Notes on Managed Service
and Outsourcing
Implementation and
Management

Alan McSweeney
Agenda

• Possible           Managed Service Requirements
• Benefits           of Managed Services
• Approachto Solution A...
Possible Managed Service Requirements

•   Analyse existing processes
•   Define requirements and proposed new supporting ...
Advantages of Managed Services

•   Better use of staff: allows agencies to focus human resources on
    strategic plannin...
Types of Outsourcing Arrangement

•   Efficiency/Utility (Make it Cheaper) arrangement outsourcing
    focuses primarily o...
Managed Service

• TheBasis for Managed Services is the ITIL framework
 which has as its foundation the Configuration
 Man...
Managed Service Design and Reporting Approach

•   Analysis
      − Document Business usage and processes covered by Oracl...
Benefits of Managed Services

•   Managed Services offers an alternative approach for a client to acquire IT or telecom
  ...
Developing a Vision for IT Services is Required

•   What do we do today?
•   What do our customers want us to do?
•   Wha...
Service Model Triangle — What Service Model do You
Want to Implement?
                                                    ...
Approach

• Step
     1: Undertake activity analysis and identify
 weaknesses ‘as is’ with current processes
   − Getronic...
Approach

•   Step 2: Develop ‘to be’ processes and implement, write RFP for
    service provider
      −   Redefine Servi...
Steps 3-6

• Dependent on 1 and 2, but should generally be
 designed to allow you to:
   − Manage transition to service pr...
High Level Approach
                                    Analysis                                            Planning      ...
Approach to Solution Analysis and Definition



− Based on stakeholder participation
− Organised as a set of four fundamen...
The Four Solution Definition Views — Building a House Analogy


Business View                                  Technical V...
Approach to Assessment

 •     Business requirements drive strategy and architecture
 •     Capturing business requirement...
Fact Find and Solution Assessment Approach


    Business
    Drivers           Business       Functional    Technical    ...
Approach to Solution Identification and Evaluation Process


• Formalsolution management process that can be
 adapted easi...
Business Case Generation

•     Prepare a business case prepared that justifies the
      investment
•     An appropriate ...
Business Case

•     The business case should contain information in five
      key areas: strategic fit, options evaluati...
Business Case

•   Procurement and Implementation
      − Proposed sourcing option with reasons
      − Key features of pr...
Effective Contract Management

•   PBC (Performance-Based Contracting)
•   Objectives structured into contracts and multip...
Ensuring the Quality of Performance

• QASP               (Quality Assurance Surveillance Plan)
   − Develop early - durin...
Service Transition Process

                                                                          Contract Effective  ...
Organisation Change During Transition to
Outsourcing
•   Enabling the changeover to outsourcing. Organisational change can...
Transition and Transformation Management (TTM)


                                                                         ...
Planning, Due Diligence and Transition Phases


                        Planning                              Transition
 ...
Due Diligence Objectives

•   Enhance understanding of business solution to be provided
•   Confirm scope of services, rol...
Value of Due Diligence

• Confirmation of assumptions
• Verification of financials
• Ensure risks are mitigated, accepted ...
Due Diligence Guiding Principles

• Wwork collaboratively and co-operatively with the
 customer
• Support             cust...
Elements of Due Diligence

1.    Engagement
2.    Planning
3.    Execution
4.    Analysis
5.    Reporting




 November 26...
Due Diligence Process Overview

Definition & planning
• define requirements
• document impacts
 and assumptions
• define c...
Making SLAs and OLAs Work


•     Service Level Agreements and Operating Level Agreements should:
        −    Be develope...
Sample Service Level Agreement Structure

•   1             Service Level Agreement
        −   1.1   Introduction, Purpos...
Service Change Management

• Changes  during the course of the delivery of a service
 are inevitable and can affect the sc...
Change Control Steps

•   Planning — Establishing change management plans, processes and
    expectations during project p...
Lessons Learned from Outsourcing Problems - 1

