MindChips Consulting OE Delivery Performance
MindChips is an IT consulting firm that provides outsourcing advisory services to help clients reduce costs, improve project delivery, and make informed sourcing decisions. They assess outsourcing engagements to identify challenges, benchmark performance, and provide recommendations. Their approach involves collecting data through surveys, interviews, and analysis to deliver a report with performance ratings, an action plan, and governance practices to improve the outsourcing relationship.
MindChips Consulting OE Delivery Performance
- 1. Outsourcing Engagement - DeliveryPerformance Assessment
- 2. MindChips – Introduction MindChips • A leading Information Technology Consulting and Advisory Organization • Founded by passionate professionals with rich experience in Blue Chip companies like TCS, Infosys, Wipro, and EDS • Consultants Certified with Leading Industry Certifications like PMP, Lean, Six Sigma, and DDI Mission • Reduce Operational Cost and Improve Productivity • On-time and On-budget Projects • Timely and Right decision to Source in-house or Outsource MindChips Passion Transparency A Trusted Commitment Integrity Partner 2
- 3. Sourcing Advisory 1 Outsourcing Go/No Go Advisory 2 Organization IT Outsourcing Advisory 3 Large Project/Program Advisory 4 Outsourcing Governance 5 Outsourcing Effectiveness Index (OEI) Outsourcing Engagement (OE) Delivery 6 Performance 3
- 4. What you SeeVs What it Is ? 4
- 5. Are you Facingbelow Challenges with outsourcing? Cultural Alignment challenges for teams 15% Vendor does not cooperate with other… 19% Vendor tries to upsell new services 27% Lack of Vendor investment in customer… 29% Inflexibility regarding price model… 30% Inability of vendor or contract structure to… 36% Lack of innovation/continuous service… 38% Inconsistent or poor service quality 40% Cost savings are lower than expected 50% 0% 20% 40% 60% % Challenges in Outsourcing Ref: Gartner Inc. Research based on 942 North American and European IT services decision-makers 5
- 6. The Scary StatisticalTruth of Outsourcing How Can You Avoid These challenges While Benefiting Cultural Issues 21% From The Tremendous Advantages Of Outsourcing? 16% Intellectual Property Concerns 31% 24% Hiring Difficulty 56% 48% To From Communication Issues 53% 44% Quality Problem 37% 24% 0% 10% 20% 30% 40% 50% 60% Ref: Studies conducted by organizations like the Gartner Inc., Sand Hill Group, and the Software & Information Industry Association 6
- 7. How MindChips canHelp? • Provide unbiased health score on Engagement Performance • Optimize its outsourcing spend – Will help to reduce outsourcing cost by > 10 % for most engagements • Understand vendor operational strengths and areas of improvements • Alignment of vendor(s) operations with customers business and outsourcing objectives • Provide customer with the on-ground reality of vendor performance • Increase the success rate of projects 7
- 8. At what levelis your Sourcing Relationship? Level 3 Strategic Sourcing • Fully “bought-in” global delivery model • Improved customer alignment • SLA driven governance tied to program and business • Strategic partnership with few outcomes selected vendors • Workforce globalization a strategic imperative at top • Balanced scorecard and program management level level metrics for measuring • Collaborative co-existence of multiple sourcing models business value Level 2 Mature Sourcing • Managing outsourced projects/processes, not FTEs • Joint program and change management • Outcome based relationship office • SLA pilots in critical business areas • Collaborative project and budget planning • Vendor Focus from Tech to Domain • SLA based incentive system, not necessarily tied to business outcomes • Customer Staff trained offshore delivery processes Level 1 Tactical Global Sourcing • “Staff augmentation” approach for offshore resources • Cost reduction the primary driver • Managing FTEs, not projects • “Discretionary” decision making on offshoring • Organization change initiation for adjusting to Offshore Model • Ad-hoc requirements based staffing model Characteristics Results 8
