This document discusses how adopting an agile approach to outsourcing can help organizations accelerate the benefits of outsourcing in today's rapidly changing business landscape. It recommends that companies define their business strategy, create a base case of current costs, and understand their target operating model to prepare for an agile outsourcing approach. Adopting agile methods allows for faster implementation of outsourcing solutions through more flexible contracts and cloud-based "as-a-service" offerings.
Augmenting IT strategy with Enterprise architecture assessmentPrashanth Panduranga
IT strategy drives the organizations roadmap,.This presentation provides an overview of Enterprise Architecture assessments which includes, Portfolio assessment, Cloud fitment analysis,
IT Outsourcing Trends - 2016 and beyond Euro IT Group
Worldwide IT Outsourcing market
Digitalization puts pressure on all organizations
Business leads technology
Large contract renegotiation
New working & pricing models
Flexible sourcing models
Project management trends
Co-opetition between IT service providers
Focus on risk
Employment strategies
New technology trends
The document discusses different models of enterprise architecture and stages of maturity from business silos to optimized core to dynamic venturing. It outlines how enterprise architecture can guide decisions around operating models, technology choices, and outsourcing strategies. The goal is to establish reusable and modular business components that can seamlessly merge with partners' systems for new business ventures.
Introduction to Enterprise architecture and the steps to perform an Enterpris...Prashanth Panduranga
The document provides an overview of enterprise architecture presented by Prashanth B P Panduranga, Director of Technology. Some key points include:
- Line of business workers and IT staff increasingly use unauthorized SaaS apps
- IT suppliers are targeting business users directly and line of business heads demand higher project velocity
- An enterprise architecture framework provides structures for developing architectures using common standards and building blocks
- Enterprise architecture applies principles and practices to guide business, information, process, and technology changes to execute organizational strategy
As High performing businesses need to respond quickly to market changes, improve operational efficiency and accelerate growth. know more about how netmagic’s IT infrastructure services can help.
Devoteam itsmf 2021 - from business automation to continuous value-driven i...itSMF Belgium
The race for enterprise business process digitalization is raging. IT is often left behind as enterprise budgets for innovation are shifting towards business teams.
During this session, we will present the challenges and our field-tested approaches to catch-up and how to take this opportunity to create new app factories. All the while using low-code and RPA platforms.
You will discover how to capture business demands, and create an operating model for your IT department to stay in control of the applications being deployed, while bringing value at speed.
Aligning business and tech thru capabilities - A capstera thought paperSatyaIluri
Enterprises the world over spend billions of dollars on technology enablement of business functions. A significant portion of those dollars end up creating suboptimal solutions. Most IT project problems are rooted in ambiguous business definition, churn in requirements gathering, scope creep beyond a minimum marketable feature set, wild cost guestimations, not planning for interdependencies, and a lack of strong governance.
This Capstera white paper seeks to address some of these problems and provide a framework to minimize the challenges.
The evolution of the Architecture of Enterprises (AKA Enterprise Architecture) Leo Barella
We are in the era of competitive advantage through smart information and analytics. Process automation and leveraging transactional systems is a "thing of the past". To advance organizations need to start designing their architecture leveraging microservices and focus on data management / analytics efficiency.
Augmenting IT strategy with Enterprise architecture assessmentPrashanth Panduranga
IT strategy drives the organizations roadmap,.This presentation provides an overview of Enterprise Architecture assessments which includes, Portfolio assessment, Cloud fitment analysis,
IT Outsourcing Trends - 2016 and beyond Euro IT Group
Worldwide IT Outsourcing market
Digitalization puts pressure on all organizations
Business leads technology
Large contract renegotiation
New working & pricing models
Flexible sourcing models
Project management trends
Co-opetition between IT service providers
Focus on risk
Employment strategies
New technology trends
The document discusses different models of enterprise architecture and stages of maturity from business silos to optimized core to dynamic venturing. It outlines how enterprise architecture can guide decisions around operating models, technology choices, and outsourcing strategies. The goal is to establish reusable and modular business components that can seamlessly merge with partners' systems for new business ventures.
Introduction to Enterprise architecture and the steps to perform an Enterpris...Prashanth Panduranga
The document provides an overview of enterprise architecture presented by Prashanth B P Panduranga, Director of Technology. Some key points include:
- Line of business workers and IT staff increasingly use unauthorized SaaS apps
- IT suppliers are targeting business users directly and line of business heads demand higher project velocity
- An enterprise architecture framework provides structures for developing architectures using common standards and building blocks
- Enterprise architecture applies principles and practices to guide business, information, process, and technology changes to execute organizational strategy
As High performing businesses need to respond quickly to market changes, improve operational efficiency and accelerate growth. know more about how netmagic’s IT infrastructure services can help.
Devoteam itsmf 2021 - from business automation to continuous value-driven i...itSMF Belgium
The race for enterprise business process digitalization is raging. IT is often left behind as enterprise budgets for innovation are shifting towards business teams.
During this session, we will present the challenges and our field-tested approaches to catch-up and how to take this opportunity to create new app factories. All the while using low-code and RPA platforms.
You will discover how to capture business demands, and create an operating model for your IT department to stay in control of the applications being deployed, while bringing value at speed.
Aligning business and tech thru capabilities - A capstera thought paperSatyaIluri
Enterprises the world over spend billions of dollars on technology enablement of business functions. A significant portion of those dollars end up creating suboptimal solutions. Most IT project problems are rooted in ambiguous business definition, churn in requirements gathering, scope creep beyond a minimum marketable feature set, wild cost guestimations, not planning for interdependencies, and a lack of strong governance.
This Capstera white paper seeks to address some of these problems and provide a framework to minimize the challenges.
The evolution of the Architecture of Enterprises (AKA Enterprise Architecture) Leo Barella
We are in the era of competitive advantage through smart information and analytics. Process automation and leveraging transactional systems is a "thing of the past". To advance organizations need to start designing their architecture leveraging microservices and focus on data management / analytics efficiency.
Industrial Restructuration Avoiding the M&A Nightmare.Datonix.it
Mergers and acquisitions often fail to create value due to data complexity and subjective opinions rather than objective data insights. Most M&A deals do not deliver sustainable added value, with 70-90% failing according to research. For M&A to succeed, organizations must address data complexity early on by improving data accuracy and management through tools like analytical appliances and cloud processing to unify and validate data for strategic decision making. Only with high quality, unified data can the anticipated synergies of M&A deals be fully realized.