•   Smoothly Transferring Services And Resources - A common cause of failur...
Lessons Learned from Outsourcing Problems - 2

•   Reviewing Service Design And Deployment To Ensure An Adequate CoverageC...
Lessons Learned from Outsourcing Problems - 3

•   Monitoring And Managing Client s And End User s Satisfaction - Success ...
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Notes On Managed Service And Outsourcing Implementation And Management

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Possible Managed Service Requirements
Benefits of Managed Services
Approach to Solution Analysis, Definition, Selection and Business Case Generation
Contract Management
Service Transition and Due Diligence
Service Management and Operation
Lessons Learned from Outsourcing Problems

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Transcript of "Notes On Managed Service And Outsourcing Implementation And Management"

  1. 1. Notes on Managed Service and Outsourcing Implementation and Management Alan McSweeney
  2. 2. Agenda • Possible Managed Service Requirements • Benefits of Managed Services • Approachto Solution Analysis, Definition, Selection and Business Case Generation • Contract Management • Service Transition and Due Diligence • Service Management and Operation • Lessons Learned from Outsourcing Problems November 26, 2009 2
  3. 3. Possible Managed Service Requirements • Analyse existing processes • Define requirements and proposed new supporting processes • Define and document the requirements of an system to support the processes • Generate a business case for the selection of a new system • Identification of suitable products and vendors to be invited to propose a solution • Produce material that can be incorporated into a tender for a system • Define the process for evaluating proposals and responses from vendors • Manage the team to perform the evaluation of the proposals and select the most suitable solution • Additionally possibly assist in managing the implementation of the solution November 26, 2009 3
  4. 4. Advantages of Managed Services • Better use of staff: allows agencies to focus human resources on strategic planning and core mission support • Cost savings: choose not to build and support IT and network infrastructure available in the commercial sector; use limited capital to purchase needed service levels and reduce total cost of ownership • Ability to use optimal technologies: adjust types and mix of hardware, software, skilled labour, capital investment and technology to support changes in mission needs • Rapid response to organisation and business changes: supplier is measured by ability to produce solutions November 26, 2009 4
  5. 5. Types of Outsourcing Arrangement • Efficiency/Utility (Make it Cheaper) arrangement outsourcing focuses primarily on cost control and, over time, cost reduction, with the goal of maintaining consistency in the delivery of services • Business Enhancement (Make it Better) arrangement is about business productivity. The organisation’s performance, as compared with their competitors, will improve, resulting in movement toward defined business goals • Transformational (Make me Money) arrangement is characterised by a partnership between the service provider and service recipient that is focused on innovation and new business, changing the very basis on which an organisation competes November 26, 2009 5
  6. 6. Managed Service • TheBasis for Managed Services is the ITIL framework which has as its foundation the Configuration Management Database (CMBD) • The CMDB holds all relevant information for IT assets that make up a Managed Service • The basic building block of the CMDB is the configuration item: “The core component of a service describing structure and details of the item and relationships with other items” November 26, 2009 6
  7. 7. Managed Service Design and Reporting Approach • Analysis − Document Business usage and processes covered by Oracle systems, review structure and available data and identify and gaps − Build service view of components − Understand what is (and is not) being monitored • Design − Define CMDB data hierarchy • Overall service to be reported on • Components • System availability rules • Impact rules − Define what to be reported on: • Outages • Capacity and performance problems − Agree BNM reporting requirements, presentation, format and drill-down facilities • Build − Build CMDB of service data − Build reporting facility November 26, 2009 7
