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Outsourcing PPT Slide Template


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"Are you planning to outsource corporate tasks or structures to external providers? Use our template to visualize outsourcing processes and present the associated benefits such as cost-effectiveness, calculability, and time-saving performance.
Our template includes graphics, graphs, and icons to professionally present your company’s outsourcing strategies.

Download our Outsourcing PowerPoint Template

- a definition of the term outsourcing
- difference between outsourcing and insourcing
- the various types of outsourcing
- strategies for implementation
- outsourcing processes
- planning phases
- an example of IT outsourcing implementation
- pros and cons
- comparison of outsourcing providers
- key performance indicators
- crowdsourcing

Your benefits:
- ready-to-use slides with adjustable graphics
- find the right type of outsourcing for your company
- graphs to visualize your outsourcing measures
- optimally plan all phases of the outsourcing process

Published in: Business
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Outsourcing PPT Slide Template

  3. 3.  Introduction  sourcing  Processes  Application  Assessment  crowdsourcing
  4. 4. Whether you are an IT organization or a service provider, you will learn to accept it– and make it work for the enterprise. John Keppel (ISG president for Europe, Middle East and Africa)
  5. 5. INTRODUCTION Difference Between Outsourcing and Insourcing OUTSOURCING: A companycontracts out services and tasks to outside specialists. This thenallowsthecompanyto focus onkey activities and create cost advantages. INSOURCING: A companybrings in a specialist tocompleteprocesses and tasksthat would have otherwise been outsourced.
  6. 6. SOURCING Insourcing or Outsourcing Insourcing  Tasks are handed over to a sister company.  A spin-off company is created specifically for the new task.  Services are assigned in-house to other departments (temporary work, etc.). Outsourcing Services are contracted out to external companies (regional or global).
  7. 7. SOURCING Types Out-Tasking The company outsources individual processes and tasks to an external provider. SelectiveOutsourcing The company submits specific tasks of one functional area to an external provider who has the appropriate expertise . TransitionalOutsourcing The company hires an external provider to manage its processes and activities of all functional areas. ComprehensiveOutsourcing The company hands over a process to a service provider with the necessary expertise in new technology systems. End-of-Life(EOL)Manufacturing At the end of their production, products are handed over to providers who dispose of products or handle spare parts. ApplicationServiceProviding(ASP) A third party that manages and distributes software services and solutions to a company. CloudComputing Customers have accessible services through online servers and storage. SalesOutsourcing Specialized service providers take care of individual sales steps.
  8. 8. SOURCING Offshoring vs. Outsourcing OFFSHORING  A company moves the location of a service abroad.  This location belongs to the company. OUTSOURCING  A company hires a third party for a service.  The third party’s location can be within the company’s country or abroad.
  9. 9. SOURCING Outsourcing and its Complex Demands Internal simple Demands complex Selective Outsourcing Insourcing Comprehensive Outsourcing ThirdParty
  10. 10. SOURCING Application Service Provider (ASP) SOFTWARE Provider ASP Application Service Providing Fast and standardized IT solutions are used. Computer-based services are available on the provider's network. Customers
  11. 11. SOURCING Organizational Levels Strategy  Select outsourcing measures  Establish core competencies Contracting  Define costs  Describe services coordination  Find solutions to problems together  Supervise cooperation Operations  Define processes and interfaces IT  Create an infrastructure  Establish interfaces  Write software
  12. 12. SOURCING Four Outsourcing Strategies Comprehensive An external provider takes over a series of processes across all functional areas. This is a multi-year model. Selective Several processes within a functional area are given to an external provider. This model is a long-term strategy. Contracting A contractor is paid hourly/daily/weekly/monthly. Licensing This model contains tactical solutions defined with a unit price and certain conditions. Out-Tasking Models BPO Models
  13. 13. PROCESSES Factors for Deciding Between Outsourcing or Insourcing Need for a wide performance range? High strategic importance? INSOURCING OUTSOURCING Need for complexity or specificity? yes yes no no
  14. 14. PROCESSES Outsourcing – Example Meetings with stakeholders and higher authorities Keepthis activityin- house In-house negotiations with Creator Y Xwantsto outsource Outsourcing to an approved provider? Negotiations with workers’ council Agreement on the activity? Is there a higher- ranking authority? Agreement made? Board makes decision Should the higher- ranking authority be involved? X wants todistributeorder Joint agreement on the activity? Outsourcethe activity yes yes yes yes no yes no no no no no
  16. 16. PROCESSES Outsourcing Process Duration phases JAN FEB MaR APR MAy JUN JUL AUG SEP OcT NOV DEc 1. Preparation 2. Possible Solutions 3. Selecting a Provider Phase 1: Pre-selection Phase 2: Bidding Phase 3: Assessment Phase 4: Concept presentation Phase 5: Outsourcing assignment 4. Implementation
