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Copyright © 2005 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Overview of Outsourcing
May 2005
2© 2005 Accenture All Rights Reserved.
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
3© 2005 Accenture All Rights Reserved.
INTRODUCTIONA Working Definition of Outsourcing
Outsourcing denotes the continuous procurement of services from a third party, making use of highly integrated processes,
organization models and information systems.
OUTSOURCERCOMPANYServices
OrganizationLevel
Agreement
ServiceLevel
Agreement
4© 2005 Accenture All Rights Reserved.
INTRODUCTION On the origins of Outsourcing
• 50 - 70 Vertical and Horizontal Integration
• 70 - 80 Foreign Direct Investment
• 80 - 90 Global Sourcing
• 90 - Outsourcing
5© 2005 Accenture All Rights Reserved.
INTRODUCTION Very different level of acceptance
98,6%
1,4%: costs for outsourcing
100%
0%
20%
40%
60%
80%
Banking industry worldwide:cost share of outsourced
services 2003
German car manufacturers: degree of vertical integration
38% 32%24%
62% 68%76%
0%
20%
40%
60%
80%
100%
1980 1990 2000
Value CreationSuppliers
Value CreationProducer
6© 2005 Accenture All Rights Reserved.
INTRODUCTION Types of Outsourcing
Businessprocesses
Application Development and Maintenance
IT-infrastructure
BPO: Business Process Outsourcing
ASP: Application Service Provider
DBRO: Design, Build, Run & Operate
ADM: Application Develop. & Maintenance
ITO: IT Infrastructure Outsourcing
ITS: IT Services, Managed Hosting
Administrative processes
APO: Administrative Process Outsourcing
Outsourcing models:
BPO
AMO
SDO
7© 2005 Accenture All Rights Reserved.
INTRODUCTION BPO - Business Process Outsourcing
Degree of industrialization
medium highlow
Customized Industrialized
Single service delivered to multiple clients simultaneously
Similar services delivered to multiple clients
Custom designed services leveraging know-how
One-to-one One-to-many
9© 2005 Accenture All Rights Reserved.
INTRODUCTIONSDO – 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
• Desktop Management and Mobility- PC, laptop, hand-held, distributed
• Supplier Management- Identifying, qualifying, contracting
and managing strategic suppliers
Services
Data Centers
Desktop Mgmt.
& Mobility
Technical Support
Network Services
Security SupplierMgmt.
Client Operations Management
Messaging & Collaboration
Technical Support
Desktop Management & Mobility
Network Management
Hosting
Sales Support and Mobilization
Security Operations
Delivery capabilities
10© 2005 Accenture All Rights Reserved.
INTRODUCTIONSourcing of Outsourcing
• Off-Site – Local service providers
• Near Shore – Proximity cross-border service providers
• Off-Shore – Remote Cross-border service providers
11© 2005 Accenture All Rights Reserved.
INTRODUCTIONGeographics of Outsourcing
Montreal (1)
Atlanta (1)
Wilmington (1)Toronto (1)
London (1)
Riga (1)
Prague (1)
Madrid (1)Bratislava (1)
Malaga (1)
Mauritius (1)
Bangalore (3)
Mumbai (3)
Dalian (1)
Shanghai (1)
Manila (8)Chennai (1)
Hyderabad (1)
São Paulo (1)
Houston (1)
Cincinnati (1)Chicago (1)
Ireland (1)
Budapest
13© 2005 Accenture All Rights Reserved.