Next generation IT outsourcing and the global enterprise model (GEM)WGroup
Disruptive technologies such as cloud computing and the “as-a-service” model for software, infrastructure and platforms have led to fundamental changes in how IT services are organized, managed and delivered—whether they are outsourced, insourced or a combination. The reality that IT services can be delivered to anywhere on the globe via the “Cloud” has accelerated the commoditization of IT. Ubiquitous access to IT services has lessened business units’ dependency on internal IT and shifted the IT organization’s prime role from process excellence to technology and service innovation. This article discusses through WGroup's perspective how outsourcing can create value through changing the way business is done.
How to design Global Business Services and Shared Services Future ReadyAnirvan Sen
Most Global Business Services (GBS) and Shared Services Organizations (SSO) continue to operate with the management philosophies of the 20th century. It is based on traditional organizational structure, operating model of a command-and-control approach, cost-center thinking, and focusing on efficiency and timeliness.
Going into the 3rd decade of the 21st century, much of the thinking is jaded and outdated. On top of that, the digital technology revolution is disrupting industry after industry.
Given the 2 major forces, GBS and SSO's have no other option but to redefine and reconfigure themselves to become Future-ready.
But how do these organizations transform themselves?
That's where our framework S.C.O.R.E needs to be used for strategic design and right-fit leadership.
Based on some leading industry frameworks and tools, S.C.O.R.E Transformation provides a comprehensive design toolkit
Can partners make monday from the cloudJoel Martin
The survey found that most partners see the cloud as key to growing their business and that profits come from complementing on-premise offerings with cloud-based offerings. Currently, 41% of partners offer cloud-based solutions. Vendors like Microsoft, Google and Amazon are seen as most able to support cloud initiatives due to existing technologies and skills. Partners indicated that new technical skills like data integration and new sales skills are needed to offer cloud solutions successfully.
The document provides an overview of the human capital management (HCM) cloud solutions market. It discusses objectives, approach, context and contents of the report. It then provides a sneak peek at the HCM cloud market, highlighting vendor developments, partnerships and acquisitions, analyst reports, and upcoming events. It also shares lessons learned and pitfalls from Capgemini's experience implementing HCM cloud solutions. The document aims to be a single source of information on leading HR solution providers and their HCM SaaS functionalities.
The document summarizes a presentation about driving cloud strategy and planning. It discusses:
1) How enterprise architects must drive cloud strategy and planning to connect business strategy to implementation through cloud.
2) An end-to-end cloud strategy and planning framework that takes a business value driven methodology to enable selection of the right cloud investments.
3) How the framework embraces and extends proven cloud practices, provides tools and guidance, and is based on real-world customer engagements.
Slides from a presentation given by Paul Turner to meetings of IIBA UK on 16 July and 12 August 2014.
Much has been written about technical and solution architectures, without due attention being given to how these work together with the Business Architecture.
It is easy to believe that those who are involved in business analysis, requirements definition and systems modelling do not need to consider the Business Architecture at all. This could not be further from the truth. This talk explains the rationale behind Business Architecture, what its main components are and why Business Analysts should ensure that they understand it and the influence it is likely to have on their work.
Operating Model Design in a Digital WorldRobert Cade
Operating Models have defined the way that we work and operate for centuries. A good set of architectural blueprints are essential to successfully build a new office. The same is true if you want to build a successful business; you need a good set of blueprints on which to lay the foundations and undertake the detailed design and implementation. In other words you need an Operating Model.
Like modern office designs, businesses are responding to digital stimuli and the changing needs of their customers. Digital is taking the world by storm, transforming everything in its path. Those who transform reap the benefits; those that don’t get left behind. So, just as the blueprints for offices have changed in the digital age, the blueprints for businesses – their Operating Models – also need to evolve.
According to Gartner, "The stongest performing IT organizations are distinguished by strong strategy practices. The weak performing IT organizations are distinguished by weak delivery practices."
Having an IT strategy and executing it are important.
This brief presentation covers:
1. Why IT Strategy?
2. What does a great IT Strategy look like?
3. How to create a great IT Strategy
4. How to make the IT Strategy real
HfS Webinar Slides: Unveiling the Digital OneOffice Premier LeagueHfS Research
View the webinar replay here: http://www.hfsresearch.com/webinars/digital-oneoffice-premier-league
A digital organization has the ability to take all the cool social, mobile and interactive tech we use in our personal lives and create that experience for all the people in its environment: its employees, customers, and partners.
The Digital OneOffice™ Framework is all about creating the digital customer experience and an intelligent, single office to enable and support it. In a few months, we won’t be talking nearly as much about intelligent automation and digital technology as the critical “value levers” for operations, as they become an embedded part of the fabric of the future operations platform for new generation organizations. Instead, we will be talking about an integrated support operation having the digital prowess to enable its organization to meet customer demand - as and when that demand happens.
Everything about the digital organization is about engaging people by responding to their needs instantaneously, giving people their choice of medium to interact with it, be it voice, chat box, text, Facebook messenger, email, virtual agent, etc.
The OneOffice™ Framework is wrapped around the needs of the people in its environment, where automation is completely native and decisions can be made on predicting events, not merely reacting to historical data archives.
Speakers:
- Phil Fersht, CEO and Chief Analyst
- Melissa O'Brien, Research Director for Contact Center and Omnichannel Operations and BPO
We’ll discuss the following:
- Why the Digital OneOffice™ Framework is the Future of Outsourcing
- How the new generation of enterprises are leveraging digital technologies to link the customer experience with the supporting operations
- New dynamics we’re seeing in the market that point to a Digital OneOffice™ future, based on 450 enterprise interviews
How to develop and govern a Technology Strategy in 10 weeksLeo Barella
This presentation covers the organizational layout, EA Services and EA Governance processes necessary to develop and govern a technology strategy effectively.
Business Architecture the Key to Enterprise TransformationMike Walker
The document discusses business architecture and how it is transforming enterprise architecture. It provides an overview of business architecture, including definitions and frameworks. It outlines how business architecture delivers business value by connecting strategy to execution. It emphasizes the importance of understanding business needs, value streams, and delivering capabilities to address the "why" rather than just producing artifacts. The document shares proven practices from HP's experience delivering successful business architecture programs to customers.