  17. 17. 27 16 15 11 9 22 IT HR Sales & Marketing Finance Administratives Other APPLICATION IT: The Largest Outsourcing Field (by Percentage) Source: Idoyourjob, 2010
  18. 18. EffectivenesS data protection more transparency better service a focus on core competences access to key technologies Efficiency cost reduction performance improved business processes more flexibility less fixed capital
  19. 19. APPLICATION Important Clauses in a Contract Terms & Conditions Performance Contract Period/Termination Breach of Contract Repercussions Privacy Protection Contractual LiabilitiesPayment Scope of Work CONRACT
  20. 20. APPLICATION Service Level Agreement Services for thecontractual periodare:  Evident  reliable  accessible  secured  trustworthy  scalable  verifiable  payable  effective  needs-based SERVICE LEVEL AGREEMENT define the performance metrics between both parties of the contract.
  21. 21. APPLICATION Service Level Agreement – Example Service Level Agreement Basic 1 Year Standard 1 – 3 years Premium 1 – 5 years Free Phone Support Mon-Fri, 9 am – 4 pm 24/7 24/7 Response Time 24 hrs 12 hrs 30 min Hardware Exchange 24 hrs 6 hrs 3 hrs Customer Portal with Service Level Reports Repair Services Within a month 12 business days 6 business days Routine Maintenance Optional Optional Optional … … … …
  22. 22. Problem  Missing or little exchange of information and know-how Problem  No measure of performance Problem  No attention to personnel issues Solution  Communication management Solution  Project management Solution  Integration management APPLICATION Problems and Solutions
  23. 23. APPLICATION Provider Selection Criteria Contract terms & conditions Market stability Skills Equipment (technical andpersonnel) Appropriate size and structure Industry knowledgePossibilityof taking over other services
  24. 24. APPLICATION Comparing Costs, Risks and Qualitative Criteria In-house performance Insourcing Outsourcing Value Valu e Value Investments 25% In-house investments 2,0 No investments 3,0 Required investments 1,5 Personnel costs 30% Satisfactory conditions 2,0 Satisfactory conditions 2,5 Good conditions 2,5 Operating costs 25% Space, storage, etc. 2,5 Space, storage, etc. 2,0 Dependent on negotiations 1,8 Start-up expenses 15% Only by investments 3,0 Low 2,5 Moderate 1,2 Misc. 5% Low 2,0 Low 2,5 Moderate 1,5 Total 100% 2,3 2,6 1,5 Know-how 30% gut 2,0 Good 2,5 High 3,0 Flexibility 30% Good 1,0 Low 1,5 Proficient 2,8 Service 40% Average 1,5 Constant 2,0 Good 3,0 Total 100% 1,5 2,0 2,9 Transfer of holdings 20% Omitted Partial 2,0 3,0 Performance risks 35% Constant process Constant process 2,0 Total 2,5 Dependence 15% Non-existent Partial 2,5 Existent 2,5 Anlauf- probleme 10% Only by investments Partial 2,5 Existent 2,0 Total 100% 1,5 2,2 2,6 risks Qualitative QualitativeCriteriaCosts
  25. 25. APPLICATION Key Performance Indicators Outsourcing-Service Key Performance Indicator(KPI) Availability Time (hours) Service Costs for a fixed period (e.g. monthly or quarterly) Processing service requests Within time period X Quality/efficiency Number of complaints within the time period; number of employees Solving customer problems Wait time for incoming calls; amount of problems solved within the first call
  26. 26. ASSESSMENT Reasons for IT Outsourcing Finance  High expenses for new technologies can be avoided. Risks  Privacy protection can be increased.  Threats and risks can be covered by the outsourcer’s contract. Technical Knowledge  Special, up-to-date IT knowledge is available.  New technology trends can be applied. Concentration  Focus can be on the essential processes and tasks.  Staff capacities can be utilized for core business. Staff  Less outsourcing difficulties for specialized experts  Less IT staff required Costs  Better cost planning and transparency
  27. 27. Strategy  Focuses on core tasks  Transfer of risks  Transfer of hazardous sites Strategy  Morale problems among employees  Data privacy  Loss of knowledge  Dependency Service-oriented  Quality improvement  More free capacity  Constant service Service-oriented  Too much standardization  Possible poor quality and service by outsourcing provider finance  Transparent costs  Reduced costs finance  More difficult to control costs  High conversion cost  Uncertainty in cost planning ASSESSMENT IT Outsourcing – Pros and Cons Pros Cons Download at
  28. 28. CROWDSOURCING Crowdsourcing and Outsourcing Crowdsourcingisa typeofoutsourcingwhere projectsaregivento apubliccrowdoronline community. Example: No Compensation Wikipedia - Users edit or add on to the online encyclopedia. Wikipedia is free of charge and accessible to all users. Compensation - Users rate tools, proofread articles, and test other services. Payment varies depending on the task. >
  29. 29. CROWDSOURCING 4 Groups of Crowdsourcing + Crowdfunding A crowd is asked to provide funds for specific projects. When the targets are reached, the money is reimbursed or given back in other forms, such as gifts or benefits. + Micro tasks A large project is divided into small tasks for online crowd members to complete. + Crowdcontests A crowd competes for one task and a winner is determined at the end. Only the winner receives compensation. + Macro tasks A specialist in the crowd is hired to complete one large task.
  30. 30. CROWDSOURCING Pros and Cons for Crowdsourcing Pros Versatile ideas and perspectives Crowd knowledge lacks expertise I. Fast connection to the market Takes time and money to evaluate responsesII. Deeper insight into customer needs Large number of non-relevant responsesIII. Cons
  31. 31. CROWDSOURCING Crowdsourcing Model Motivation of the Crowd 1 2 4 3 Infrastructure Human capital Vision Environment
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