INTRODUCTIONTypical Outsourcing Clients
ArgentariaBanca ItaleaseBBVABanco Rio de la PlataBankiterBarclays Bank plcBilbao Bizkaia Kutxa (BBK)Caixa CatalunyaCaja MadridCortalConsors Credit LyonnaisDepository Trust & ClearingDeutsche BankDnB NOR
Morgan StanleyProvidianRoyal and SunAllianceSallie MaeSantanderSchmidtBankSEC PadovaSEIUBS Life InternationalUniversal LevenWorkers’ Compensation BoardXelion
Espirito Santo SequrosGE Consumer FinanceGrupo Financiero BanCrecerGuy CarpenterImmobiliere 3FInfocajaING GroupItalian Pension AgencyJohannesburg Securities ExchangeJPMChaseLondon Stock Exchange LosangoMediolanumMeridia
AmerenBC HydroBorden ChemicalBPBritannia OperatorCogemaDow ChemicalDuPontDynegyDirect Energy Essential Home Services (DEEHS) Enbridge Gas Distribution Enbridge Gas New Brunswick Freeport McMoRan
RAG American CoalRepsol YPFRhodiaSiam CementSithe EnergiesSlovnaftSouthern Company GASTalisman Energy Ltd.Terasen Utility ServicesThames WaterTiconaTotal E&P UK plc (formerly TotalFinaElf)
HalliburtonLASMO plcLyondell-Citgo RefiningMOL - Hungarian Oil & GasMidAmerican EnergyNorsk HydroOrange and Rockland UtilitiesPPL (Pennsylvania Power & Light)
02 (formerly BT Cellnet)AlcatelAlgarAT&TAvayaBellSouthBoston ScientificBTCegetelCitrixeBayEMCETS Sonera
Sun MicrosystemsTecnomenTelecom ArgentinaTelecom ItaliaTelefonica ArgentinaTexas InstrumentsThomsonVIA NetworksXM Satellite Radio
Fujitsu Siemens ComputersInfineonInfostradaJVC do Brasil Ltda. & Nokia Gradiente IndustrialO Globo EmpresaOlivetti TecnostOmnitel2000QinetiQSiemens Mobile Communications ItalySITA
AlcanArdentAsahi BreweryAstilleros Espanoles,now IZARAstraZenecaBest BuyBrahmaBristol Myers SquibbCampofrioCarrefourCaterpillarDelphiDeltaDiageoDSV GroupeLSG SkyChefs.com
Neptune Orient LinesNew LookPayless Shoe SourcePfizerRenaultResort Condominiums
International (RCI)
Sainsbury’sSara LeeSolar TurbinesTexas MedicaidTransnet PortnetUPSWärtsiläWyeth
Edgars Consolidate Stores LimitedExel plcHCSCHealth Alliance PlanImpregilo AchieveInterstate BrandsKLM Royal Dutch AirlinesLevi StraussLSG Sky Chefs Thomas CookMarriottMDB Information NetworkMecaluxMedicines Control AgencyMilwaukee County Mental HealthMultibras Electrodomesticos Whirlpool
14© 2005 Accenture All Rights Reserved.
INTRODUCTIONOutsourcing Service Providers
One Stop
Locals
Pure Players
Off-Site Near-Shore Off-Shore
• IBM• Accenture• EDS
• Cap• CSC• Fujitsu
• Tata• InfoSys• Guja
15© 2005 Accenture All Rights Reserved.
• 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
Key drivers for Outsourcing (Survey Results)INTRODUCTIONWhy do outsourcing? - Survey Results
17© 2005 Accenture All Rights Reserved.
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
18© 2005 Accenture All Rights Reserved.
OutsourcingChange Drivers
PREPARING FOR OUTSOURCINGFrom Drivers to Strategic Options
Defining the Burning Platform
Determine Scope
Understand Internal Constraints
OutsourcingOptions
In-HouseTransformation
ExternalOutsourcing
Spin-off
Co-Sourcing
Captive
Joint Venture
Lift-Out
Shoring
Understand External Constraints
In-HouseStatus Quo
Continuous Improvement
19© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGThe 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 …
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
…
Change
Drivers
Management Control
Service Scope &
Level
Budget Levels
Financial Flexibility
Infrastructure Quality
Skill & Capability
Pool
Organizational Impact
Time to Benefit
Client
Rating
20© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGOutsourcing Options & Contribution
Sourcing Option
Ma
na
ge
me
nt C
on
trol
Se
rvice S
cop
e &
L
eve
l
Bu
dg
et L
eve
ls
Fin
an
cial F
lexib
ility
Infra
structu
re Q
ua
lity
Skill &
Ca
pa
bility
Po
ol
Org
an
izatio
na
l Im
pa
ct
Tim
e to
Be
ne
fit
Spin-off High Limited Limited None None None Limited Short
Co-Sourcing Medium Medium Medium Limited Medium Medium Limited Medium
Captive High Medium Low Low Medium Low Medium Long
Joint Venture 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
21© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGUnderstand 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?