- 9. OE Delivery PerformanceAssessment – Engagement Model Contract Management •Risk Management (Financial & Legal Exposures) Financial Management •Deal Structures / Contracts Operations Management • Clarity & Flexibility of Contract • Offshore Connectivity / Remote • SLAs • Resourcing Model Access Infrastructure • Critical Success Factors • Offshore Connectivity / Remote •Programme Funding and • Change Control Access Infrastructure Tracking • Issue Management • Data Security • Pricing • Sub-contracting • Disaster Recovery and Backup • Non-invoiced Services • Content Awareness • Delivery Process - leveraging • Cash flow Offshore Delivery Model • Revenue Recognition (POS & Cost Model • Program and Project Tracking) Engagement Management Practices • Dispute Reserves Maturity Model • Quality Assurance Relationship Mgmt & Governance Process & Innovation People / Organization • Sourcing Capability and • Transition Methodology • Retained Organization Model Governance • Steady-state Knowledge • Critical SMEs • Vendor Performance management Management • Training / re-skilling • Satisfaction and Referencability • Performance measurement • Metrics metrics • Client Acceptance • Level of Involvement and • Organization Readiness • Innovation Practices Governance • Executive Visibility and Relationship • Disputes 9
- 10. OE Delivery PerformanceAssessment - Approach Engage Identify Objectives Sponsor Collect Data via - Sponsorship - for the Announcement & Surveys, Workbook Scope, timelines & Assessment Kickoff Meeting. s, Discussion etc. Participants Analyze Data to Deploy On-site Conduct Interviews Perform Data Identify Potential Assessment Team with Key Analysis and Issues & Exposures Resources Validate Develop Issue Publish Outsourcing Resolution & Deliver Findings & Conduct Periodic Engagement Corrective Action Reviews to measure Performance Index Recommendations Effectiveness Recommendations Governance & Periodic Reviews 10
- 11. OE Delivery PerformanceAssessment – Post Assessment Process Prioritize Corrective Develop High- Engage Obtain Buy-in for Actions/ Level Tactical Corrective Action Recommendations High-Level Plan Team Resolution Plan Identify Implement to Determine Develop Detailed Deliverables and Schedule Resource Needs Project Schedule Success Criteria Monitor and Closure Report Progress Governance & Periodic Reviews to Assess Effectiveness 11
- 12. OE Delivery PerformanceAssessment - Deliverables • Executive Summary -Summarized Assessment Conclusion -Outsourcing Engagement Delivery Performance Index -Outsourcing Engagement Delivery Performance Metrics -OE Delivery Performance – Application Risk Index -Engagement SWOT -Top Risks, Issues -Key best practices -Summarized findings and recommendations for improvement by assessment discipline • Detailed Findings & Recommendations • Proposed Corrective Action Plan and Schedule 12
- 13. OE Delivery PerformanceIndex ILLUSRATIVE Performance Measures Contract Management Operations Management People/Organization Relationship Mgmt & Governance Process & Innovation Excellent Financial Management All Performance Measures Optimistic with below rating Excellent All Performance Measures with below ratings Neutral Good Excellent One of more Performance Measures with below ratings Average At Risk Good Excellent All Performance Measures with below ratings Below Average Poor 13
- 14. OE Delivery PerformanceMetrics ILLUSRATIVE Contract Management Engagement Ratings 3 Financial Management 2 Operations Management 1 0 Process & Innovation People / Organization Relationship Mgmt & Governance 14
- 15. OE Delivery Performance– Application Risk Index ILLUSRATIVE 4/0 •A3 •A1 •A4 3 •A2 2 •A5 •A6 High Business Criticality Low 2 15 8 February 2011
- 16. Improvement Prioritization Metrics Business Priority Performance Rating Not Low Medium High Critical Important Priority Priority Priority Poor Below Average Average Good Excellent 16 8 February 2011
- 17. MindChips Profile • Team with strong and widespread Consulting Experience in various areas: • Outsourcing Conceptualization to Steady State Operations • Assessment of Large IT Engagements • IT Transformational Programs for Global Clients Profile • Large Multi-Year and Multi-Geography Program Management • Designing Executive Dashboards for Fortune 500 Clients • Use of Best Practices and Industry Standards • Organizational Change Management for Strategic Initiatives • Assessment and Certification in BS 20000 and Organization Security Audits
- 18. Contact MindChips Office Address MindChips Consulting Pvt Ltd 2nd Floor, Butte Patil Plaza, Erandwane, Pune– 411004 Telephone: +91-88059 89020/1/2 Email: info@mindchips.com Website: http://www.mindchips.com 18
- 19. Thank You © 2010MindChips The information contained herein is subject to change without notice.