  8. 8. Benefits of Managed Services • Managed Services offers an alternative approach for a client to acquire IT or telecom support services − Managed services solutions are designed and delivered by service providers according to a predefined statement of deliverables and generally includes end-to-end service, service level agreements, and assets (if desired) • A managed service typically includes monthly recurring service-based pricing offering a more predictable cost approach for the client • Ongoing visibility of operational performance is provided and managed through pre- agreed performance parameters (known as service-level agreements) − The client may include their unique performance requirements such as degree of control and visibility, security, availability, capacity, service continuity and other requirements as it relates to the specific service • Because this is a core competency, the service provider is able to optimise the best balance of facilities, processes, resources, tools, and metrics, resulting in the best overall value for the client − Cost effectiveness is typically achieved through instituting process standards and establishing and supporting a standard operating environment (SOE) consisting of COTS (Commercial Of the Shelf) services and solutions • Managed services can be delivered either in a BOCO (Business-owned, contractor- operated) or COCO (contractor-owned, contractor-operated) model and is largely based on client preference November 26, 2009 8
  9. 9. Developing a Vision for IT Services is Required • What do we do today? • What do our customers want us to do? • What changes do we need to make to align with our customers needs? • How will they pay for those services? • How will we deliver those services consistently and measure their delivery? • What kind of organisation (Governance/Contract Management/Structures/Staff/Skills/Service Providers) will we need to achieve it? • What service management processes (ITIL/ITSM) we should use? November 26, 2009 9
  10. 10. Service Model Triangle — What Service Model do You Want to Implement? Service Provider n isio Re qu rov n est Pro isio eP s vid rov vic Ser es Ser eP vic Ser vic es on vic Ser rts es po ors Re nit Mo Organisation Customers Requests Services Monitors Service Satisfaction and Provides Services November 26, 2009 10
  11. 11. Approach • Step 1: Undertake activity analysis and identify weaknesses ‘as is’ with current processes − Getronics Service Delivery role − Customer feedback on services and issues − Cost of service provision by location − Local practice differences − Contract structure/SLA’s − Use of automation and tools to smooth workflow and reduce duplication of effort − Service card costs, revenue and profit by service − Existing and new Lines of Service and process for handling November 26, 2009 11
  12. 12. Approach • Step 2: Develop ‘to be’ processes and implement, write RFP for service provider − Redefine Service Delivery role − Assess customer requirements for IT services today and in the future − Review service card and adapt based on customer feedback − Reduce cost of service provision, and identify rate card changes − Leverage best practice in some locations across all locations − Identify economies of scale − Identify and implement opportunities to upsell services − Leverage lower cost locations − Identify and reduce cost of service provision through automation and tools − How to standardise service across all locations − Develop RFP and RFP evaluation criteria November 26, 2009 12
  13. 13. Steps 3-6 • Dependent on 1 and 2, but should generally be designed to allow you to: − Manage transition to service provider − Determine what new services will be required − Design a service delivery requirement and model for the incoming service provider to bid for − Design a compensation structure for the incoming service provider that aligns achievement of IT services objectives and goals with the contract reward/remuneration schedule November 26, 2009 13
  14. 14. High Level Approach Analysis Planning Execution 1. Establish an 1. Establish an 2. Describe 2. Describe 3. Examine 3. Examine 4. Develop a 4. Develop a 5. Decide how 5. Decide how 6. Select the 6. Select the 7. Manage 7. Manage integrated integrated the problem the problem solutions solutions PWS or SOO PWS or SOO to measure to measure right right performance performance solutions team solutions team that needs that needs and manage and manage contractor contractor solving solving performance performance What result do we want to create? What result do we want to create? Defining outcomes in writing is hard Defining outcomes in writing is hard Continually assess relevance of metrics Continually assess relevance of metrics Program Program Defining “end state” or desired outcome. Defining “end state” or desired outcome. work. work. Maintain open lines of communication Maintain open lines of communication Office Office Conducting market research to see who else has solved that Define how we measure performance open Conducting market research to see who else has solved that Define how we measure performance problem, met that need. to meet the desired outcome open problem, met that need. to meet the desired outcome Does the SOO sufficiently describe the Use effective