€
6 Months 12 Months 18 Months 24 Months 30 Months 36 Months
ChangeApplication &TechnologyArchitecture
Head Count &InfrastructureImprovement
ILLUSTRATIVE
Procurement,Financing &Quick Wins
ReduceExternal Services
Operate &Infrastructure
45%
Maintenance15 %
SWR & NSWR10 %
Business Projects20 %
Manage & Support10 %
ICTBudget
- Illustrative -
Discretionary
Fixed
22© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGUnderstand 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?)
… …
23© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGApproach to Outsourcing
Assess Current Environment
Define Target Model and sourcing
strategyCreate Programs
“What needs to change?”
“How will we implement the changes?”
“What must we change to?”
Timeframe
High Level Activities
• Baseline the business and operating direction and strategy as applicable
• Benchmark expenses to similar industry segments across functions/processes
• 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
• From workshop, identify and build out “to-be” state
• 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
• 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
Half-day Executive Workshop
Kickoff Executive Meeting
Decision
IT Opportunity Assessment
Transformation
Outsourcing
Decision
Assess current environment
Define Target Model and sourcing strategy
Create change program
Supplier selection
Transition
Transformation
Mobilize and design
Implementation
24© 2005 Accenture All Rights Reserved.
Dev
elo
pm
ent
Mai
nta
nan
ce
10%
20%
40%
25%
5%
40%
10%
10%
40%
Application Development Management (ADM): Split-up of work steps
CLIENT EXAMPLE
In-house / Off-shoreOutsourcing / On-shoreOutsourcing / Off-shore
In-house / On-shore
Functional Design
Requirements refinement/design control
Acceptance test
Deployment
Requirements, Functional Design and Acceptance
Prioritization, Escalation
Business Requirements
Acceptance and Implementation
Acceptance and Implementation
Resources on-site
Majority of build offshore
Product testIntegration test and fixingDeployment assistanceOffshore resources onshore
Build, test and implementation
Technical changes, as requested, assuming no new functionality
Fixes and root cause analysis2nd level support
Detailed DesignTechnical Design
100%
Design 70%30%
Build20% 80%
Test30% 70%
Deploy75% 25%
Enhancements30% 70%
Fix on Fail20% 80%
Concept100%
Technical Upgrades20% 80%
Performance Tuning20% 80%
PREPARING FOR OUTSOURCINGAssess Operating Model Impact
25© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGDo 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
26© 2005 Accenture All Rights Reserved.
PREPARING FOR OUTSOURCINGKey Data Components
IT Capability Performance
Governance
Summary of Issues
Fundamental issues in the partnership between IT and the business
Strategy Development & Planning
Inadequate Best Practice
Highly reactiveorganisation, unintegrated silos, limited coherence of vision
InadequateBest Practice
Architecture Management
Beyond a few well-intentioned individuals, there is little evidence of architecture leadership
Inadequate Best Practice
Service Delivery Legacy is reasonably stable - but are we ready for “e”?Inadequate Best Practice
Resource Management
Some poor financial controls; cultural issues inhibit getting best value from IT people.
Inadequate Best Practice
Summary of IT Capabilities (Summer 2000)
Solutions Development & Planning
Major issues recognised; but change is hugely challenging. There is still a lack of partnership between SC and ISSM
Inadequate Best Practice
Financial Analysis
Operations Maturity Model™
Executive Review
External Point-of-View
Target Operating
Model
Current Infrastructure
and Operations
Margin/Growth Service Health Information Allina
Business Process Area / Change Initiatives
Pro
ject C
ost R
an
ge
(Ea
rly e
stim
ate
in
Millio
ns)
Le
ng
th o
f P
roje
ct (m
on
ths)
Ba
rrie
rs to
Ch
an
ge
Ris
k o
f A
bility to
Im
ple
me
nt
Ba
lan
ce
d M
em
be
rsh
ip G
row
th
Re
ve
nu
e G
en
era
tio
n
Ad
min
istr
ative
Co
st M
gm
t.
Me
dic
al C
ost M
gm
t.
