Tuesday, July 7

Accelerating benefits from off/out sourcing

I was invited to speak at a conference by my friend, Amit Badani, a chap who is brilliantly connected and networked. Anyway, I thought of posting my bullets…

Accelerating the benefits of outsourcing: creating immediate impact and value addition whilst de-risking the outsourcing process


1. Acceleration of benefits realisation


  1. •Lift and dump – as is
  2. •Re-engineer and then migrate
  3. •Migrate and re-engineer
  4. •Re-engineer, migrate and then re-engineer
  5. •Continuous improvement


  1. •Size of the team
  2. •Type of and geographic spread of the function
  3. •Prior history
  4. •Cost constraints
  5. •Time constraints
  6. •Technology dependencies
  7. •Data dependencies
  8. •Service delivery dependencies
  9. •Risk Management
  10. •Quality, churn and availability of offshore resources
  11. •Legal constraints


2. Select Process for Immediate Impact

  • Internal complexity of process
  • Demographics of the offshore resource profile
    • –Type
    • –Number
    • –Qualifications
  • Clarity of benefits
    • –Monetary
    • –Quantitative
    • –Qualitative
  • The CIA rating of the process
    • –Confidentiality
    • –Integrity
    • –Availability
  • Links with other services ranging from technology, compliance, legal, operations, front office, etc.
  • Senior management pain points – what’s keeping them awake at night?


3. Value Addition over and above the identified benefits

Some processes which can be selected to provide benefits over and beyond normal labour arbitrage benefits.

  1. Automated reconciliation of data
  2. Netting processes
  3. Capital utilisation
  4. ABC analysis of profitability, sales, costs, resource usage, etc.
  5. Process standardisation
  6. Infrastructure standardisation relating to communications such as call centres and help desks, underlying technology infrastructure such as networks, servers, data storage, etc.
  7. Reduction of operational risk
  8. Automated capture of initiating transactions such as replacing paper with web forms or XML type of interactions
  9. Centres of excellence
  10. Process based organisational structure
  11. Revenue leakage
  12. Cost avoidance
  13. Productivity enhancements
  14. Volume absorption
  15. Service Catalogues

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