A view on the components of an operating model.
An Operating Model describes how an organisation (usually a business) works. This is made up of business processes, organisation structures, data and technology.
The processes represent HOW the business works. Capabilities represent WHAT the business does. Governance ensures regulatory compliance and business efficiency.
Across the corporate landscape IT functions are completing their transformation to a service-orientation. Slowly but surely, “governance” has become a core mission, if not yet the core competency, of the IT organization. Governance involves many fronts and addresses many levels – there is architectural governance, IT finance and projects governance, and of course, supplier governance. All call for new skills and new structures. WGroup collectively brings decades of hands-on experience in IT supplier management to assist our clients with the multi-supplier challenge – from building the governance structures to defining sourcing strategies to facilitating contract reviews to transition management. This states how WGroup would implement a multi-supplier governance model successfully.
The document proposes an enterprise architecture and IT engagement model for Ohio's infrastructure and environment agencies. It summarizes the current decentralized IT environment, lack of standards, and security risks. The proposed model shifts to a coordinated operating model with shared solutions and standardized technology. Key elements include a technology board to prioritize projects, an architecture team to define standards, and a project success center to ensure project delivery and benefits realization. The goals are improved efficiency, cost savings, security, and reduced duplication through greater coordination and data sharing across agencies.
Supply chain design is becoming a core business process rather than an occasional project due to changes in technology, business practices, and market volatility. Establishing supply chain design as a core process through a shared service center can help optimize the entire supply chain through continuous modeling, scenario testing, and identification of better future state networks. This provides consistency, standardized processes, and access to data that isolated optimization projects lack.
Supply chain design is becoming a core business process rather than an occasional project due to changes in technology, business practices, and market volatility. Establishing supply chain design as a core process through a shared service center can help optimize the entire supply chain rather than individual business units. This centers of excellence approach avoids local biases and focuses on data-driven solutions.
2021 09-30 service cost tracking and internal chargebackitSMF Belgium
The document discusses tracking the full costs of IT services, including time spent, assets used, and underlying infrastructure costs to enable accurate internal chargeback across departments. It provides an example methodology for attributing total costs to specific services and customers based on their usage and consumption. The goal is to improve transparency around IT costs and budgets while strengthening relationships with business stakeholders.
IBM Managed Services Overview Nashvilletechcouncil
The document discusses how organizations can leverage outsourcing and strategic partnerships to drive operational efficiencies and cost savings while freeing up resources to invest in growth initiatives. It provides examples of IBM clients that achieved significant cost reductions and performance improvements through outcomes-based outsourcing of services such as IT infrastructure management, business processes, and applications management. The document advocates for a "smarter sourcing" approach that combines process optimization with selective use of lower-cost global resources.
Today’s most forward-thinking IT leaders view outsourcing not as a cost reduction tactic but rather as a strategic vehicle and catalyst for transforming the organization into a digital business. They have learned that taking an approach that drives alignment with business requirements, transforms the state of IT, and changes the “work” that is being done not only produces better service levels but also delivers exponentially greater cost savings. In this new white paper, "IT Outsourcing Is Not About Cost Savings", The Outsourcing Institute and WGroup have teamed up to provide guidance to help you rethink IT outsourcing and how you can deliver increased shareholder value.
The document discusses application outsourcing and hosted application management services. It notes that companies are increasingly looking to outsourcing providers to help transform their IT environments and leverage expertise. The document outlines key trends driving outsourcing, such as the need for cost efficiency and agility. It also summarizes the differences between traditional application management and next-generation hosted models where applications reside in the provider's datacenter.
Industrial Restructuration Avoiding the M&A Nightmare.Datonix.it
Mergers and acquisitions often fail to create value due to data complexity and subjective opinions rather than objective data insights. Most M&A deals do not deliver sustainable added value, with 70-90% failing according to research. For M&A to succeed, organizations must address data complexity early on by improving data accuracy and management through tools like analytical appliances and cloud processing to unify and validate data for strategic decision making. Only with high quality, unified data can the anticipated synergies of M&A deals be fully realized.
Next generation IT outsourcing and the global enterprise model (GEM)WGroup
Disruptive technologies such as cloud computing and the “as-a-service” model for software, infrastructure and platforms have led to fundamental changes in how IT services are organized, managed and delivered—whether they are outsourced, insourced or a combination. The reality that IT services can be delivered to anywhere on the globe via the “Cloud” has accelerated the commoditization of IT. Ubiquitous access to IT services has lessened business units’ dependency on internal IT and shifted the IT organization’s prime role from process excellence to technology and service innovation. This article discusses through WGroup's perspective how outsourcing can create value through changing the way business is done.
How to design Global Business Services and Shared Services Future ReadyAnirvan Sen
Most Global Business Services (GBS) and Shared Services Organizations (SSO) continue to operate with the management philosophies of the 20th century. It is based on traditional organizational structure, operating model of a command-and-control approach, cost-center thinking, and focusing on efficiency and timeliness.
Going into the 3rd decade of the 21st century, much of the thinking is jaded and outdated. On top of that, the digital technology revolution is disrupting industry after industry.
Given the 2 major forces, GBS and SSO's have no other option but to redefine and reconfigure themselves to become Future-ready.
But how do these organizations transform themselves?
That's where our framework S.C.O.R.E needs to be used for strategic design and right-fit leadership.
Based on some leading industry frameworks and tools, S.C.O.R.E Transformation provides a comprehensive design toolkit
Can partners make monday from the cloudJoel Martin
The survey found that most partners see the cloud as key to growing their business and that profits come from complementing on-premise offerings with cloud-based offerings. Currently, 41% of partners offer cloud-based solutions. Vendors like Microsoft, Google and Amazon are seen as most able to support cloud initiatives due to existing technologies and skills. Partners indicated that new technical skills like data integration and new sales skills are needed to offer cloud solutions successfully.
The document provides an overview of the human capital management (HCM) cloud solutions market. It discusses objectives, approach, context and contents of the report. It then provides a sneak peek at the HCM cloud market, highlighting vendor developments, partnerships and acquisitions, analyst reports, and upcoming events. It also shares lessons learned and pitfalls from Capgemini's experience implementing HCM cloud solutions. The document aims to be a single source of information on leading HR solution providers and their HCM SaaS functionalities.