Imp
rove
Cu
sto
me
r S
erv
ice
Imp
rove
Em
plo
ye
e S
erv
ice
Imp
rove
Pro
vid
er
Se
rvic
e
Imp
rove
He
alth
Ou
tco
me
s
Imp
rove
Clin
ica
l Q
ua
lity
Imp
rove
Cu
sto
me
r In
form
atio
n
Imp
rove
Pro
vid
er
Info
rma
tio
n
Imp
rove
Co
mm
un
ity In
form
atio
n
Imp
rove
In
tern
al In
form
atio
n
Su
pp
ort
s A
llin
a E
xp
eri
en
ce
Ma
tch
with
Allin
a IT
Fo
cu
s
Develop Products and Services
1.1 Predict local market changes… 0.1 - 0.2 12 L L M L L H L
1.2 Assess internal execution capabilities… 0.1 - 0.2 12 L L M M L L M
1.3 Design more flexible products… 0.5 - 1 6 M L H L L L M
1.4 Segment population better… 0.5 - 1 6 H H H M M H H
1.5 Communicate during product development… 0 3 L L L L L M L
Manage Delivery Capacity
2.1 Support pull-through strategy… 0.3 - 0.5 6 M M M M L M H
2.2 Better manage provider contract terms… 0.1 - 0.2 3 M L M L L L L
2.3 Model provider locations… 0.2 - 0.5 9 M L L H L L M
2.4 Track contracts more closely… 0.5 - 1 9 M M L H L M M
2.5 Innovate new reimbursement models… 1 - 1.5 12 H H H M L L M
2.6 Roll out provider profiling… 0.5 - 1 12 H M H M L H M
2.7 Enhance Q-Star to support providers 0.3 - 0.5 6 L L L H L H L
Sell Products and Services
3.1 Enable electronic enrollment… 0.5 - 2 12 H M M H L M H
3.2 Assemble member-unique benefits… 1 - 2 18 H H M H L L H
3.3 Manage workflow electronically… 1 9 L M L H L H H
3.4 Reinvent broker value chain… 1 - 3 18 H H H H L M M
3.5 Improve automation of buyer contracts… 0.25 - 0.5 9 L L M H L M M
3.6 Enhance underwriting capability… 0.5 - 1 9 L M H M L M L
3.7 Improve SSS functionality… 0.5 - 1 6 L M L M L H L
3.8 Enhance employer group reporting… 0.25 - 0.5 6 L L L H L H L
Deliver Health Care Products and Services
4.1 Coordinate health improvement initiatives… 0.1 - 0.3 3 L L M L M M H
4.2 Triage members and channel them… 0.1 - 0.3 6 L M M M M M H
4.3 Develop outcomes management strategy… 1 - 3 18 M H H L H M M
4.4 Enable doctors to perform HRAs… 0.1 - 0.3 6 H L L L H M M
4.5 Develop Proactive Interventions… 0.5 - 1 9 H M M M M H H
4.6 Improve case management capability… 0.5 - 1.5 12 L M H M M L M
4.7 Better match transitions and transactions across Allina… 0.5 - 1.5 12 M H L H L M H
4.8 Improve disease management capability… 0.5 - 1.5 18 M H H M H M M
Deliver Administrative Products and Services
5.1 Create reimbursement modeling system… 0.5 - 1 12 L H M L L L L
5.4 Stabilize key system availability and performance… 0.5 - 2 12 L L L M L H L
5.5 Create business-specific data warehouses… 1 - 3 18 L H M M L H H
5.6 Increase electronic claims submission… 0.5 - 1.5 12 M M M M L H L
5.7 Implement utilization management tools… 0.5 - 1 9 L M H L L M L
5.8 Improve referral/authorization/precerts… 0.25 - 0.5 6 L L M H L L H
5.10 Improve COSMOS management reporting… 0.1 - 0.3 6 L L L L L H L
Support Relationship Building and Management
6.1 Automate appeal/complaint process… 0.1 - 0.2 9 L L L M L L M
6.3 Create proactive intervention facility… 0.5 - 1 12 M M M H M H H
6.5 Develop life care plans for members… 1 - 2 18 H H M H H M H
6.6 Improve information distribution… 0.1 - 1.5 9 L M L M L H L
6.7 Improve access to compliance data… 0.1 - 0.2 6 L L L L L H L
6.8 Improve performance reporting capabilities… 0.1 - 0.5 6 L M L M L H L
6.9 Improve Q-Star stability… 0.1 - 0.3 6 L L L H L M M
6.10 Roll out HealthVillage… 1 12 L L L H L H H
6.11 Develop common call center infrastructure… 1 - 1.5 12 L L M M L L M
Manage Infrastructure
7.5 Enhance communication through entire system… 0.1 - 0.1 3 L L L L L H L
7.6 Turn our data into revenue… 0.5 - 1 6 M M H L L L M
7.7 Solve help desk responsiveness issues… 0.1 - 0.3 6 L M L H L M L
Gap Analysis
“What needs to change?” “How will we implement the changes?”
