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OUTSOURCING AND OFFSHORING PROCESSES
ENERY/UTILITIES (O&G)

STEVE SUGULAS


       1       2       3       4      5       6

Analysis & Planning

• By collating portfolio information, the business can assess and possibly optimize the
Enterprise portfolio prior to undertaking the outsourcing initiative. This portfolio analysis
will also aid in identifying suitable outsourcing partners and the services that may be
leveraged.

• Once the outsourcing partners have been selected, the necessary infrastructure must be
established to facilitate global delivery.

• Establishing a governance framework should include the formation of a partner's
management group to provide effective communication channels.

• After the transformation program is finalized and a clear understanding of the scope,
transition and post-transition phases has been established, a small pilot program will
serve to test and fine-tune the model.

       1       2       3       4      5       6

Execution

• To ensure successful execution, KPIs should be established for Group Managers.
Wherever possible, these should be aligned with existing KPIs, rather than creating
additional responsibilities.

• The actual transition to an offshore model results in a gradual ‘ramp-down' of the
incumbent team and a corresponding ‘ramp-up' of the new outsourcing vendor's team.

• Outsourcing provides the opportunity for the business to strengthen in areas of core
competency and employees should be redeployed to core business activities or
transformation initiatives.

       1       2       3       4      5       6

Review & Feedback
An ongoing regime of reviews, metrics and feedback establishes a ‘check-and-balance'
mechanism, providing alignment with the overall transformation goals and enabling
revaluation of the ‘go/no-go' decision process.

Reviews/satisfaction surveys across the organization provide valuable feedback regarding
the progress of the initiative on all relevant parameters.

       1       2       3      4       5       6

Continuous Improvement

Once ‘steady state' for the program has been achieved, the organization can begin to:
• Accelerate the transformation strategy to ensure business – technology alignment; and
• Leverage outsourcing partners for thought leadership and transformation initiatives.
• Adopting an offshore outsourcing model should be about more than seeking cost
reductions, it should establish a framework to drive continuous improvement.
• Actions to deliver continuous improvement include:
• Collaborating with outsourcing partners to deliver more value though innovation;
• Implementing a gain/share model in certain transformation initiatives;
• Ensuring an optimum mix of internal and outsourcing partner resources in the
transformation programs

       1       2       3      4       5       6

Change Management & Governance

Any outsourcing initiative requires a mature and robust change management and
governance framework to manage the complexities of a large business change program.

This framework should include:

• A change management strategy for internal and external stakeholders;

• Evaluation of the impact on internal and external staff, contractors and the incumbent
vendors in developing the transition plan (redeployment, redundancy, release);

• Development of new organization structure, based on the new sourcing model; and

• Provision of intended technology direction to outsourcing partners to ensure alignment
for future transformation activities.

Different parts of a project (or kinds of work) may be suited to onsite, near-shore or
offshore locations.

Services
Locations


Strategy and Roadmap definition


Development & Integration


Systems Integration & Package Implementation


ITO, BPO, & AMO

On Site


Client interaction, Interviews, Reviews, Program Leadership, & Goal-Setting


Architecture, Requirements, Change Mgmt, & Implementation


Client Interaction, Process Mapping, Solution Definition, Architecture, Change &
Program Mgmt


First-level support, Facilities support, & Program Mgmt

Near-site Locations


Analysis and synthesis


Requirements analysis, High level Design, & Prototype building, & Implementation
support


Prototype Building, High Level Design, & Implementation Support


Near-site support centers, Service Redundancy

Offshore Locations
Background research, thought leadership, & information support.


Detailed design,
Code Development, Testing & Integration


Custom Components, Integration Interfaces, & Reports Building


Large Offshore Centers, Core Service Delivery

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The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 

1 aa stevesugulas_oil_gas_utility_white paper

  • 1. OUTSOURCING AND OFFSHORING PROCESSES ENERY/UTILITIES (O&G) STEVE SUGULAS 1 2 3 4 5 6 Analysis & Planning • By collating portfolio information, the business can assess and possibly optimize the Enterprise portfolio prior to undertaking the outsourcing initiative. This portfolio analysis will also aid in identifying suitable outsourcing partners and the services that may be leveraged. • Once the outsourcing partners have been selected, the necessary infrastructure must be established to facilitate global delivery. • Establishing a governance framework should include the formation of a partner's management group to provide effective communication channels. • After the transformation program is finalized and a clear understanding of the scope, transition and post-transition phases has been established, a small pilot program will serve to test and fine-tune the model. 1 2 3 4 5 6 Execution • To ensure successful execution, KPIs should be established for Group Managers. Wherever possible, these should be aligned with existing KPIs, rather than creating additional responsibilities. • The actual transition to an offshore model results in a gradual ‘ramp-down' of the incumbent team and a corresponding ‘ramp-up' of the new outsourcing vendor's team. • Outsourcing provides the opportunity for the business to strengthen in areas of core competency and employees should be redeployed to core business activities or transformation initiatives. 1 2 3 4 5 6 Review & Feedback
  • 2. An ongoing regime of reviews, metrics and feedback establishes a ‘check-and-balance' mechanism, providing alignment with the overall transformation goals and enabling revaluation of the ‘go/no-go' decision process. Reviews/satisfaction surveys across the organization provide valuable feedback regarding the progress of the initiative on all relevant parameters. 1 2 3 4 5 6 Continuous Improvement Once ‘steady state' for the program has been achieved, the organization can begin to: • Accelerate the transformation strategy to ensure business – technology alignment; and • Leverage outsourcing partners for thought leadership and transformation initiatives. • Adopting an offshore outsourcing model should be about more than seeking cost reductions, it should establish a framework to drive continuous improvement. • Actions to deliver continuous improvement include: • Collaborating with outsourcing partners to deliver more value though innovation; • Implementing a gain/share model in certain transformation initiatives; • Ensuring an optimum mix of internal and outsourcing partner resources in the transformation programs 1 2 3 4 5 6 Change Management & Governance Any outsourcing initiative requires a mature and robust change management and governance framework to manage the complexities of a large business change program. This framework should include: • A change management strategy for internal and external stakeholders; • Evaluation of the impact on internal and external staff, contractors and the incumbent vendors in developing the transition plan (redeployment, redundancy, release); • Development of new organization structure, based on the new sourcing model; and • Provision of intended technology direction to outsourcing partners to ensure alignment for future transformation activities. Different parts of a project (or kinds of work) may be suited to onsite, near-shore or offshore locations. Services
  • 3. Locations Strategy and Roadmap definition Development & Integration Systems Integration & Package Implementation ITO, BPO, & AMO On Site Client interaction, Interviews, Reviews, Program Leadership, & Goal-Setting Architecture, Requirements, Change Mgmt, & Implementation Client Interaction, Process Mapping, Solution Definition, Architecture, Change & Program Mgmt First-level support, Facilities support, & Program Mgmt Near-site Locations Analysis and synthesis Requirements analysis, High level Design, & Prototype building, & Implementation support Prototype Building, High Level Design, & Implementation Support Near-site support centers, Service Redundancy Offshore Locations
  • 4. Background research, thought leadership, & information support. Detailed design, Code Development, Testing & Integration Custom Components, Integration Interfaces, & Reports Building Large Offshore Centers, Core Service Delivery