The document discusses the impact of consultants on organizations and reasons for engaging them. It notes both benefits like bringing in fresh perspectives and expertise, as well as potential downsides like a short-term focus and lack of knowledge transfer. Outsourcing IT functions is described as a way to reduce costs, improve efficiency, and access skills not available in-house, but careful partner selection and agreement terms are important to manage risks. Overall consultants and outsourcing can help achieve strategic goals when properly implemented and overseen.

1. Impact of consultantsImpact of consultants
onon
OrganizationsOrganizations
Arun TewaryArun Tewary
VP(IT) CIO, EKFCVP(IT) CIO, EKFC
arunt@ekfc.aearunt@ekfc.ae

2. Session ObjectiveSession Objective
Shake the IndustryShake the Industry

3. Title of my presentationTitle of my presentation
IS WRONG

4. Bigger issuesBigger issues
• Sales team services companies
• Resource Manipulation / Off-shore models
• Sometimes over commitment to Business
• Narrow focus – time & material – lack of
solution
• Mushroom growth
• Short term approach - missing partnership
• Do not share “failure stories”
• OEM cost loaded on us
• No proper knowledge transfer

5. Why do we engage consultants?Why do we engage consultants?

6. Why do we engage consultants?Why do we engage consultants?
• Resource shortage
• Focus on business area
• Managing operations
• Aggressive time line
• To fulfill a requirement
Lack of expertise

7. Why do we engage consultants?Why do we engage consultants?
• In-house voice not audible
• Sound travels faster (768 miles / hr)
• Message needs to be put across
• Better packaging
External VoiceExternal Voice

8. Why do we engage consultants?Why do we engage consultants?
• Wider experience
• Larger intellectual pool support
• Fresh perspective
• Targeted approach
Good Business
Practices

9. Why do we engage consultants?Why do we engage consultants?
Other reason(s)

10. Why OutsourceWhy Outsource
• Shift from CAPEX to OPEX model
• Focus on business processes
• Optimize operation support
• Reduce operational cost
• Difficult to hire all expertise resources
• Offload Application maintenance / development
• Offload non value add / routine activities
• Introduce best practices
• Business continuity
• Knowledge Management

11. OutsourcingOutsourcing
A way toA way to
– Achieve strategic goalsAchieve strategic goals
– Reduce costReduce cost
– Improve customer satisfactionImprove customer satisfaction
– Provide efficiencyProvide efficiency
– Achieve systemAchieve system
 SustainabilitySustainability
 ScalabilityScalability
 Demand ManagementDemand Management
 Capacity ManagementCapacity Management

12. IT – Typical scenarioIT – Typical scenario
B
usiness
IT
BudgetsResources
Other facts

13. IT resources vrs expectationsIT resources vrs expectations
IT resourcesIT resources WorkloadWorkload
Needed byNeeded by
yesterdayyesterday
outsourceImpact

14. Why outsourceWhy outsource
(External engagements)(External engagements)
Need for external servicesNeed for external services
TacticalTactical
StrategicStrategic
• Achieve strategic goals
• Reduce Cost
• Improve customer satisfaction
• Efficiency & effectiveness
• Scalability

15. Outsourcing modelsOutsourcing models
IT Operations
I
T
S
t
r
a
t
e
g
y
IT OperationsIT Operations
IT StrategyIT Strategy
IncrementalIncremental
OutsourcingOutsourcing
Full scale
Outsourcing
SemiSemi
SourcingSourcing

16. Outsource – to whom?Outsource – to whom?
VendorVendor PartnerPartner
Reliably supply
Lowest cost
Products
Takes risk and
Expand it’s
skills
• Do they work with competition?Do they work with competition?
• Cultural fit?Cultural fit?
• Domain expertiseDomain expertise
• Strategic directionStrategic direction
• Financial robustnessFinancial robustness
Global
Presence
Local

17. Vendor or Partner?Vendor or Partner?
Vendor Partner
Short term focus with
Custom Products &
Services.
Objective is to make money
only
Comprehensive sustained
Services delivery model with
Long term association and
Value addition
Associate with Partners for strategic assignmentsAssociate with Partners for strategic assignments

18. Working with PartnerWorking with Partner
• Scope of Work (SoW) should be well defined
• Well defined, structured and measurable SLA
• Rewards and Penalties be documented
• Don’t be afraid to praise
• Regular “non issue” communication
• Legally bind yet professionally friendly
partnership (as one team)
• Create “win-win” situations

19. ProtectionProtection
CorporateCorporate
DataData
IntellectualIntellectual
PropertyProperty
ResourcesResources
Non DisclosureNon Disclosure
AgreementAgreement
Non competeNon compete
AgreementAgreementDueDueDue
DiligenceDiligence

20. Golden RulesGolden Rules
Need to refer toNeed to refer to
Agreement is notAgreement is not
Positive signPositive sign
Once outsourced –Once outsourced –
Difficult to bring backDifficult to bring back

21. CLOSING THOUGHTSCLOSING THOUGHTS
(take home)(take home)
Information Technology (IT)Information Technology (IT)
The journey from “The journey from “TechnologyTechnology””
To “To “InformationInformation” is underway” is underway
We all are part of this InformationWe all are part of this Information
Revolution called InformationRevolution called Information
TechnologyTechnology
ThankThank youyou