage riskAchieve goals

Identify resultsMaximize benefits

Create strategyAlign to business


10 steps to creating an effective outsourcing strategy

6

1Readiness

2Processes

3Alignment

4Wave

strategy

5Vendor

selection

6Negotia-tions

7Commun-ications

8Transition

9Program

management

10Healthcheck


Business situationAdvertising buying strategies for world-class customer base

Strategic IT budget shift

Movement to position as industry thought leader

Rebuilding product line

Global media company



Results realized

Landmark solution takes customer to the next level in new media.

Reduced annual IT budget

Improved scalability

Recognition as technology thought leader

Increased employee morale

Improved operational efficiencies

Simplified IT development and management



Establish metrics to maximize benefits

Time

Str

ateg

y •Help desk availability

•Process efficiencies

•Resource retention

•Network uptime

EfficiencyCost savings •Margin increase

•System and/or application availability

•On-time delivery•Test metrics•Compliance to terms

EnhancementBusiness objectives • Innovation

•Revenue generation•Customer satisfaction•Process improvements•Customer growth

TransformationPerformance improvements



High-tech services provider for health companies

Business situationWanted long-term partner to build brand-new IT infrastructure and operations, then run and manage infrastructure

Strategic focus on developing solutions



Improving productivity is the right remedy for health clients.

Results realizedIncreased efficiency with a streamlined desktop system

Cost-effective approach to desktop management and support

Improved service levels for building and

operating its IT infrastructure

A predictable financial model as the company grows and matures



Manage risk to achieve your business goalsWell-defined and shared processes define the steps with a governance model

Str

ate

gic

Dire

ctio

n

Quality Assurance

Board Strategic

(Quarterly)

Management Steering Team

Functional(Monthly)

Delivery TeamsOperational

(Weekly)

RegionalBusinessGroup #1



Governance AreasPerformance Management

Financial Management

Relationship Management

Contract Management

Resource Management


Utilize enabling tools and technologies

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Governance best practices

Monitor the projects / program regularly

Ensure business and functional representation

Identify strategic value


Business-aligned outsourcing:What steps can you take?

Think “business alignment”

Understand that outsourcing is much more than cost savings

Create a sourcing strategy

Take a pragmatic approach to execution


We are ready to talk with you

Contact us to learn more

At our booth # M

In person Lisa Kaye, +1-832-364-6210, [email protected]

On the web www.avanade.com

We can help. We bring the right knowledge, services and assets to address your unique needs.


Technology

Business-Aligned Outsourcing: Are You Prepared?