QASP procedures to self Does the SOO sufficiently describe the Use effective QASP procedures to self Define the desired outcome well enough to structure an Define the desired outcome well enough to structure an desired outcomes? desired outcomes? assess quality as well as contractor assess quality as well as contractor Contract Contract enforceable contract. enforceable contract. Will the contracting method provide quality Will the contracting method provide quality Office Office What contracting method will we likely use? What contracting method will we likely use? enough competition? enough competition? Base incentives and disincentives on Base incentives and disincentives on Which contract type? Which contract type? Is the contract type commensurate Is the contract type commensurate clear relevant metrics that everyone clear relevant metrics that everyone with risk? with risk? understands understands Can we deliver the optimal outcome based on what we do Think in terms of outcomes Can we deliver the optimal outcome based on what we do Think in terms of outcomes Foster clear and consistent Executive Foster clear and consistent Executive best? best? Continually measure relevance of Continually measure relevance of and Programmatic communication and Programmatic communication Prime Prime Great opportunity to reach informal understanding Great opportunity to reach informal understanding metrics to evolving missions metrics to evolving missions Manage team or sub-contractor partners Manage team or sub--contractor partners sub- sub Contractor Contractor agreement on feasible outcomes. and manufacturers on customer goals agreement on feasible outcomes. Make sure my definition of success the Make sure my definition of success the and manufacturers on customer goals same as the customers! same as the customers! and metrics and metrics • Acronyms − PWS = Performance Work Statement − SOO = Statement Of Objectives − QASP = Quality Assurance Surveillance Plan November 26, 2009 14
  15. 15. Approach to Solution Analysis and Definition − Based on stakeholder participation − Organised as a set of four fundamental views Business view Functional view Stakeholders Technical view Implementation view November 26, 2009 15
  16. 16. The Four Solution Definition Views — Building a House Analogy Business View Technical View Why do I want a new How will it be built? house? • foundation, framing, • residence, entertainment, heat/ac, plumbing, ... business • utilities: • affordability - electric, water, • location comms, roads • independence • security systems • image • controls • materials Implementation View Functional View With what will it be What should the built? new house give me? • sourcing • uses / room layouts - suppliers • peace & quiet, security - specific models • garden, trees • financing • garage, pet needs • phasing • moving November 26, 2009 16
  17. 17. Approach to Assessment • Business requirements drive strategy and architecture • Capturing business requirements is essential • Define key principles/policies/critical success factors for IT • Identify implementation constraints Business Functional Technical Requirements Strategy Architecture Implementation Implementation November 26, 2009 17
  18. 18. Fact Find and Solution Assessment Approach Business Drivers Business Functional Technical Implementation View View View View Business Functional Technical Implementation Goals Principles Principles Principles Principles Rationales Rationales Rationales Rationales Implications Implications Implications Implications Obstacles Obstacles Obstacles Obstacles Actions Actions Actions Actions November 26, 2009 18
  19. 19. Approach to Solution Identification and Evaluation Process • Formalsolution management process that can be adapted easily to suit individual requirements November 26, 2009 19
  20. 20. Business Case Generation • Prepare a business case prepared that justifies the investment • An appropriate business case is needed to support a decision to make an investment in a project, programme or change • Preparing the business case so it can be presented for agreement requires a clear understanding of the proposition in terms of scope, objectives, options, implementation and investment and return November 26, 2009 20
  21. 21. Business Case • The business case should contain information in five key areas: strategic fit, options evaluation and identification, procurement and implementation, whole-life costs and plan for achievement − Strategic Fit • Business need and its contribution to the organisation's business strategy • Key benefits to be realised • Critical success factors and how they will be measured − Options Evaluation and Identification • Cost/benefit analysis of realistic options for meeting the business need • Statement of possible soft benefits that cannot be quantified in financial terms • Identify preferred option and any trade-offs November 26, 2009 21
