Offshoring frukostseminarium 20110831

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Offshoring frukostseminarium 20110831

  1. 1. Breakfast Seminar - August 31st, 2011 Presented by: Daniel Palm
  2. 2. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  3. 3. Welcome Documentation in English, Presentation in SwedishDocumentation will be provided afterwards
  4. 4. About Daniel Palm• Have been working with offshoring for about 10 years in India, Pakistan, China, Thailand etc• Have managed some 60 offshore projects• Have worked for Accenture, Capgemini and Ernst & Young• Resently consulted one of Sweden’s largest banks in constructing their Asian offshore program• Is the CEO and founding partner for Business Technology Consulting Group, BTCG• Have 5 wonderful children and a lovely wife
  5. 5. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  6. 6. When did the outsourcing of IT services start in modern times?• The concept was first applied by Ross Perot, when he founded Electronic Data Systems in 1962. EDS told a prospective client;"You are familiar with designing, manufacturing and selling furniture, but were familiar with managing information technology.”We can sell you the information technology you need, and you pay us monthly for the service with a minimum commitment of two to ten years."
  7. 7. What is Offshoring and Outsourcing?• Offshoring describes the relocation by a company of a business process from one country to another• Outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured.• Offshore outsourcing is basically outsourcing offshore.
  8. 8. Nearshore Offshoring Destination Inshoring Insourcing Offshore Multi Destination Sourcing Dedicated Team On-Shore Outsourcing Bundle Captive Team Sourcing Country Of OriginOnshoreProcesses
  9. 9. Nearshore Offshoring Destination Inshoring Insourcing Offshore Multi Destination Sourcing Dedicated Team On-Shore Outsourcing Bundle Captive Team Sourcing Country Of OriginOnshoreProcesses
  10. 10. Types of Offshoring Offshoring There are four basic types of offshore outsourcing: ITO Information Technology Outsourcing including Software Development BPO Business Process Outsourcing covers Processes like running call centers, processing insurance claims etc KPO Knowledge Process Outsourcing covers things that require a higher skill set such as reading X-Rays, performing investment research on stocks and bonds, handling the accounting functions for a business or executing engineering design projects. VA Virtual Assistants - Outsourced administrative work assignments
  11. 11. Offshoring to a Virtual Assistant What can a VA do? Creation of Presentation Market Analysis Writing Reports Web administation Blog posts Article writing Article search enging submission Web Account Creation Content Outsourcing Data Entry Directory Submission Web Forum Posting Answering email Call center Customer Service Search Enging Submission Social Media Marketing Video Submission
  12. 12. IT Leading as Most Active area of Outsourcing IT 21% Human Resource 28% Sales & Marketing 9% Finance 11% 16% Administration 15% All OtherKälla: Offshore IT Outsourcing, 2010
  13. 13. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  14. 14. Why would a firm want to offshore?Why would a firm want to outsource?
  15. 15. Top 10 Reason Companies Chose to Offshore Reduce and Control Operating Costs Improve Company Focus Gain Access to World Class Capabilities Free Resources for Other Purposes Resources Not Avaliable Internally Accelerate Reengineering Benefits Reduce Time to Market Take Advantage of Offshore Capabilities Share Risks Function Difficult to Manage 0% 20% 40% 60% 80% 100%Source: Tutorial-Reports 2010
  16. 16. Benefits from offshoring
  17. 17. Approach for country selection
  18. 18. Origin and target regions
  19. 19. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  20. 20. 10 Reasons Why Offshore Outsourcing Projects Fail, and How to Avoid Making the Same Mistakes1. Bargain Shopping - Most companies will first want the best quality from the lowest cost service provider. A company must not select a service provider on cost alone; it should also take into consideration the people, processes, and technology. A company should check the track record of the service provider before finalizing the deal.2. Lack of Communication - Outsourcing software development requires a lot of internal communication for smooth operation. Offshore development will rarely have any on site monitoring, so it is vital to have clear communication daily3. Offshore Destination Security - Some countries on the global front do not have political & economical stability. There are high security threats that can overthrow any governing laws in a matter of just a few days. If your service provider does not have proper security measures then a company faces high risk of project failure.
  21. 21. 10 Reasons Why Offshore Outsourcing Projects Fail, and How to Avoid Making the Same Mistakes4. Inadequate Planning & Expectation Matrix - Offshore development will fail if a company does not have a proper plan in place in order to manage processes. Also the service provider should know the expectation matrix on quality and timeline procedure5. Transition Management - Test projects are not a clear indication of how your offshore development will actually be delivered. Focus on detailed reviews, workflows, and functions.6. Cultural Factors - Offshore development projects are bound to run into misunderstanding or language interpretation problem. Select a vendor who is well balanced in his professional attitude.7. Complex Contracts - Simple and short contracts preferably for a year will serve you best. Contracts that are complex in litigation will create dissatisfaction over a long period of time.
