2. WHAT IS
IT OUTSOURCING ASSESSMENT?
It is a holistic assessment/ check-up for
outsourcing experiences and governance.
A 2005 study by Deloitte found governance
deficiencies to be the culprit for 56 percent of
companies with unsatisfactory outsourcing
experiences.
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3. Why you want to do this?
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Continuous “health check” will reduce any
inefficiencies or unintended business results
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Responsiveness, Consistency, and Schedule
adherence
% Increase Customer Satisfaction
Index (CSI)
% Increase in productivity
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5. What problems are you
going to solve?
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6. KEY PAIN POINTS OF OUTSOURCING
According to Forrester*, IT services buyers are more
likely to be disappointed with:
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the INNOVATION of their provider (42%)
their ability to MANAGE CHANGE (37%)
their BUSINESS SAVVY and VALUE (31%)
the CONTRACTUAL ASPECTS of the deal
(23%)
PERFORMANCE AGAINST SLAS (15%).
*Reported in year 2007
7. How are we going to do it?
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8. Health Check Through IT Outsourcing
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Assessment
BEST PRACTICES REFERRED / USED
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9. Alignment
and Vision
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Customer
Satisfaction
Strategic
Outsourcing
Relationship
The degrees to which
the service provider
is aligned to the
goal/vision sets for
your organization IT
Outsourcing.
The degree to
which the value
you are getting
from your
outsourcing deal
is meeting your
cost avoidance.
The degree to which
the relationship
between service
provider and your IT
organization is
trusted and well-managed
to effective
delivery and
successful contract
management.
Service
Provider
Capability
The degree to which
the service provider
is dependable and
capable in
delivering the
current service,
continuous
improvement, other
value added IT
services and viable
for the foreseeable
future.
Delivery
Management
Capability
The degree to which
the service provider
is delivering its
contractual
obligation, its
performance over
the term.
B U S I N E S S
S A V V Y &
V A L U E
C O N T R A C T U A L
A S P E C T S
P E R F O R M A N C E
A G A I N S T S L A S
B U S I N E S S
S A V V Y &
V A L U E
I N N O V A T I O N
Value For
Money
The degree to which
the internal
customer is satisfied
with the experiences
received from the
service owner
(normally IT
Department).
M A N A G E
C H A N G E
P E R F O R M A N C
E A G A I N S T
S L A S
B U S I N E S S
V A L U E
…Using 6 ITO X-Rays*
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10. …and marked how healthy (matured) is your
ITO
Optimised & Continually Improved
Defined & Structured
Repeatable but Reactive
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Initial/Adhoc
Proactive & Measureable
IT Outsourcing Contract
and SLA with some of
formal processes are
defined but lack of
compliance.
ITO SLA defined
and ocassionally
reported, lack of
compliance on
standard
processes and
governance is not
in place.
ITO Service
Performance is
measured and
reported
diligently, but
lack of
governance.
ITO performance is
both qualitatively
and quantitatively
managed,
governed and
measured. Service
Provider is started
to become a
trusted partner.
ITO Service Provider
is instrumental in
responding to on-demand
and dynamic
business requirement
for IT services and
technology solutions.
1 2 3 4 5
Below par Base Competitive Distinctive
11. What success do we provide
to you if you perform this
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assessment?
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Through the assessment results, the
customer can show the quantifiable value
to the stakeholder from the ITO investments
The assessment results can set as a benefits
realization baseline and the improvement
made can be tracked.
Often, CIO and Head of IT department spent
a lot of time preparing the paperwork to
justifying their ITO investment, this ready-to-
use assessment can expedite their
process in a quantifiable way to document
disagreements, but also a way to
communicate about the deal .
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THANK YOU
For any enquiries, please contact:
tgintannarqiah@yahoo.com
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