  22. 22. Business Case • Procurement and Implementation − Proposed sourcing option with reasons − Key features of proposed commercial arrangements − Procurement approach/strategy with supporting details • Whole-Life Costs − Statement of available funding and details of projected whole-life cost of project (acquisition and operation), including all relevant costs − Expected financial benefits • Plan for Achievement − Plan for achieving the desired outcome with key milestones and dependencies − Contingency plans − Risks identified and mitigation plan − External supplier plans − Resources, skills and experience required November 26, 2009 22
  23. 23. Effective Contract Management • PBC (Performance-Based Contracting) • Objectives structured into contracts and multiple incentive arrangements • Effective contract administration starts early with contract management planning • Begins during the acquisition planning phase • Recognises the performance-based elements of the contract • The Contract Management Plan is in place before after the time of award − Requirements are structured in a results or outcome oriented manner − Positive and/or negative incentives are included − Quality Assurance Surveillance Plans are required November 26, 2009 23
  24. 24. Ensuring the Quality of Performance • QASP (Quality Assurance Surveillance Plan) − Develop early - during the early stages of the RFP (SOW) − Tool to evaluate contractor’s performance − Provides a structured approach to performing quality inspections and surveillance − Establishes frequency and types of inspections − Focuses on results - quality and timeliness • QASP linked with Performance Evaluation Management Plans (PEMPs) − PEMPs establish the performance evaluation process and fee determination process − PEMPs may be used to fulfill QASP requirement November 26, 2009 24
  25. 25. Service Transition Process Contract Effective Service Commencement Issue Tender Date (CED) Date (SCD) Define Operating Develop and Issue Vendors Evaluation Negotiate and Pre- Pre-Service Service Model, Service Tender and Manage and Selection Sign Contract Commencement Delivery Requirements Process Preliminary Final Transition Transition Plan Transition Plan Closure Service Due Diligence Commencement Preparation Transition Key Initiation Planning Phase Solution Handoff Transition Phase November 26, 2009 25
  26. 26. Organisation Change During Transition to Outsourcing • Enabling the changeover to outsourcing. Organisational change cannot be considered successful if the intended outsourcing objectives have not been achieved. • Supporting users. Users must understand the operation of the outsourced managed service arrangement and the roles and responsibilities of each party. Successful outsourcing implementations require explicit statement of this information. • Integrating with changes in lines of service to provide complete solutions. Successful outsourcing requires synergies that only can be attained when people, processes, technology, and lines of service initiatives are planned, implemented, and integrated seamlessly. • Maintaining processes for fast responses to challenges. Despite our best efforts, organisational change activities can never be fully planned and engineered. However, the organisational learning process provides the resources and means to respond to unplanned and unexpected organisational challenges brought about by outsourcing. • Building the organisation’s capacity for sustaining outsourcing. The pace of change in the early stages of outsourcing is very fast. The success of outsourcing depends on maintaining the flexibility to respond to a rapid series of change requirements from the client’s business units. The organisational change process provides a disciplined approach for managing the organisational dimension of future challenges the outsourced organisation will experience. November 26, 2009 26
  27. 27. Transition and Transformation Management (TTM) Service Transition Transformation Contract Commencement Criteria Transformation Criteria Signed Review Achieved Reviews Achieved Ts & Cs Pursuit Transition to Transformation Handoff(s) Delivery to Delivery Handoff Handoff Development & Bid Negotiate & Close Delivery Planning Transition Transformation Ongoing Delivery Proposal Support Initiation/Kick- Transition Initiation/Kick-off Initiation/Kick- Transformation Initiation/Kick-off Preliminary Transition & Transformation Plans Post Contract Verification Stabilisation Due Diligence Solution Handoff Standardisation Final Integrated Transition Plan Customer Management Office Transformation Close Courts Service Transfer Service Commencement Preparation KEY: Key Quality Key Handoff Transition Closure Review Reporting Events Milestone Events Customer Engagement Stage TTM Phase Activity November 26, 2009 27
