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Transformational outsourcing (Book Introduction)


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Companies outsource today to reduce cost, increase flexibility, and focus on core competence. Outsourcing is not a fad, but strategic lever organizations utilize to meet their planned objectives. Outsourcing led transformations have become a mechanism for generating economies of scale, specialization, and standardization. Let's face it most outsourcing initiatives fail to deliver the expected value. The wisdom isn't a secret - the companies succeeding in this journey invested in building the right competencies, proper governance, and support structures to manage these initiatives.

The Customer Centric Service Competency framework introduced in this book essentially brings forwards the service orientation and integrates outsourcing successfully with the usual business of an IT organization. The service framework encompasses thirty key competencies that can be implemented over the duration of outsourcing initiative. Implementation of the services framework will also bring together skills in areas of program management, service management, vendor management, and relationship management.

This book is sweeping and perhaps innovative - for it introduces an integrated view of core services and process centric competencies to succeed with outsourcing. It also brings forward a matured competency based method to managing vendor relationships - more art than science. The information contained in this book, when applied in context of your organization, will emerge several areas of efficiencies you may benefit by implementing.

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Transformational outsourcing (Book Introduction)

  1. 1. Transformational Outsourcing Maximize Value from IT OutsourcingA Services Approach to Manage IT Outsourcing Author: Sanjay Chadha
  2. 2. IT Departments are Transforming fast…… • The age of slow, steady success is over; we stand in era of transformation. • Rapid change is shifting IT objectives and business strategies. • CIO is under budget pressure to deliver services that can improve the gross margin of the company. • Focus is on getting better - Centralization, Consolidation, Elimination, Rationalization, Improvement, Standardization, Transformation, Revolution, Globalization themes are mainstream today. • IT and Business Integration is accelerating as companies look for speed, flexibility and better efficiencies. • Outsourcing continues to be one of the strategic lever for the CIO to deliver to business objectives. Outsourcing Will Continue to Gain Increasing Acceptance. Outsourcing Management is Emerging as a Key Differentiator.
  3. 3. Investments in Outsourcing Competencies is Critical….. Most Outsourcing Initiatives Fail to Deliver Expected Value • How do you maximize value and bring forward sustainable enterprise improvements from outsourcing initiatives? • How do you Integrate outsourcing with business of the organization? • How do you calibrate the pace of transformation while balancing your company culture, operating model and business objectives? • How do you assess the complexity and take a structured approach to achieving the outsourcing goals? • How do we maximize success and balance that with the Myth of Excellence. Creating a meaningful, sustainable and high value outsourcing impact will require enterprises to evolve matured outsourcing capabilities, services and processes. These would need to be extended to clients and providers.
  4. 4. Outsourcing Management can be run as a Service (OMAS)……• Outsourcing Management can be run as a service that integrates the core skills in area of Program Management, Service Management and Vendor Management.• Building outsourcing capabilities, Services and Processes is core to deriving the maximum value from outsourcing initiative. Evolving core capabilities and services will be critical to enable the vendors deliver to outsourcing objectives.
  5. 5. The Outsourcing Services Framework enables OMAS……. • Transformational Outsourcing shares an integrated view and roadmap of 30 capabilities, underlying services and processes, that organizations need to mature to maximize outsourcing value. A Flexible and Sustainable Framework that adapts with the pace and degree of transformational change needed.
  6. 6. Transformational Outsourcing is a must read for IT personnel • Innovative services based approach and practical insights into implementing outsourcing strategy, core capabilities and their strategic alignment with business. • Written for novice as well as experienced buyers and service providers. • Guides IT professionals to simplify application of outsourcing - improving accountability across outsourcing value chain, and improving benefits. • Provide easy to understand tools, techniques, and best practices to manage outsourcing programs and provider relationships. • Improve service focus for outsourcing programs by enhancing productivity, reliability, responsiveness, competency, and maturity. • Guide for providers to position themselves as trusted advisors.
  7. 7. About The Author Sanjay Chadha is an IT sourcing expert and currently manages the Global Sourcing Office and strategic offshore provider relationships for a large financial services company in Southern California, USA. In the past, Sanjay has also worked for leading service provider organizations in financial services, technology and healthcare industries. Sanjay has strong leadership experience in areas of IT Outsourcing (ITO) and Business Process Outsourcing (BPO). His expertise areas include planning and implementation of sourcing strategy, business case, governance, negotiation of complex contracts and set up and management of program office (PMO). Sanjay has led complex outsourcing transformations that required large-scale transition and optimization of steady state operations. He brings forward extensive hands-on experience with several capabilities required to manage outsourcing. He has a proven record of accomplishment of streamlining processes, reducing Total Cost of Ownership (TCO) and delivering superior outsourcing value and performance. Sanjay’s experience also includes set-up of vendor management offices, contingent workforce offices, vendor consolidation, and vendor transitions, in sourcing, domestic sourcing, expense management, purchasing, and leading vendor risk management audits. Sanjay is also an expert with leveraging outsourcing standards and frameworks in context of outsourcing needs. Sanjay received Masters of Science (Quantitative Analysis) and Masters in Business Administration (Marketing & Information Systems) degrees from University of Cincinnati, USA and a Bachelor of Engineering (Mechanical) degree from University of Rajasthan, India. Sanjay is a Certified Outsourcing Professional, COP, Certified ITIL Foundation and professional member of IAOP. He is also a regular columnist for the Outsource Magazine, a publication of EMP Plc, UK.