The document summarizes a presentation about driving cloud strategy and planning. It discusses:
1) How enterprise architects must drive cloud strategy and planning to connect business strategy to implementation through cloud.
2) An end-to-end cloud strategy and planning framework that takes a business value driven methodology to enable selection of the right cloud investments.
3) How the framework embraces and extends proven cloud practices, provides tools and guidance, and is based on real-world customer engagements.
Slides from a presentation given by Paul Turner to meetings of IIBA UK on 16 July and 12 August 2014.
Much has been written about technical and solution architectures, without due attention being given to how these work together with the Business Architecture.
It is easy to believe that those who are involved in business analysis, requirements definition and systems modelling do not need to consider the Business Architecture at all. This could not be further from the truth. This talk explains the rationale behind Business Architecture, what its main components are and why Business Analysts should ensure that they understand it and the influence it is likely to have on their work.
Operating Model Design in a Digital WorldRobert Cade
Operating Models have defined the way that we work and operate for centuries. A good set of architectural blueprints are essential to successfully build a new office. The same is true if you want to build a successful business; you need a good set of blueprints on which to lay the foundations and undertake the detailed design and implementation. In other words you need an Operating Model.
Like modern office designs, businesses are responding to digital stimuli and the changing needs of their customers. Digital is taking the world by storm, transforming everything in its path. Those who transform reap the benefits; those that don’t get left behind. So, just as the blueprints for offices have changed in the digital age, the blueprints for businesses – their Operating Models – also need to evolve.
According to Gartner, "The stongest performing IT organizations are distinguished by strong strategy practices. The weak performing IT organizations are distinguished by weak delivery practices."
Having an IT strategy and executing it are important.
This brief presentation covers:
1. Why IT Strategy?
2. What does a great IT Strategy look like?
3. How to create a great IT Strategy
4. How to make the IT Strategy real
HfS Webinar Slides: Unveiling the Digital OneOffice Premier LeagueHfS Research
View the webinar replay here: http://www.hfsresearch.com/webinars/digital-oneoffice-premier-league
A digital organization has the ability to take all the cool social, mobile and interactive tech we use in our personal lives and create that experience for all the people in its environment: its employees, customers, and partners.
The Digital OneOffice™ Framework is all about creating the digital customer experience and an intelligent, single office to enable and support it. In a few months, we won’t be talking nearly as much about intelligent automation and digital technology as the critical “value levers” for operations, as they become an embedded part of the fabric of the future operations platform for new generation organizations. Instead, we will be talking about an integrated support operation having the digital prowess to enable its organization to meet customer demand - as and when that demand happens.
Everything about the digital organization is about engaging people by responding to their needs instantaneously, giving people their choice of medium to interact with it, be it voice, chat box, text, Facebook messenger, email, virtual agent, etc.
The OneOffice™ Framework is wrapped around the needs of the people in its environment, where automation is completely native and decisions can be made on predicting events, not merely reacting to historical data archives.
Speakers:
- Phil Fersht, CEO and Chief Analyst
- Melissa O'Brien, Research Director for Contact Center and Omnichannel Operations and BPO
We’ll discuss the following:
- Why the Digital OneOffice™ Framework is the Future of Outsourcing
- How the new generation of enterprises are leveraging digital technologies to link the customer experience with the supporting operations
- New dynamics we’re seeing in the market that point to a Digital OneOffice™ future, based on 450 enterprise interviews
How to develop and govern a Technology Strategy in 10 weeksLeo Barella
This presentation covers the organizational layout, EA Services and EA Governance processes necessary to develop and govern a technology strategy effectively.
Business Architecture the Key to Enterprise TransformationMike Walker
The document discusses business architecture and how it is transforming enterprise architecture. It provides an overview of business architecture, including definitions and frameworks. It outlines how business architecture delivers business value by connecting strategy to execution. It emphasizes the importance of understanding business needs, value streams, and delivering capabilities to address the "why" rather than just producing artifacts. The document shares proven practices from HP's experience delivering successful business architecture programs to customers.
A view on the components of an operating model.
An Operating Model describes how an organisation (usually a business) works. This is made up of business processes, organisation structures, data and technology.
The processes represent HOW the business works. Capabilities represent WHAT the business does. Governance ensures regulatory compliance and business efficiency.
Across the corporate landscape IT functions are completing their transformation to a service-orientation. Slowly but surely, “governance” has become a core mission, if not yet the core competency, of the IT organization. Governance involves many fronts and addresses many levels – there is architectural governance, IT finance and projects governance, and of course, supplier governance. All call for new skills and new structures. WGroup collectively brings decades of hands-on experience in IT supplier management to assist our clients with the multi-supplier challenge – from building the governance structures to defining sourcing strategies to facilitating contract reviews to transition management. This states how WGroup would implement a multi-supplier governance model successfully.
The document proposes an enterprise architecture and IT engagement model for Ohio's infrastructure and environment agencies. It summarizes the current decentralized IT environment, lack of standards, and security risks. The proposed model shifts to a coordinated operating model with shared solutions and standardized technology. Key elements include a technology board to prioritize projects, an architecture team to define standards, and a project success center to ensure project delivery and benefits realization. The goals are improved efficiency, cost savings, security, and reduced duplication through greater coordination and data sharing across agencies.
Supply chain design is becoming a core business process rather than an occasional project due to changes in technology, business practices, and market volatility. Establishing supply chain design as a core process through a shared service center can help optimize the entire supply chain through continuous modeling, scenario testing, and identification of better future state networks. This provides consistency, standardized processes, and access to data that isolated optimization projects lack.
Supply chain design is becoming a core business process rather than an occasional project due to changes in technology, business practices, and market volatility. Establishing supply chain design as a core process through a shared service center can help optimize the entire supply chain rather than individual business units. This centers of excellence approach avoids local biases and focuses on data-driven solutions.
2021 09-30 service cost tracking and internal chargebackitSMF Belgium
The document discusses tracking the full costs of IT services, including time spent, assets used, and underlying infrastructure costs to enable accurate internal chargeback across departments. It provides an example methodology for attributing total costs to specific services and customers based on their usage and consumption. The goal is to improve transparency around IT costs and budgets while strengthening relationships with business stakeholders.