“What must we change to?”
(M $) 2001 2002 2003 2004 2005
(A) As Is SD Budget Baseline 937 913 925 940 940
(B)Adjustments due to Price/Performance evolution
(C) Potential savings from infrastructure 3 28 85 129 129
(D) Other savings opportunities 0 10 40 50 50(E)=
(A)-(B)-(C)-(D)
To Be Operational costs 934 875 800 761 761
(F) Organization and One-Time Costs 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
(I) Total Revenue 937 903 903 894 894
(J)=(I)-(G) Cash Flow -32 -46 33 93 114
(K) Cumulative Cash Flow -32 -78 -46 48 162
Included in (A)
27© 2005 Accenture All Rights Reserved.
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
28© 2005 Accenture All Rights Reserved.
RUNNING OUTSOURCING Framework
• Delivery Model is based on several key components
• Common objectives & goals
• End-to-End governance structure
• Multi-level team organisation
• 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
• Establishes a single point of responsibility for entire relationship.
Key Principles
Client Accenture Skill Pool AMP + …
OFF-SHORE
NEAR-SHORE
LOCAL
SPOC
SPOC
Pro
ject
s R
epo
rtin
g &
Sta
tus
Tra
ckin
g
Common Objectives & Goals
Met
ho
ds,
Sta
nd
ard
s, a
nd
To
ols
Co
mm
on
Pro
cess
es
Co
ntr
act,
SL
A, O
LA
, KP
I, M
BO
Governance
30© 2005 Accenture All Rights Reserved.
RUNNING OUTSOURCINGStandard Methodology & Tools
DEPLOY
PLAN ANALYZE DESIGN BUILD TEST
SUPPORT TOOLSSDM Estimator
SBP Standards & Methods
SBP Configuration Manual
Deliverables Library & Template
Project Deliverables Repository
Accenture Knowledge Exchange
AAB IT & Security Policies & Standards
31© 2005 Accenture All Rights Reserved.
Local Deployment Team
Development Center
Development Support Team
Deployment Support Team
Vendors
RUNNING OUTSOURCINGCommon Organization Model
Local Deployment Teams
Business Lead(Change Manager)
Conversion Lead
Off-Site Coordinator
Local Project Manager
Configuration Specialists
Solution Delivery Team
Table Management & Application Customization
Mercator Application Integration Team
Conversion Support Team
Test & Release Team
Test Team
Documentation
Gap Management
Service Mgt & Support Office
Functional Architect
Configuration Management
Release Management
Environment & Dev Tool Mgt.
Unit Manager
Service Delivery Partner
Application Management
Partner
Operational Readiness Lead
Data Migration Team
Local Design & Acceptance Team
Joint Management
Technical Architect & Associate Manager
Data Migration & Deployment Tools
OffNear
Staff Functions
Other
ClientIT Security, Audit
& Compliance
Sample
32© 2005 Accenture All Rights Reserved.
RUNNING OUTSOURCINGCommon Processes
Scope Work-StreamConfig. Components
Configuration Workshops & Detailed Specification
Management Sign Off
Support & QA Specifications
Support Build Process
Prepare UAT
Product & User Acceptance Test
Support Build & Validate Test
QA Solution
Technical Review & Interface Impact Analysis
Build
(Configure & Code)
Component Test & Documentation
Prepare Assembly & Non-Regression Test
Execute Assembly & Non-Regression Test
Perform Detailed Configuration Design & Prepare Work Package
TP TP
TPTP
Local Near-Shore Off-Shore
FunctionalDesignCheck List
TechnicalDesignCheck List
Component &QualityCheck ListsWork
PackageCheck List
ProductDeliveryCheck List
TP
33© 2005 Accenture All Rights Reserved.
Agenda
• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing
34© 2005 Accenture All Rights Reserved.
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