Personally designed (content + graphics design), officially accredited Change Management Foundation courseware.
Trademarks are properties of the holders, who are not affiliated with courseware author.
2. Start and finish Course style
LunchCoffee and breaks
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3. The understand of Outsourcing and types of
outsourcing strategies
The understand Demand Supply Governance
Framework
The understand Demand Supply Organization
Prepare for Sourcing Governance Foundation
exam
Main goal
Attempt Foundation exam with confidence
Begin to apply the sourcing knowledge,
tailoring it to your own projects’ needs
Secondary goal
Benefits and value of Sourcing
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4. Please share with the class:
Your name and surname
Your organization
Your profession
Title, function, job responsibilities
Your familiarity with the project
management
Your experience with
sourcing/outsourcing
Your personal session expectations
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5. Foundation Exam
Paper based and closed book exam
Only pencil and eraser are allowed
Mix of simple and medium complex
questions
40 questions, pass mark is 28 (70%)
40 questions covering all 8 Modules
Only one answer is correct
1 hour exam
No negative points, no “Tricky Questions”
Sample, one (official) mock exam is
provided to you
Candidates completing an examination in a language that
is not their mother tongue, will receive additional time
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6. Handbook page
Sourcing Governance section code and title
IO Introduction to Outsourcing
PO Preparing for Outsourcing
SD Supplier Selection and Due Diligence
FP Developing the Outsourcing Financial Case and Pricing
CN Contracting and Negotiating for Outsourcing
TR Managing the Transition to an Outsourced Environment
DF Demand Supply Governance Framework
DO Design of a Demand Supply Organization
Module slide number / total module slides
Slide number /
total slides
Module number
and name
Sourcing Governance
handbook page
Sourcing Governance
syllabus section code
Sourcing Governance is defined in
IAOP® Outsourcing Professional
Body of Knowledge (OPBOK):
• 1st edition, 2010
• ISBN-13: 978-9087536138
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7. twitter.com/mirodabrowski
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miroslaw_dabrowski
www.miroslawdabrowski.com
Mirosław Dąbrowski
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(former JEE/PHP developer, UX/UI designer, BA/SA)
Creator Writer / Translator Trainer / Coach
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CISA, CISM, CRISC, CGEIT, TOGAF, COBIT5 etc.
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topics: mindmeister.com/users/channel/2757050
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management portal: 4PM: 4pm.pl (15.000+ views
each month)
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Chapter magazine: “Strefa PMI”: strefapmi.pl
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translator for Polish language
• English speaking, international, independent
trainer and coach from multiple domains.
• Master Lead Trainer
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linkedin.com/in/miroslawdabrowski
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experienced with UX/UI + Dev teams
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Questionnaire (PHCQ) audit tool
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above 10mln PLN and timeline of 3+ years
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security, audit and compliance requirements based
on ISO/EIC 27001
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Scania, Sopra Steria, Sun Microsystems, Tauron Polish Energy,
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Simulation …
M00 - Course introduction 7/7 | 7/185
8.
9. 1. Introduction to Outsourcing
2. Preparing to Outsource
3. Supplier Selection and Due Diligence
4. Developing the Outsourcing
Financial Case and Pricing
5. Contracting and Negotiation
6. Managing the Transition to an
Outsourced Environment
7. Demand Supply Governance
Framework
8. Design of a Demand Supply
Organization
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11. In an outsourcing relationship the service provider is responsible for:
Process
People
Technologies (hardware and software)
Responsibility for the results, not just for the resources, is what
differentiates outsourcing from more narrow and more traditional
supplier, supplemental staffing, and task-level contracting
M01 - Introduction to Outsourcing 4/22 | 11/185
13. Businesses outsource for different business reasons.
These terms are applied in a short hand to explain the principal reason behind
outsourcing:
Tactical outsourcing is when business outsources to achieve a single objective (generally cost savings)
and the transaction stands on its own merit.
Transitional outsourcing is when business outsources in order to migrate from current business
process environment to a new one and expects the outsourcer to support existing business process
until it is no longer required.
This is often used in the Information Technology area when replacing an existing application environment with
a new one.
Transformational outsourcing is to take advantage of innovation and new business models.
Transformational outsourcing is approached as a way to fundamentally reposition the organization in
its markets.
The term Business Transformational Outsourcing is also used to combine this idea with that of Business
process outsourcing.
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14. Benefits of Outsourcing:
Cost Reduction
Focus on core competences
Shorten time to market of new products and services
Access to specialized knowledge for innovation
Reduce Capital Expenditures and control costs
Improve quality of services
Innovation
Free executive time
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15. Shortening product lifecycles
Changes in the external business
environment that impact the customers
and their expectations
Competitors (who, where, etc.)
Macro- and industry-level financials,
technology, government actions (such as
regulation, deregulation, and laws)
Mergers, acquisitions, divestitures and
other structural changes in the industry
Historical sourcing decisions (the more
organizations currently outsource the
greater they tend to in the future);
Organization-level characteristics, such
as, industry, size, rate of growth; the use
of benchmarking, reengineering and
other improvement programs; the
decision-making structure of the
organization (centralized, decentralized);
how visible a particular function is;
The desire for management control; and
employee practices that may restrict or
encourage change
External drivers • Internal drivers
Finally, of course, sourcing decisions can only be made when there are, indeed, outside options to
be considered, that can demonstrate the ability to deliver high-quality, low-cost solutions.
M01 - Introduction to Outsourcing 8/22 | 15/185
18. Stage Implementation steps / Deliverables Decision Criteria
Idea
Develop Concept
Perform High Level Review of Operations
Identify corporate direction
Perform Situation Analysis & Identify
Outsourcing Opportunity
Get executive Sponsor
Assign Steering Comm.