IBM Managed Services Overview Nashvilletechcouncil
The document discusses how organizations can leverage outsourcing and strategic partnerships to drive operational efficiencies and cost savings while freeing up resources to invest in growth initiatives. It provides examples of IBM clients that achieved significant cost reductions and performance improvements through outcomes-based outsourcing of services such as IT infrastructure management, business processes, and applications management. The document advocates for a "smarter sourcing" approach that combines process optimization with selective use of lower-cost global resources.
Today’s most forward-thinking IT leaders view outsourcing not as a cost reduction tactic but rather as a strategic vehicle and catalyst for transforming the organization into a digital business. They have learned that taking an approach that drives alignment with business requirements, transforms the state of IT, and changes the “work” that is being done not only produces better service levels but also delivers exponentially greater cost savings. In this new white paper, "IT Outsourcing Is Not About Cost Savings", The Outsourcing Institute and WGroup have teamed up to provide guidance to help you rethink IT outsourcing and how you can deliver increased shareholder value.
The document discusses application outsourcing and hosted application management services. It notes that companies are increasingly looking to outsourcing providers to help transform their IT environments and leverage expertise. The document outlines key trends driving outsourcing, such as the need for cost efficiency and agility. It also summarizes the differences between traditional application management and next-generation hosted models where applications reside in the provider's datacenter.
The document discusses trends in IT infrastructure management, including:
1) Business process management services, hosted services, application management services, and customer service management are growing trends that allow organizations to outsource non-core functions.
2) Governance of IT infrastructure management is also a key trend, as organizations must carefully evaluate outsourcing options to meet business objectives while minimizing risks.
3) Business process management focuses on evaluating, negotiating, implementing and managing sourcing transactions, and involves competitively sourcing mature operational areas.
The document discusses trends in outsourcing for 2019. It notes that companies will need to change their outsourcing strategies to adapt to disruptive technologies. Disruptive outsourcing, cloud computing, and robotic process automation are highlighted as trends that will impact outsourcing. The document also provides methodologies for selecting outsourcing suppliers and evaluating potential outsourcing opportunities. Specific outsourcing areas like network operations and maintenance are examined in terms of functions that may be outsourced.
This document discusses different approaches to business process transformation, including Business Process Reengineering (BPR), Shared Services Centers (SSC), and Business Process Outsourcing (BPO). It provides an overview of each approach and recommends that organizations combine all three - using SSC as the core approach and leveraging BPR and BPO to further improve processes and achieve efficiencies. The document also emphasizes that new technologies will continue to emerge that can enhance processes, raising expectations and performance benchmarks over time.
Cloud computing is now a viable option for businesses seeking to outsource part or all of their IT operations. But in this new era — where the power of the Internet is harnessed for IT tasks — outsourcing to the cloud can be a strategic maneuver, not just a cost-cutting measure.
Outsourcing in literal terms, means sourcing from outside. The term is increasingly used to refer to sub-contracting of a set of functions or processes by one firm to another, or to a group of individuals. Outsourcing is being pursued as an active business strategy in the current economic scenario, since it enables a firm to focus on core-competency areas. It also frees the firm from resource and labour intensive functions, which are now performed by trained personnel at much lower costs.
Outsourcing has evolved rapidly, especially during the last year. These changes are primarily due to technological advances, although the increasing globalization of business is also a factor. The attributes of the best IT outsourcing leaders also are shifting in response to this evolution. These attributes may generally be classified into personal characteristics and strategy. This document gives WGroup's perspective on 15 attributes shared by top IT leaders. The top 5 attributes are organization, cloud computing, standardization, renegotiation, and supplier risk.
Supply chain design was traditionally done through occasional projects but is now becoming a core business process. This is driven by advancements in technology allowing more detailed analysis, the fast pace of business changes requiring continuous optimization, and increased volatility. Establishing supply chain design as a centralized shared service can help organizations benefit from consistency, prioritization of initiatives, and identification of quick wins and game-changing opportunities.
The document discusses the limitations of existing technology stacks for services-centric organizations. It describes how these organizations initially relied on ERP systems that were not well-suited to their needs, leading to the emergence of specialized PSA tools. However, PSA tools also fell short by not facilitating enough collaboration. As a result, organizations have accumulated a tangled web of different applications for tasks like project management, collaboration, and productivity. This "hairball infrastructure" decreases efficiency and makes it difficult for management to oversee operations. Spreadsheets are often used to fill gaps, but this is an inefficient and limiting approach. The document argues a new technology model is needed to address these challenges.
Kick-Starting Digital Transformation: Four IT StrategiesCognizant
For IT organizations, digital transformation can be an especially daunting task. Keeping up with and managing ever-evolving technologies and applications entails four essential components that help accelerate time to market, minimize project risk; automate and handle thousands of requirements, enrich collaboration and manage costs.
The document discusses the need for utilities to shift to a performance-based operating model to adapt to changing market conditions. It outlines characteristics of a performance-based model, including having people ready to compete innovatively, codeblocks that tell the full transaction story, and finance processes focused on business outcomes. It questions if utilities' back-office capabilities are optimized for this new structure.
Netmagic solutions, leading IT Managed service provider with Data centers & Cloud Computing in India fulfills your entire IT infrastructure requirements: from collocation services to dedicated hosting, diaster recovery & data Storage solutions.
Beyond Cost Savings: Driving Business Value from the Cloud Through XaaSCognizant
By using the cloud for analytics services and other run-the-business capabilities, organizations can move quickly into new markets and free capital for innovation initiatives.
- A survey of over 400 professional services firm leaders found that the majority see technology, especially cloud-based solutions, as important for firm management initiatives and future readiness.
- 51% of surveyed firms believe cloud-based solutions are part of their future strategy due to benefits like ease of access, technology best practices, disaster recovery, and scalable processes and workflow.
- Early adopters of cloud-based solutions like CCH Axcess report benefits including new efficiencies, streamlined processes, and improved communication and client interaction.
RFG believes the overwhelming majority of corporate and governmental IT departments were not built to be agile, low-cost, low-risk operations and changing that culture will require CFOs and IT executives to work together to change financial strategies and the operational paradigm.