  28. 28. Planning, Due Diligence and Transition Phases Planning Transition Proposal Support Initiation/Kick- Transition Initiation/Kick-off Preliminary Transition & Transformation Plans Post Contract Verification Due Diligence Solution Handoff Final Integrated Transition Plan Customer Management Office BNM Transfer Service Commencement Preparation Transition Closure November 26, 2009 28
  29. 29. Due Diligence Objectives • Enhance understanding of business solution to be provided • Confirm scope of services, roles, responsibilities and service levels • Gain better knowledge of mission critical IT services and how they relate to the business objectives • Enhance operational understanding to enable refinement of service transition and transformation plans • Ensure service provider proposes the best and most suitable service • Opportunity to mutually gain a greater insight of company and service provider cultures, skills, partners and knowledge November 26, 2009 29
  30. 30. Value of Due Diligence • Confirmation of assumptions • Verification of financials • Ensure risks are mitigated, accepted and sized • Identification of new risks • Validation of transition plan to new service • Safeguard of shareholder value • Discovery and understanding of culture and management style • Verification of the infrastructure and operational methodologies • Identify opportunities to add additional value • Building the trust relationship with the customer • Providing confirmation of no deal-breaking criteria November 26, 2009 30
  31. 31. Due Diligence Guiding Principles • Wwork collaboratively and co-operatively with the customer • Support customer business objectives • Evolve and build relationships • Solidify common goals and focus • Framework for future collaboration • The goal is No Surprises November 26, 2009 31
  32. 32. Elements of Due Diligence 1. Engagement 2. Planning 3. Execution 4. Analysis 5. Reporting November 26, 2009 32
  33. 33. Due Diligence Process Overview Definition & planning • define requirements • document impacts and assumptions • define cost drivers • define & confirm approach Data Collection • conduct data room visits Planning • conduct interview/discussions • conduct site visits Data Analysis Execution • assess financial impact • complete deviation reports • document variances Output Analysis • recommendations to SOW T&C’s, risk adjustments • recommendations for costing model Results November 26, 2009 33
  34. 34. Making SLAs and OLAs Work • Service Level Agreements and Operating Level Agreements should: − Be developed with contractor − Be measurable and achievable − Align with the deal − Align with the organisation’s goals (relevant measures and metrics) − Have effective incentives and disincentives to drive desired behavior − Should be consistent with your strategic objectives • Effectiveness -- functional alignment with mission, committed delivery of service to stakeholders, leverages diversity in the marketplace, complies with regulatory mandates, and delivers outcome/impact within applicable constraints) − Enhancement — process and productivity improvement (claims processed, personnel productivity − Transformation — Business performance improvement (revenue growth, market growth) • Efficiency -- Cost improvement and cost control − Availability, response, resolution November 26, 2009 34
  35. 35. Sample Service Level Agreement Structure • 1 Service Level Agreement − 1.1 Introduction, Purpose and Scope − 1.2 Structure of This Document − 1.3 Scope of SLA • 1.3.1 Purpose of SLA • 1.3.2 Involved IT Partners, Locations and Departments • 1.3.3 Customer Departments Involved • 1.3.4 Responsibilities • 1.3.5 Services Not Covered By This SLA • 1.3.6 Changes to SLA − 1.3.6.1 Termination of Agreement − 1.3.6.2 Amendment to Agreement − 1.3.6.3 New Services and Applications − 1.3.6.4 Levels of Effort − 1.3.6.5 Renewal of Agreement − 1.3.6.6 Review Process − 1.4 Support Operating Model • 1.4.1 Support Structure − 1.5 Application Support Services • 1.5.1 Overview • 1.5.2 Managing Incidents and Service Calls • 1.5.3 Support Services and Service Options • 1.5.4 Performance Measures • 1.5.5 Warranty Period • 1.5.6 Escalation Process − 1.5.6.1 Services and Application Criticality Classification − 1.6 Service Options Details • 1.6.1 Service and Hours by Application and Service • 1.6.2 Holiday Coverage by Application and Service • 1.6.3 Business Critical Periods by Application and Service • 1.6.4 Application and Service Support Models • 1.6.5 Escalation Contacts by Application and Service • 1.6.6 Key Contacts by Application and Service • 1.6.7 Review Meetings − 1.6.7.1 SLA Review Meeting − 1.6.7.2 Operational Review Meeting − 1.6.7.3 Service Provider Review Meeting • 1.6.8 Partner Service Level Agreements − 1.7 Communication Schedule − 1.8 Signatures November 26, 2009 35
