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
Models:
Constraints:
- •Size of the team
- •Type of and geographic spread of the function
- •Prior history
- •Cost constraints
- •Time constraints
- •Technology dependencies
- •Data dependencies
- •Service delivery dependencies
- •Risk Management
- •Quality, churn and availability of offshore resources
- •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.
- Automated reconciliation of data
- Netting processes
- Capital utilisation
- ABC analysis of profitability, sales, costs, resource usage, etc.
- Process standardisation
- Infrastructure standardisation relating to communications such as call centres and help desks, underlying technology infrastructure such as networks, servers, data storage, etc.
- Reduction of operational risk
- Automated capture of initiating transactions such as replacing paper with web forms or XML type of interactions
- Centres of excellence
- Process based organisational structure
- Revenue leakage
- Cost avoidance
- Productivity enhancements
- Volume absorption
- Service Catalogues
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