3. Tableof
contents
Meet the author 1
A new age for outsourcing 3
Moving forward with agility 5
What is an agile approach? 6
Traditional waterfall versus modern agile 8
Is agile outsourcing right for you? 9
Summary 11
How KPMG can help 12
4. MicheleM.MillerDirector
Shared Services and Outsourcing Advisory
260-241-7433
mmmiller@kpmg.com
Michele M. Miller helps clients develop their strategies and sourcing
solutions across multiple sectors, globally. She has nearly 25 years
of sourcing advisory experience specific to business process
outsourcing (BPO) call center and infrastructure management,
including data centers, end-user support functions, and services
desks. She specializes in solution assessment, design, implementation,
and optimization, with additional emphasis on transaction
management, including governance, managed service risk analysis, and
client/vendor transition and transformation services.
In addition to her BPO call center and infrastructure background,
Michele has extensive experience in organization and vendor
governance, program enablement, knowledge management, and
program/project management. Her other areas of experience include
process design and training, solution review, and cross tower process
integration.
With additional contributions by
Rakesh Parameshwara, Executive Advisor,
CIO Advisory – Management Consulting, KPMG LLP (U.K)
Meettheauthor
5. Outsourcing can be a complex endeavor, even for experienced companies
with a number of outsourcing transaction projects under their belts.
Depending on scope, organizations may spend six months to a year or more
in the transaction process, honing in on the right providers and negotiating a
contract that will stand for just a few years.
Those years go by quickly, and before you know it, it is time to consider
recontracting with the existing providers or going back to the marketplace.
Technology and client demands have changed dramatically in that time,
making it incumbent on business executives to seek new capabilities offering
higher quality at lower costs.
Meanwhile, the competition is closing in. In today’s rapidly changing
business landscape, spending another year on a conventional outsourcing
project is a luxury decision makers can no longer afford, especially given the
influx of cloud-enabled solutions, digital labor, and other “as-a-service” (AaS)
outsourced offerings available today. These plug-and-play alternatives allow
faster time to market, while offering greater value potential and cost savings
without the complexities of being locked into the structured, long-term
commitment of traditional outsourcing arrangements.
What is a CIO to do? Managing outside vendors is a growing part of the
role. With increasing pressures to contain costs and add value, how can
outsourcing still meet the demands of the rapidly changing business
landscape? In many cases, an “agile” approach to outsourcing can help.
This paper aims to illustrate how organizations can accelerate the benefits
of outsourcing by establishing the foundation necessary to take advantage of
today’s cloud-driven AaS solutions.
As outsourcing evolves
to include a broader
mix of technologies and
partnerships, external
resource management is a
growing part of the CIO’s job.
51%
feel the future CIO
role will primarily be
focused on managing
contractors, cloud,
and other IT service
providers
Source: State of the CIO, January 2016
2Outsourcing on the fast track 2Outsourcing on the fast track
6. Advancing technology is transforming business models
across the industry spectrum, and outsourcing is no
exception. Service providers are changing outsourcing
models to meet the evolving needs of a dynamic
marketplace and incorporate a variety of new technologies
into their mix. As a result, technology innovation has vastly
improved the development, delivery, and maintenance of
outsourcing services. It has also improved company and
service provider interactions by simplifying a traditionally
complex request for services (RFx) process.
Much of this is being driven by business leaders who are
increasingly embracing today’s cloud-enabled AaS market,
which disrupts the rules of engagement between buyers
and providers of outsourced services. And it is easy to see
why. AaS offerings simplify the outsourcing transaction and
transition process by providing readily available solutions,
minus the capital investment. Onerous technology
implementation can now be replaced with more standard,
plug-and-play options for IT infrastructure, payroll, and other
products and services delivered and updated regularly via
the cloud.
As more service providers embrace new technologies such
as AaS and cognitive computing and incorporate them
into their offerings, the outsourcing market is expected to
outpace the former outsourcing explosion of labor arbitrage
deals that offered costs savings through cheaper labor.
However, new technologies up the ante. Buyers are now
looking for added value, too.
While cost savings remains a primary driver for companies
to outsource certain functions, other factors are gaining
importance. These include the ability to improve quality,
Anewageforoutsourcing
Business leaders understand that
“As-a-Service” offerings are changing
the way buyers, providers, and advisors
are engaging in the outsourcing process,
somewhat of a disconnect from middle
management and staff.
Leadership has the desire to drive the change.
Senior Vice President (SVP) and above see “AaS
economy” 37 percent critical to beyond simply keeping
the operational light on.
0 20 40 60 80 100
VP and
below
SVP
and up
Absolutely critical
16%
8% 21% 62% 10%
37% 47%
Source: “Ideals of As-a-Services” Study, HfS Research, 2015
Sample: Enterprise Buyers = 178
Critical
Significant Insignificant
offer access to new skills, decrease time to market, and
enable financial flexibility. AaS offerings not only have the
potential to be more cost-effective than their predecessors,
but also easier and faster to implement, with a wider menu of
advanced solutions.
Today, companies not only desire a streamlined approach
to outsourcing, they expect it. From evolving technologies
and changing client demands, an outsourcing methodology
that can deliver on these expectations can ignite the next
big wave of outsourcing deals.
7. Global trends, technology innovation, and changing client demands are driving the adoption
of a more accelerated and collaborative outsourcing process.
IT utility
model
Hybrid
models
Technology
evolution Application
modernization
Client
innovation
Shift towards
an outcome-
based model
Provider
landscape
changes
Flexible
terms and
conditions
Clients
moving to
“cloud”
114 BPO
contracts
worth USD
14.8 billion
signed
RFP auctions
Shorter term
contracts:
avg. 4.5 years.
Digital
labor
Experienced
market Increased
need for
“AaS”
Labor and
process
arbitrage
Drive cost
savings and
flexibility
721 ITO
contracts
worth USD
136.2 billion
signed
Lower
IT cost
Agile
Accelerated
Nimble
Collaborative
Competitive
Economical
Source: KPMG Emerging Market Trends in IT Outsourcing,
April 2016
Source: KPMG Emerging Market Trends in IT Outsourcing,
April 2016
While cost continues to remain a primary reason for IT
outsourcing, clients are now looking to achieve more
than just cost savings, and to enable them to better
serve their business. Rationale for outsourcing over the
next 2–3 years:
The next big wave in commercial IT outsourcing
transactions will dwarf earlier labor arbitrage deals as
service providers transform their service portfolio to “AaS”
and cognitive computing solutions.
