The document discusses developing a successful outsourcing strategy with key steps including selecting a partner, running a pilot project, and managing the relationship. It emphasizes defining clear objectives, requirements, and metrics upfront; evaluating partners' skills, culture, and costs; using a pilot to validate the strategy and partner; and establishing service level agreements and governance processes to manage the outsourced relationship.

1. Outsourcing SuccessOutsource Partner Engagement and ManagementAlign, Transform and Optimize Business Solutions

2. AgendaOutsourcing StrategySelecting a PartnerSelecting a PilotManaging the RelationshipAlign, Transform and Optimize Business Solutions

3. Outsourcing StrategyAlign, Transform and Optimize Business SolutionsA successful strategy must take into account not only the appropriate activities to outsource, it must also take into account the internal requirements to make it successful!

4. Outsourcing StrategyClearly define the mission and objectives Clarify the requirements in selecting a partnerDefine internal staff considerationsDefine internal career path and objectivesBuild internal supportAlign, Transform and Optimize Business Solutions

5. Outsourcing StrategyUnderstand the business to effectively outsourceDevelop the business process diagrams and system diagrams Identify applications’ investment statusDisinvest – application to be decommissioned Maintain – Application to be maintained and enhancedInvest – Strategy in place to replace applicationAlign, Transform and Optimize Business Solutions

6. Outsourcing StrategyIn order to be successful the strategy must take into account both internal and external organization requirements.Internal organization must be aligned to take advantage of the outsourcing benefitsExternal organization must be aligned to minimize the outsourcing limitations Focus on delivering competitive advantage for the businessAlign, Transform and Optimize Business Solutions

7. Outsourcing StrategyDefine the internal organization capabilities and limitationsDevelop a career path for your internal staff that considers the strategic growth of the organizationPromote ‘value add’ activities Provide a clear direction Provide support and training Promote staff retention Align, Transform and Optimize Business Solutions

8. Outsourcing StrategyDevelop a delivery factory processIdentify resource capabilities and availabilityIdentify roles and responsibilities for both internal and partner resourcesSupports the application life cycle management Supports the career path defined in the strategyAlign, Transform and Optimize Business Solutions

9. Selecting a PartnerAlign, Transform and Optimize Business SolutionsThere are many considerations to take into account when selecting an outsourcing partner; from size, to skills, to culture. You must fit the outsourcing partner to your organization and strategy.

10. Selecting a Partner If all you’re paying for is someone’s time to build something and you make no consideration for productivity, quality, process, tools, expertise and culture, then that’s probably all you’ll get – a lot of time spent with very little to show for it!Align, Transform and Optimize Business Solutions

11. Selecting a PartnerFocus on your outsourcing mission and objectives defined in your strategyTotal cost of ownership is paramount in selecting an outsourcing partnerOnly the right partner will save you money in the long run Take the time for due diligence to ensure partner is stable and credibleAlign, Transform and Optimize Business Solutions

12. Selecting a PartnerFind the partner that fits your culture and will be responsive to your needsMatch the partner skills and specialties to your objectivesSize matters in this relationshipSelect a partner whose strengths compliment your limitationsBe aware of the partner’s cultureAlign, Transform and Optimize Business Solutions

13. Selecting a PartnerShould you utilize multiple partners?Pro’s -Take advantage of strengths of each partnerReduces risk of impact to business in case of partner failureCon’s –Reduces leverage with partnerIncreases management and coordination requirementsIncreased complication from methodologies and cultureValidate compatibility with pilotAlign, Transform and Optimize Business Solutions

14. Selecting a PilotAlign, Transform and Optimize Business SolutionsThe pilot project is critical to validating the partner, strategy and service levels.

15. Selecting a PilotIdentify opportunities for the partnership to be successfulFull project delivery that allows partner to own deliverablesOpportunities that can develop into a long term relationship based on successPartner to deliver objectives based on requirementsPartner then maintains applicationProvides cradle to grave supportAlign, Transform and Optimize Business Solutions

16. Selecting a PilotDefine pilot success metricsOn-time deliveryQuality of deliveryManagement overheadCostCulture fitMake final selection of partner(s) based on pre-determined metricsAlign, Transform and Optimize Business Solutions

17. Managing the RelationshipAlign, Transform and Optimize Business SolutionsA successful outsourcing relationship requires clear deliverables and service level expectations outlined in the contract. After developing the contractual requirements you must identify a process and methodology to manage these expectations.

18. Managing the RelationshipContract should foster a performance improvement cultureIdentify key performance metrics for contract service level agreementsDefine SLA review time periods including timely and reliable reporting based on SLA’sDefine partner support model with on-site support requirements clearly definedAlign, Transform and Optimize Business Solutions

19. Managing the RelationshipDefine problem management process to ensure issues are addressed to your satisfaction in a timely mannerIdentify internal key contacts to manage contract termsDevelop strategy for exit or transition to reduce the impact of partner acquisition or failureAlign, Transform and Optimize Business Solutions

20. Monarch Supply Chain ManagementMSCM is the logical choice!Contact us to discuss your needs.Tom Brouillettetbrouillette@monarchscm.com404-693-2334www.monarchscm.comMonarch Supply Chain Management, Inc.