The document outlines a comprehensive course on outsourcing and its strategies, focusing on understanding demand-supply governance frameworks, and preparing for a sourcing governance foundation exam. It includes various topics such as supplier selection, financial cases, contract negotiations, and risks associated with outsourcing. In addition, it discusses the roles of trainers and coaches, and highlights the benefits and complexities involved in outsourcing processes.

1. TheAPMG-InternationalOBASHIandSwirlDevicelogoisatrademarkofTheAPMGroupLimited.
OBASHI®isaRegisteredTradeMarkintheUnitedKingdomandothercountries.

2. Start and finish Course style
LunchCoffee and breaks
M00 - Course introduction 2/7 | 2/185

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
M00 - Course introduction 3/7 | 3/185

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
M00 - Course introduction 4/7 | 4/185

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
M00 - Course introduction 5/7 | 5/185

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
SyllabusM00 - Course introduction 6/7 | 6/185

7. twitter.com/mirodabrowski
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miroslaw_dabrowski
www.miroslawdabrowski.com
Mirosław Dąbrowski
Agile Coach, Trainer, Consultant
(former JEE/PHP developer, UX/UI designer, BA/SA)
Creator Writer / Translator Trainer / Coach
• Creator of 50+ mind maps from PPM and related
topics (2mln views): miroslawdabrowski.com
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from PRINCE2, PRINCE2 Agile, MSP, MoP, P3O, ITIL,
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CISA, CISM, CRISC, CGEIT, TOGAF, COBIT5 etc.
• Creator of 50+ interactive mind maps from PPM
topics: mindmeister.com/users/channel/2757050
• Product Owner of biggest Polish project
management portal: 4PM: 4pm.pl (15.000+ views
each month)
• Editorial Board Member of Official PMI Poland
Chapter magazine: “Strefa PMI”: strefapmi.pl
• Official PRINCE2 Agile, AgilePM, ASL2, BiSL methods
translator for Polish language
• English speaking, international, independent
trainer and coach from multiple domains.
• Master Lead Trainer
• 11+ years in training and coaching / 15.000+ hours
• 100+ certifications
• 5000+ people trained and coached
• 25+ trainers trained and coached
linkedin.com/in/miroslawdabrowski
Agile Coach / Scrum Master PM / IT architect Notable clients
• 8+ years of experience with Agile projects as a
Scrum Master, Product Owner and Agile Coach
• Coached 25+ teams from Agile and Scrum
• Agile Coach coaching C-level executives
• Scrum Master facilitating multiple teams
experienced with UX/UI + Dev teams
• Experience multiple Agile methods
• Author of AgilePM/DSDM Project Health Check
Questionnaire (PHCQ) audit tool
• Dozens of mobile and ecommerce projects
• IT architect experienced in IT projects with budget
above 10mln PLN and timeline of 3+ years
• Experienced with (“traditional”) projects under high
security, audit and compliance requirements based
on ISO/EIC 27001
• 25+ web portal design and development and
mobile application projects with iterative,
incremental and adaptive approach
ABB, AGH, Aiton Caldwell, Asseco, Capgemini, Deutsche Bank,
Descom, Ericsson, Ericpol, Euler Hermes, General Electric,
Glencore, HP Global Business Center, Ideo, Infovide-Matrix,
Interia, Kemira, Lufthansa Systems, Media-Satrun Group,
Ministry of Defense (Poland), Ministry of Justice (Poland),
Nokia Siemens Networks, Oracle, Orange, Polish Air Force,
Proama, Roche, Sabre Holdings, Samsung Electronics, Sescom,
Scania, Sopra Steria, Sun Microsystems, Tauron Polish Energy,
Tieto, University of Wroclaw, UBS Service Centre, Volvo IT…
miroslawdabrowski.com/about-me/clients-and-references/
Accreditations/certifications (selected): CISA, CISM, CRISC, CASP, Security+, Project+, Network+, Server+, Approved
Trainer: (MoP, MSP, PRINCE2, PRINCE2 Agile, M_o_R, MoV, P3O, ITIL Expert, RESILIA), ASL2, BiSL, Change Management,
Facilitation, Managing Benefits, COBIT5, TOGAF 8/9L2, OBASHI, CAPM, PSM I, SDC, SMC, ESMC, SPOC, AEC, DSDM Atern,
DSDM Agile Professional, DSDM Agile Trainer-Coach, AgilePM, OCUP Advanced, SCWCD, SCBCD, SCDJWS, SCMAD, ZCE 5.0,
ZCE 5.3, MCT, MCP, MCITP, MCSE-S, MCSA-S, MCS, MCSA, ISTQB, IQBBA, REQB, CIW Web Design / Web Development /
Web Security Professional, Playing Lean Facilitator, DISC D3 Consultant, SDI Facilitator, Certified Trainer Apollo 13 ITSM
Simulation …
M00 - Course introduction 7/7 | 7/185

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
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12.  Ownership refers to the
level of ownership of the
people, processes, and
technologies used to do
the work that is assumed
by the service provider
 Risk refers to level of risk
assumed by the provider
for achieving the
customer’s intended
outcomes - conformance
to requirements,
operational outcomes,
or business outcomes
Levelofownership
People-processes-technologies
Level of risk
People - processes - technologies - level of risk
Outsourcing Fits Along a Continuum of
Business Relationships
©2008IAOP.AllRightsReserved.
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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.
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16. The overall outsourcing process has 5 stages and the end of each stage has a gate (go/no go
decision point) that the project must successfully pass through before entering the next stage.
©2008IAOP.AllRightsReserved.
IDEA
STAGE
ASSESSMENT
STAGE
IMPLEMEN-
TATION
STAGE
TRANSITION
STAGE
MANAGEMENT
STAGE
Series of gates
Question? Appropriate Real Deal Execute
Timeline? 3-6 months 6-18 months
Decision maker? POLICY POLICY & BUSINESS PROCESS
BUSINESS UNIT OWNER
UNIT
Operate
SET SET SETDecision criteria?
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17.  1.0 Idea Stage
 Which outsourcing opportunities are appropriate in support of the organization’s
business strategy?
 2.0 Assessment Stage
 With development of the business case and of the provider marketplace, are the
anticipated benefits, indeed, real?
 3.0 Implementation Stage
 Can we reach agreement on a deal with one of the providers?
 4.0 Transition Stage
 Can we execute successfully?
 5.0 Management Stage
 With the transition complete, are we ready to operate under the new
agreement?
 Are the benefits being realized?
©2008IAOP.AllRightsReserved.
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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
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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
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