$9.1 trillion
market size
$140 billion
market size25
percent
21
percent
11
percent
11
percent
19
percent
Cost
savings
Financial
flexibility
Quality
improvement
Time to
market
Access
to skills
4Outsourcing on the fast track
8. Companies can take a number of steps to make sure they
are as prepared as possible for this new, agile approach to
outsourcing.
1) Define your business strategy, including the future
state of your business services. Think ahead about how
outsourcing will impact your company down the road.
Are there multiple functions that you are considering for
optimization or outsourcing? Is the work global in nature?
Are there business considerations that necessitate
remaining local? Is an internal investment going to enable
objectives, and would it do so in a timely fashion? Answers
to these questions become the framework for your
business strategy. With your company’s future state in
mind, a few reasons to consider an outsourced solution
include:
—— Increasing cost of internal labor
—— Need for growth and scalability
—— Technology advances
—— Inability to effectively measure and manage internal
performance
—— A change in business direction.
This process takes time, but exploring the outsourcing
market without the strategy in place can increase the
expense, internal resource commitment, and overall
implementation time line.
2) Create your base case. Gain a strong understanding of
current-state costs for doing business. This is an essential
enabler to achieving managed service success, whether
an agile or a traditional approach is taken. Organizations
make a common mistake of including only the resources
associated with delivery of the service today, leaving out of
the base case the facilities, administration, and other costs
that may be retained down the road.
Once created, the base case is used in normalizing
provider pricing and becomes the foundation of the future-
state case for change.
3) Understand your target operating model (TOM), which
is predicated on the business strategy. Coupled with the
base case, the TOM includes an understanding of how
mature the existing processes are, along with the aging
of the technology in place and the capabilities and skills
of the existing resources. It will also consider the “what”
and the “where” aspects of the outsourcing transaction.
Once the TOM is finalized, it is far easier to calculate
the potential benefits of internal optimization versus
outsourcing or resourcing, and gain a clear understanding
of what must be retained versus sourced.
4) Build a mature and dedicated transaction team with
independent, self-managed resources who were part of
building the strategy from the beginning, and who are
empowered to work closely with the providers. Not only
will these individuals be actively involved in the day-to-day
planning, design, and documentation of the solution, but
they are also the experts who will provide the insight and
experience necessary to achieve the desired business
outcomes and truly reap the benefits of a more agile
approach.
By taking the time to develop the strategy, base case,
TOM, and transaction team prior to initiating an RFx,
businesses are better able to hit the ground running.
Following these steps before the RFx process begins
reduces the time typically spent at the beginning of the
transaction creating and evaluating transaction scope and
requirements.
Movingforwardwithagility
9. An “agile” approach to outsourcing borrows from the project management
process by the same name in which participants engage in constant
communication and collaboration. In agile outsourcing, that constant
interaction occurs across the transaction life cycle between buyer and
provider who, together, incrementally establish the content of the RFx,
adapting it along the way as needs or markets change. This helps ensure
business requirements are well understood at the point of the RFx
release and, as a result, the traditional 26-week time line is potentially
reduced to 12–18 weeks.
Unlike the traditional “waterfall approach” which follows a linear, step-by-
step implementation, an agile approach is more fluid and maintains flexibility
to change as necessary. Each of the four key steps—prep and teach, write
up, engage, and contract—is still important, but the agile approach reshuffles
the order of these activities to significantly speed up time to market.
This requires a much more collaborative and outcome-based approach,
involving continuous interaction between the buyer and provider.
This speedier implementation is driven in great part by the predefined
solutions that providers are bringing to the table. These more commoditized
offerings reduce the buyer’s need to draft extensive statements of work
related to their particular business environment. Now the focus is on high-
level outcomes, rather than detailing the process of how those outcomes
have to be achieved. And because buyers are looking at standard market
offerings, there is also less negotiation around service levels, types of
equipment to use, or any of the more configurable items. Discussions take
place earlier and more frequently, resulting in an easier negotiation process
that takes less time.
Sprints replace the long journey
Moreover, an agile approach to outsourcing increases the frequency
of communication and level of involvement of clients with their service
providers. The process initiates with a series of “sprints,” similar to the
iterative process used in agile software development. The sprints engage
providers and organizations in dialogues to explore creative and proven
solutions in the market, and align capabilities more accurately with business
goals. Sprints are structured to flesh out the details, and in the process,
much of the provider-side due diligence is achieved. In this agile scenario,
the interaction is centered around outcomes.
Whatisanagile
approach? Not to be confused with
agile project management
methodology, agile in the
context of outsourcing
represents the ability to move
quickly and easily through the
transaction process, potentially
reducing the traditional 26-week
time line to 12–18 weeks.
We believe bringing the
providers in to the discussion
early is an important enabler
to a reduced transaction
time line. It not only allows
for much of the up-front due
diligence to occur, but also
serves to help educate the
client on standard solutions
available in the market
that address their desired
outcome.
Michele M. Miller
6Outsourcing on the fast track
10. It is also during the series of sprints that the “prep and teach” phase occurs
almost simultaneously. Both client teams and providers are educated on
what is necessary, and expectations are set in planning out the balance
of the transaction process and schedule. Negotiation considerations are
brought to the forefront. Both sides can then quickly understand where
sticking points might exist and begin working toward a resolution.
The informed RFx
The “write up” phase then becomes merely the formalization of what has
already been discussed so that service providers have an opportunity to
respond with the exact recommended solution and pricing.
By taking time to review business requirements and terms with a smaller
set of providers who are able to discuss their solution with stakeholders,
much of the due diligence gets done up front. As a result, the providers’
proposals have more relevant information with shorter time lines. Scoring
and evaluation become easier for the buyer when the information in the
responses incorporates those previous discussions.
Pricing, of course, remains a primary factor in buyer selection. Sharing the
expected savings and the base case with providers during the process is
recommended. Regardless, at least two rounds of pricing should be planned.
Discussions around key business terms (KBT) during the iterative sessions,
and the inclusion of mutually defined client/provider KBT as part of the RFx
package, condenses the negotiation process and promotes more effective
decision making.
At the end of the process, when the time comes for contracting, the bulk
of the heavy lifting has already occurred. Moving to contract with the final,
down-selected provider is accomplished with less time and often less
frustration.
