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Developing the Retained Organization Presented by the International Association of Outsourcing Professionals The 2008 Outsourcing World Summit February 18-20, 2008 | Orlando, Florida
Featured Speaker Mark Peacock Principal Chicago, IL (312) 325-2920 [email_address] ,[object Object],[object Object],[object Object],[object Object]
Introduction ,[object Object],[object Object],[object Object],[object Object],Sources: 1  Duke University Offshore Research Network,  2007 Service Provider Survey Debriefing Workshop , 22 Oct 2007 2  AberdeenGroup,  Business Value of IT Outsourcing , Jul 2006
Leading companies are designing their retained organizations earlier in the process Decision to Outsource RFP and Vendor Selection Contract Negotiations Transition to Vendor Select Activities to Outsource RFP and Vendor Selection Contract Negotiations Transition to Vendor Design New Service Model Traditional Model: Emerging Model: Design and Implement  Retained Organization Design Retained  Organization Implement Retained  Organization
The Emerging Model benefits from up-front retained organization design ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Decisions in  Service Model Design  provide the requirements for retained organization design Select Activities to Outsource Design New Service Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Drive
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Operating Principles begin the Retained Organization design process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Delivery Model drives the responsibilities for the Retained Organization and the Outsourcer(s) In this IT example, the industry-standard ITIL framework was used to structure the Delivery Model ITIL – Information Technology Infrastructure Library
Responsibilities are mapped to roles and an initial retained organization structure Functional  Leader Supplier Management Operations Manager Process Manager Customer Relationship Manager(s) IT Manager ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Responsibilities
Required retained capabilities are organized into a Competency Framework Sample Competency Framework and Profile:
Detailed Role Profiles clearly identify key responsibilities and competency prerequisites  Operational Process Responsibilities Organizational Interface Responsibilities Competency/Skill Requirements
Retained personnel need to make large changes to be successful in the new environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Retain both current  and  future leaders; eliminate not shift problems over to the Outsourcer(s) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Consideration ,[object Object],[object Object],[object Object],Do I have someone that knows how to manage a contract? ,[object Object],[object Object],Who are the poor performers? ,[object Object],[object Object],[object Object],Who are my future leaders? ,[object Object],[object Object],[object Object],Who are the current leaders I need to retain? Skills To Look For Question
Adjustments will be made to the retained organization design as part of Implementation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Summary/Final Words ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Developing Retained Organization to Support Outsourcing

  • 1. Developing the Retained Organization Presented by the International Association of Outsourcing Professionals The 2008 Outsourcing World Summit February 18-20, 2008 | Orlando, Florida
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  • 4. Leading companies are designing their retained organizations earlier in the process Decision to Outsource RFP and Vendor Selection Contract Negotiations Transition to Vendor Select Activities to Outsource RFP and Vendor Selection Contract Negotiations Transition to Vendor Design New Service Model Traditional Model: Emerging Model: Design and Implement Retained Organization Design Retained Organization Implement Retained Organization
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  • 8. Delivery Model drives the responsibilities for the Retained Organization and the Outsourcer(s) In this IT example, the industry-standard ITIL framework was used to structure the Delivery Model ITIL – Information Technology Infrastructure Library
  • 9.
  • 10. Required retained capabilities are organized into a Competency Framework Sample Competency Framework and Profile:
  • 11. Detailed Role Profiles clearly identify key responsibilities and competency prerequisites Operational Process Responsibilities Organizational Interface Responsibilities Competency/Skill Requirements
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