  22. 22. 10 Reasons Why Offshore Outsourcing Projects Fail, and How to Avoid Making the Same Mistakes8. Support Availability - Offshore development requires a continuous online support through out the project duration. Without adequate support, it will be difficult to resolve the problems with accuracy.9. Infrastructure - Outsourcing software development will fail without the support of ideal infrastructure that is equipped with the latest technological instruments.10. Disaster Recovery - A service provider without a strong disaster recovery plan will jeopardize your entire project. In case of crisis, he must be able to store and back up your project data for an uninterrupted project delivery.
  23. 23. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  24. 24. Did you know that India…1. …completed hundreds of thousands of US income tax return bills2. …there are about 1 100 persons just like you3. …28% of the collected IQ is higher than all the IQ in the USA4. …’s life length and children per family is soon like the western world5. …is the second largest muslim country6. …has the world’s best management educations at the moment
  25. 25. IndiaAdvantages Challenges• Well established High Speed • Physical Infrastucture Internet Infrastucture • Complicated tax system• Anglo-Saxon Law system • Bureaucratic• English speeking • Aging population• Relative highly educated • High Employee Turnover• Inexpensive labor cost • Price Discrimination is• Some taxfree zones unknown
  26. 26. Did you know that China…• … has over 350 million Chinese which lives above western standard of living• … has more English speaking persons then in all of USA• … has 50 000 000 students of classical piano playing.• …has more than 160 cities larger than Stockholm• …has 1 300 persons just like you• …has 20 000 characters. The average Chinese person learns only about 5 000 of these in his lifetime.
  27. 27. ChinaAdvantages Challanges• Inexpensive labor cost • Language• Decent infrastracture, • Aging population especially harbours • Bureaucratic• Good industrial engineering • Politically governed• 450 000 engineering students • Environmental effects graduate from Chinese • Chinese new year – Staff turnover universities every year • Corruption in all markets• Tradition of international trade • Clan culture• Large domestic market
  28. 28. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  29. 29. Live conference with BTCG Islamabad
  30. 30. Agenda• Welcome• What is Offshoring – Different types of Offshoring• Reasons for Offshoring• Top 10 Advice when Offshoring• Facts about India and China• Live Conference with BTCG Islamabad• Disposition of Education
  31. 31. Utformning av kursen• Block 1 Översikt av Offshore-marknaden, Magnus Penker – Historik, Begrepp och termer – Omfattning, struktur, tillväxt och drivkrafter – Analys av leverantörer, relevanta nyckeltal, varningssignaler – Kriterier för urval, Marknadsbevakning – Nätverk av kontakter, Olika samverkansformer: Onsite, Offsite, Blended – SmartSourcing Modellen• Block 2 Business Case, Mia Nilsson – Projekt, dedikerat team eller BPO? – Din kärnverksamhet – Vad är lämpligt att lägga på offshore? – Planering, kalkylering och budgetering av offshore-projekt – Vad är en bra affär? Kort och lång sikt? Break-even och ROI – Intellektuella och kommersiella rättigheter – Säkerhet – Riskanalys: Finansiellt, legalt och verksamhetsmässigt – Hur ett business case sammanställs, presenteras och säljs in
  32. 32. Utformning av kursen• Block 3 Offshore & Kommunikation, Per Dahl – Trender – Kommunikation som stärker ditt varumärke – Den kulturella kontextens inverkan på de kommunikativa utmaningarna – Förändringskommunikation – Ledningens och organisationens mognad och öppenhet – Vilka är skillnaderna, utmaningarna och det gemensamma med vanliga Offshoring-länder ? – Vem driver ditt förändringsarbete? Ledning eller nedifrån? – Hur du lär dig att kommunicera och coacha internt så väl som offshore – Utmaningar för din egen organisation – Lära och träna din egen organisation• Block 4 A central offshoring organization within IT organization with responsibility for, Rita Fernandes – Sourcing strategy – Change management – Vendor management – Infrastructure – SLA & KPI – Mentorship – Processes, routines, best practices and lessons learned
  33. 33. Utformning av kursen• Block 5 Projektstyrning, Johan Olander – Projektmetoder som fungerar – Arbetsprocesser – Agile offshore – utmaningen – Direkt ledning av team – Koordinering av många inblandade parter – Kommunikationsverktyg: Från MSN, Skype, e-mail till fullvärdiga videokonferenssystem – Ticketsystem, versionshantering samt acceptanstest – Offshoring Governance Model – Audits och leverans-KIP:er• Block 6 Juridik, Konflikthantering och Examinering, Jurist och Daniel Palm – Vad kan gå snett och varför? – Jurisdiska system, lagrum och praxis – Tidiga varningssignaler – Hantera utmaningarna i tid – Förebygga och hantera rättsliga efterspel – Avslut och avveckling av offshore-projekt – Att ta offshoring av projekt till nästa nivå med dedikerade team , BPO och BOT – Presentationer av grupparbeten – Examination och certifiering
  34. 34. En Certifierad Offshore Manager kan:1. identifiera och analysera lämpliga projekt, funktioner och processer för offshoring och outsourcing2. överblicka och omvärldsbevaka marknaden för outsourcing och offshoring3. analysera och utvärdera leverantörer på denna marknad4. ta fram och presentera business case som redovisar affärsnyttan5. analysera och bedöma risker6. förstå andra kulturer och kommunicera med uppdragstagare i främmande länder7. förhandla och upphandla ett offshore-uppdrag, med komplexa pris- och affärsmodeller8. tolka avtal för upphandling9. hantera praktiska aspekter kring personalfrågor10. leda offshore-projekt, med rätt projektmodeller och verktyg11. identifiera varningssignaler för problem och hantera konflikter12. lyfta offshoring till nästa nivå med dedikerade teams, outsourcing av processer eller funktioner samt hantering av business operation transfer
  35. 35. Erbjudande till kurs deltagare• De 12 st första som anmäler sig till kursen kommer att få tillgång till en Offshore Virituell Assistent under 40 timmar – Gratis• Om intresse föreligger: – Studieresa till Offshore land/länder 2012

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