Are the days of the lengthy outsourcing transaction gone forever?
It depends. We must consider what qualifies a transaction for an agile
approach, what the reduced time line might look like, and when that
approach may or may not be in the best interest of the customer.
In the old transaction
process, we would assist
clients through a lot of
prework and planning, then
document the RFP, engage
with responders to the
RFP, and negotiate. Now
we are ‘presolutioning’ by
determining what standard
would work, or finding a
solution that makes sense,
and then documenting
based on educational
discussions with providers
so they can respond quickly
to the RFP. This doesn’t
eliminate the need for due
diligence, but it’s already
done up front. The providers
get a lot of what they need
in order to write and price a
concrete solution from those
early engagement sessions.
Michele M. Miller
11. The traditional “waterfall” approach does not engage providers until much later in the process and is no longer meeting
the needs of businesses or the market.
Prep andTeach
Project launch
Base case
development
RFP
preparation
RFP release and
response
management
Facilitated
solution
design
Evaluation and
business case
development
Service
provider
selection
Due diligence
and negotiations
Negotiation
strategy
Up to ~26 weeks depending on scope
EngageWrite Up Contract
An agile approach applies the concept of “sprints” in joint solution sessions as part of a lightweight, repetitive framework,
helping to substantially reduce the period from project launch to contract signing and achieve a more robust solution.
Base case development
Project
launch
Engage Write Up Contract
Prep andTeach
RFS facilitated
solution design
Service
provider(s)
solutions
Due diligence
Negotiations strategy
Negotiations
KPMG market
assessment
provider
engagement
Volumetrics
Scope and SLAs
Evaluation and
business case
development
1–2 weeks 4–6 weeks 4–6 weeks 3–4
weeks
12–18 weeks depending on scope
Traditionalwaterfallversus
modernagile
8Outsourcing on the fast track
12. Not all companies or outsourcing projects are an appropriate match for an
agile transaction. Candidates considering an agile approach should review the
following five areas:
1. Are you experienced with outsourcing transactions?
2. Is your company prepared to move ahead with all of the analysis in place to
make the right strategic decisions?
3. Is your project complex? Does it involve multiple functions, providers,
contracts, and/or locations?
4. Do you have committed leadership and resources?
5. How would you characterize your organization’s decision-making
processes?
How advanced organizations are in each of these five areas directly impacts
how quickly they can complete a project. For example, a company with limited
outsourcing experience requires additional workshops and education, potentially
adding weeks to the timeline. Likewise, organizations without a concrete
strategy and analysis in place before starting the process will continue to drain
resources and expand the time frame to implementation.
Isagileoutsourcingrightforyou?
Agile outsourcing success factors
Leadership buy-in to adopting new, more standardized AaS outsourcing options
from providers and using a different approach bring them on board.
Frequent client iterations driving constant communication, versus intermittent,
milestone-based reviews.
A dedicated project team including those who were part of building the strategy
from its inception, empowered to make decisions.
A focus on outcomes versus deliverables.
13. Benefits of agile outsourcing
Stronger collaboration. Agile outsourcing builds stronger
collaboration within the client and the supplier ecosystem.
Rather than having to compete with each other, suppliers
can jointly work together to solve clients’ issues and reap
rewards for the work put in.
Fast turnaround. Be it responding to volatile demand,
spinning up infrastructure, or simply driving results from
the get-go, agile outsourcing makes the most of dynamic
market offerings and helps organizations respond faster to
change.
Scalability. The advent of cloud infrastructure means
organizations no longer have to wait on lengthy lead times.
Lower capital investment. Lower cost of investment,
especially in IT infrastructure and commoditized resourcing
arrangements, means organizations can spend more time
focusing on business growth initiatives.
Focus on business outcomes. Outsourcing is evolving
from the conventional procurement transaction to an
accelerated and collaborative partnership, leading to an
outcome-focused transaction that benefits all parties.
10Outsourcing on the fast track
14. Innovation is driving both the companies who seek outsourced
solutions and the providers who serve them to change the way
they do business.
As existing contracts expire and business requirements evolve,
we have witnessed a shift in the buyer’s desire to pursue
lengthy, resource-laden transactions with heavy price tags. Time
is at a premium. Outcomes have never been more critical, and
commoditized AaS solutions that provide greater transparency
with faster time to contract are allowing businesses to gain
a jump on the competition. As a result, the traditional, linear
methodology used to conduct an outsourced transaction is being
replaced by a faster, flexible, and agile approach.
Not all companies have the basics in place to allow for this more
collaborative and outcome-based method, and not all transactions
are ripe for an agile approach. However, companies should
be compelled by the opportunity to reduce their outsourcing
transaction time line to as short as 12–18 weeks from the
standard 26, and they would be wise to determine their readiness
for an agile approach now in order to take advantage when the
need arises.
Summary
15. Getty_Images 129179549
For the right organization and the right transaction, an
agile approach to outsourcing can increase speed to
market, reduce costs, and produce a better outcome.
KPMG’s proprietary, detailed qualification process
helps clients determine if they have the foundation
in place for an agile approach. We qualify clients up
front so that they know what it will take to drive an
agile transaction, whether the transaction is ripe for an
agile approach, and how their time line for completion
can shift based on their level of preparation and the
decisions they make along the way. We also review
and, if needed, work with clients on their strategy,
base case, and TOM.
When an agile approach to outsourcing makes sense,
KPMG engages the client and the providers from the
beginning of the journey, at the appropriate pace and
with enough flexibility to enable the right solution.
We keep our eye on the primary goal to shorten the
duration of the transaction without compromising the
quality of the deliverables.
Whether you seek an agile or more traditional
approach to your RFx, KPMG’s leading sourcing
advisors welcome the opportunity to assist you in
your transaction process.
KPMG LLP helps our clients transform their business
service delivery to realize improved value, increased
agility, and sustainable business performance. We
bring together expertise in global business services,
shared services, outsourcing risk, transactions, tax,
and compliance.
If your organization is seeking innovative ways
to achieve genuine business services delivery
transformation, KPMG Shared Services and
Outsourcing Advisory can help. For more information,
there’s no better place to start than by accessing our
research and thought leadership on the KPMG Shared
Services and Outsourcing Institute:
www.kpmg.com/us/insights.
HowKPMG
can help
12Outsourcing on the fast track