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Creating value by getting rid of it

The Strategic Value of offloading non core functions as a cost saver and empowering the business to better focus on you core competence is rarely questioned - WHEN DONE WELL.

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Creating value by getting rid of it

  1. 1. Creating Value by Getting Rid of It •Offshore Services •Out Source •Spin Off Non Core Functions •Manage to Performance Metrics Joe Orlando TorchLite Group 1
  2. 2. Creating Value by Getting Rid of It • Spin off leveraged assets, overhead and variable expense for a fixed monthly operating expense • Move Capital Expense to Operating Expense – CapEx to OpEx • Reduce Debt on Balance Sheet Joe Orlando TorchLite Group 2
  3. 3. Joe Orlando TorchLite Group Logistics Project Management Contract Management Human Resource Management Supply Chain Management Claims Processing Procurement Customer Support Technical Support Contract Manufacturing Commodity Sourcing Transaction Processing (Billing) Regulatory Processing (Health & Safety; Pension; Medical) Facilities Management Security Design Market Research Fleet Management DataCenter Management Colocation Services eCommerce Transactions Web Hosting Application Hosting Storage Area Networks Electronic Benefits Transfer Public Services (Housing, Prisons, Social Services, Education, etc.) Applications Development Applications Support/Maintenance Call Center Management … It’s not just IT anymore… 3
  4. 4. Joe Orlando TorchLite Group 4
  5. 5. What Customers Need… a Seasoned Guide • “As is” and “Should Be” Assessments • Licenses; Services; Utilities; Bandwidth; Upgrades, etc. – Genuine True Cost Assessments • Non Core and Carve Out Implications • Best Practices for RFP and Contract Construct. Often Overlooked: • Reporting and Metrics • Scope Creep and Change Management • Dedicated Resources Approval • Notifications and Escalations • Path back • Liquidated Damages • Remediation Steps • Negotiation Tactics – Do not Select and THEN Negotiate. • Role Definition - Yours Theirs • Rules of Engagement • Ways to Reduce Finger Pointing • Performance Holdbacks Defined Joe Orlando TorchLite Group 5
  6. 6. Joe Orlando TorchLite Group •Reduce Overhead and Capital Expense •Secure long term fixed costs from internally managed variable costs •Less stringent credit requirements to acquire equipment and services •Capital infusion from spin off entity while retaining SLA and existing process •Retain and equity interest in a new entity •Sell IPR to spin off for cash and/or royalty stream What’s in it for ME? 6
  7. 7. Joe Orlando TorchLite Group •Secure long term anchor contract increase bankability •Extend services to other companies and industries •Existing Process and Asset base •“Micro cosmic” cost containment •Less ramp up and established history •Industry expertise and track record •Leverage brand and reputation What’s in it for ME? 7
  8. 8. Joe Orlando TorchLite Group •Long term high value contracts •Economies of Scale •Track record leads to more contracts •Volume reduced capital costs What’s in it for ME? 8
  9. 9. Joe Orlando TorchLite Group •Establish “best in class” practices and procedures •Tailored services and processes •Specialization •Regulatory Familiarity •Industry Expertise What’s in it for ME? 9
  10. 10. Joe Orlando TorchLite Group •Alternate funding options •Penetration into more Accounts •Expand asset base •Secured Lending What’s in it for ME? 10
  11. 11. Joe Orlando TorchLite Group •Expand customer base •Expand industry experience •Expand specialized knowledge and practices What’s in it for ME? 11
  12. 12. Joe Orlando TorchLite Group •Funding option •Long term asset in contracts •Amortization and Depreciation against long term fixed revenue stream •High growth market area •Access to IPR What’s in it for ME? 12
  13. 13. Joe Orlando TorchLite Group •Customer penetration •Expand customer base •Secured co signature or SLOC •Attractive ROI •Long term cash flows What’s in it for ME? 13
  14. 14. Joe Orlando TorchLite Group •All major players are service provider side, few organizations offer client side advice so customers are led by sales people •Provide client side advice on how to structure, manage and benefit most from outsourcing – A Seasoned Guide is your Secret Weapon 14