  36. 36. Service Change Management • Changes during the course of the delivery of a service are inevitable and can affect the scope, cost and delivery • Change Management is a systematic process that allows for changes and at the same time aims to minimise the negative consequences of these changes November 26, 2009 36
  37. 37. Change Control Steps • Planning — Establishing change management plans, processes and expectations during project planning • Initiation — Recognising the need for a change and documenting the request • Review — Reviewing the request for completeness • Approval for Evaluation — Approving the cost for further evaluation, if needed • Evaluation — Evaluating the change request in detail to understand its impact on the project • Review, Negotiation and Approval — Assessing the results of the review and or evaluation, the impact on the project and deciding the course of action • Implementation — Putting the approved change decisions into action • Review and Verification — Reviewing and assessing the results of change implementation • Closure — Capturing lessons learned and administratively closing the request November 26, 2009 37
  38. 38. Lessons Learned from Outsourcing Problems - 1 • Smoothly Transferring Services And Resources - A common cause of failure is the ineffective management of the transfer of services and resources to the service provider, leading to service delivery problems. Successful service providers rigorously control the transfer of services and resources to ensure that the new service is able to adequately deliver the service and the service continuity is maintained. • Maintaining Stakeholder Expectations - A common source of failure in sourcing engagements is a difference in expectations between the client, the service provider, and the suppliers and partners. Identifying and managing those expectations helps to ensure a common understanding of what is necessary for success. • Translating Implicit And Explicit Needs Into Defined Requirements With Agreed Upon Requirements Levels Of Quality - A frequent cause of failure in sourcing is that the service provider does not fully understand the needs of the client. Successful service providers rigorously gather and analyse the stated and unstated needs, then translate those needs into a set of documented requirements. Successful service providers also recognise that needs change over time and establish provisions for gathering and analysing modifications to their services. November 26, 2009 38
  39. 39. Lessons Learned from Outsourcing Problems - 2 • Reviewing Service Design And Deployment To Ensure An Adequate CoverageCoverage Of The Client’s Requirements - Frequently, failure in sourcing is caused by the Client s service provider not fully addressing the needs of the client. To ensure that the service delivery will meet the client’s needs successful engagements include rigorous reviews of the service design and deployment activities by the clients and the service provider prior to service delivery. • Managing Client s Security - Managing security and controlling critical data Client’s and assets are critical to establishing trust. Security management includes protection of intellectual property, confidentiality, and privacy concerns. • Monitoring And Controlling Activities To Consistently Meet The Service Service Delivery Commitments - Successful service providers rigorously monitor their service delivery activities to ensure that the client’s commitments are being met. Actions are taken to resolve and prevent problems, thereby escalating issues as appropriate to ensure that they are addressed in a timely basis. November 26, 2009 39
  40. 40. Lessons Learned from Outsourcing Problems - 3 • Monitoring And Managing Client s And End User s Satisfaction - Success is not Client’s User’s always defined in terms of meeting the agreed upon commitments, because clients and end users may be unsatisfied even when commitments are being met. Successful sourcing engagements monitor the satisfaction levels of the stakeholders to identify problems and take action. • Managing Employee Satisfaction, Motivation, And Retention - IT-enabled sourcing often involves challenges during transition, deployment, and service delivery. High employee turnover jeopardises the service provider’s ability to meet its client’s requirements and undermines their expected gains and performance levels. Proactively monitoring and managing employee satisfaction and motivation can improve personnel retention and effectiveness. • Managing Technological Shifts And Maintaining The Availability, Reliability, Accessibility, And Security Of Technology - By definition, technology is a key component of outsourcing. Major challenges for the service provider include keeping pace with rapid changes in technology and effectively managing the technology infrastructure while changes are incorporated. November 26, 2009 40
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