Alignment with business strategy?
Core competency?
High level cost/benefit acceptable?
Acceptable risk?
Competitive advantage?
Legal, ethical, etc.?
Assessment
Analyze current processes & functions
Define proposed processes & functions
Define user needs
Perform risk analysis
Develop business case (with plan)
Acceptable business case?
Acceptable risk?
Implementation
Issue RFP
Finalize deal structure and terms
Develop and negotiate contract
Develop human resource and asset transfer plan
Communications Plan
Governance plan
Approved contract?
Transition
Detailed transition plan (with pilot)
Implement new organization structure
Transfer people, assets, functions and/or processes
Develop training plan
Approve pilot?
Approve transition plan?
Assess transition and fix issues as
necessary
Management
Perform daily management activities
Monitor performance
Implement relationship management process
Institute change management process
Governance and Metrics being met?
Renew, Expand, Disengage?
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19. Purpose of the Outsourcing Business Plan:
To provide a framework for organizing and providing the right information at the
right time in a way that is consistent and useable at the various levels of the
organization
Executive summary
Strategy
- Overall Strategy
- Business Requirements
- Strategic Choice
- Strategic Objectives
- Structural Model
- Contractual Model
- Provider Selection and/or Recommendations
- Risk & Risk Mitigation
Operations
- Division of functions, roles & responsibilities
- Transaction activities
- Division of assets and systems
- Management of day to day operations
- Management of the overall relationship
- Management of outsourcing contract performance
Human Resources
- Division of human resources
- Diagnostic of the client human resources needs
- Diagnostic of the provider human resources needs
Financials
- Financial baseline
- Incremental impact of transaction on the provider
- Provider’s valuation
- Management of the financial process
- Financial studies
Communications
- Client Organization Communication Plan - Provider Organization Communication Plan
- Customer Communication Plan - Regulatory, Government & Community Communication Plan
- Union Communication Plan
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20. Executive summary
Strategy
- Overall Strategy
- Business Requirements
- Strategic Choice
- Strategic Objectives
- Structural Model
- Contractual Model
- Provider Selection and/or Recommendations
- Risk & Risk Mitigation
Operations
- Division of functions, roles & responsibilities
- Transaction activities
- Division of assets and systems
- Management of day to day operations
- Management of the overall relationship
- Management of outsourcing contract performance
Human Resources
- Division of human resources
- Diagnostic of the client human resources needs
- Diagnostic of the provider human resources needs
Financials
- Financial baseline
- Incremental impact of transaction on the provider
- Provider’s valuation
- Management of the financial process
- Financial studies
Communications
- Client Organization Communication Plan - Provider Organization Communication Plan
- Customer Communication Plan - Regulatory, Government & Community Communication Plan
- Union Communication Plan
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21. Factors to be considered when assessing the organizational maturity
are:
Outsourcing competency
Strategic coalition
Customer impact
Sourcing capability
Process expertise
Governance style
Relationship
management
Level 1 - Initial Process
Level 5 - Optimized
Process
Level 4 - Managed Process
Level 3 - Organizational Standards
and Institutionalized Process
Level 2 - Structured Process and Standards
Ad Hoc
Process Control
Basic Knowledge
Process Improvement
Process Definition
M01 - Introduction to Outsourcing 14/22 | 21/185
22. Definition
Performing or sourcing any part of an organization’s activities at or from a
location outside the company’s home country
Often, the term “near shore” is used to acknowledge short distance away from
the home country
Offshoring can have two forms:
Captive – where company owns the processing
Outsourced – where another firm provides the processing
M01 - Introduction to Outsourcing 15/22 | 22/185
23. Onshore
Obtaining services from an external source in the home
country
Rural
Outsourcing
Variation of home country outsourcing where an
organization obtains the services of an external source in a
rural area (implies that the service is less expensive) in the
home country
Near-Shore
Outsourcing
Refers to contracting a company in a nearby country to your
home country, often one that shares a border (but not
always)
Offshore
Outsourcing
Refers to contracting with a company that is geographically
distant from your home country
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24. Maturity of an organization to manage a remote location (regardless
of distance)
Maturity of an organization to manage a location in a different
country / culture
Stability of the process, including documentation, performance
measures and reporting requirements
Ability to provide knowledge transfer to people processing remotely
Regulatory and legal constraints surrounding the process
Dependence and availability of technology infrastructure
Market availability of skills at offshore locations
Management views and concerns with the societal impact of
offshoring
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25. A Business that wishes to use a captive delivery center in an offshore
location can opt for the B-O-T model
A Business outsources the task of setting up a delivery center to a
local company - from building the infrastructure to initial staffing and
operating the center for a finite period - and then take over
responsibility
Benefits of this approach include:
Lower start-up risks
Reduction of set-up time
Lower balance sheet impact
Gain knowledge during first start-up period
Creating local market awareness
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26. Loss of control
Process too critical to be
outsourced
Loss of flexibility
Negative customer reaction
Employee resistance
Poor or ineffective outsourcing
process, performance metrics
and project management
Implement effective governance
policies, process and controls
Adequate training and
certification
Management commitment and
focus
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27. Best of
breed
Single
Provider
Ease of implementation
and governance
Economies of scale
Long term partnership
Dependency
Inferior service levels
Advantages
Drawbacks
Spread of risks
Competition
Best price/results ratio
Innovation
Governance complexity
M01 - Introduction to Outsourcing 20/22 | 27/185
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this presentation. If so,
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leave a comment
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